S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7743
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2019
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Housing
 
 AN ACT to amend the general business law, the multiple dwelling law, the
   private housing finance law and the administrative code of the city of
   New York, in relation to  conversion  to  cooperative  or  condominium
   ownership;  and  to  repeal certain provisions of the general business
   law and the administrative code of the city of New York relating ther-
   eto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2-a of section 352-e of the general business
 law is REPEALED and a new subdivision 2-a is added to read as follows:
   2-A. (A) AS USED IN THIS SUBDIVISION, THE FOLLOWING  WORDS  AND  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (I)  "PLAN".  EVERY  OFFERING STATEMENT OR PROSPECTUS SUBMITTED TO THE
 DEPARTMENT OF LAW PURSUANT TO THIS  SECTION  FOR  THE  CONVERSION  OF  A
 BUILDING  OR  GROUP  OF BUILDINGS OR DEVELOPMENT FROM RESIDENTIAL RENTAL
 STATUS TO COOPERATIVE OR CONDOMINIUM OWNERSHIP OR OTHER FORM OF  COOPER-
 ATIVE INTEREST IN REALTY, OTHER THAN AN OFFERING STATEMENT OR PROSPECTUS
 FOR  SUCH  CONVERSION  PURSUANT  TO  ARTICLE TWO, EIGHT OR ELEVEN OF THE
 PRIVATE HOUSING FINANCE LAW.
   (II) "NON-EVICTION PLAN". A PLAN WHICH MAY NOT BE  DECLARED  EFFECTIVE
 UNTIL  WRITTEN  PURCHASE AGREEMENTS HAVE BEEN EXECUTED AND DELIVERED FOR
 AT LEAST FIFTY-ONE PERCENT OF ALL DWELLING  UNITS  IN  THE  BUILDING  OR
 GROUP  OF BUILDINGS OR DEVELOPMENT BY BONA FIDE TENANTS IN OCCUPANCY. 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 DISCRIMINATORY REPURCHASE AGREEMENTS OR OTHER
 DISCRIMINATORY INDUCEMENTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11354-01-9
              

