S. 1354 2
(B) "BONA FIDE PURCHASER". A BONA FIDE PURCHASER IS EITHER (I) A
TENANT IN OCCUPANCY WHO ENTERS INTO A PURCHASE AGREEMENT FOR A DWELLING
UNIT PURSUANT TO THEIR OR ITS EXERCISE OF ONE OF THE RIGHTS ACCORDED TO
TENANTS IN OCCUPANCY IN SUBDIVISION FIVE OF THIS SECTION, OR (II) A BONA
FIDE NON-TENANT PURCHASER.
(C) "BONA FIDE NON-TENANT PURCHASER". A BONA FIDE NON-TENANT PURCHASER
IS A PURCHASER OF A DWELLING UNIT WHO HAS REPRESENTED THAT THEY OR A
MEMBER OR MEMBERS OF THEIR IMMEDIATE FAMILY INTEND TO OCCUPY THE DWELL-
ING UNIT WHEN IT BECOMES VACANT.
(D) "COMMERCIALLY REASONABLE GOOD FAITH EFFORT". A COMMERCIALLY
REASONABLE GOOD FAITH EFFORT ON THE PART OF AN OFFEROR OF A PRESERVATION
PLAN SHALL, AT MINIMUM, INCLUDE (I) THE FILING OF AN ANNUAL UPDATE
AMENDMENT TO THE PRESERVATION PLAN; (II) ALL OF THE CONDOMINIUM'S DWELL-
ING UNITS OTHER THAN ANY INCOME-RESTRICTED RENTAL UNITS AS THE UNITS
BEING OFFERED FOR SALE UNDER THE PRESERVATION PLAN, EACH AT AN OFFERING
PRICE THAT IS CONSISTENT WITH COMPARABLE DWELLING UNITS RECENTLY SOLD
WITHIN THE LOCALITY; AND (III) ENTERING INTO A WRITTEN AGREEMENT WITH A
LICENSED REAL ESTATE BROKER OR SELLING AGENT IN CONNECTION WITH THE SALE
OF DWELLING UNITS OFFERED FOR SALE UNDER THE PRESERVATION PLAN. FOR THE
AVOIDANCE OF DOUBT, A COMMERCIALLY REASONABLE GOOD FAITH EFFORT SHALL
NOT REQUIRE AN OFFEROR TO SELL DWELLING UNITS AT A PRICE SUBSTANTIALLY
BELOW THE MARKET-RATE FOR COMPARABLE UNITS RECENTLY SOLD WITHIN THE
LOCALITY, NOR SHALL IT REQUIRE AN OFFEROR TO OFFER FOR SALE DWELLING
UNITS THAT ARE OCCUPIED BY NON-PURCHASING TENANTS.
(E) "CONDOMINIUM". A CONDOMINIUM SHALL ALSO INCLUDE A QUALIFIED LEASE-
HOLD CONDOMINIUM AS DEFINED IN SUBDIVISION TWELVE OF SECTION THREE
HUNDRED THIRTY-NINE-E OF THE REAL PROPERTY LAW.
(F) "CONSUMMATION OF THE PRESERVATION PLAN". CONSUMMATION OF THE PRES-
ERVATION PLAN SHALL REFER TO THE FILING OF THE DECLARATION FOR THE
CONDOMINIUM AND THE FIRST TRANSFER OF TITLE TO AT LEAST ONE PURCHASER
UNDER THE PRESERVATION PLAN FOLLOWING A DECLARATION OF EFFECTIVENESS BY
THE DEPARTMENT OF LAW DECLARING THE PRESERVATION PLAN EFFECTIVE.
(G) "ELIGIBLE DISABLED PERSONS". NON-PURCHASING TENANTS WHO HAVE AN
IMPAIRMENT WHICH RESULTS FROM ANATOMICAL, PHYSIOLOGICAL OR PSYCHOLOGICAL
CONDITIONS, OTHER THAN ADDICTION TO ALCOHOL, GAMBLING, OR ANY CONTROLLED
SUBSTANCE, WHICH ARE DEMONSTRABLE BY MEDICALLY ACCEPTABLE CLINICAL AND
LABORATORY DIAGNOSTIC TECHNIQUES, AND WHICH ARE EXPECTED TO BE PERMANENT
AND WHICH PREVENT THE TENANT FROM ENGAGING IN ANY SUBSTANTIAL GAINFUL
EMPLOYMENT ON THE DATE THE PRESERVATION PLAN IS SUBMITTED TO THE DEPART-
MENT OF LAW OR ON THE DATE THE ATTORNEY GENERAL HAS ACCEPTED THE PRESER-
VATION PLAN FOR FILING, AND THE SPOUSES OF ANY SUCH TENANTS ON SUCH
DATE, AND WHO HAVE ELECTED, WITHIN SIXTY DAYS OF THE DATE THE PRESERVA-
TION PLAN IS SUBMITTED TO THE DEPARTMENT OF LAW OR ON THE DATE THE
ATTORNEY GENERAL HAS ACCEPTED THE PRESERVATION PLAN FOR FILING, ON FORMS
PROMULGATED BY THE ATTORNEY GENERAL AND PRESENTED TO SUCH TENANTS BY THE
OFFEROR, TO BECOME NON-PURCHASING TENANTS UNDER THE PROVISIONS OF THIS
SECTION; PROVIDED, HOWEVER, THAT IF THE DISABILITY FIRST OCCURS AFTER
ACCEPTANCE OF THE PRESERVATION PLAN FOR FILING, THEN SUCH ELECTION MAY
BE MADE WITHIN SIXTY DAYS FOLLOWING THE ONSET OF SUCH DISABILITY UNLESS
DURING THE PERIOD SUBSEQUENT TO SIXTY DAYS FOLLOWING THE ACCEPTANCE OF
THE PRESERVATION PLAN FOR FILING BUT PRIOR TO SUCH ELECTION, THE OFFEROR
ACCEPTS A WRITTEN AGREEMENT TO PURCHASE THE APARTMENT FROM A BONA FIDE
PURCHASER; AND PROVIDED FURTHER THAT SUCH ELECTION SHALL NOT PRECLUDE
ANY SUCH TENANT FROM SUBSEQUENTLY PURCHASING THE DWELLING UNIT IF IT IS
NOT AN INCOME-RESTRICTED RENTAL UNIT ON THE TERMS THEN OFFERED TO
TENANTS IN OCCUPANCY.
S. 1354 3
(H) "ELIGIBLE PROJECT". AN ELIGIBLE PROJECT SHALL REFER TO A BUILDING
OR GROUP OF BUILDINGS OR DEVELOPMENT WITH ONE HUNDRED OR MORE DWELLING
UNITS BUILT AFTER NINETEEN HUNDRED NINETY-SIX THAT IS THE SUBJECT OF A
PRESERVATION PLAN UNDER THIS SECTION, WHICH SHALL MEET THE CRITERIA SET
FORTH IN SUBDIVISION THREE OF THIS SECTION. AN ELIGIBLE PROJECT SHALL
NOT INCLUDE ANY BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT OWNED
UNDER ARTICLE TWO, FOUR OR FIVE OF THE PRIVATE HOUSING FINANCE LAW. FOR
THE AVOIDANCE OF DOUBT, NO BUILDING, GROUP OF BUILDINGS OR DEVELOPMENT
OTHER THAN AN ELIGIBLE PROJECT MAY CONVERT TO CONDOMINIUM STATUS UNDER
THIS SECTION, THE STATUS OF WHICH SHALL BE CONFIRMED BY THE RELEVANT
HOUSING FINANCE AGENCY PRIOR TO THE DATE OF SUBMISSION OF THE PRESERVA-
TION PLAN.
(I) "ELIGIBLE SENIOR CITIZENS". NON-PURCHASING TENANTS WHO ARE SIXTY-
TWO YEARS OF AGE OR OLDER ON THE DATE THE PRESERVATION PLAN IS SUBMITTED
TO THE DEPARTMENT OF LAW OR ON THE DATE THE ATTORNEY GENERAL HAS
ACCEPTED THE PRESERVATION PLAN FOR FILING, AND THE SPOUSES OF ANY SUCH
TENANTS ON SUCH DATE, AND WHO HAVE ELECTED, WITHIN SIXTY DAYS OF THE
DATE THE PRESERVATION PLAN IS SUBMITTED TO THE DEPARTMENT OF LAW OR ON
THE DATE THE ATTORNEY GENERAL HAS ACCEPTED THE PRESERVATION PLAN FOR
FILING, ON FORMS PROMULGATED BY THE ATTORNEY GENERAL AND PRESENTED TO
SUCH TENANTS BY THE OFFEROR, TO BECOME NON-PURCHASING TENANTS UNDER THE
PROVISIONS OF THIS SECTION; PROVIDED THAT SUCH ELECTION SHALL NOT
PRECLUDE ANY SUCH TENANT FROM SUBSEQUENTLY PURCHASING THE DWELLING UNIT
ON THE TERMS THEN OFFERED TO TENANTS IN OCCUPANCY.
(J) "EXTENDED AFFORDABILITY TERM". THE EXTENDED AFFORDABILITY TERM FOR
THE INCOME-RESTRICTED RENTAL UNITS SHALL BE IN PERPETUITY FOR SO LONG AS
THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT ARE IN EXISTENCE, AND
SUBJECT TO ANY OBLIGATION TO REBUILD IN THE EVENT OF CONDEMNATION,
DAMAGE OR DESTRUCTION REQUIRED BY THE REGULATORY AGREEMENT WITH THE
RELEVANT HOUSING FINANCE AGENCY.
(K) "INCLUSIONARY HOUSING UNIT". AN INCLUSIONARY HOUSING UNIT IS AN
INCOME-RESTRICTED RENTAL UNIT THAT IS LOCATED WITHIN A BUILDING THAT
RECEIVED AN INCREASE IN THE MAXIMUM PERMITTED FLOOR AREA PURSUANT TO
SECTIONS 23-154 AND 23-90 OF THE ZONING RESOLUTION OR IS LOCATED IN A
MANDATORY INCLUSIONARY HOUSING AREA.
(L) "INCLUSIONARY HOUSING DESIGNATED AREA". AN INCLUSIONARY HOUSING
DESIGNATED AREA IS A SPECIFIED AREA IN WHICH THE INCLUSIONARY HOUSING
PROGRAM (ALSO KNOWN AS THE VOLUNTARY INCLUSIONARY HOUSING PROGRAM) IS
APPLICABLE, PURSUANT TO THE REGULATIONS SET FORTH FOR SUCH AREAS IN
SECTION 23-90 OF THE ZONING RESOLUTION. THE LOCATIONS OF INCLUSIONARY
HOUSING DESIGNATED AREAS ARE IDENTIFIED IN EITHER (I) APPENDIX "F" OF
THE ZONING RESOLUTION OR (II) IN A SPECIAL PURPOSE DISTRICT AS DESCRIBED
IN SECTION 15-011 OF THE ZONING RESOLUTION.
