S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2360

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced by M. of A. V. LOPEZ, COOK, DINOWITZ -- Multi-Sponsored by --
  M.  of  A. BRENNAN, CLARK, GLICK, JACOBS, MAYERSOHN, PHEFFER, PRETLOW,
  WRIGHT -- read once and referred to the Committee on Housing

AN ACT to amend the general business law, in relation to  conversion  of
  residential  property to cooperative or condominium ownership; expand-
  ing provisions applicable in Nassau, Westchester and Rockland counties
  to other cities, towns and villages located outside the  city  of  New
  York;  raising  percentage needed to declare non-eviction plans effec-
  tive and delineating tenant's exclusive right to  purchase;  providing
  for  establishment of certain reserve funds; and changing the computa-
  tion of excessive vacancies which prevents conversion

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Legislative findings and declaration of intent. The legis-
lature hereby finds that additional protections are needed in  the  laws
governing  the conversion of rental housing to cooperative and condomin-
ium ownership in order to: protect tenants  in  possession  who  do  not
desire  or  who are unable to afford to purchase their units from unrea-
sonable rent increases and imminent eviction during the conversion proc-
ess; insure that scarce rental housing units are not  deliberately  held
off  the  market in preparation for such conversions at a time when many
areas of the state are experiencing a critical  shortage  of  affordable
rental  housing; insure that housing converted to cooperative and condo-
minium ownership is managed with a degree of participation  and  control
by  cooperators  and  individual  condominium  owners  who live in their
buildings; and require that residents of buildings undergoing conversion
are notified of all outstanding code violations and that funds  are  set
aside  in  such  buildings  for  the  purpose of making capital repairs,
replacements  and  improvements.  The  legislature  declares  that   the
provisions  of  this  act  are intended to accomplish these purposes, to
insure that the conversion of rental housing to cooperative  and  condo-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05740-01-9
              

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minium  ownership  will  be carried out in a way which protects non-pur-
chasing tenants, cooperators and condominium  owners,  and  the  general
public,  and  to  prevent profiteering, speculation and other disruptive
practices which threaten the public health, safety and general welfare.
  S  2. Subdivision 7 of section 352-eee of the general business law, as
added by chapter 402 of the laws of 1983, is amended to read as follows:
  7. The provisions of this section shall  only  be  applicable  in  the
cities, towns and villages located [in the counties of Nassau, Westches-
ter  and  Rockland]  OUTSIDE  THE  CITY  OF NEW YORK which by resolution
adopted by the respective local legislative body of such city,  town  or
village, elect that the provisions hereof shall be applicable therein. A
certified  copy  of  such resolution shall be filed in the office of the
attorney general at Albany and shall become effective  on  the  date  of
such filing.
  S  3. Paragraph (b) of subdivision 1 of section 352-eee of the general
business law, as added by chapter 402 of the laws of 1983, is amended to
read as follows:
  (b) "Non-eviction plan". A plan which may not  be  declared  effective
until  at least [fifteen] TWENTY-FIVE percent of those bona fide tenants
in occupancy of all dwelling units in the building or group of buildings
or development on the date the plan [is declared effective] WAS ACCEPTED
FOR FILING BY THE ATTORNEY GENERAL shall  have  executed  and  delivered
written  agreements  to purchase under the plan[. As to tenants who were
in occupancy on the date a letter was issued  by  the  attorney  general
accepting  the plan for filing, the purchase agreement shall be executed
and delivered] pursuant to an offering made in good faith without  fraud
and WITH NO discriminatory repurchase agreements or other discriminatory
inducements.
