Permits certain buildings with five or fewer units to convert to cooperative or condominium ownership upon written purchase agreements with at least fifteen percent of the dwelling units in the building.
STATE OF NEW YORK
________________________________________________________________________
8564
IN SENATE
March 14, 2022
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend the general business law, in relation to the percentage
of units to be sold to convert certain real property to cooperative or
condominium ownership in the city of New York
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 1 of section 352-eeee of the
2 general business law, as amended by section 1 of part N of chapter 36 of
3 the laws of 2019, is amended to read as follows:
4 (b) "Non-eviction plan". A plan which may not be declared effective
5 until written purchase agreements have been executed and delivered for
6 at least fifty-one percent of all dwelling units in the building or
7 group of buildings or development by bona fide tenants who were in occu-
8 pancy on the date a letter was issued by the attorney general accepting
9 the plan for filing; provided, however, that for a building containing
10 five or fewer units, and where the sponsor of the offering plan offers
11 the unit that they or their immediate family member has occupied for at
12 least two years, the plan may not be effective until written purchase
13 agreements have been executed and delivered for at least fifteen percent
14 of all dwelling units in the building subscribed for by bona fide
15 tenants in occupancy or bona fide purchasers who represent that they
16 intend that they or one or more members of their immediate family occupy
17 the dwelling unit when it becomes vacant. The purchase agreement shall
18 be executed and delivered pursuant to an offering made in good faith
19 without fraud and discriminatory repurchase agreements or other discri-
20 minatory inducements.
21 § 2. Subparagraph (i) of paragraph (c) of subdivision 2 of section
22 352-eeee of the general business law, as amended by section 1 of part N
23 of chapter 36 of the laws of 2019, is amended to read as follows:
24 (i) [The] (1) Subject to the provisions of clause two of this subpara-
25 graph, the plan may not be declared effective until written purchase
26 agreements have been executed and delivered for at least fifty-one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13595-05-2
S. 8564 2
1 percent of all dwelling units in the building or group of buildings or
2 development subscribed for by bona fide tenants in occupancy on the date
3 a letter was issued by the attorney general accepting the plan for
4 filing for which purchase agreement shall be executed and delivered
5 pursuant to an offering made without discriminatory repurchase agree-
6 ments or other discriminatory inducements.
7 (2) For buildings containing five or fewer units, the plan may not be
8 declared effective until written purchase agreements have been executed
9 and delivered for at least fifteen percent of all dwelling units in the
10 building subscribed for by bona fide tenants in occupancy or bona fide
11 purchasers who represent that they intend that they or one or more
12 members of their immediate family occupy the dwelling unit when it
13 becomes vacant, provided that the sponsor of the offering plan offers
14 the unit that they or their immediate family member have occupied for at
15 least two years. As to tenants who were in occupancy on the date a
16 letter was issued by the attorney general accepting the plan filing, the
17 purchase agreement shall be executed and delivered pursuant to an offer-
18 ing made without discriminatory repurchase agreements or other discrimi-
19 natory inducements.
20 § 3. This act shall take effect on the ninetieth day after it shall
21 have become a law. Effective immediately, the addition, amendment and/or
22 repeal of any rule or regulation necessary for the implementation of
23 this act on its effective date are authorized to be made and completed
24 on or before such date.