* § 352-eeeee. Conversions to condominium ownership for the
preservation of expiring affordable housing in the city of New York. 1.
As used in this section, the following words and terms shall have the
following meanings:

(a) "Annual update amendment". An annual update amendment is an
amendment to the preservation plan that shall be submitted to the
attorney general every year that a dwelling unit is unsold, with the
first such annual update amendment due within forty-five days of the
anniversary of the acceptance of the post-closing amendment to the
preservation plan. An annual update amendment shall supply the evidence,
data and information required in this section, and such other
information as the attorney general's regulations shall require, so that
the attorney general is satisfied that the preservation plan as amended
discloses the information necessary for a reasonable investor to make
their purchase decision and that the preservation plan is otherwise
complete, current and accurate.

(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
dwelling unit when it becomes vacant. A bona fide non-tenant purchaser
shall not include any purchaser who is an 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 the sponsor, the selling agent or
the managing agent or to any principal of the sponsor or the selling
agent or the managing agent by blood, marriage or adoption or as a
business associate, an employee, a shareholder or a limited partner;
except that such a purchaser other than the offeror or a principal of
the sponsor may be included as a bona fide non-tenant purchaser if the
offeror has submitted proof satisfactory to the department of law
establishing that the purchaser is bona fide.

(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
dwelling 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
leasehold 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
preservation 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
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, 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 on the terms then offered to tenants in occupancy.

(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 two 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 shall 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 preservation 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, as such sections may be amended
from time to time.

(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, as such section may be amended
from time to time. 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, as such appendix or section may be amended from
time to time.

(m) "Income-restricted rental unit". An income-restricted rental unit
shall refer to a dwelling unit located in a building or group of
buildings 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

(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 and provides other documentation to the satisfaction of the
relevant housing finance agency, 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
buildings or development that, in accordance with provisions of
subdivisions one through fifteen of section four hundred twenty-one-a of
the real property tax law, the relevant housing finance agency shall
have required to be a unit affordable to families of low and moderate
income;

(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
federal, state, or local law or mandate; or

(vi) is a dwelling unit located in a building, group of buildings or
development subject to a regulatory agreement due to bond financing
provided by the relevant housing finance agency that required dwelling
units be affordable to families of low or moderate income.

(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, as such section may be
amended from time to time. The locations of mandatory 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, as such appendix or section may be
amended from time to time.

(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
preservation plan was declared effective, which solely for purposes of
this section, shall include any person who is a tenant regardless of
whether (i) such person was a tenant entitled to possession at the time
the preservation plan was declared effective, or (ii) such person rented
a dwelling unit from offeror after the preservation 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-restricted rental unit at the
time the preservation plan is declared effective or a person to whom an
income-restricted rental unit is rented from offeror or qualified owner
after the preservation plan is declared effective 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. A post-closing amendment
must be submitted to the attorney general no more than forty-five days
after the first closing of a dwelling unit to a bona fide purchaser
under the preservation plan.

(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
documents that it has entered into a regulatory agreement with a
relevant housing finance agency in which it 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
dwelling 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
shall only be either: (i) a housing development fund company
incorporated 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 charitable 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-restricted rental units 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 and in accordance with the terms
of a regulatory agreement.

(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. Any
regulatory agreement in effect at the date of the submission of the
preservation plan shall remain in effect until the consummation of the
preservation plan unless otherwise agreed to by the relevant housing
finance agency. A regulatory agreement that shall take effect after
consummation of the preservation plan shall require that at least twenty
percent of all units be income-restricted rental units, and require
further that all existing income-restricted rental units, as of the
effective date of this act, shall remain income-restricted in
perpetuity.

(v) "Rent stabilization". Rent stabilization shall mean, collectively,
the rent stabilization law of nineteen sixty-nine, and the emergency
tenant protection act of nineteen seventy-four together with any other
successor statutes thereto.

(w) "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
preservation plan for the conversion of a building or group of buildings
or development if the relevant housing finance agency has not confirmed
in writing through the issuance of a letter of support as described in
subdivision three of this section and 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 subdivisions one through fifteen of section four hundred twenty-one-a
of the real property tax law, (ii) contains income-restricted rental
units, and (iii) is not otherwise prohibited by any federal, state, or
local law, rule, or regulation or 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
otherwise prohibited by any federal, state, or local law, rule, or
regulation or subject to an existing regulatory agreement that prohibits
the conversion of the dwelling units to condominium ownership; or

(c) The preservation plan is for a building or group of buildings or
development that (i) receives bond financing under subsection (d) of
section one hundred forty-two of the internal revenue code, (ii)
contains income-restricted rental units, and (iii) is not otherwise
prohibited by any federal, state, or local law, rule, or regulation or
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 otherwise prohibited by any federal, state, or local law,
rule, or regulation or 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
development to thirty percent for the extended affordability term upon
consummation of the preservation plan; or

(e) The preservation plan is for a building or group of buildings or
development that (i) contains exclusively moderate income units as
required for bond financing with the relevant housing finance agency,
(ii) the total number of income-restricted rental units in the building
or group of buildings or development is less than twenty percent, (iii)
is not subject to an existing regulatory agreement that prohibits the
conversion of the dwelling units to condominium ownership, and (iv)
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
development to at least twenty 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 provide a letter of support from the relevant housing finance
agency demonstrating that a regulatory agreement has been entered into
between the offeror, the qualified owner, and the relevant housing
finance agency regarding the income-restricted rental units during the
extended affordability term, and that such regulatory agreement will,
among other things, require the offeror to 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-restricted 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
regulatory 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
managers 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
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, as approved by the relevant housing finance agency in accordance
with the regulatory agreement, and 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-restricted 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 shall 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, and such unit shall be marketed and leased in compliance
with the relevant housing finance agency's leasing requirements, which
may include leasing through New York city's housing connect portal;

(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
development, 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
consummation 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 shall be removed from
rent stabilization pursuant to the exemption for units owned as a
condominium under 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
residential rental apartments are subject to rent stabilization.