  S  4.  Subparagraph  (i)  of paragraph (c) of subdivision 2 of section
352-eee of the general business law, as added by chapter 402 of the laws
of 1983, is amended to read as follows:
  (i) The plan may not be declared effective until  at  least  [fifteen]
TWENTY-FIVE  percent  of  those  bona  fide  tenants in occupancy of all
dwelling units in the building or group of buildings or  development  on
the date the plan [is declared effective] WAS ACCEPTED FOR FILING BY THE
ATTORNEY GENERAL shall have executed and delivered written agreements to
purchase  under  the  plan[.  As to tenants who were in occupancy on the
date a letter was issued by the attorney general accepting the plan  for
filing, the purchase agreement shall be executed and delivered] pursuant
to  an offering made in good faith without fraud and WITH NO discrimina-
tory repurchase agreements or other discriminatory inducements.
  S 5. Paragraph (c) of subdivision 2 of section 352-eee of the  general
business  law  is amended by adding a new subparagraph (viii) to read as
follows:
  (VIII) THE TENANTS IN OCCUPANCY  ON  THE  DATE  THE  ATTORNEY  GENERAL
ACCEPTS  THE  PLAN FOR FILING SHALL HAVE THE EXCLUSIVE RIGHT TO PURCHASE
THEIR DWELLING UNITS OR THE SHARES ALLOCATED  THERETO  FOR  NINETY  DAYS
AFTER  THE  PLAN  IS  ACCEPTED  FOR  FILING  BY THE ATTORNEY GENERAL AND
PRESENTED TO THE TENANTS, DURING WHICH TIME  A  TENANT'S  DWELLING  UNIT
SHALL  NOT  BE  SHOWN TO A THIRD PARTY UNLESS HE OR SHE HAS, IN WRITING,
WAIVED HIS OR HER RIGHT TO PURCHASE; SUBSEQUENT  TO  THE  EXPIRATION  OF
SUCH NINETY DAY PERIOD, A TENANT IN OCCUPANCY OF A DWELLING UNIT WHO HAS
NOT PURCHASED SHALL BE GIVEN THE EXCLUSIVE RIGHT FOR AN ADDITIONAL PERI-
OD  OF  SIX  MONTHS  FROM SAID EXPIRATION DATE TO PURCHASE SAID DWELLING
UNIT OR THE SHARES ALLOCATED THERETO ON THE SAME TERMS AND CONDITIONS AS
ARE CONTAINED IN AN  EXECUTED  CONTRACT  TO  PURCHASE,  SUBJECT  TO  THE

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PROVISIONS  OF THIS PARAGRAPH, SAID DWELLING UNIT OR SHARES ENTERED INTO
BY A BONA FIDE PURCHASER, SUCH EXCLUSIVE RIGHT TO BE EXERCISABLE  WITHIN
FIFTEEN  DAYS  FROM  THE DATE OF MAILING BY REGISTERED MAIL OF NOTICE OF
THE  EXECUTION  OF  A  CONTRACT  OF  SALE  TOGETHER  WITH A COPY OF SAID
EXECUTED CONTRACT TO SAID TENANT.
  S 6. Paragraph (b) of subdivision 1 of section 352-eeee of the general
business law, as added by chapter 555 of the laws of 1982, is amended to
read as follows:
  (b) "Non-eviction plan". A plan which may not  be  declared  effective
until [written purchase agreements have been executed and delivered for]
at least [fifteen] TWENTY-FIVE percent of THE BONA FIDE TENANTS IN OCCU-
PANCY  OF  all  dwelling  units in the building or group of buildings or
development [by bona fide tenants in occupancy or bona  fide  purchasers
who represent that they intend that they or one or more members of their
immediate family intend to occupy the unit when it becomes vacant. As to
tenants  who  were  in  occupancy on the date a letter was issued by the
attorney general accepting the plan for filing, the  purchase  agreement
shall  be  executed and delivered] ON THE DATE THE OFFERING STATEMENT OR
PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY  GENERAL  SHALL  HAVE
EXECUTED  AND  DELIVERED  WRITTEN  AGREEMENTS TO PURCHASE UNDER THE PLAN
pursuant to an offering made in good faith without  fraud  and  WITH  NO
discriminatory  repurchase  agreements  or  other discriminatory induce-
ments.