 A. 7743                             2
 
   (III) "PURCHASER UNDER THE PLAN". A PERSON WHO OWNS THE  SHARES  ALLO-
 CATED TO A DWELLING UNIT OR WHO OWNS SUCH DWELLING UNIT ITSELF.
   (IV) "NON-PURCHASING TENANT". A PERSON WHO HAS NOT PURCHASED UNDER THE
 PLAN  AND WHO IS A TENANT ENTITLED TO POSSESSION AT THE TIME THE PLAN IS
 DECLARED EFFECTIVE OR A PERSON TO WHOM A DWELLING UNIT IS RENTED  SUBSE-
 QUENT TO THE EFFECTIVE DATE. A PERSON WHO SUBLETS A DWELLING UNIT FROM A
 PURCHASER UNDER THE PLAN SHALL NOT BE DEEMED A NON-PURCHASING TENANT.
   (B)  THE  ATTORNEY GENERAL SHALL REFUSE TO ISSUE A LETTER STATING THAT
 THE OFFERING STATEMENT OR PROSPECTUS REQUIRED IN SUBDIVISION ONE OF THIS
 SECTION HAS BEEN FILED WHENEVER IT APPEARS THAT THE  OFFERING  STATEMENT
 OR  PROSPECTUS  OFFERS  FOR  SALE  RESIDENTIAL COOPERATIVE APARTMENTS OR
 CONDOMINIUM UNITS PURSUANT TO A PLAN UNLESS:
   (I) THE PLAN PROVIDES THAT IT WILL BE DEEMED ABANDONED, VOID AND OF NO
 EFFECT IF IT DOES NOT BECOME EFFECTIVE WITHIN  TWELVE  MONTHS  FROM  THE
 DATE  OF  ISSUE  OF  THE LETTER OF THE ATTORNEY GENERAL STATING THAT THE
 OFFERING STATEMENT OR PROSPECTUS HAS BEEN ACCEPTED FOR  FILING  AND,  IN
 THE  EVENT  OF  SUCH ABANDONMENT, NO NEW PLAN FOR THE CONVERSION OF SUCH
 BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT SHALL BE SUBMITTED TO  THE
 ATTORNEY GENERAL FOR AT LEAST FIFTEEN MONTHS AFTER SUCH ABANDONMENT.
   (II)  THE  PLAN  PROVIDES A NON-EVICTION PLAN, AND PROVIDES FURTHER AS
 FOLLOWS:
   (1) THE PLAN MAY NOT BE DECLARED EFFECTIVE UNTIL  AT  LEAST  FIFTY-ONE
 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 SHALL HAVE EXECUTED AND DELIVERED  WRITTEN  AGREE-
 MENTS 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 DISCRIMINA-
 TORY REPURCHASE AGREEMENTS OR OTHER DISCRIMINATORY INDUCEMENTS.
   (2)  NO  EVICTION  PROCEEDINGS  WILL  BE COMMENCED AT ANY TIME AGAINST
 NON-PURCHASING TENANTS FOR FAILURE  TO  PURCHASE  OR  ANY  OTHER  REASON
 APPLICABLE  TO EXPIRATION OF TENANCY; PROVIDED THAT SUCH PROCEEDINGS MAY
 BE COMMENCED FOR NON-PAYMENT OF RENT, ILLEGAL USE OR  OCCUPANCY  OF  THE
 PREMISES,  REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR BREACH
 BY THE NON-PURCHASING TENANT OF SUCH TENANT'S OBLIGATIONS TO  THE  OWNER
 OF  THE  DWELLING  UNIT  OR  THE  SHARES ALLOCATED THERETO; AND PROVIDED
 FURTHER THAT AN OWNER OF A UNIT OR OF THE SHARES ALLOCATED  THERETO  MAY
 NOT  COMMENCE  AN ACTION TO RECOVER POSSESSION OF A DWELLING UNIT FROM A
 NON-PURCHASING TENANT ON THE GROUNDS THAT SUCH TENANT SEEKS THE DWELLING
 UNIT FOR THE USE AND OCCUPANCY OF SUCH TENANT  OR  THE  FAMILY  OF  SUCH
 TENANT.
   (3)  NON-PURCHASING  TENANTS  WHO  RESIDE IN DWELLING UNITS SUBJECT TO
 GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY PRIOR TO THE
 CONVERSION OF THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT TO COOP-
 ERATIVE OR CONDOMINIUM OWNERSHIP SHALL CONTINUE TO BE SUBJECT THERETO.
   (4) THE RENTALS OF NON-PURCHASING TENANTS WHO RESIDE IN DWELLING UNITS
 NOT SUBJECT TO GOVERNMENT REGULATION AS TO RENTALS AND  CONTINUED  OCCU-
 PANCY  AND  NON-PURCHASING  TENANTS  WHO  RESIDE  IN DWELLING UNITS WITH
 RESPECT TO WHICH GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCU-
 PANCY IS ELIMINATED OR BECOMES INAPPLICABLE  AFTER  THE  PLAN  HAS  BEEN
 ACCEPTED  FOR  FILING  BY  THE  ATTORNEY GENERAL SHALL NOT BE SUBJECT TO
 UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR  COMPARABLE  APART-
 MENTS DURING THE PERIOD OF THEIR OCCUPANCY.  IN DETERMINING COMPARABILI-
 TY,  CONSIDERATION  SHALL BE GIVEN TO SUCH FACTORS AS BUILDING SERVICES,
 LEVEL OF MAINTENANCE AND OPERATING EXPENSES.