(M) "INCOME-RESTRICTED RENTAL UNIT". AN INCOME-RESTRICTED RENTAL UNIT
SHALL REFER TO A DWELLING UNIT LOCATED IN A BUILDING OR GROUP OF BUILD-
INGS OR DEVELOPMENT OF AN ELIGIBLE PROJECT THAT IS THE SUBJECT OF A
PRESERVATION PLAN SUBMITTED TO THE ATTORNEY GENERAL PURSUANT TO THIS
SECTION, AND SUCH DWELLING UNIT:
(I) MEETS THE DEFINITION OF A "LOW-INCOME UNIT" AS SUCH TERM IS
DEFINED IN SECTION FORTY-TWO OF THE INTERNAL REVENUE CODE AND IS SUBJECT
TO A REGULATORY AGREEMENT WITH A RELEVANT HOUSING FINANCE AGENCY; OR
(II) MEETS THE DEFINITION OF A "LOW-INCOME UNIT" AS SUCH TERM IS
DEFINED IN SUBDIVISION (D) OF SECTION ONE HUNDRED FORTY-TWO OF THE
INTERNAL REVENUE CODE AND IS SUBJECT TO A REGULATORY AGREEMENT WITH A
RELEVANT HOUSING FINANCE AGENCY; OR
S. 1354 4
(III) PREVIOUSLY MET THE DEFINITION OF "LOW-INCOME UNIT" PURSUANT TO
SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH, AND NOTWITHSTANDING THE
EXPIRATION OF A REGULATORY AGREEMENT WITH A RELEVANT HOUSING FINANCE
AGENCY, THE OWNER OF SUCH DWELLING UNIT AFFIRMS, UNDER THE PENALTY OF
PERJURY, THAT IT HAS CONTINUOUSLY OPERATED AND RENTED THE DWELLING UNIT
(A) AS IF IT REMAINED AN INCOME-RESTRICTED RENTAL UNIT AND (B) AS IF ALL
OF THE RESTRICTIONS OF THE EXPIRED REGULATORY AGREEMENT HAD CONTINUOUSLY
BEEN EXTENDED OR OTHERWISE REMAINED IN EFFECT; OR
(IV) IS A DWELLING UNIT LOCATED WITHIN A BUILDING OR GROUP OF BUILD-
INGS OR DEVELOPMENT THAT, IN ACCORDANCE WITH PROVISIONS OF SUBDIVISION
FIFTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX
LAW, THE LOCAL HOUSING AGENCY SHALL HAVE REQUIRED TO BE A UNIT AFFORDA-
BLE TO FAMILIES OF LOW AND MODERATE INCOME; OR
(V) IS A DWELLING UNIT THAT IS RENTED TO PERSONS OF LOW INCOME OR
FAMILIES OF LOW INCOME AS DEFINED IN SUBDIVISION NINETEEN OF SECTION TWO
OF THE PRIVATE HOUSING FINANCE LAW OR AS OTHERWISE REQUIRED BY A FEDER-
AL, STATE, OR LOCAL LAW OR MANDATE.
(N) "MANDATORY INCLUSIONARY HOUSING AREA". A MANDATORY INCLUSIONARY
HOUSING AREA IS A SPECIFIED AREA IN WHICH THE INCLUSIONARY HOUSING
PROGRAM IS APPLICABLE, PURSUANT TO THE REGULATIONS SET FORTH FOR SUCH
AREAS IN SECTION 23-90 OF THE ZONING RESOLUTION. THE LOCATIONS OF MANDA-
TORY INCLUSIONARY HOUSING AREAS ARE IDENTIFIED IN EITHER (I) APPENDIX
"F" OF THE ZONING RESOLUTION OR (II) IN A SPECIAL PURPOSE DISTRICT AS
DESCRIBED IN SECTION 15-011 OF THE ZONING RESOLUTION.
(O) "NON-PURCHASING TENANT". A PERSON WHO HAS NOT PURCHASED UNDER THE
PRESERVATION PLAN FROM OFFEROR AND WHO IS A TENANT ENTITLED TO
POSSESSION AT THE TIME THE PRESERVATION PLAN IS DECLARED EFFECTIVE OR A
PERSON TO WHOM A DWELLING UNIT IS RENTED FROM OFFEROR AFTER THE PRESER-
VATION PLAN WAS DECLARED EFFECTIVE. A PERSON WHO SUBLETS A DWELLING UNIT
FROM A PURCHASER UNDER THE PRESERVATION PLAN SHALL NOT BE DEEMED A NON-
PURCHASING TENANT. A TENANT ENTITLED TO POSSESSION OF AN INCOME-RES-
TRICTED RENTAL UNIT AT THE TIME THE PRESERVATION PLAN IS DECLARED EFFEC-
TIVE IS A NON-PURCHASING TENANT, NOTWITHSTANDING THAT THE
INCOME-RESTRICTED RENTAL UNITS ARE NOT OFFERED FOR SALE PURSUANT TO SUCH
PRESERVATION PLAN.
(P) "POST-CLOSING AMENDMENT". A POST-CLOSING AMENDMENT IS AN AMENDMENT
TO A PRESERVATION PLAN FILED WITH THE ATTORNEY GENERAL CONFIRMING THAT
THE PRESERVATION PLAN HAS BEEN CONSUMMATED.
(Q) "PRESERVATION PLAN". AN 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 OF AN ELIGIBLE PROJECT
FROM RENTAL STATUS TO CONDOMINIUM OWNERSHIP, WHEREIN THE OFFEROR DOCU-
MENTS THAT IT HAS AGREED TO AN EXTENDED AFFORDABILITY TERM FOR THE
INCOME-RESTRICTED RENTAL UNITS WITH A RELEVANT HOUSING FINANCE AGENCY.
(R) "PURCHASER UNDER THE PRESERVATION PLAN". A PURCHASER UNDER THE
PRESERVATION PLAN IS A PERSON WHO PURCHASES A DWELLING UNIT FROM OFFEROR
PURSUANT TO THE TERMS OF A PRESERVATION PLAN THAT HAS BEEN ACCEPTED FOR
FILING BY THE ATTORNEY GENERAL. A PERSON OR ENTITY THAT ACQUIRES DWELL-
ING UNITS AND ASSUMES CERTAIN OBLIGATIONS OF OFFEROR SHALL NOT BE
CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
(S) "QUALIFIED OWNER". A QUALIFIED OWNER REFERS TO THE ENTITY APPROVED
BY THE RELEVANT HOUSING FINANCE AGENCY ON OR BEFORE THE DATE OF
SUBMISSION OF A PRESERVATION PLAN TO THE DEPARTMENT OF LAW THAT WILL
OWN, OPERATE AND MAINTAIN THE INCOME-RESTRICTED RENTAL UNIT OR UNITS
THAT ARE IN THE BUILDING, GROUP OF BUILDINGS OR DEVELOPMENT THAT ARE THE
SUBJECT OF THE PRESERVATION PLAN. THE ENTITY WHICH IS A QUALIFIED OWNER
S. 1354 5
SHALL ONLY BE EITHER: (I) A HOUSING DEVELOPMENT FUND COMPANY INCORPO-
RATED PURSUANT TO ARTICLE ELEVEN OF THE PRIVATE FINANCE HOUSING LAW; OR
(II) A COMMUNITY LAND TRUST OR OTHER CHARITABLE CORPORATION ORGANIZED
UNDER THE NOT-FOR-PROFIT CORPORATION LAW THAT HAS AS ITS PRIMARY CHARI-
TABLE PURPOSE THE OWNERSHIP, OPERATION AND MAINTENANCE OF MULTIFAMILY
HOUSING FOR PERSONS AND FAMILIES OF LOW INCOME AS DEFINED BY SUBDIVISION
NINETEEN OF SECTION TWO OF THE PRIVATE FINANCE HOUSING LAW.
(T) "RELEVANT HOUSING FINANCE AGENCY". RELEVANT HOUSING FINANCE AGENCY
SHALL REFER TO A CITY OR STATE AGENCY WITH OVERSIGHT OVER INCOME-RES-
TRICTED RENTAL UNITS DUE TO THE RECEIPT OF SUBSTANTIAL GOVERNMENT
ASSISTANCE PRIOR TO THE DATE OF SUBMISSION OF A PRESERVATION PLAN. FOR
PURPOSES OF THIS SECTION, A RELEVANT HOUSING FINANCE AGENCY SHALL ALSO
REFER TO THE CITY OR STATE AGENCY THAT WILL CONTINUE TO HAVE OVERSIGHT
OF INCOME-RESTRICTED RENTAL UNITS AFTER CONSUMMATION OF THE PRESERVATION
PLAN.
(U) "REGULATORY AGREEMENT". A REGULATORY AGREEMENT SHALL REFER TO THE
WRITTEN AGREEMENT WITH A RELEVANT HOUSING FINANCE AGENCY THAT RESTRICTS
THE INCOME AND RENTS OF INCOME-RESTRICTED RENTAL UNITS THAT IS EITHER:
(I) IN EFFECT PRIOR TO THE DATE OF SUBMISSION OF A PRESERVATION PLAN; OR
(II) IN EFFECT AFTER CONSUMMATION OF THE PRESERVATION PLAN.
(V) "RENT STABILIZATION". RENT STABILIZATION SHALL MEAN, COLLECTIVELY,
THE RENT STABILIZATION LAW OF NINETEEN SIXTY-NINE, THE RENT STABILIZA-
TION CODE, THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-
FOUR, AND THE HOUSING STABILITY AND TENANT PROTECTION ACT OF TWO THOU-
SAND NINETEEN, TOGETHER WITH ANY OTHER SUCCESSOR STATUTES THERETO.
(W) "SUBSTANTIAL GOVERNMENT ASSISTANCE". SUBSTANTIAL GOVERNMENT
ASSISTANCE SHALL REFER TO EITHER (I) LOW INCOME HOUSING TAX CREDITS
UNDER SECTION FORTY-TWO OF THE INTERNAL REVENUE CODE OR (II) BOND
FINANCING UNDER SECTION ONE HUNDRED FORTY-TWO OF THE INTERNAL REVENUE
CODE.
(X) "ZONING RESOLUTION". ZONING RESOLUTION SHALL REFER TO THE ZONING
RESOLUTION OF THE CITY OF NEW YORK.
2. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR SUBMISSION A PRES-
ERVATION PLAN FOR THE CONVERSION OF A BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT IF THE RELEVANT HOUSING FINANCE AGENCY HAS NOT CONFIRMED
THAT THE PRESERVATION PLAN IS FOR AN ELIGIBLE PROJECT, WHICH SHALL BE
DEFINED AS A BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT THAT MEETS
THE DEFINITION OF AN ELIGIBLE PROJECT AND ONE OR MORE OF THE FOLLOWING
REQUIREMENTS AS OF THE DATE OF SUBMISSION OF THE PRESERVATION PLAN:
(A) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT THAT (I) RECEIVES A PARTIAL PROPERTY TAX EXEMPTION PURSUANT
TO SUBDIVISION FIFTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL
PROPERTY TAX LAW, (II) CONTAINS INCOME-RESTRICTED RENTAL UNITS, AND
(III) IS NOT SUBJECT TO AN EXISTING REGULATORY AGREEMENT THAT PROHIBITS
THE CONVERSION OF THE DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
(B) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT THAT (I) RECEIVES LOW INCOME HOUSING TAX CREDITS PURSUANT TO
SECTION FORTY-TWO OF THE INTERNAL REVENUE CODE, (II) CONTAINS INCOME-
RESTRICTED RENTAL UNITS, (III) IS NOT SUBJECT TO ANY AGREEMENT PROVIDING
FOR A RIGHT OF FIRST REFUSAL WITH A NOT-FOR-PROFIT CORPORATION UNLESS
EVIDENCE DEEMED SATISFACTORY TO THE DEPARTMENT OF LAW HAS BEEN PROVIDED
THAT SUCH RIGHT OF FIRST REFUSAL HAS EITHER EXPIRED OR THAT SUCH NOT-
FOR-PROFIT DECLINED TO EXERCISE SUCH RIGHT, AND (IV) IS NOT SUBJECT TO
AN EXISTING REGULATORY AGREEMENT THAT PROHIBITS THE CONVERSION OF THE
DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
S. 1354 6
(C) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT THAT (I) RECEIVES BOND FINANCING UNDER SUBDIVISION (D) OF
SECTION ONE HUNDRED FORTY-TWO OF THE INTERNAL REVENUE CODE, (II)
CONTAINS INCOME-RESTRICTED RENTAL UNITS, AND (III) IS NOT SUBJECT TO AN
EXISTING REGULATORY AGREEMENT THAT PROHIBITS THE CONVERSION OF THE
DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
(D) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT, THAT (I) CONTAINS ONE OR MORE INCLUSIONARY HOUSING UNITS,
(II) IS NOT SUBJECT TO AN EXISTING REGULATORY AGREEMENT THAT PROHIBITS
THE CONVERSION OF THE DWELLING UNITS TO CONDOMINIUM OWNERSHIP, AND (III)
CONTAINS A REPRESENTATION THAT AN AGREEMENT HAS BEEN REACHED WITH THE
RELEVANT HOUSING FINANCE AGENCY TO INCREASE THE TOTAL NUMBER OF INCOME-
RESTRICTED RENTAL UNITS IN THE BUILDING OR GROUP OF BUILDINGS OR DEVEL-
OPMENT TO THIRTY PERCENT FOR THE EXTENDED AFFORDABILITY TERM UPON
CONSUMMATION OF THE PRESERVATION PLAN.
3. AT THE TIME OF SUBMISSION OF THE PRESERVATION PLAN, THE OFFEROR
SHALL CONFIRM THAT IT HAS REACHED AN AGREEMENT WITH A RELEVANT HOUSING
FINANCE AGENCY REGARDING THE INCOME-RESTRICTED RENTAL UNITS DURING THE
EXTENDED AFFORDABILITY TERM, AND SHALL INCLUDE THE FOLLOWING DISCLOSURES
IN THE PRESERVATION PLAN:
(A) A LIST OF THE PROPOSED INCOME-RESTRICTED RENTAL UNITS;
(B) THE PROPOSED QUALIFIED OWNER OF THE INCOME-RESTRICTED RENTAL
UNITS, WHICH QUALIFIED OWNER SHALL TAKE TITLE TO THE INCOME-RESTRICTED
RENTAL UNITS NO LATER THAN THREE HUNDRED SIXTY-FIVE DAYS FROM THE DATE
OF CONSUMMATION OF THE PRESERVATION PLAN;
(C) THE OPERATING EXPENSES AND REVENUES APPLICABLE TO THE INCOME-RES-
TRICTED RENTAL UNITS, WHICH SHALL BE REFLECTED IN THE UPDATED SCHEDULE A
AND SCHEDULE B FOR THE FIRST YEAR OF OPERATION OF THE CONDOMINIUM, THE
ALLOCATION OF COMMON INTERESTS, PROJECTED COMMON CHARGES, ESTIMATED REAL
ESTATE TAXES, AND RENTS TO BE COLLECTED FROM EACH INCOME-RESTRICTED
RENTAL UNIT, AND THE ALLOCATION OF COMMON EXPENSES UNDER SECTION THREE
HUNDRED THIRTY-NINE-M OF THE REAL PROPERTY LAW, APPLICABLE TO THE
INCOME-RESTRICTED RENTAL UNITS, WHICH SHALL BE USED TO LIMIT CERTAIN
CONDOMINIUM EXPENSES ALLOCABLE TO THE INCOME-RESTRICTED RENTAL UNITS AND
TO COVER ANY SHORTFALL IN THE REVENUE FROM RENT TO COVER THE COSTS OF
OPERATION OF THE INCOME-RESTRICTED RENTAL UNITS;
(D) A DESCRIPTION OF ANY FINANCING ENCUMBERING THE INCOME-RESTRICTED
RENTAL UNITS, AND WHETHER A TAX EXEMPTION OR ABATEMENT IS IN PLACE TO
REDUCE REAL ESTATE TAXES FOR THE INCOME-RESTRICTED RENTAL UNITS;
(E) A DESCRIPTION OF ANY REGULATORY AGREEMENT OR AGREEMENTS TO BE
RECORDED AGAINST THE INCOME-RESTRICTED RENTAL UNITS AND THE TERM THEREOF
AND THE RELEVANT HOUSING FINANCE AGENCY OR AGENCIES WITH SUPERVISORY
OVERSIGHT;
(F) A DESCRIPTION OF THE PROVISIONS OF THE DECLARATION AND BY-LAWS FOR
THE CONDOMINIUM THAT PROVIDES FOR THE SPECIAL ALLOCATION OF COMMON
EXPENSES IN ACCORDANCE WITH SECTION THREE HUNDRED THIRTY-NINE-M OF THE
REAL PROPERTY LAW, AND ANY SPECIFIC REQUIREMENTS SET FORTH IN A REGULA-
TORY AGREEMENT REQUIRING UNIT OWNERS IN THE CONDOMINIUM TO COVER ANY
SHORTFALL IN THE REVENUE FROM RENT TO COVER THE COSTS OF OPERATION OF
THE INCOME-RESTRICTED RENTAL UNITS;
(G) A DESCRIPTION OF THE CONTEMPLATED STRUCTURE OF THE BOARD OF MANAG-
ERS OF THE CONDOMINIUM, INCLUDING SPECIFICALLY AN EXPLANATION AS TO HOW
THE INTERESTS OF THE QUALIFIED OWNER OF THE INCOME-RESTRICTED RENTAL
UNITS ARE TO BE ADEQUATELY REPRESENTED;
(H) A DESCRIPTION OF THE BUILDING-WIDE AMENITIES AND A REPRESENTATION
THAT THE DECLARATION AND BY-LAWS FOR THE CONDOMINIUM SHALL REQUIRE THAT
S. 1354 7
TENANTS OF THE INCOME-RESTRICTED RENTAL UNITS BE PROVIDED AN OPPORTUNITY
TO USE COMMONLY ACCESSIBLE AMENITIES OF THE CONDOMINIUM AND NOT UNIQUE
TO AN INDIVIDUAL UNIT, INCLUDING BUT NOT LIMITED TO: POOLS, FITNESS
CENTERS, STORAGE SPACES, PARKING, AND ROOFS OR GARDENS ACCESSIBLE ON A
BUILDING-WIDE BASIS, AND THAT THE TENANTS OF THE INCOME-RESTRICTED
RENTAL UNITS MAY ONLY BE CHARGED A NOMINAL AND REASONABLE FEE FOR SUCH
USE, WHICH SHALL NOT BE TREATED AS RENT UNDER ANY RENTAL AGREEMENT;
(I) THE NAME, ADDRESS AND CONTACT DETAILS FOR THE RELEVANT HOUSING
FINANCE AGENCY OR AGENCIES WITH SUPERVISORY OVERSIGHT OF THE INCOME-RES-
TRICTED RENTAL UNITS AND THE OCCUPANTS WITHIN;
(J) THAT THE REGULATORY AGREEMENT CONTAINS A PROVISION WHICH REQUIRES
THAT ONCE A VACANCY OCCURS OF AN INCOME-RESTRICTED RENTAL UNIT, AFTER
CONSUMMATION OF THE PRESERVATION PLAN, THEN SAID UNIT MAY ONLY BE LEASED
TO LOW INCOME HOUSEHOLDS WHOSE ANNUAL HOUSEHOLD INCOME IS NOT GREATER
THAN SIXTY PERCENT OF AREA MEDIAN INCOME AT THE TIME OF THE INITIAL
LEASE;
(K) A REPRESENTATION BY OFFEROR THAT THE REGULATORY AGREEMENT INCLUDES
AND ACCOUNTS FOR (I) ALL OF THE EXISTING ON-SITE INCOME-RESTRICTED
RENTAL UNITS IN AN EXISTING BUILDING OR GROUP OF BUILDINGS OR DEVELOP-
MENT, OR (II) ALL OF THE INCOME-RESTRICTED RENTAL UNITS ASSOCIATED WITH
AN EXISTING BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT LOCATED ON A
ZONING LOT WHERE ONE OR MORE BUILDINGS WERE SET ASIDE AS AFFORDABLE
HOUSING FOR PURPOSES OF QUALIFYING FOR A PARTIAL PROPERTY TAX EXEMPTION
PURSUANT TO SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX
LAW;
(L) TO THE EXTENT NOT ALREADY SUBJECT THERETO PRIOR TO THE CONSUM-
MATION OF THE PRESERVATION PLAN, A REPRESENTATION BY OFFEROR THAT THE
REGULATORY AGREEMENT SHALL REQUIRE ALL INCOME RESTRICTED RENTAL UNITS BE
SUBJECT TO RENT STABILIZATION DURING THE EXTENDED AFFORDABILITY TERM,
AND THAT NO INCOME-RESTRICTED RENTAL UNITS MAY BE REMOVED FROM RENT
STABILIZATION PURSUANT TO THE EXEMPTION FOR UNITS OWNED AS A CONDOMINIUM
UNDER SECTIONS 2520.11 AND 2500.9 OF THE RENT STABILIZATION CODE OR
SECTION 26-504 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK; AND
(M) THE RECORDING OF THE CONDOMINIUM DECLARATION AND COMMENCEMENT OF
CONDOMINIUM OPERATIONS DOES NOT MODIFY THE REQUIREMENT UNDER SECTION
FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW THAT ALL RESIDEN-
TIAL RENTAL APARTMENTS ARE SUBJECT TO RENT STABILIZATION.