  S 7. Subparagraph (i) of paragraph (c) of  subdivision  2  of  section
352-eeee  of  the  general  business law, as added by chapter 555 of the
laws of 1982, is amended to read as follows:
  (i) The plan may not be declared  effective  until  [written  purchase
agreements  have  been  executed  and  delivered for] at least [fifteen]
TWENTY-FIVE percent of THE BONA FIDE TENANTS IN OCCUPANCY OF all  dwell-
ing  units  in  the  building  or  group  of  buildings  or  development
[subscribed for by bona fide tenants in occupancy or bona fide  purchas-
ers  who  represent that they intend that they or one or more members of
their immediate family occupy the dwelling unit when it becomes  vacant.
As  to  tenants who were in occupancy on the date a letter was issued by
the attorney general accepting the plan for filing, the purchase  agree-
ment shall be executed and delivered] ON THE DATE THE OFFERING STATEMENT
OR PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
EXECUTED  AND  DELIVERED  WRITTEN  AGREEMENTS TO PURCHASE UNDER THE PLAN
pursuant to an offering made IN GOOD FAITH without  FRAUD  AND  WITH  NO
discriminatory  repurchase  agreements  or  other discriminatory induce-
ments.
  S 8. Paragraph (c) of subdivision 2 of section 352-eeee of the general
business law is amended by adding a new subparagraph (viii) to  read  as
follows:
  (VIII)  THE  TENANTS  IN  OCCUPANCY  ON  THE DATE THE ATTORNEY GENERAL
ACCEPTS THE PLAN FOR FILING SHALL HAVE THE EXCLUSIVE RIGHT  TO  PURCHASE
THEIR  DWELLING  UNITS  OR  THE SHARES ALLOCATED THERETO FOR NINETY DAYS
AFTER THE PLAN IS ACCEPTED  FOR  FILING  BY  THE  ATTORNEY  GENERAL  AND
PRESENTED  TO  THE  TENANTS,  DURING WHICH TIME A TENANT'S DWELLING UNIT
SHALL NOT BE SHOWN TO A THIRD PARTY UNLESS HE OR SHE  HAS,  IN  WRITING,
WAIVED  HIS  OR  HER  RIGHT TO PURCHASE; SUBSEQUENT TO THE EXPIRATION OF
SUCH NINETY DAY PERIOD, A TENANT IN OCCUPANCY OF A DWELLING UNIT WHO HAS
NOT PURCHASED SHALL BE GIVEN THE EXCLUSIVE RIGHT FOR AN ADDITIONAL PERI-
OD OF SIX MONTHS FROM SAID EXPIRATION DATE  TO  PURCHASE  SAID  DWELLING
UNIT OR THE SHARES ALLOCATED THERETO ON THE SAME TERMS AND CONDITIONS AS
ARE  CONTAINED IN AN EXECUTED CONTRACT TO PURCHASE SAID DWELLING UNIT OR

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SHARES ENTERED INTO BY A BONA FIDE PURCHASER, SUCH EXCLUSIVE RIGHT TO BE
EXERCISABLE WITHIN FIFTEEN DAYS FROM THE DATE OF MAILING  BY  REGISTERED
MAIL  OF  NOTICE  OF THE EXECUTION OF A CONTRACT OF SALE TOGETHER WITH A
COPY OF SAID EXECUTED CONTRACT TO SAID TENANT.