4. Upon submission of the preservation plan to the department of law,
each tenant in occupancy of any unit, including but not limited to any
income-restricted rental unit, in the eligible project that is the
subject of such preservation plan 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 proposed preservation plan that has been submitted
to the department of law;

(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
business 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 to tenants of the income-restricted rental units that
the dwelling units they occupy are not being offered for sale, but their
tenancies shall continue undisturbed during and after the conversion of
the property to condominium ownership. The statement shall also disclose
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 shall 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 preservation 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-restricted rental units) in the building or group of buildings or
development, 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
consummation of the preservation plan.

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 shall 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
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
inducements. 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
preservation plan received from bona fide non-tenant purchasers;

(b) the total number of written agreements to purchase under the
preservation 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
preservation 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
declaring 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
abandoned, 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, including but not
limited to a preservation 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
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
amendment, the offeror or successor 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
successor 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
amendment, 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
amendment, the dwelling unit is occupied or vacant, and if occupied, an
indication 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) regardless of 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
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 shall 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 which, solely for the purposes of this
subdivision, and notwithstanding any exemptions for housing
accommodations owned as condominiums provided for under subdivision
seven of section two hundred fourteen of the real property law, and
regardless of whether such non-purchasing tenant has a rent that exceeds
two hundred forty-five percent of the fair market rent, all rent
increases for eligible senior citizens and eligible disabled persons
shall be considered unconscionable if such increases exceed the
permissible increases provided for under the good cause eviction law
under article six-A of the real property law; 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 shall 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
eligible 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
eligibility. 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
occupancy and non-purchasing tenants 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 by the attorney general shall not be
subject to unconscionable increases which, solely for the purposes of
this subdivision, and notwithstanding any exemptions for housing
accommodations owned as condominiums provided for under subdivision
seven of section two hundred fourteen of the real property law, in the
event the rent of a non-purchasing tenant shall be less than two hundred
forty-five percent of the fair market rent, then such increases for such
non-purchasing tenant shall be governed by article six-A of the real
property law.

21. The rights granted under the preservation plan to purchasers under
the preservation plan and to non-purchasing tenants shall 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
regulation 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
preservation plan when the attorney general determines: (a) that one or
more of the income-restricted rental units within the building, group of
buildings 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 existed on the date that the
preservation 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
facilities 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.
Such managing agent shall also ensure that non-purchasing tenants 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, as approved by the relevant housing finance
agency in accordance with the regulatory agreement, and which shall not
be treated as rent under any rental agreement.

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
occupancy 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
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
nineteen 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
continue 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-restricted 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 regulatory agreement and certificate of incorporation of the
limited equity housing cooperative shall ensure that, notwithstanding
the creation of a separate condominium, any obligations that the
non-income-restricted rental unit owners may have to ensure the
financial viability and delivery of services in a non-discriminatory
manner, prior to the date of conversion to a limited equity housing
cooperative, shall not be abrogated and shall remain in full force and
effect;

(e) 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
incorporation of the limited equity housing cooperative, including the
ability to appoint a new board of directors of the limited equity
housing cooperative 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, requiring purchasers of such units to attend
homeownership training, and providing for the procedures to sell the
units upon vacancy; and

(f) that the ownership of the dedicated capital account by the
qualified 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
successors 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
interests appurtenant to all dwelling units, whichever is sooner.

29. The attorney general may, in their discretion, waive the
requirement 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 hereunder shall not alleviate an offeror, its designees and/or
successors of the obligation set forth in subdivision twenty-eight of
this section.

30. Within three hundred and sixty-five days of the effective date of
this section, the attorney general shall submit a notice of proposed
rulemaking for publication 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, 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.
Notwithstanding the foregoing, an offeror may submit a preservation plan
to the department of law regardless of whether the attorney general has
adopted suitable rules to carry out this section, and the department of
law shall not rely on the lack of rulemaking to refuse to accept a
preservation plan for submission or filing if offeror has otherwise
complied with the requirements of this section.

31. For any offering statement or prospectus (including, without
limitation, 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) seven hundred fifty dollars for each price change amendment to a
preservation plan;

(d) seven hundred fifty dollars for any other amendment to a
preservation 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.

32. The relevant housing finance agency may promulgate regulations,
rules, and other guidance documents necessary to carry out the
provisions of this section, as it deems necessary.

33. The provisions of this section shall only be applicable in the
city of New York.

34. The attorney general shall make any offering statement or
prospectus (including, without limitation, a preservation plan and any
amended filings thereto), submitted pursuant to this section available
to the public in a searchable repository on its official internet
website.

* NB Effective November 5, 2025

* NB Repealed November 5, 2031