4. UPON SUBMISSION OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW,
EACH TENANT IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT OF A
DWELLING UNIT BEING OFFERED FOR SALE SHALL BE PROVIDED WITH A WRITTEN
NOTICE STATING THAT SUCH PRESERVATION PLAN HAS BEEN SUBMITTED TO THE
DEPARTMENT OF LAW. WRITTEN NOTICE TO EACH TENANT IN OCCUPANCY SHALL
CONTAIN OR BE ACCOMPANIED BY:
(A) A COPY OF THE PRESERVATION PLAN;
(B) A STATEMENT THAT TENANTS OF THE DWELLING UNITS BEING OFFERED FOR
SALE PURSUANT TO THE PRESERVATION PLAN OR THEIR REPRESENTATIVES MAY
PHYSICALLY INSPECT THE PREMISES AT ANY TIME SUBSEQUENT TO THE SUBMISSION
OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW, DURING NORMAL BUSI-
NESS HOURS, UPON WRITTEN REQUEST MADE BY THEM TO THE OFFEROR, PROVIDED
SUCH REPRESENTATIVES ARE REGISTERED ARCHITECTS OR PROFESSIONAL ENGINEERS
LICENSED BY THE OFFICE OF THE PROFESSIONS OF THE EDUCATION DEPARTMENT OF
THE STATE OF NEW YORK; AND
(C) A STATEMENT THAT TENANTS OF THE INCOME-RESTRICTED RENTAL UNITS ARE
NOT BEING OFFERED FOR SALE THE DWELLING UNITS THEY OCCUPY, BUT THEIR
TENANCIES SHALL CONTINUE UNDISTURBED DURING AND AFTER THE CONVERSION OF
THE PROPERTY TO CONDOMINIUM OWNERSHIP. THE STATEMENT SHALL ALSO DISCLOSE
S. 1354 8
THAT ALL INCOME-RESTRICTED RENTAL UNITS SHALL BE SUBJECT TO RENT
STABILIZATION THROUGHOUT THE EXTENDED AFFORDABILITY TERM.
5. THE TENANTS IN OCCUPANCY OF DWELLING UNITS BEING OFFERED FOR SALE
ON THE DATE THE ATTORNEY GENERAL ACCEPTS THE PRESERVATION PLAN FOR
FILING SHALL HAVE THE EXCLUSIVE RIGHT TO PURCHASE THEIR DWELLING UNITS
FOR NINETY DAYS AFTER THE PRESERVATION PLAN HAS BEEN ACCEPTED FOR FILING
BY THE ATTORNEY GENERAL, DURING WHICH TIME THE OFFERING PRICE AVAILABLE
TO THE TENANT IN OCCUPANCY MAY NOT BE INCREASED AND A TENANT'S DWELLING
UNIT SHALL NOT BE SHOWN TO A THIRD PARTY UNLESS SUCH TENANT HAS, IN
WRITING, WAIVED THEIR 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 SIX
MONTHS FROM SAID EXPIRATION DATE TO PURCHASE SAID DWELLING UNIT ON THE
SAME TERMS AND CONDITIONS AS ARE CONTAINED IN ANY EXECUTED CONTRACT TO
PURCHASE SAID DWELLING UNIT ENTERED INTO BY A PURCHASER UNDER THE PRES-
ERVATION PLAN, 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
PURCHASE AGREEMENT TO SAID TENANT.
6. THE PRESERVATION PLAN SHALL ALSO DISCLOSE THAT THE OFFEROR SHALL:
(A) MARKET AND SELL ALL THE DWELLING UNITS (OTHER THAN THE INCOME-RES-
TRICTED RENTAL UNITS) IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOP-
MENT, AS EACH SUCH DWELLING UNIT BECOMES VACANT, TO A PURCHASER UNDER
THE PRESERVATION PLAN THROUGH THE USE OF COMMERCIALLY REASONABLE GOOD
FAITH EFFORTS;
(B) FUND THE RESERVE FUND AND DEDICATED CAPITAL FUND IN THE MANNER AND
AMOUNTS AS PROVIDED IN SECTION THREE HUNDRED THIRTY-NINE-MM OF THE REAL
PROPERTY LAW;
(C) FILE AN ANNUAL UPDATE AMENDMENT EVERY YEAR WHICH SHALL INCLUDE AN
UPDATED SCHEDULE A OF ALL DWELLING UNITS BEING OFFERED FOR SALE UNDER
THE PRESERVATION PLAN; AND
(D) EXERCISE COMMERCIALLY REASONABLE GOOD FAITH EFFORTS TO SELL AT
LEAST FIFTY-ONE PERCENT OF THE TOTAL NUMBER OF DWELLING UNITS OFFERED
FOR SALE UNDER THE PRESERVATION PLAN (EXCLUDING ANY INCOME-RESTRICTED
RENTAL UNITS NOT OFFERED FOR SALE) WITHIN FIVE YEARS FROM THE DATE OF
THE POST-CLOSING AMENDMENT.
7. AFTER THE ISSUANCE OF THE LETTER FROM THE ATTORNEY GENERAL STATING
THAT THE PRESERVATION PLAN HAS BEEN ACCEPTED FOR FILING, THE OFFEROR
SHALL, ON THE THIRTIETH, SIXTIETH, EIGHTY-EIGHTH AND NINETIETH DAY AFTER
SUCH DATE AND AT LEAST ONCE EVERY THIRTY DAYS UNTIL THE PRESERVATION
PLAN IS DECLARED EFFECTIVE OR 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 PRESERVATION 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 ON
THE DATE THE PRESERVATION PLAN WAS ACCEPTED FOR FILING BY THE ATTORNEY
GENERAL WHO HAVE EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE
UNDER THE PRESERVATION PLAN AS OF THE DATE OF SUCH WRITTEN STATEMENT
UNDER OATH; AND
(B) BEFORE NOON ON THE DAY SUCH STATEMENT IS FILED POST A COPY OF SUCH
WRITTEN STATEMENT UNDER OATH IN A PROMINENT PLACE ACCESSIBLE TO ALL
TENANTS IN EACH BUILDING COVERED BY THE PRESERVATION PLAN.
8. A PRESERVATION PLAN MAY NOT BE DECLARED EFFECTIVE UNTIL WRITTEN
PURCHASE AGREEMENTS HAVE BEEN EXECUTED AND DELIVERED FOR AT LEAST
FIFTEEN PERCENT OF ALL DWELLING UNITS OFFERED FOR SALE IN THE BUILDING
S. 1354 9
OR GROUP OF BUILDINGS OR DEVELOPMENT FROM EITHER (A) BONA FIDE TENANTS
WHO WERE IN OCCUPANCY ON THE DATE A LETTER WAS ISSUED BY THE ATTORNEY
GENERAL ACCEPTING THE PRESERVATION PLAN FOR FILING OR (B) BONA FIDE
NON-TENANT PURCHASERS. 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 INDUCE-
MENTS. A NEGOTIATED REDUCTION FROM THE ORIGINAL OFFERING PRICE EXTENDED
SHALL NOT, BY ITSELF, BE DEEMED A DISCRIMINATORY INDUCEMENT.
9. THOSE WRITTEN STATEMENTS UNDER OATH THAT THE OFFEROR IS REQUIRED TO
FILE WITH THE ATTORNEY GENERAL PURSUANT TO SUBDIVISION SEVEN OF THIS
SECTION SHALL ALSO INCLUDE:
(A) THE TOTAL NUMBER OF WRITTEN AGREEMENTS TO PURCHASE UNDER THE PRES-
ERVATION PLAN RECEIVED FROM BONA FIDE NON-TENANT PURCHASERS;
(B) THE TOTAL NUMBER OF WRITTEN AGREEMENTS TO PURCHASE UNDER THE PRES-
ERVATION PLAN RECEIVED FROM ALL BONA FIDE TENANTS IN OCCUPANCY;
(C) THE PERCENTAGE OF DWELLING UNITS UNDER CONTRACT, CALCULATED BY
ADDING THE NUMBER OF WRITTEN PURCHASE AGREEMENTS FOR A UNIT THAT WERE
RECEIVED FROM (I) ALL BONA FIDE TENANTS IN OCCUPANCY PLUS (II) ALL BONA
FIDE NON-TENANT PURCHASERS AND THEN DIVIDING THE SUM OF THOSE TWO
NUMBERS BY THE TOTAL NUMBER OF DWELLING UNITS OFFERED FOR SALE UNDER THE
PRESERVATION PLAN;
(D) WHETHER OR NOT THE OFFEROR INTENDS TO CLAIM A CREDIT AGAINST THE
MANDATORY INITIAL CONTRIBUTION THE OFFEROR IS OBLIGATED TO DEPOSIT INTO
THE CONDOMINIUM'S RESERVE FUND PURSUANT TO SUBDIVISION THREE OF SECTION
THREE HUNDRED THIRTY-NINE-MM OF THE REAL PROPERTY LAW FOR THE ACTUAL
COST OF CAPITAL REPLACEMENTS WHICH THE OFFEROR HAS BEGUN AFTER THE PRES-
ERVATION PLAN WAS SUBMITTED FOR FILING TO THE DEPARTMENT OF LAW BUT
BEFORE THE PRESERVATION PLAN IS DECLARED EFFECTIVE, TOGETHER WITH THEIR
ACTUAL OR ESTIMATED COSTS WHICH CREDIT SHALL NOT EXCEED THE ACTUAL COST
OF THE CREDIT;
(E) WHETHER OR NOT THE OFFEROR SHALL BE MAKING ITS RESERVE FUND
CONTRIBUTIONS REQUIRED PURSUANT TO SECTION THREE HUNDRED THIRTY-NINE-MM
EARLIER OR IN AN AMOUNT GREATER THAN REQUIRED; AND
(F) A REPRESENTATION THAT NO PURCHASER COUNTED FOR PURPOSES OF DECLAR-
ING THE PRESERVATION PLAN EFFECTIVE IS THE OFFEROR, THE SELLING AGENT OR
THE MANAGING AGENT, OR IS A PRINCIPAL OF THE OFFEROR, THE SELLING AGENT,
OR THE MANAGING AGENT OR IS RELATED TO ANY PRINCIPAL OF THE OFFEROR, ANY
PRINCIPAL OF THE SELLING AGENT OR ANY PRINCIPAL OF THE MANAGING AGENT BY
BLOOD, MARRIAGE, OR ADOPTION, OR IS AN AFFILIATE, BUSINESS ASSOCIATE, AN
EMPLOYEE, A SHAREHOLDER, A MEMBER, A MANAGER, A DIRECTOR, AN OFFICER, A
LIMITED PARTNER OF THE OFFEROR, SELLING AGENT OR MANAGING AGENT.
10. THE PRESERVATION PLAN SHALL PROVIDE THAT IT WILL BE DEEMED ABAN-
DONED, VOID AND OF NO EFFECT IF IT DOES NOT BECOME EFFECTIVE WITHIN
FIFTEEN MONTHS FROM THE DATE OF ISSUE OF THE LETTER OF THE ATTORNEY
GENERAL STATING THAT THE PRESERVATION PLAN 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 TWELVE MONTHS AFTER SUCH ABANDONMENT.