  S  9.  Subdivision 2 of section 352-eee of the general business law is
amended by adding a new paragraph (g) to read as follows:
  (G) THE PLAN PROVIDES THAT WITHIN THIRTY DAYS AFTER THE CLOSING  OF  A
CONVERSION  PURSUANT  TO  THIS  SECTION, THE OFFEROR SHALL ESTABLISH AND
TRANSFER TO THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD  OF  MANAG-
ERS,  A  RESERVE FUND TO BE USED EXCLUSIVELY FOR MAKING CAPITAL REPAIRS,
REPLACEMENTS AND IMPROVEMENTS NECESSARY FOR THE HEALTH AND SAFETY OF THE
RESIDENTS OF THE BUILDING OR GROUP OF BUILDINGS OR  DEVELOPMENT.    SUCH
RESERVE  FUND  SHALL  BE  EXCLUSIVE  OF  ANY  OTHER FUNDS REQUIRED TO BE
RESERVED UNDER THE PLAN OR APPLICABLE LAW OR REGULATION OF THE  ATTORNEY
GENERAL,  EXCEPT  A  FUND FOR CAPITAL REPAIRS, REPLACEMENTS AND IMPROVE-
MENTS SUBSTANTIALLY SIMILAR IN PURPOSE TO AND IN AN AMOUNT NOT LESS THAN
THE RESERVE FUND MANDATED BY THIS  PARAGRAPH.  SUCH  RESERVE  FUND  ALSO
SHALL  BE EXCLUSIVE OF ANY WORKING CAPITAL FUND AND SHALL NOT BE SUBJECT
TO REDUCTION FOR CLOSING APPORTIONMENTS.
  AS USED IN THIS PARAGRAPH, "CAPITAL REPLACEMENT" SHALL MEAN  A  BUILD-
ING-WIDE  REPLACEMENT  OF A MAJOR COMPONENT OF THE HEATING, VENTILATION,
AIR CONDITIONING, PLUMBING, WIRING, ELEVATOR  OR  WINDOW  SYSTEM,  OR  A
MAJOR  STRUCTURAL  REPLACEMENT  TO  THE BUILDING; PROVIDED HOWEVER, THAT
REPLACEMENTS MADE TO  CURE  CODE  VIOLATIONS  OF  RECORD  SHALL  NOT  BE
INCLUDED.  "TOTAL PRICE" SHALL MEAN, WITH RESPECT TO COOPERATIVE CONVER-
SIONS,  THE  NUMBER OF ALL SHARES IN THE OFFERING MULTIPLIED BY THE LAST
PRICE PER SHARE WHICH WAS OFFERED TO TENANTS IN OCCUPANCY PRIOR  TO  THE
EFFECTIVE DATE OF THE PLAN REGARDLESS OF NUMBER OF SALES MADE; AND SHALL
MEAN,  WITH  RESPECT  TO CONDOMINIUM CONVERSIONS, THE SUM OF THE COST OF
ALL UNITS IN THE OFFERING AT THE LAST PRICE WHICH WAS OFFERED TO TENANTS
IN OCCUPANCY PRIOR TO THE EFFECTIVE  DATE  OF  THE  PLAN  REGARDLESS  OF
NUMBER OF SALES MADE.
  (I)  SUCH FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO EITHER THREE
PERCENT OF THE TOTAL PRICE OR, THREE PERCENT OF THE ACTUAL  SALES  PRICE
OF  ALL  COOPERATIVE  SHARES OR CONDOMINIUM UNITS SOLD BY THE OFFEROR AT
THE TIME THE PLAN IS DECLARED EFFECTIVE, PROVIDED, HOWEVER, THAT IF SUCH
AMOUNT IS LESS THAN ONE PERCENT OF THE TOTAL PRICE, THEN THE FUND  SHALL
BE  ESTABLISHED  AS  A  MINIMUM  OF ONE PERCENT OF THE TOTAL PRICE; PLUS
SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE OFFEROR AT A RATE OF  THREE
PERCENT  OF  THE ACTUAL SALES PRICE OF COOPERATIVE SHARES OR CONDOMINIUM
UNITS FOR EACH UNIT OR ITS ALLOCABLE SHARES HELD BY THE OFFEROR AND SOLD
TO BONA FIDE PURCHASERS SUBSEQUENT TO THE EFFECTIVE DATE OF THE PLAN AND
WITHIN FIVE YEARS OF THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN
NOTWITHSTANDING THAT THE  TOTAL  AMOUNT  CONTRIBUTED  MAY  EXCEED  THREE
PERCENT  OF  THE  TOTAL PRICE; AND PROVIDED, FURTHER, THAT IF FIVE YEARS
FROM THIRTY DAYS AFTER THE CLOSING OF THE CONVERSION  PURSUANT  TO  SUCH
PLAN  THE  TOTAL  CONTRIBUTIONS BY THE OFFEROR TO THE FUND ARE LESS THAN
THREE PERCENT OF THE TOTAL PRICE THE OFFEROR SHALL  PAY  THE  DIFFERENCE
BETWEEN  THE  AMOUNT  CONTRIBUTED  AND THREE PERCENT OF THE TOTAL PRICE.
