BILL NUMBER:A9899
TITLE OF BILL: An act to amend the general business law, in relation to
vacancies and illegal use and occupancy relating to cooperative or
condominium conversion plans
PURPOSE OR GENERAL IDEA OF BILL: To protect tenants living in a build-
ing undergoing a co-op or condo conversion.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends General Business Law
352-eeee (2) (e) by extending the period in which a landlord must main-
tain a long-term vacancy rate that is not "excessive" in connection with
a co-op/condo conversion. The law now bars "warehousing" vacant apart-
ments during the period five months prior to filing a proposed offering
statement with the attorney general. The bill extends that ban to the
period up until the proposed offering statement is accepted by the
attorney general.
Section 2 amends General Business Law § 352-eeee (4), to add that if a
landlord permits illegal use or occupancy in the building, the attorney
general may block the co-op/condo conversion.
JUSTIFICATION: Landlords who are converting rental properties into
co-ops and condos often begin evicting tenants and letting apartments
stay vacant as soon as the conversion prospectus is filed with the
attorney general, in order to increase the value of the shares or units
S T A T E O F N E W Y O R K
________________________________________________________________________
9899
I N A S S E M B L Y
February 9, 2010
___________
Introduced by M. of A. KELLNER, GOTTFRIED, GLICK, ROSENTHAL, MILLMAN --
Multi-Sponsored by -- M. of A. BING, BRENNAN, CLARK -- read once and
referred to the Committee on Housing
AN ACT to amend the general business law, in relation to vacancies and
illegal use and occupancy relating to cooperative or condominium
conversion plans
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (e) 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:
(e) The attorney general finds that an excessive number of long-term
vacancies did not exist on the date that the offering statement or pros-
pectus was first submitted to the department of law OR AT ANY TIME
BETWEEN THAT DATE AND THE ISSUANCE OF THE LETTER FROM THE ATTORNEY
GENERAL STATING THAT THE OFFERING STATEMENT OR PROSPECTUS REQUIRED IN
SUBDIVISION ONE OF SECTION THREE HUNDRED FIFTY-TWO-E OF THIS ARTICLE HAS
BEEN FILED. "Long-term 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 OR PRIOR TO ANY TIME
BETWEEN THAT DATE AND THE ISSUANCE OF SUCH LETTER. "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 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.
S 2. Subdivision 4 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:
4. It shall be unlawful for any person to engage in any course of
conduct, including, but not limited to, interruption or discontinuance
of essential services, which substantially interferes with or disturbs
the comfort, repose, peace or quiet of any tenant in his use or occupan-
cy of his dwelling unit or the facilities related thereto, OR PERMITTING
OR MAINTAINING ANY ILLEGAL USE OR OCCUPANCY OF THE PREMISES. The attor-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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