11. NO CLOSINGS OF TITLE OF A DWELLING UNIT TO A PURCHASER UNDER THE
PRESERVATION PLAN SHALL TAKE PLACE UNTIL THE ATTORNEY GENERAL SHALL HAVE
ALSO ACCEPTED FOR FILING AN AMENDMENT THAT DECLARES THE PRESERVATION
PLAN EFFECTIVE. WITHIN FORTY-FIVE DAYS OF THE FIRST CLOSING OF TITLE OF
A DWELLING UNIT TO A PURCHASER UNDER THE PRESERVATION PLAN, THE OFFEROR
SHALL SUBMIT TO THE ATTORNEY GENERAL ITS POST-CLOSING AMENDMENT TO THE
PRESERVATION PLAN. THEREAFTER, THE PRESERVATION PLAN SHALL CONTINUALLY
BE UPDATED WITH THE FILING OF AN ANNUAL UPDATE AMENDMENT, NO LATER THAN
S. 1354 10
THIRTY DAYS FROM THE ANNIVERSARY OF THE DATE THE ATTORNEY GENERAL
ACCEPTED THE POST-CLOSING AMENDMENT FOR FILING. AN OFFEROR OR SUCCESSOR
OFFEROR SHALL ONLY BE RELIEVED OF ITS OBLIGATION TO FILE AN ANNUAL
UPDATE AMENDMENT TO THE PRESERVATION PLAN AFTER THE LAST DWELLING UNIT
OFFERED FOR SALE IS CONVEYED TO A PURCHASER UNDER THE PRESERVATION PLAN.
12. AFTER THE DATE OF ACCEPTANCE FOR FILING OF THE POST-CLOSING AMEND-
MENT, THE OFFEROR SHALL CONTINUE TO MAKE COMMERCIALLY REASONABLE GOOD
FAITH EFFORTS TO SELL THE DWELLING UNITS IT OWNS.
13. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR FILING AN ANNUAL
UPDATE AMENDMENT TO THE PRESERVATION PLAN UNLESS:
(A) THE ANNUAL UPDATE AMENDMENT DISCLOSES, IN ADDITION TO THE OTHER
DISCLOSURES REQUIRED ELSEWHERE IN THIS SECTION OR THE REGULATIONS OF THE
ATTORNEY GENERAL, THE FOLLOWING DATA AND INFORMATION:
(I) AN ACCOUNTING OF THE DWELLING UNITS SOLD AND CLOSED BY THE OFFEROR
IN THE PRECEDING TWELVE MONTHS, WITH AN INDICATION IF THE DWELLING UNIT
WAS CONVEYED TO A PURCHASER UNDER THE PRESERVATION PLAN OR TO A SUCCES-
SOR OFFEROR;
(II) AN INVENTORY OF THE OFFEROR'S UNSOLD DWELLING UNITS AT THE END OF
THE PRECEDING TWELVE MONTHS, IN FORM AND SUBSTANCE AS SHALL SATISFY THE
ATTORNEY GENERAL; AND
(III) ALL THE INFORMATION, DATA AND LITERATURE PRESENTED BY THE BOARD
OF MANAGERS IN ITS SEMI-ANNUAL REPORTS ON THE STATUS OF THE RESERVE FUND
AS REQUIRED UNDER SUBDIVISION FIVE OF SECTION THREE HUNDRED THIRTY-NINE-
MM OF THE REAL PROPERTY LAW.
(B) THE ANNUAL UPDATE AMENDMENT SHALL BE ACCOMPANIED BY AN AFFIDAVIT
FROM A PRINCIPAL OF THE OFFEROR ATTESTING TO THE FOLLOWING DATA AND
INFORMATION WITH RESPECT TO ALL THE DWELLING UNITS THE OFFEROR THEN
OWNS:
(I) THE DWELLING UNITS' IDENTIFYING INFORMATION AND GENERAL LOCATION;
(II) WHETHER, ON THE DATE OF SUBMISSION OF THE ANNUAL UPDATE AMEND-
MENT, THE UNSOLD DWELLING UNIT IS SUBJECT TO A FULLY EXECUTED PURCHASE
AGREEMENT, AND IF SO, WHETHER THE PURCHASER IS A PURCHASER UNDER THE
PRESERVATION PLAN OR OTHERWISE;
(III) WHETHER, ON THE DATE OF SUBMISSION OF THE ANNUAL UPDATE AMEND-
MENT, THE DWELLING UNIT IS OCCUPIED OR VACANT, AND IF OCCUPIED, AN INDI-
CATION THAT OCCUPANCY IS:
(A) BY A RENT-REGULATED TENANT;
(B) BY A MARKET-RATE TENANT;
(C) A MONTH-TO-MONTH TENANCY;
(D) A TENANCY AT SUFFERANCE; OR
(E) OTHER.
(IV) NOTWITHSTANDING THE OCCUPANCY STATUS OF A DWELLING UNIT ON THE
DATE OF SUBMISSION OF THE ANNUAL UPDATE AMENDMENT, AN INDICATION IF THE
DWELLING UNIT WAS VACANT FOR MORE THAN ONE OF THE TWELVE PRECEDING
MONTHS. FOR EACH DWELLING UNIT SO INDICATED, THE OFFEROR SHALL ALSO
DISCLOSE:
(A) THE DATE RANGE THAT THE DWELLING UNIT WAS VACANT;
(B) THE DATE RANGE FOR ANY PERIOD OF TIME THAT THE DWELLING UNIT WAS
MARKETED FOR SALE;
(C) DATE OF SALE;
(D) THE DATE THE DWELLING UNIT WAS LEASED BY A TENANT; AND
(E) THE DATE THE LEASE IS SET TO EXPIRE (IF APPLICABLE).
14. NO EVICTION PROCEEDINGS SHALL BE COMMENCED AT ANY TIME AGAINST
NON-PURCHASING TENANTS FOR FAILURE TO PURCHASE OR FOR 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
S. 1354 11
PREMISES, REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR BREACH
BY THE NON-PURCHASING TENANT OF THEIR OBLIGATIONS TO THE OWNER OF THE
DWELLING UNIT; AND PROVIDED FURTHER THAT AN OWNER OF A UNIT MAY NOT
COMMENCE AN ACTION TO RECOVER POSSESSION OF A DWELLING UNIT FROM A NON-
PURCHASING TENANT ON THE GROUNDS THAT THEY SEEK THE DWELLING UNIT FOR
THE USE AND OCCUPANCY OF THEMSELF OR THEIR FAMILY'S USE AND OCCUPANCY.
15. NO EVICTION PROCEEDINGS SHALL BE COMMENCED, EXCEPT AS PROVIDED IN
THIS SUBDIVISION, AT ANY TIME AGAINST EITHER ELIGIBLE SENIOR CITIZENS OR
ELIGIBLE DISABLED PERSONS. THE RENTALS OF ELIGIBLE SENIOR CITIZENS AND
ELIGIBLE DISABLED PERSONS WHO RESIDE IN DWELLING UNITS NOT SUBJECT TO
GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY AND ELIGIBLE
SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE IN DWELLING
UNITS WITH RESPECT TO WHICH GOVERNMENT REGULATION AS TO RENTALS AND
CONTINUED OCCUPANCY IS ELIMINATED OR BECOMES INAPPLICABLE AFTER THE
PRESERVATION PLAN HAS BEEN ACCEPTED FOR FILING SHALL NOT BE SUBJECT TO
UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR COMPARABLE APART-
MENTS DURING THE PERIOD OF THEIR OCCUPANCY CONSIDERING, IN DETERMINING
COMPARABILITY, SUCH FACTORS AS BUILDING SERVICES, LEVEL OF MAINTENANCE
AND OPERATING EXPENSES; PROVIDED THAT SUCH PROCEEDINGS MAY BE COMMENCED
AGAINST SUCH TENANTS 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 TENANT OF THEIR OBLIGATIONS TO THE OWNER OF THE DWELLING
UNIT.
16. ELIGIBLE SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE
IN DWELLING UNITS SUBJECT TO GOVERNMENT REGULATION AS TO RENTALS AND
CONTINUED OCCUPANCY SHALL CONTINUE TO BE SUBJECT THERETO.
17. THE RIGHTS GRANTED UNDER THE PRESERVATION PLAN TO ELIGIBLE SENIOR
CITIZENS AND ELIGIBLE DISABLED PERSONS MAY NOT BE ABROGATED OR REDUCED
NOTWITHSTANDING ANY EXPIRATION OF, OR AMENDMENT TO, THIS SECTION.
18. ANY OFFEROR WHO DISPUTES THE ELECTION BY A PERSON TO BE AN ELIGI-
BLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON SHALL APPLY TO THE
ATTORNEY GENERAL WITHIN THIRTY DAYS OF THE RECEIPT OF THE ELECTION FORMS
FOR A DETERMINATION BY THE ATTORNEY GENERAL OF SUCH PERSON'S ELIGIBIL-
ITY. THE ATTORNEY GENERAL SHALL, WITHIN THIRTY DAYS THEREAFTER, ISSUE A
DETERMINATION OF ELIGIBILITY. THE FOREGOING SHALL, IN THE ABSENCE OF
FRAUD, BE THE SOLE METHOD FOR DETERMINING A DISPUTE AS TO WHETHER A
PERSON IS AN ELIGIBLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON. THE
DETERMINATION OF THE ATTORNEY GENERAL SHALL BE REVIEWABLE ONLY THROUGH A
PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES, WHICH PROCEEDING SHALL BE COMMENCED WITHIN THIRTY DAYS AFTER SUCH
DETERMINATION BY THE ATTORNEY GENERAL BECOMES FINAL.
19. 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
CONDOMINIUM OWNERSHIP SHALL CONTINUE TO BE SUBJECT THERETO.
20. 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 PRESERVATION PLAN
HAS BEEN ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL NOT BE
SUBJECT TO UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR COMPARA-
BLE APARTMENTS DURING THE PERIOD OF THEIR OCCUPANCY. IN DETERMINING
COMPARABILITY, CONSIDERATION SHALL BE GIVEN TO SUCH FACTORS AS BUILDING
SERVICES, LEVEL OF MAINTENANCE AND OPERATING EXPENSES.
S. 1354 12
21. THE RIGHTS GRANTED UNDER THE PRESERVATION PLAN TO PURCHASERS UNDER
THE PRESERVATION PLAN AND TO NON-PURCHASING TENANTS MAY NOT BE ABROGATED
OR REDUCED NOTWITHSTANDING ANY EXPIRATION OF, OR AMENDMENT TO, THIS
SECTION.
22. 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.
23. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR FILING A PRESERVA-
TION PLAN WHEN THE ATTORNEY GENERAL DETERMINES: (A) THAT ONE OR MORE OF
THE INCOME-RESTRICTED RENTAL UNITS WITHIN THE BUILDING, GROUP OF BUILD-
INGS OR DEVELOPMENT WAS VACANT ON THE DATE OF SUBMISSION; OR (B) OF THE
DWELLING UNITS THAT ARE NOT INCOME-RESTRICTED RENTAL UNITS, AN EXCESSIVE
NUMBER OF LONG-TERM VACANCIES DID NOT EXIST ON THE DATE THAT THE PRESER-
VATION PLAN WAS FIRST SUBMITTED TO THE DEPARTMENT OF LAW. FOR PURPOSES
OF THIS SUBDIVISION, "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; AND "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 PRESERVATION PLAN WAS FIRST SUBMITTED
TO THE DEPARTMENT OF LAW.
24. 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 OF THE BOARD OF MANAGERS, AT WHICH TIME THE BOARD OF MANAGERS OF
THE CONDOMINIUM SHALL ASSUME RESPONSIBILITY FOR THE PROVISION OF ALL
SERVICES AND FACILITIES REQUIRED BY LAW ON A NON-DISCRIMINATORY BASIS.