SUPPLEMENTAL CONTRIBUTIONS SHALL BE MADE  WITHIN  THIRTY  DAYS  OF  EACH
SALE.
  (II)  THE  CONTRIBUTIONS REQUIRED PURSUANT TO THIS SECTION MAY BE MADE
EARLIER OR IN AN AMOUNT GREATER THAN SO PROVIDED. AN OFFEROR  MAY  CLAIM
AND  RECEIVE  CREDIT  AGAINST  THE MANDATORY INITIAL CONTRIBUTION TO THE
RESERVE FUND FOR THE ACTUAL COST OF CAPITAL REPLACEMENTS WHICH HE OR SHE
HAS BEGUN AFTER THE PLAN IS SUBMITTED FOR FILING TO THE ATTORNEY GENERAL

A. 2360                             5

AND BEFORE THE PLAN IS DECLARED EFFECTIVE; PROVIDED, HOWEVER,  THAT  ANY
SUCH  REPLACEMENTS  MUST  BE  SET  FORTH IN THE PLAN TOGETHER WITH THEIR
ACTUAL OR ESTIMATED COSTS AND FURTHER PROVIDED, THAT SUCH  CREDIT  SHALL
NOT  EXCEED THE LESSER OF THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR
ONE PERCENT OF THE TOTAL PRICE.
  (III) ANY BUILDING, CONSTRUCTION OF WHICH WAS COMPLETED  WITHIN  THREE
YEARS  PRIOR  TO  THE  CLOSING OF A CONVERSION PURSUANT TO THIS SECTION,
SHALL BE EXEMPT FROM THE REQUIREMENTS OF THIS PARAGRAPH.
  (IV) THE COOPERATIVE CORPORATION  OR  CONDOMINIUM  BOARD  OF  MANAGERS
SHALL REPORT TO SHAREHOLDERS AND UNIT OWNERS ON A SEMI-ANNUAL BASIS WITH
RESPECT  TO  ALL  DEPOSITS  INTO  AND  WITHDRAWALS FROM THE RESERVE FUND
MANDATED BY THIS PARAGRAPH.
  (V) THE OFFEROR, NOT  LATER  THAN  THE  THIRTIETH  DAY  FOLLOWING  THE
ACCEPTANCE OF A PLAN FOR FILING BY THE ATTORNEY GENERAL PURSUANT TO THIS
SECTION  AND  UNTIL THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN,
SHALL POST AND MAINTAIN IN A PROMINENT PLACE, ACCESSIBLE TO ALL  TENANTS
IN  EACH  BUILDING  COVERED  BY THE PLAN, A LISTING OF ALL VIOLATIONS OF
RECORD AGAINST SUCH BUILDINGS AS DETERMINED BY THE LOCAL  DEPARTMENT  OF
BUILDINGS  OR  SIMILAR  AGENCY  OF  APPROPRIATE  JURISDICTION. ALL NEWLY
ISSUED VIOLATIONS SHALL BE POSTED  WITHIN  FORTY-EIGHT  HOURS  OF  THEIR
ISSUANCE  AND MAINTAINED AS DESCRIBED ABOVE. THE OFFEROR MAY SATISFY THE
REQUIREMENTS OF THIS SECTION BY DESIGNATING AN  AGENT  ON  THE  PREMISES
WITH  WHOM  SUCH  LISTING  SHALL BE MADE AVAILABLE FOR INSPECTION BY THE
TENANTS.
