Requires cooperative and condominium conversion sponsors to eliminate dangerous conditions and to correct serious building code violations existing in any building that is sought to be converted to cooperative or condominium status.
STATE OF NEW YORK
________________________________________________________________________
4536
2009-2010 Regular Sessions
IN ASSEMBLY
February 4, 2009
___________
Introduced by M. of A. MAYERSOHN, ESPAILLAT, SEMINERIO, GREENE, SCARBOR-
OUGH -- Multi-Sponsored by -- M. of A. COLTON, DIAZ, JACOBS, NOLAN,
PHEFFER, P. RIVERA, WEPRIN -- read once and referred to the Committee
on Housing
AN ACT to amend the general business law, in relation to the physical
condition of a building being converted to cooperative or condominium
ownership
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 352-eee of the general business
2 law is amended by adding a new paragraph (g) to read as follows:
3 (g) The plan provides that the sponsor shall cause to be cured: (i)
4 all serious violations of record of local or state law or regulations
5 regarding conditions in the building or grounds of the real property
6 which is the subject of the offering, existing on the date of effective-
7 ness of the plan, except those which, if not corrected, would not lead
8 to dangerous or hazardous conditions, as certified by a registered
9 architect or professional engineer retained by the sponsor; and (ii) all
10 dangerous and hazardous conditions in such real property existing on the
11 date of effectiveness of the plan which a registered architect or
12 professional engineer retained by the sponsor certifies are not in
13 compliance with applicable state or local laws or regulations. The
14 offering plan must further provide that if any such violations of record
15 referred to in subparagraph (i) of this paragraph or dangerous or
16 hazardous conditions referred to in subparagraph (ii) of this paragraph
17 are not corrected by the closing date, the sponsor shall place in escrow
18 a sum of money which is certified by a registered architect or profes-
19 sional engineer retained by the sponsor as sufficient to cover the
20 remaining cost of correction. The sponsor may expend the escrow money
21 to cure such violations or dangerous or hazardous conditions. In the
22 event that the corrective work is not completed within one year of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04498-01-9
A. 4536 2
1 closing date, the sum in escrow shall be turned over to the cooperative
2 corporation or condominium board of managers and used to complete the
3 work. Any escrow money remaining after all required work is completed
4 shall be returned to the sponsor. Where the sponsor places into a
5 reserve fund an amount in excess of that required by state and local law
6 which is specifically allocated and adequate to cure such particular
7 violation of record or dangerous or hazardous condition, no money needs
8 to be placed in escrow for such violation or dangerous or hazardous
9 conditions. If the sum in escrow or specifically allocated in a reserve
10 fund is not sufficient to cure such violations of record or dangerous or
11 hazardous conditions, the sponsor shall remain liable to cure such
12 violations or dangerous or hazardous conditions.
13 § 2. Subdivision 2 of section 352-eeee of the general business law is
14 amended by adding a new paragraph (g) to read as follows:
15 (g) The plan provides that the sponsor shall cause to be cured: (i)
16 all serious violations of record of local or state law or regulations
17 regarding conditions in the building or grounds of the real property
18 which is the subject of the offering, existing on the date of effec-
19 tiveness of the plan, except those which, if not corrected, would not
20 lead to dangerous or hazardous conditions, as certified by a registered
21 architect or professional engineer retained by the sponsor; and (ii) all
22 dangerous and hazardous conditions in such real property existing on the
23 date of effectiveness of the plan which a registered architect or
24 professional engineer retained by the sponsor certifies are not in
25 compliance with applicable state or local laws or regulations. The
26 offering plan must further provide that if any such violations of record
27 referred to in subparagraph (i) of this paragraph or dangerous or
28 hazardous conditions referred to in subparagraph (ii) of this paragraph
29 are not corrected by the closing date, the sponsor shall place in escrow
30 a sum of money which is certified by a registered architect or profes-
31 sional engineer retained by the sponsor as sufficient to cover the
32 remaining cost of correction. The sponsor may expend the escrow money to
33 cure such violations or dangerous or hazardous conditions. In the event
34 that the corrective work is not completed within one year of the closing
35 date, the sum in escrow shall be turned over to the cooperative corpo-
36 ration or condominium board of managers and used to complete the work.
37 Any escrow money remaining after all required work is completed shall be
38 returned to the sponsor. Where the sponsor places into a reserve fund an
39 amount in excess of that required by state and local law which is
40 specifically allocated and adequate to cure such particular violation of
41 record or dangerous or hazardous condition, no money needs to be placed
42 in escrow for such violation or dangerous or hazardous conditions. If
43 the sum in escrow or specifically allocated in a reserve fund is not
44 sufficient to cure such violations of record or dangerous or hazardous
45 conditions, the sponsor shall remain liable to cure such violations or
46 dangerous or hazardous conditions. For the purposes of this paragraph,
47 the term "serious violations" shall mean any violations which have been
48 classified by the New York city department of housing preservation and
49 development as "hazardous" or "immediately hazardous" pursuant to
50 section 27-2115 of the administrative code of the city of New York, and
51 shall not include any violations which have been classified as "non-ha-
52 zardous" pursuant to such section.
53 § 3. Severability. If any clause, sentence, paragraph, section or part
54 of this act shall be adjudged by any court of competent jurisdiction to
55 be invalid, such judgment shall not affect, impair or invalidate the
56 remainder thereof, but shall be confined in its operation to the clause,
A. 4536 3
1 sentence, paragraph, section, or part thereof directly involved in the
2 controversy in which such judgment shall have been rendered.
3 § 4. This act shall take effect immediately and shall apply to every
4 offering statement or prospectus submitted to the attorney general on
5 and after such date and to every offering statement or prospectus
6 submitted to the attorney general which has not yet been declared effec-
7 tive; provided, that the amendments to section 352-eee of the general
8 business law made by section one of this act shall not affect the expi-
9 ration of such section pursuant to chapter 402 of the laws of 1983, as
10 amended, and shall be deemed to expire therewith; provided further, that
11 the amendments to section 352-eeee of the general business law made by
12 section two of this act shall not affect the expiration of such section
13 pursuant to chapter 555 of the laws of 1982, as amended, and shall be
14 deemed to expire therewith.