25. 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 THEIR USE OR OCCU-
PANCY OF THEIR 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 THEY DEEM IT APPROPRIATE, AN
ORDER RESTRAINING THE OWNER FROM SELLING THE DWELLING UNIT ITSELF OR
FROM PROCEEDING WITH THE PRESERVATION PLAN OF CONVERSION; PROVIDED THAT
NOTHING CONTAINED HEREIN SHALL BE DEEMED TO PRECLUDE THE TENANT FROM
APPLYING ON THEIR OWN BEHALF FOR SIMILAR RELIEF.
26. ANY PROVISION OF A LEASE OR OTHER RENTAL AGREEMENT WHICH PURPORTS
TO WAIVE A TENANT'S RIGHTS UNDER THIS SECTION OR RULES AND REGULATIONS
PROMULGATED PURSUANT HERETO SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
27. NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION REGARDING THE
PRESERVATION OF AN INCOME-RESTRICTED RENTAL UNIT OR UNITS AS PERMANENTLY
AFFORDABLE, AND TO THE EXTENT PERMITTED UNDER EXISTING LAW AS IT RELATES
TO THE INCOME-RESTRICTED RENTAL UNIT OR UNITS, THE INCOME-RESTRICTED
RENTAL UNIT OR UNITS IN A BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT
OF AN ELIGIBLE PROJECT MAY BE CONVERTED TO A LIMITED EQUITY HOUSING
S. 1354 13
COOPERATIVE PURSUANT TO ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE
LAW UNDER A SEPARATE OFFERING STATEMENT OR PROSPECTUS, IF THE RELEVANT
HOUSING FINANCE AGENCY ENSURES THAT THE PROPOSED OFFERING STATEMENT OR
PROSPECTUS DISCLOSES THAT THE REGULATORY AGREEMENT PROVIDES AS FOLLOWS:
(A) THE OFFERING PRICES ARE AFFORDABLE TO THE EXISTING TENANTS AND/OR
THE QUALIFIED LOW-INCOME PURCHASERS WHO MEET THE DEFINITION OF PERSONS
OF LOW INCOME OR FAMILIES OF LOW INCOME AS DEFINED BY SUBDIVISION NINE-
TEEN OF SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW;
(B) ANY TENANT OF AN INCOME-RESTRICTED RENTAL UNIT THAT CHOOSES NOT TO
BUY THE INCOME-RESTRICTED RENTAL UNIT SUCH TENANT OCCUPIES SHALL CONTIN-
UE TO BE PROTECTED UNDER RENT STABILIZATION THROUGHOUT THE PROCESS OF
CONVERSION TO A LIMITED EQUITY HOUSING COOPERATIVE AND THEREAFTER, AND
THAT NO EXISTING TENANT OF AN INCOME-RESTRICTED RENTAL UNIT SHALL BE
EVICTED SOLELY DUE TO SUCH TENANT'S DECISION NOT TO PURCHASE THEIR
INCOME-RESTRICTED RENTAL UNIT;
(C) THE REGULATORY AGREEMENT AND CERTIFICATE OF INCORPORATION OF THE
LIMITED EQUITY HOUSING COOPERATIVE SHALL ENSURE THAT THE INCOME-RES-
TRICTED RENTAL UNITS CONVERTED TO A LIMITED EQUITY HOUSING COOPERATIVE
SHALL BE RESERVED FOR OCCUPANCY BY PERSONS OF LOW INCOME AND FAMILIES OF
LOW INCOME IN PERPETUITY;
(D) THE RELEVANT HOUSING FINANCE AGENCY SHALL HAVE OVERSIGHT AUTHORITY
OVER THE LIMITED EQUITY HOUSING COOPERATIVE IN THE REGULATORY AGREEMENT,
CONDOMINIUM DECLARATION, CONDOMINIUM BY-LAWS AND CERTIFICATE OF INCORPO-
RATION OF THE LIMITED EQUITY HOUSING COOPERATIVE, INCLUDING THE ABILITY
TO APPOINT A NEW BOARD OF DIRECTORS OF THE LIMITED EQUITY HOUSING COOP-
ERATIVE IN THE EVENT OF A VIOLATION OF A TERM OF, OR AN EVENT OF DEFAULT
BY THE LIMITED EQUITY HOUSING COOPERATIVE UNDER ANY OF ITS GOVERNING
DOCUMENTS; AND
(E) THAT THE OWNERSHIP OF THE DEDICATED CAPITAL ACCOUNT BY THE QUALI-
FIED OWNER, AND THE FUNDING OF THE DEDICATED CAPITAL ACCOUNT BY THE
OFFEROR OF THE PRESERVATION PLAN, SHALL EACH BE SUBJECT TO THE OVERSIGHT
AUTHORITY OF THE RELEVANT HOUSING FINANCE AGENCY AS PROVIDED IN SECTION
THREE HUNDRED THIRTY-NINE-MM OF THE REAL PROPERTY LAW.
28. IT SHALL BE UNLAWFUL FOR AN OFFEROR, ITS DESIGNEES AND/OR SUCCES-
SORS TO HAVE OR EXERCISE VOTING CONTROL OF THE CONDOMINIUM'S BOARD OF
MANAGERS FOR MORE THAN NINETY DAYS FROM THE FIFTH ANNIVERSARY DATE OF
THE FIRST CLOSING OF TITLE TO A DWELLING UNIT, OR WHENEVER THE UNSOLD
DWELLING UNITS CONSTITUTE LESS THAN FIFTY PERCENT OF THE COMMON INTER-
ESTS APPURTENANT TO ALL DWELLING UNITS, WHICHEVER IS SOONER.
29. THE ATTORNEY GENERAL MAY, IN THEIR DISCRETION, WAIVE THE REQUIRE-
MENT IN PARAGRAPH (D) OF SUBDIVISION SIX OF THIS SECTION THAT AN OFFEROR
SELL AT LEAST FIFTY-ONE PERCENT OF THE DWELLING UNITS OFFERED FOR SALE
UNDER THE PRESERVATION PLAN WHEN THE OFFEROR PROVIDES PROOF SATISFACTORY
TO THE ATTORNEY GENERAL THAT FIVE YEARS OF COMMERCIALLY REASONABLE GOOD
FAITH EFFORTS DID NOT RESULT IN THE SALE OF FIFTY-ONE PERCENT OF THE
DWELLING UNITS. IF SUCH WAIVER IS GRANTED, THE OFFEROR SHALL BE REQUIRED
TO DISCLOSE THE NEW DATE BY WHICH IT WILL SELL AT LEAST FIFTY-ONE
PERCENT OF THE DWELLING UNITS OFFERED FOR SALE UNDER THE PRESERVATION
PLAN IN ITS SUBSEQUENT ANNUAL UPDATE AMENDMENT. ANY WAIVER GRANTED HERE-
UNDER SHALL NOT ALLEVIATE AN OFFEROR, ITS DESIGNEES AND/OR SUCCESSORS OF
THE OBLIGATION SET FORTH IN SUBDIVISION TWENTY-EIGHT OF THIS SECTION.
30. WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
ATTORNEY GENERAL SHALL SUBMIT A NOTICE OF PROPOSED RULEMAKING FOR PUBLI-
CATION IN THE STATE REGISTER WHICH SHALL CONTAIN THE SUITABLE RULES
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION. THE AUTHORITY OF
THE ATTORNEY GENERAL TO PROMULGATE, ADOPT, PUBLISH, NOTIFY, REVIEW,
S. 1354 14
AMEND, MODIFY, RECONSIDER, OR RESCIND ANY RULE OR REGULATION AS MAY BE
CONFERRED ANYWHERE WITHIN THIS SECTION SHALL COMPLY WITH THE STATE
ADMINISTRATIVE PROCEDURE ACT IN ALL RESPECTS.
31. FOR ANY OFFERING STATEMENT OR PROSPECTUS (INCLUDING, WITHOUT LIMI-
TATION, A PRESERVATION PLAN AND ANY AMENDED FILINGS THERETO), SUBMITTED
TO THE DEPARTMENT OF LAW PURSUANT TO THIS SECTION, THE FILING FEES SET
FORTH IN PARAGRAPH (A) OF SUBDIVISION SEVEN OF SECTION THREE HUNDRED
FIFTY-TWO-E OF THIS ARTICLE SHALL NOT APPLY. INSTEAD, AN OFFEROR SHALL
TENDER THE FOLLOWING FILING FEE WITH AND FOR ITS SUBMISSION:
(A) SEVEN HUNDRED FIFTY DOLLARS FOR EVERY OFFERING NOT IN EXCESS OF
TWO HUNDRED FIFTY THOUSAND DOLLARS;
(B) FOR EVERY OFFERING IN EXCESS OF TWO HUNDRED FIFTY THOUSAND
DOLLARS, FOUR-TENTHS OF ONE PERCENT OF THE TOTAL AMOUNT OF THE OFFERING
BUT NOT IN EXCESS OF SIXTY THOUSAND DOLLARS, OF WHICH ONE-HALF OF SAID
AMOUNT SHALL BE A NONREFUNDABLE DEPOSIT PAID AT THE TIME OF SUBMITTING
THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW FOR REVIEW AND THE
BALANCE PAYABLE UPON THE ATTORNEY GENERAL'S ISSUANCE OF A LETTER OF
ACCEPTANCE OF THE PRESERVATION PLAN FOR FILING;
(C) TWO HUNDRED TWENTY-FIVE DOLLARS FOR EACH PRICE CHANGE AMENDMENT TO
A PRESERVATION PLAN;
(D) SEVEN HUNDRED FIFTY DOLLARS FOR ANY OTHER AMENDMENT TO A PRESERVA-
TION PLAN; AND
(E) SEVEN HUNDRED FIFTY DOLLARS FOR EACH SUCH APPLICATION, AND AN
ADDITIONAL SEVEN HUNDRED FIFTY DOLLARS FOR EACH AND EVERY AMENDMENT
SUBMITTED IN FURTHERANCE OF SUCH AN APPLICATION TO PERMIT AN OFFEROR TO
SOLICIT PUBLIC INTEREST PRIOR TO THE FILING OF A PRESERVATION PLAN TO
THE DEPARTMENT OF LAW.
§ 2. Section 339-e of the real property law is amended by adding nine
new subdivisions 1-a, 6-a, 7-a, 8-a, 10-a, 11-a, 12-a, 12-b and 13-a to
read as follows:
1-A. "CAPITAL REPLACEMENT" MEANS A BUILDING-WIDE REPLACEMENT OF A
MAJOR COMPONENT OF ANY OF THE FOLLOWING SYSTEMS:
(A) ELEVATOR;
(B) HEATING, VENTILATION AND AIR CONDITIONING;
(C) ENVIRONMENTAL AND SUSTAINABILITY UPGRADES;
(D) PLUMBING;
(E) WIRING;
(F) WINDOW; OR
(G) A MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED, HOWEVER,
THAT MAJOR STRUCTURAL REPLACEMENTS MADE TO CURE CODE VIOLATIONS OF
RECORD SHALL NOT BE INCLUDED.
