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Section 352-EE Conversion of non-residential property to residential cooperative or condominium ownership

General Business (GBS)

Conversion of non-residential property to residential cooperative or condominium ownership. 1. The attorney general shall refuse to issue a letter stating that the offering statement or prospectus required in subdivision one of section three hundred fifty-two-e of this article has been filed whenever it appears that the offering statement or prospectus offers for sale residential cooperative apartments or condominium units located in a city of over one million in population pursuant to a plan for the alteration or conversion of the building to residential use under cooperative or condominium ownership, other than a plan relating to a building already in compliance with section three hundred one of the multiple dwelling law, unless the offering statement or prospectus contains the following:

  (i) a statement that a copy of plans for such alteration or conversion, approved in accordance with section three hundred of the multiple dwelling law, has been submitted to the attorney general prior to the issuance by the attorney general of a letter stating that the offering statement or prospectus has been filed;

  (ii) a report prepared by an architect or engineer licensed by the state which sets forth such alterations to the public portions and common areas of the building and such alterations to individual spaces or dwelling units as may be necessary to obtain a permanent certificate of occupancy for permanent residential use of the premises;

  (iii) a statement, satisfactory to the attorney general, that it is the obligation of the sponsor to complete all alterations and improvements to the public portions and common areas of the building in compliance with such approved plans within the time specified in the plan;

  (iv) a statement, satisfactory to the attorney general, that it is the obligation of the sponsor to complete all alterations and improvements to individual spaces or dwelling units in compliance with such approved plans within the time specified in the plan or, if the sponsor does not undertake such obligation, that it is the obligation of the individual owners of shares in the cooperative corporation or of condominium units, under the supervision of the cooperative corporation or, in the case of a condominium, under the supervision of the board of managers, to complete such alterations and improvements within the time specified in the plan; and

  (v) a statement that a permanent certificate of occupancy is required for permanent residential use of the premises, that a temporary certificate of occupancy may only be renewed for a total period of two years from the date of its original issuance and that, if the temporary certificate of occupancy shall have expired prior to obtaining a permanent certificate of occupancy, residential occupancy of the premises will be in violation of the multiple dwelling law, subjecting the occupants and the cooperative corporation and its board of directors or, in the case of a condominium, the unit owners and board of managers, to penalties under the multiple dwelling law including eviction of residential occupants.

  2. "Residential use" shall mean, for the purposes of this section, space to be used for either living or joint living-work and shall be presumed if the offering statement or prospectus sets forth items which relate to residential use of the space, including but not limited to, income tax benefits under section two hundred sixteen of the internal revenue code, real property tax benefits available to residential property or alterations required for the issuance of a permanent certificate of occupancy for permanent residential use of the premises.