 A. 7743                             3

   (5) THE RIGHTS GRANTED UNDER THE PLAN TO PURCHASERS UNDER THE PLAN AND
 TO NON-PURCHASING TENANTS MAY NOT BE ABROGATED OR REDUCED  NOTWITHSTAND-
 ING ANY EXPIRATION OF, OR AMENDMENT TO, THIS SECTION.
   (6) AFTER THE ISSUANCE OF THE LETTER FROM THE ATTORNEY GENERAL STATING
 THAT THE OFFERING STATEMENT OR PROSPECTUS REQUIRED IN SUBDIVISION ONE OF
 THIS SECTION HAS BEEN FILED, THE OFFEROR SHALL, ON THE THIRTIETH, SIXTI-
 ETH,  EIGHTY-EIGHTH  AND NINETIETH DAY AFTER SUCH DATE AND AT LEAST ONCE
 EVERY THIRTY DAYS UNTIL THE PLAN IS DECLARED EFFECTIVE OR IS  ABANDONED,
 AS  THE  CASE MAY BE, AND ON THE SECOND DAY BEFORE THE EXPIRATION OF ANY
 EXCLUSIVE PURCHASE PERIOD PROVIDED IN A  SUBSTANTIAL  AMENDMENT  TO  THE
 PLAN,  (A)  FILE  WITH  THE  ATTORNEY GENERAL A WRITTEN STATEMENT, UNDER
 OATH, SETTING FORTH THE PERCENTAGE OF BONA FIDE TENANTS IN OCCUPANCY  OF
 ALL  DWELLING UNITS IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT
 WHO HAVE EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE
 PLAN AS OF THE DATE OF SUCH STATEMENT, (B) BEFORE NOON ON THE  DAY  SUCH
 STATEMENT  IS  FILED  POST A COPY OF SUCH STATEMENT IN A PROMINENT PLACE
 ACCESSIBLE TO ALL TENANTS IN EACH BUILDING COVERED BY THE PLAN.
   (III) 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.  "LONG-TERM  VACAN-
 CIES"  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.  "EXCESSIVE"  SHALL MEAN A VACANCY RATE IN
 EXCESS OF THE GREATER OF (1) TEN PERCENT AND (2) 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.
   (IV)  THE ATTORNEY GENERAL FINDS THAT, FOLLOWING THE SUBMISSION OF THE
 OFFERING STATEMENT OR PROSPECTUS TO THE DEPARTMENT OF LAW,  EACH  TENANT
 IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT WAS PROVIDED WITH A
 WRITTEN  NOTICE  STATING  THAT SUCH OFFERING STATEMENT OR PROSPECTUS HAS
 BEEN SUBMITTED TO THE DEPARTMENT OF LAW FOR FILING. SUCH NOTICE SHALL BE
 ACCOMPANIED BY A COPY OF THE OFFERING  STATEMENT  OR  PROSPECTUS  AND  A
 STATEMENT  THAT  THE  STATEMENTS  SUBMITTED  PURSUANT  TO  CLAUSE SIX OF
 SUBPARAGRAPH (II) OF THIS PARAGRAPH, WHICHEVER IS  APPLICABLE,  WILL  BE
 AVAILABLE  FOR INSPECTION AND COPYING AT THE OFFICE OF THE DEPARTMENT OF
 LAW WHERE THE SUBMISSION WAS MADE AND AT THE OFFICE OF THE OFFEROR OR  A
 SELLING AGENT OF THE OFFEROR. SUCH NOTICE SHALL ALSO BE ACCOMPANIED BY A
 STATEMENT  THAT  TENANTS OR THEIR REPRESENTATIVES MAY PHYSICALLY INSPECT
 THE PREMISES AT ANY TIME SUBSEQUENT TO THE SUBMISSION OF THE PLAN TO THE
 DEPARTMENT OF LAW, DURING NORMAL BUSINESS HOURS,  UPON  WRITTEN  REQUEST
 MADE  BY  THEM  TO THE OFFEROR, PROVIDED SUCH REPRESENTATIVES ARE REGIS-
 TERED ARCHITECTS OR PROFESSIONAL ENGINEERS LICENSED TO PRACTICE  IN  THE
 STATE OF NEW YORK. SUCH NOTICE SHALL BE SENT TO EACH TENANT IN OCCUPANCY
 ON  THE DATE THE PLAN IS FIRST SUBMITTED TO THE DEPARTMENT OF LAW AND TO
 THE CLERK OF THE MUNICIPALITY WHEREIN SUCH BUILDING OR GROUP  OF  BUILD-
 INGS OR DEVELOPMENT IS LOCATED.
   (C)  ALL  DWELLING  UNITS  OCCUPIED BY NON-PURCHASING TENANTS SHALL BE
 MANAGED BY THE SAME MANAGING AGENT WHO MANAGES ALL OTHER DWELLING  UNITS
 IN  THE  BUILDING  OR  GROUP  OF BUILDINGS OR DEVELOPMENT. SUCH MANAGING
 AGENT SHALL PROVIDE TO NON-PURCHASING TENANTS ALL SERVICES  AND  FACILI-
 TIES  REQUIRED  BY  LAW ON A NON-DISCRIMINATORY BASIS. THE OFFEROR SHALL
 GUARANTEE THE OBLIGATION OF THE  MANAGING  AGENT  TO  PROVIDE  ALL  SUCH
 SERVICES  AND  FACILITIES  UNTIL  SUCH  TIME  AS  THE OFFEROR SURRENDERS
 CONTROL TO THE BOARD OF DIRECTORS OR BOARD OF MANAGERS,  AT  WHICH  TIME