  (VI) WHERE, PURSUANT TO LAW OR REGULATION OF THE ATTORNEY GENERAL,  AN
OFFEROR  IS REQUIRED TO FILE A REPORT WITH THE ATTORNEY GENERAL DESCRIB-
ING THE CONDITION  OF  THE  PHYSICAL  ASPECTS  OF  THE  PREMISES  TO  BE
CONVERTED  AND  THE SURROUNDING NEIGHBORHOOD A COPY OF SUCH REPORT SHALL
BE SUBMITTED SIMULTANEOUSLY TO THE LOCAL COMMISSIONER  OF  BUILDINGS  OR
SIMILAR AGENCY OF APPROPRIATE JURISDICTION.
  (VII)  ANY  PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS PARA-
GRAPH IN ANY CONTRACT TO PURCHASE OR AGREEMENT BETWEEN  AN  OFFEROR  AND
THE  COOPERATIVE CORPORATION OR THE CONDOMINIUM BOARD OF MANAGERS PURSU-
ANT TO A CONVERSION PLAN SHALL BE VOID AS AGAINST PUBLIC POLICY.
  (VIII) ENFORCEMENT. (1) EXCEPT AS OTHERWISE PROVIDED BELOW, ANY PERSON
WHO VIOLATES OR ASSISTS IN THE VIOLATION  OF  THIS  PARAGRAPH  SHALL  BE
SUBJECT  TO  A CIVIL PENALTY OF ONE HUNDRED DOLLARS PER DAY PER UNIT FOR
EACH DAY THAT A BUILDING IS NOT IN COMPLIANCE  WITH  THE  PROVISIONS  OF
SUCH  PARAGRAPH,  PROVIDED,  HOWEVER,  THAT SUCH CIVIL PENALTY SHALL NOT
EXCEED ONE THOUSAND DOLLARS PER UNIT.
  (2) ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE  VIOLATION  OF
SUCH  PARAGRAPH SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE THOUSAND
DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND IS  NOT  ESTABLISHED;
PROVIDED,  HOWEVER,  THAT SUCH CIVIL PENALTY SHALL NOT EXCEED THE AMOUNT
REQUIRED TO BE RESERVED PURSUANT TO THIS PARAGRAPH.
  (3) ANY ACTION OR PROCEEDING IN ANY COURT  OF  COMPETENT  JURISDICTION
THAT  MAY  BE  APPROPRIATE  OR  NECESSARY  FOR  THE  ENFORCEMENT  OF THE
PROVISIONS OF THIS PARAGRAPH MAY BE BROUGHT IN THE  NAME  OF  THE  CITY,
TOWN  OR VILLAGE WHEREIN SUCH BUILDING OR BUILDINGS ARE LOCATED, INCLUD-
ING ACTIONS TO SECURE PERMANENT INJUNCTIONS ENJOINING ANY ACTS OR  PRAC-
TICES  WHICH  CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS PARAGRAPH,
MANDATING COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH OR  FOR  SUCH
OTHER RELIEF AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING THE
CITY,  TOWN OR VILLAGE MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION,
OR TO A JUDGE OR JUSTICE THEREOF, FOR A TEMPORARY RESTRAINING  ORDER  OR
PRELIMINARY  INJUNCTION  ENJOINING  AND  RESTRAINING  ALL  PERSONS  FROM

A. 2360                             6

VIOLATING ANY PROVISION OF THIS PARAGRAPH MANDATING COMPLIANCE WITH  THE
PROVISIONS  OF  THIS PARAGRAPH OR FOR SUCH OTHER RELIEF AS MAY BE APPRO-
PRIATE UNTIL THE HEARING AND DETERMINATION OF SUCH ACTION OR  PROCEEDING
AND THE ENTRY OF FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR
JUSTICE  THEREOF, TO WHOM SUCH APPLICATION IS MADE, IS HEREBY AUTHORIZED
FORTHWITH TO MAKE ANY OR ALL OF THE ORDERS ABOVE SPECIFIED,  AS  MAY  BE
REQUIRED  IN  SUCH APPLICATION, WITH OR WITHOUT NOTICE, AND TO MAKE SUCH
OTHER OR FURTHER ORDERS OR DIRECTIONS AS MAY BE NECESSARY TO RENDER  THE
SAME  EFFECTUAL.  NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE
GRANTING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
  (IX) NOTHING CONTAINED IN THIS  PARAGRAPH  SHALL  IMPAIR  ANY  RIGHTS,
REMEDIES  OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF COOP-
ERATIVE SHARES OR CONDOMINIUM UNITS.