6-A. "CONSUMMATION OF THE PRESERVATION PLAN" MEANS, IN THE CONTEXT OF
A PRESERVATION PLAN FOR THE CONVERSION OF RESIDENTIAL RENTAL PROPERTY TO
CONDOMINIUM OWNERSHIP THAT HAS BEEN ACCEPTED FOR FILING BY THE DEPART-
MENT OF LAW PURSUANT TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE
GENERAL BUSINESS LAW AND SUBSEQUENTLY AMENDED TO DISCLOSE THAT SAID
PRESERVATION PLAN HAS BEEN DECLARED EFFECTIVE, (I) THE RECORDING OF THE
DECLARATION FOR THE CONDOMINIUM AND (II) THE CLOSING OF TITLE TO A
DWELLING UNIT WITH A PURCHASER UNDER THE PRESERVATION PLAN.
7-A. "INCOME-RESTRICTED RENTAL UNIT", AS USED IN SECTION THREE HUNDRED
THIRTY-NINE-MM OF THIS ARTICLE, MEANS A UNIT THAT ALSO MEETS THE DEFI-
NITION OF "INCOME-RESTRICTED RENTAL UNIT" SET FORTH IN SECTION THREE
HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW.
8-A. "OFFEROR", AS USED IN SECTION THREE HUNDRED THIRTY-NINE-MM OF
THIS ARTICLE, MEANS THE OFFEROR OF A PRESERVATION PLAN TO CONVERT RESI-
DENTIAL RENTAL PROPERTY TO CONDOMINIUM OWNERSHIP PURSUANT TO SECTION
S. 1354 15
THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW, TOGETHER WITH
THEIR OR ITS NOMINEES, ASSIGNEES AND SUCCESSORS IN INTEREST.
10-A. "PRESERVATION PLAN", AS USED IN SECTION THREE HUNDRED THIRTY-
NINE-MM OF THIS ARTICLE, MEANS AN OFFERING STATEMENT OR PROSPECTUS
SUBMITTED TO THE DEPARTMENT OF LAW PURSUANT TO SECTION THREE HUNDRED
FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW FOR THE CONVERSION OF A
BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT FROM RENTAL STATUS TO
CONDOMINIUM OWNERSHIP, WHEREIN THE OFFEROR DOCUMENTS THAT IT HAS AGREED
TO AN EXTENDED AFFORDABILITY TERM FOR THE INCOME-RESTRICTED RENTAL UNITS
WITH A RELEVANT HOUSING FINANCE AGENCY.
11-A. "PURCHASER UNDER THE PRESERVATION PLAN", WHEN USED IN SECTION
THREE HUNDRED THIRTY-NINE-MM OF THIS ARTICLE, MEANS A PURCHASER UNDER
THE PRESERVATION PLAN SHALL REFER TO A PERSON WHO PURCHASES A DWELLING
UNIT FROM THE OFFEROR PURSUANT TO THE TERMS OF A PRESERVATION PLAN THAT
HAS BEEN ACCEPTED FOR FILING BY THE ATTORNEY GENERAL. A PERSON OR ENTITY
THAT ACQUIRES DWELLING UNITS AND ASSUMES CERTAIN OBLIGATIONS OF THE
OFFEROR SHALL NOT BE CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
12-A. "QUALIFIED OWNER", AS USED IN SECTION THREE HUNDRED THIRTY-NINE-
MM OF THIS ARTICLE, SHALL REFER TO A UNIT OWNER THAT ALSO MEETS THE
DEFINITION OF "QUALIFIED OWNER" AS SET FORTH IN SECTION THREE HUNDRED
FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW.
12-B. "RELEVANT HOUSING FINANCE AGENCY", AS USED IN SECTION THREE
HUNDRED THIRTY-NINE-MM OF THIS ARTICLE, SHALL HAVE THE SAME MEANING AS
SET FORTH IN SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSI-
NESS LAW.
13-A. "TOTAL PRICE", WHEN USED IN SECTION THREE HUNDRED THIRTY-NINE-MM
OF THIS ARTICLE, MEANS THE SUM OF THE COST OF ALL UNITS IN THE OFFERING,
BUT EXCLUDING ANY INCOME-RESTRICTED RENTAL UNITS OWNED OR TO BE TRANS-
FERRED TO A QUALIFIED OWNER, AT THE LAST PRICE WHICH WAS OFFERED TO
TENANTS IN OCCUPANCY PRIOR TO THE EFFECTIVE DATE OF THE PRESERVATION
PLAN REGARDLESS OF THE NUMBER OF SALES MADE.
§ 3. The real property law is amended by adding a new section 339-mm
to read as follows:
§ 339-MM. ESTABLISHMENT OF RESERVE FUND AND DEDICATED CAPITAL FUND FOR
BUILDINGS CONVERTING TO CONDOMINIUM OWNERSHIP UNDER SECTION THREE
HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW. 1. WITHIN THIRTY
DAYS AFTER THE CONSUMMATION OF A PRESERVATION PLAN, THE OFFEROR THEREOF
(AND/OR ITS DESIGNEE OR DESIGNEES AND/OR SUCCESSOR OR SUCCESSORS) SHALL
ESTABLISH AND TRANSFER:
(A) TO THE CONDOMINIUM BOARD OF MANAGERS A RESERVE FUND TO BE USED
EXCLUSIVELY FOR MAKING CAPITAL REPAIRS, REPLACEMENTS AND IMPROVEMENTS
NECESSARY FOR THE HEALTH AND SAFETY OF THE RESIDENTS (INCLUDING RESI-
DENTS OF THE INCOME-RESTRICTED RENTAL UNITS) OF SUCH BUILDING OR GROUP
OF BUILDINGS OR DEVELOPMENT. SUCH RESERVE FUND SHALL BE EXCLUSIVE OF
ANY OTHER FUNDS REQUIRED TO BE RESERVED UNDER THE PRESERVATION PLAN OR
APPLICABLE LAW OR REGULATION OF THE ATTORNEY GENERAL, EXCEPT A FUND FOR
CAPITAL REPAIRS, REPLACEMENTS AND IMPROVEMENTS SUBSTANTIALLY SIMILAR IN
PURPOSE TO AND IN AN AMOUNT NOT LESS THAN THE RESERVE FUND MANDATED BY
THIS SECTION. SUCH RESERVE FUND SHALL ALSO BE EXCLUSIVE OF ANY WORKING
CAPITAL FUND OR DEDICATED CAPITAL FUND AND SHALL NOT BE SUBJECT TO
REDUCTION FOR CLOSING APPORTIONMENTS.
(B) TO THE QUALIFIED OWNER OF THE INCOME-RESTRICTED RENTAL UNITS, AND
SUBJECT TO THE OVERSIGHT OF THE RELEVANT HOUSING FINANCE AGENCY SET
FORTH IN A REGULATORY AGREEMENT, A DEDICATED CAPITAL FUND TO BE USED
EXCLUSIVELY FOR MAKING UNIT REPAIRS, REPLACEMENTS AND IMPROVEMENTS
NECESSARY FOR THE HEALTH AND SAFETY OF THE RESIDENTS OF AN INCOME-RES-
S. 1354 16
TRICTED RENTAL UNIT OR UNITS OF SUCH BUILDING OR GROUP OF BUILDINGS OR
DEVELOPMENT. SUCH DEDICATED CAPITAL FUND SHALL BE EXCLUSIVE AND SUPPLE-
MENTAL OF ANY OTHER FUNDS REQUIRED TO BE RESERVED UNDER THE PRESERVATION
PLAN OR APPLICABLE LAW OR REGULATION. SUCH DEDICATED CAPITAL FUND SHALL
ALSO BE EXCLUSIVE AND SUPPLEMENTAL OF ANY RESERVE FUND OR WORKING CAPI-
TAL FUND AND SHALL NOT BE SUBJECT TO REDUCTION FOR CLOSING APPORTION-
MENTS. THE DEDICATED CAPITAL FUND SHALL NOT BE USED TOWARDS ANY BUILD-
ING-WIDE CAPITAL REPLACEMENT, AND INSTEAD SHALL BE USED SOLELY FOR UNIT
REPAIRS, REPLACEMENTS AND IMPROVEMENTS OF THE INCOME-RESTRICTED RENTAL
UNITS.
2. (A) SUCH RESERVE FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO
EITHER (I) THREE PERCENT OF THE TOTAL PRICE OR, (II) (A) THREE PERCENT
OF THE ACTUAL SALES PRICE OF ALL CONDOMINIUM UNITS SOLD BY THE OFFEROR
AT THE TIME THE PRESERVATION 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 (B) SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE
OFFEROR AT A RATE OF THREE PERCENT OF THE ACTUAL SALES PRICE OF CONDO-
MINIUM UNITS FOR EACH UNIT HELD BY THE OFFEROR AND SOLD TO BONA FIDE
PURCHASERS SUBSEQUENT TO THE EFFECTIVE DATE OF THE PRESERVATION PLAN AND
WITHIN FIVE YEARS OF THE CONSUMMATION OF THE PRESERVATION PLAN, NOTWITH-
STANDING 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 CONSUMMATION OF THE PRESERVATION PLAN THE TOTAL CONTRIB-
UTIONS 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 CONTRIB-
UTIONS SHALL BE MADE WITHIN THIRTY DAYS OF EACH SALE.
(B) SUCH DEDICATED CAPITAL FUND SHALL BE ESTABLISHED IN AN AMOUNT
EQUAL TO ONE-HALF OF ONE PERCENT OF THE TOTAL PRICE, AND SHALL BE TRANS-
FERRED IN FULL WITHIN THIRTY DAYS OF THE DATE OF CONSUMMATION OF THE
PRESERVATION PLAN INTO AN ACCOUNT AT A FINANCIAL INSTITUTION REGULATED
BY THE DEPARTMENT OF FINANCIAL SERVICES OF THE STATE OF NEW YORK THAT
SHALL HAVE BEEN OPENED BY, AND SHALL AT ALL TIMES BE SUBJECT TO THE
OVERSIGHT AUTHORITY OF THE RELEVANT HOUSING FINANCE AGENCY OF THE QUALI-
FIED OWNER OF THE INCOME-RESTRICTED RENTAL UNIT OR UNITS.
3. 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 SUCH
OFFEROR HAS BEGUN AFTER THE PRESERVATION PLAN IS SUBMITTED FOR FILING TO
THE DEPARTMENT OF LAW AND BEFORE THE PRESERVATION PLAN IS DECLARED
EFFECTIVE; PROVIDED, HOWEVER, THAT ANY SUCH REPLACEMENTS SHALL BE SET
FORTH IN THE PRESERVATION 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 AND A HALF PERCENT
OF THE TOTAL PRICE.
4. ANY BUILDING, CONSTRUCTION OF WHICH WAS COMPLETED WITHIN THREE
YEARS PRIOR TO THE CONSUMMATION OF THE PRESERVATION PLAN, SHALL BE
EXEMPT FROM THE RESERVE FUND REQUIREMENTS OF THIS SECTION BUT NOT THE
DEDICATED CAPITAL FUND REQUIREMENTS OF THIS SECTION.