 A. 7743                             4
 
 THE  COOPERATIVE CORPORATION OR THE CONDOMINIUM ASSOCIATION SHALL ASSUME
 RESPONSIBILITY FOR THE PROVISION OF ALL SERVICES AND FACILITIES REQUIRED
 BY LAW ON A NON-DISCRIMINATORY BASIS.
   (D)  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. THE  ATTORNEY
 GENERAL  MAY  APPLY  TO  A  COURT OF COMPETENT JURISDICTION FOR AN ORDER
 RESTRAINING SUCH CONDUCT AND, IF  HE  DEEMS  IT  APPROPRIATE,  AN  ORDER
 RESTRAINING  THE OWNER FROM SELLING THE SHARES ALLOCATED TO THE DWELLING
 UNIT OR THE DWELLING UNIT ITSELF OR FROM PROCEEDING  WITH  THE  PLAN  OF
 CONVERSION;  PROVIDED  THAT  NOTHING CONTAINED HEREIN SHALL BE DEEMED TO
 PRECLUDE THE TENANT FROM APPLYING ON HIS OWN BEHALF FOR SIMILAR RELIEF.
   (E) ANY LOCAL LEGISLATIVE BODY MAY ADOPT LOCAL LAWS  AND  ANY  AGENCY,
 OFFICER  OR PUBLIC BODY MAY PRESCRIBE RULES AND REGULATIONS WITH RESPECT
 TO THE CONTINUED OCCUPANCY  BY  TENANTS  OF  DWELLING  UNITS  WHICH  ARE
 SUBJECT  TO REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY PURSUANT TO
 LAW, PROVIDED THAT IN THE EVENT THAT ANY SUCH LOCAL LAW, RULE  OR  REGU-
 LATION  SHALL  BE  INCONSISTENT WITH THE PROVISIONS OF THIS SECTION, THE
 PROVISIONS OF THIS SECTION SHALL CONTROL.
   (F) ANY PROVISION OF A LEASE OR OTHER RENTAL AGREEMENT WHICH  PURPORTS
 TO  WAIVE  A  TENANT'S  RIGHTS UNDER THIS SUBDIVISION OR RULES AND REGU-
 LATIONS PROMULGATED PURSUANT HERETO SHALL BE VOID AS CONTRARY TO  PUBLIC
 POLICY.
   § 2. Section 352-eee of the general business law is REPEALED.
   § 3. Section 352-eeee of the general business law is REPEALED.
   § 4. Paragraph 7 of subdivision a of section 26-408 of the administra-
 tive code of the city of New York is REPEALED.
   §  5.  The  opening  paragraph  of  subdivision a and subdivision c of
 section 26-504 of the administrative code  of  the  city  of  New  York,
 subdivision c as amended by chapter 289 of the laws of 1985, are amended
 to read as follows:
   Class  A  multiple dwellings not owned as a cooperative or as a condo-
 minium, except as provided in  section  three  hundred  [fifty-two-eeee]
 FIFTY-TWO-E of the general business law, containing six or more dwelling
 units which:
   c. Dwelling units in a building or structure receiving the benefits of
 section  11-243 or section 11-244 of the code or article eighteen of the
 private housing finance law, not owned as a cooperative or as  a  condo-
 minium,  except  as  provided  in section three hundred [fifty-two-eeee]
 FIFTY-TWO-E of the general business law and not subject to chapter three
 of this title. Upon the expiration or termination for any reason of  the
 benefits  of  section  11-243  or  section 11-244 of the code or article
 eighteen of the private housing finance law any such dwelling unit shall
 be subject to this chapter until the occurrence of the first vacancy  of
 such  unit  after  such benefits are no longer being received or if each
 lease and renewal thereof for such unit for the tenant in  residence  at
 the  time  of  the  expiration  of the tax benefit period has included a
 notice in at least twelve point type informing such tenant that the unit
 shall become subject to deregulation upon the  expiration  of  such  tax
 benefit period and states the approximate date on which such tax benefit
 period  is  scheduled to expire, such dwelling unit shall be deregulated
 as of the end of the tax benefit period; provided, however, that if such
 dwelling unit would have been subject to this chapter or  the  emergency
 tenant  protection  act  of nineteen seventy-four in the absence of this