  S 10. Paragraph (e) of subdivision 2 of section 352-eee  of the gener-
al business law, as added by chapter 402 of the laws of 1983, is amended
to read as follows:
  (e) The attorney general finds that an excessive number of [long-term]
vacancies did not exist on the date THAT IS ONE HUNDRED TEN  DAYS  AFTER
THE  DATE  that the offering statement or prospectus was first submitted
to the department of law. ["Long-term vacancies"] "VACANCIES" shall mean
dwelling units not leased or occupied by bona  fide  tenants  [for  more
than  five months prior to the date of such submission to the department
of law] ON SUCH ONE HUNDRED TENTH DAY.  "Excessive" shall mean a vacancy
rate in excess of [the greater of (i) ten percent and (ii) a  percentage
that  is double the normal average vacancy rate for] FIVE PERCENT OF THE
TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings  or
development  [for  two years prior to the January preceding the date the
offering statement or prospectus was first submitted to  the  department
of  law]  OFFERED  UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS,  "EXCESSIVE"
SHALL  MEAN  MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE  EXISTENCE  OF  AN
EXCESSIVE  NUMBER  OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
CAUSE SHOWN.
  S 11. Paragraph (e) of subdivision 2 of section 352-eeee of the gener-
al business law, as added by chapter 555 of the laws of 1982, is amended
to read as follows:
  (e) The attorney general finds that an excessive number of [long-term]
vacancies did not exist on the date THAT IS ONE HUNDRED TEN  DAYS  AFTER
THE  DATE  that the offering statement or prospectus was first submitted
to the department of law. ["Long-term vacancies"] "VACANCIES" shall mean
dwelling units not leased or occupied by bona  fide  tenants  [for  more
than  five months prior to the date of such submission to the department
of law] ON SUCH ONE HUNDRED TENTH DAY.  "Excessive" shall mean a vacancy
rate in excess of [the greater of (i) ten percent and (ii) a  percentage
that  is double the normal average vacancy rate for] FIVE PERCENT OF THE
TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings  or
development  [for  two years prior to the January preceding the date the
offering statement or prospectus was first submitted to  the  department
of  law]  OFFERED  UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS,  "EXCESSIVE"
SHALL  MEAN  MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE  EXISTENCE  OF  AN

A. 2360                             7

EXCESSIVE  NUMBER  OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
CAUSE SHOWN.
  S  12. This act shall take effect immediately and shall apply to every
offering statement or prospectus containing a conversion plan  to  which
section  352-eee  or  352-eeee of the general business law as amended by
this act, is applicable and which is accepted for filing by the attorney
general on or after the effective date of this act;  provided  that  the
amendments  to  section  352-eee  of  the  general  business law made by
sections two, three, four, five, nine and ten of this act  shall  expire
on  the same date as such section expires and shall not affect the expi-
ration of such section as provided in section 4 of chapter  402  of  the
laws  of  1983,  as from time to time amended and provided further, that
the amendments to section 352-eeee of the general business law  made  by
sections  six,  seven,  eight and eleven of this act shall expire on the
same date as such section expires and shall not affect the expiration of
such section as provided in section 10 of chapter 555  of  the  laws  of
1982, as from time to time amended.