5. THE CONDOMINIUM BOARD OF MANAGERS SHALL REPORT TO UNIT OWNERS ON A
SEMI-ANNUAL BASIS WITH RESPECT TO ALL DEPOSITS INTO AND WITHDRAWALS FROM
THE RESERVE FUND MANDATED BY PARAGRAPH (A) OF SUBDIVISION TWO OF THIS
SECTION.
S. 1354 17
6. THE OFFEROR, NOT LATER THAN THE THIRTIETH DAY FOLLOWING THE ACCEPT-
ANCE OF A PRESERVATION PLAN FOR FILING BY THE DEPARTMENT OF LAW PURSUANT
TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW AND
UNTIL THE CONSUMMATION OF THE PRESERVATION PLAN, SHALL POST AND MAINTAIN
IN A PROMINENT PLACE, ACCESSIBLE TO ALL TENANTS IN EACH BUILDING COVERED
BY THE PRESERVATION PLAN, A LISTING OF ALL VIOLATIONS OF RECORD AGAINST
SUCH BUILDINGS AS DETERMINED BY THE DEPARTMENT OF BUILDINGS OF THE CITY
OF NEW YORK AND THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT
OF THE CITY OF NEW YORK. ALL NEWLY ISSUED VIOLATIONS SHALL BE POSTED
WITHIN FORTY-EIGHT HOURS OF THEIR ISSUANCE AND MAINTAINED AS DESCRIBED
IN THIS SUBDIVISION. 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.
7. ANY PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS SECTION IN
ANY CONTRACT TO PURCHASE, ANY AGREEMENT BETWEEN AN OFFEROR AND A UNIT
PURCHASER, ANY AGREEMENT BETWEEN AN OFFEROR AND THE CONDOMINIUM BOARD OF
MANAGERS CREATED UNDER A PRESERVATION PLAN, ANY AGREEMENT BETWEEN AN
OFFEROR AND THE OWNER OF THE INCOME-RESTRICTED RENTAL UNIT OR UNITS
SHALL BE VOID AS AGAINST PUBLIC POLICY.
8. (A) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVI-
SION, ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE VIOLATION OF
ANY PROVISION OF THIS SECTION 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 SECTION; PROVIDED, HOWEVER, THAT
SUCH CIVIL PENALTY SHALL NOT EXCEED ONE THOUSAND DOLLARS PER UNIT.
(B) ANY PERSON WHO VIOLATES OR ASSISTS IN THE VIOLATION OF SUBDIVISION
TWO OF THIS SECTION SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE
THOUSAND DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND REQUIRED BY
SUBDIVISION TWO OF THIS SECTION IS NOT ESTABLISHED; PROVIDED, HOWEVER,
THAT SUCH CIVIL PENALTY SHALL NOT EXCEED THE AMOUNT REQUIRED TO BE
RESERVED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
(C) ANY OTHER ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDIC-
TION THAT MAY BE APPROPRIATE OR NECESSARY FOR THE ENFORCEMENT OF THE
PROVISIONS OF THIS SECTION MAY BE BROUGHT IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK BY THE ATTORNEY GENERAL, INCLUDING ACTIONS TO
SECURE PERMANENT INJUNCTIONS ENJOINING ANY ACTS OR PRACTICES WHICH
CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS SECTION, MANDATING
COMPLIANCE WITH THE PROVISIONS OF THIS SECTION OR FOR SUCH OTHER RELIEF
AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING, THE ATTORNEY
GENERAL 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 VIOLATING ANY
PROVISION OF THIS SECTION, MANDATING COMPLIANCE WITH THE PROVISIONS OF
THIS SECTION, OR FOR SUCH OTHER RELIEF AS MAY BE APPROPRIATE, 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 TO MAKE ANY OR
ALL OF THE ORDERS SPECIFIED IN THIS PARAGRAPH, 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 GRANT-
ING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
(D) NOTHING CONTAINED IN THIS SECTION SHALL IMPAIR ANY RIGHTS, REME-
DIES OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF CONDOMIN-
IUM UNITS WITH REGARD TO THE FUNDING OF THE RESERVE FUND AND CAPITAL
FUND UNDER THIS SECTION.
S. 1354 18
(E) THE ATTORNEY GENERAL IS EMPOWERED TO ENFORCE THE PROVISIONS OF
THIS SECTION.
§ 4. Subdivision 2, subparagraph (i) of paragraph (a) of subdivision
2-a, and paragraphs (a) and (c) of subdivision 7 of section 352-e of the
general business law, subdivision 2 as amended by chapter 1042 of the
laws of 1981, subparagraph (i) of paragraph (a) of subdivision 2-a as
added by chapter 771 of the laws of 1983, paragraph (a) of subdivision 7
as amended by section 1 of part BBB-1 of chapter 57 of the laws of 2008,
and paragraph (c) of subdivision 7 as amended by chapter 637 of the laws
of 1989, are amended to read as follows:
2. Unless otherwise provided by regulation issued by the attorney
general, the offering statement or statements or prospectus required in
subdivision one of this section shall be filed with the department of
law at its office in the city of New York, prior to the public offering
of the security involved. No offer, advertisement or sale of such secu-
rities shall be made in or from the state of New York until the attorney
general has issued to the issuer or other [offerer] OFFEROR a letter
stating that the offering has been filed. The attorney general, not
later than thirty days after the submission of such filing, shall issue
such a letter or, in the alternative, a notification in writing indicat-
ing deficiencies in the offering statement, statements or prospectus;
provided, however, that in the case of a building or group of buildings
to be converted to cooperative or condominium ownership which is occu-
pied in whole or in part for residential purposes AND WHICH IS NOT THE
SUBJECT OF A PRESERVATION PLAN SUBMITTED PURSUANT TO SECTION THREE
HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE, such letter or notification
shall be issued in not sooner than four months and not later than six
months from the date of submission of such filing. The attorney general
may also refuse to issue a letter stating that the offering statement or
statements or prospectus has been filed whenever it appears that the
offering statement or statements or prospectus does not clearly set
forth the specific property or properties to be purchased, leased, mort-
gaged, or otherwise to be acquired, financed or the subject of specific
investment with a substantial portion of the offering proceeds.
(i) "Plan". Every offering statement or prospectus submitted to the
department of law for the conversion of a building or group of buildings
or development from residential rental status to cooperative or condo-
minium ownership, other than a plan governed by the provisions of either
section three hundred fifty-two-eee [or], three hundred fifty-two-eeee
OR SECTION THREE HUNDRED FIFTY-TWO-EEEEE of this [chapter] ARTICLE, or a
plan for such conversion pursuant to article two, eight or eleven of the
private housing finance law.
(a) The department of law shall collect the following fees for the
filing of each offering statement or prospectus as described in subdivi-
sion one of this section: seven hundred fifty dollars for every offering
not in excess of two hundred fifty thousand dollars; for every offering
in excess of two hundred fifty thousand dollars, four-tenths of one
percent of the total amount of the offering but not in excess of [thir-
ty] FIFTY thousand dollars of which one-half of said amount shall be a
nonrefundable deposit paid at the time of submitting the offering state-
ment to the department of law for review and the balance payable upon
the issuance of a letter of acceptance for filing said offering state-
ment. The department of law shall, in addition, collect a fee of two
hundred twenty-five dollars for each PRICE CHANGE AMENDMENT TO AN OFFER-
ING STATEMENT AND SEVEN HUNDRED FIFTY DOLLARS FOR ANY OTHER amendment to
an offering statement. For each application granted by the department of
S. 1354 19
law, which permits the applicant to solicit public interest or public
funds preliminary to the filing of an offering statement or for the
issuance of a "no-filing required" letter AND ANY AMENDMENT THERETO, the
department of law shall collect a fee of [two] SEVEN hundred [twenty-
five] FIFTY dollars. [In the event the sponsor thereafter files an
offering statement, the fee paid for the preliminary application shall
be credited against the balance of the fee due and payable on filing.]
For each application granted pursuant to section three hundred fifty-
two-g of this article, the department of law shall collect a fee of
two-tenths of one percent of the amount of the offering of securities;
however, the minimum fee shall be seven hundred fifty dollars, and the
maximum fee shall be [thirty] FIFTY thousand dollars. All revenue from
that portion of any fee imposed pursuant to this paragraph, which
exceeds twenty thousand dollars FOR OFFERING STATEMENTS, AND FIVE
HUNDRED TWENTY-FIVE DOLLARS FOR ALL OTHER FILINGS, shall be paid by the
department of law to the state comptroller to be deposited in and cred-
ited to the real estate finance bureau fund, established pursuant to
section eighty of the state finance law.
(c) Notwithstanding the provisions of paragraph (a) of this subdivi-
sion, the department of law shall not collect any fees for the filing of
an offering statement or prospectus or any amended filings thereto as
described in subdivision one of this section whenever: (I) a conversion
of a mobile home park, building or group of buildings or development
from residential rental status to cooperative or condominium ownership
is being made pursuant to article ELEVEN, eighteen, nineteen or twenty
of the private housing finance law; OR (II) THE OFFERING STATEMENT OR
PROSPECTUS OR AMENDMENT THERETO IS SUBMITTED TO THE DEPARTMENT OF LAW
PURSUANT TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE. FOR
SUBMISSIONS MADE PURSUANT TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF
THIS ARTICLE, THE DEPARTMENT OF LAW SHALL INSTEAD COLLECT THE FEES SET
FORTH IN SUBDIVISION THIRTY-ONE OF SUCH SECTION. ALL REVENUE FROM THAT
PORTION OF ANY FEE IMPOSED PURSUANT TO SUBDIVISION THIRTY-ONE OF SECTION
THREE HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE SHALL BE PAID BY THE
DEPARTMENT OF LAW TO THE STATE COMPTROLLER TO BE DEPOSITED IN AND CRED-
ITED TO THE REAL ESTATE FINANCE BUREAU FUND, ESTABLISHED PURSUANT TO
SECTION EIGHTY OF THE STATE FINANCE LAW.
§ 5. Paragraph (a) of subdivision 1 of section 352-eeee of the general
business law, as amended by section 1 of part N of chapter 36 of the
laws of 2019, is amended to read as follows:
(a) "Plan". Every offering statement or prospectus submitted to the
department of law pursuant to section three hundred fifty-two-e of this
article for the conversion of a building or group of buildings or devel-
opment from residential rental status to cooperative or condominium
ownership or other form of cooperative interest in realty, other than an
offering statement or prospectus for such conversion pursuant to SECTION
THREE HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE OR article two, eight or
eleven of the private housing finance law.
§ 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall expire and be deemed repealed 4
years after such date.
There is a drafting error in the proposed text. Paragraph 23.
Condition "(a)" describes a condition when the Attorney General shall refuse acceptance of a filing. BUT condition "(b)" is the reverse - the Attorney General shall refuse acceptance of the the filing "UNLESS" (NOT "WHEN", as the introductory language currently reads) there is a finding of "no excessive vacancies."