 A. 7743                             5
 
 subdivision, such dwelling unit shall, upon the expiration of such bene-
 fits, continue to be subject to this chapter  or  the  emergency  tenant
 protection  act  of  nineteen seventy-four to the same extent and in the
 same manner as if this subdivision had never applied thereto.
   § 6. Section 26-701 of the administrative code of the city of New York
 is amended to read as follows:
   §  26-701  Application.  The provisions of this chapter shall apply to
 conversions from rental to cooperative or condominium status of a build-
 ing or a group of buildings or a development for which a  plan  must  be
 filed with the state department of law pursuant to section three hundred
 [fifty-two-eeee] FIFTY-TWO-E of the general business law.
   § 7. Section 26-705 of the administrative code of the city of New York
 is amended to read as follows:
   §  26-705 Posting of violations. The offeror, not later than the thir-
 tieth day following the acceptance of a plan for  filing  by  the  state
 department  of  law  pursuant  to section three hundred [fifty-two-eeee]
 FIFTY-TWO-E of the general business law 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  department of buildings and the department of housing preserva-
 tion and development. 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.
   §  8.  Subdivision  9  of section 286 of the multiple dwelling law, as
 added by chapter 349 of the laws of 1982, is amended to read as follows:
   9. [No eviction plan for  conversion  to  cooperative  or  condominium
 ownership  for  a building which is, or a portion of which is an interim
 multiple dwelling shall be submitted for filing to the department of law
 pursuant to the general business law until a residential certificate  of
 occupancy  is  obtained as required by this article, and the residential
 occupants qualified for protection pursuant to this article are  offered
 one, two or three year leases, as elected by such persons, in accordance
 with  the  provisions  for establishment of initial legal regulated rent
 contained herein.] Non-eviction plans for such buildings may be  submit-
 ted  for  filing  only if the sponsor remains responsible for compliance
 with article seven-B and for all work in common areas required to obtain
 a residential certificate of occupancy. Cooperative conversion shall  be
 fully  in  accordance with section three hundred [fifty-two-eeee] FIFTY-
 TWO-E of the general business law, the requirements of the code  of  the
 local real estate industry stabilization association, and with the rules
 and regulations promulgated by the attorney general.
   §  9.  Paragraph  (g)  of subdivision 3 of section 1102 of the private
 housing finance law, as amended by chapter 121 of the laws of  1988,  is
 amended to read as follows:
   (g)  In  the case of a rental project, that the project shall be oper-
 ated initially as a rental property, and when located in the city of New
 York shall be subject to the rent stabilization law of nineteen  hundred
 sixty-nine,  and  when located in a municipality which has elected to be
 covered by the provisions of the  emergency  tenant  protection  act  of
 nineteen  seventy-four,  be  subject  to the provisions of such act. Any
 subsequent conversion to cooperative or condominium ownership during the
 period in which such property remains subject to the provisions of  this
 article shall only be allowed with the consent of the corporation and if

 A. 7743                             6
 
 done  pursuant to section three hundred [fifty-two-eeee or three hundred
 fifty-two-eee] FIFTY-TWO-E of the general business  law  shall  only  be
 allowed  pursuant  to  a  non-eviction  plan. The conversion of a rental
 project  to  cooperative or condominium ownership shall make the cooper-
 ative or condominium subject to the provisions of this article for coop-
 erative or condominium projects for the remaining term which the  rental
 project was to be subject to the provisions of this article.
   §  10.  Subdivision  8  of section 1152 of the private housing finance
 law, as added by chapter 639 of the laws of 1989, is amended to read  as
 follows:
   8.  If  the  eligible  project is a rental project, no conversion to a
 cooperative or condominium shall be permitted for  a  period  of  twenty
 years  after initial occupancy, and unless (i) the agency's share of the
 loan is prepaid upon such conversion, (ii) the conversion shall be  done
 pursuant  to  section  three hundred [fifty-two-eeee] FIFTY-TWO-E of the
 general business law as a non-eviction plan, and (iii) apartments  occu-
 pied  by  non-purchasing  tenants  continue  to  be  subject to the rent
 stabilization law of nineteen hundred sixty-nine as amended,  until  the
 occurrence of a vacancy.
   §  11.  This act shall take effect on the thirtieth day after it shall
 have become a law; provided that the amendments  to  section  26-504  of
 chapter 4 of title 26 of the administrative code of the city of New York
 made  by  section five of this act shall expire on the same date as such
 law expires and shall not affect the expiration of such law as  provided
 under section 26-520 of such law.