Bill Text: NY A02360 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the general business law, in relation to conversion of residential property to cooperative or condominium ownership; expanding provisions applicable in Nassau, Westchester and Rockland counties to other cities, towns and villages located outside the city of New York; raising percentage needed to declare non-eviction plans effective and delineating tenant's exclusive right to purchase; providing for establishment of certain reserve funds; and changing the computation of excessive vacancies which prevents conversion
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2010-01-06 - referred to housing [A02360 Detail]
Download: New_York-2009-A02360-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2360
2009-2010 Regular Sessions
I N A S S E M B L Y
January 15, 2009
___________
Introduced by M. of A. V. LOPEZ, COOK, DINOWITZ -- Multi-Sponsored by --
M. of A. BRENNAN, CLARK, GLICK, JACOBS, MAYERSOHN, PHEFFER, PRETLOW,
WRIGHT -- read once and referred to the Committee on Housing
AN ACT to amend the general business law, in relation to conversion of
residential property to cooperative or condominium ownership; expand-
ing provisions applicable in Nassau, Westchester and Rockland counties
to other cities, towns and villages located outside the city of New
York; raising percentage needed to declare non-eviction plans effec-
tive and delineating tenant's exclusive right to purchase; providing
for establishment of certain reserve funds; and changing the computa-
tion of excessive vacancies which prevents conversion
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Legislative findings and declaration of intent. The legis-
2 lature hereby finds that additional protections are needed in the laws
3 governing the conversion of rental housing to cooperative and condomin-
4 ium ownership in order to: protect tenants in possession who do not
5 desire or who are unable to afford to purchase their units from unrea-
6 sonable rent increases and imminent eviction during the conversion proc-
7 ess; insure that scarce rental housing units are not deliberately held
8 off the market in preparation for such conversions at a time when many
9 areas of the state are experiencing a critical shortage of affordable
10 rental housing; insure that housing converted to cooperative and condo-
11 minium ownership is managed with a degree of participation and control
12 by cooperators and individual condominium owners who live in their
13 buildings; and require that residents of buildings undergoing conversion
14 are notified of all outstanding code violations and that funds are set
15 aside in such buildings for the purpose of making capital repairs,
16 replacements and improvements. The legislature declares that the
17 provisions of this act are intended to accomplish these purposes, to
18 insure that the conversion of rental housing to cooperative and condo-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05740-01-9
A. 2360 2
1 minium ownership will be carried out in a way which protects non-pur-
2 chasing tenants, cooperators and condominium owners, and the general
3 public, and to prevent profiteering, speculation and other disruptive
4 practices which threaten the public health, safety and general welfare.
5 S 2. Subdivision 7 of section 352-eee of the general business law, as
6 added by chapter 402 of the laws of 1983, is amended to read as follows:
7 7. The provisions of this section shall only be applicable in the
8 cities, towns and villages located [in the counties of Nassau, Westches-
9 ter and Rockland] OUTSIDE THE CITY OF NEW YORK which by resolution
10 adopted by the respective local legislative body of such city, town or
11 village, elect that the provisions hereof shall be applicable therein. A
12 certified copy of such resolution shall be filed in the office of the
13 attorney general at Albany and shall become effective on the date of
14 such filing.
15 S 3. Paragraph (b) of subdivision 1 of section 352-eee of the general
16 business law, as added by chapter 402 of the laws of 1983, is amended to
17 read as follows:
18 (b) "Non-eviction plan". A plan which may not be declared effective
19 until at least [fifteen] TWENTY-FIVE percent of those bona fide tenants
20 in occupancy of all dwelling units in the building or group of buildings
21 or development on the date the plan [is declared effective] WAS ACCEPTED
22 FOR FILING BY THE ATTORNEY GENERAL shall have executed and delivered
23 written agreements to purchase under the plan[. As to tenants who were
24 in occupancy on the date a letter was issued by the attorney general
25 accepting the plan for filing, the purchase agreement shall be executed
26 and delivered] pursuant to an offering made in good faith without fraud
27 and WITH NO discriminatory repurchase agreements or other discriminatory
28 inducements.
29 S 4. Subparagraph (i) of paragraph (c) of subdivision 2 of section
30 352-eee of the general business law, as added by chapter 402 of the laws
31 of 1983, is amended to read as follows:
32 (i) The plan may not be declared effective until at least [fifteen]
33 TWENTY-FIVE percent of those bona fide tenants in occupancy of all
34 dwelling units in the building or group of buildings or development on
35 the date the plan [is declared effective] WAS ACCEPTED FOR FILING BY THE
36 ATTORNEY GENERAL shall have executed and delivered written agreements to
37 purchase under the plan[. As to tenants who were in occupancy on the
38 date a letter was issued by the attorney general accepting the plan for
39 filing, the purchase agreement shall be executed and delivered] pursuant
40 to an offering made in good faith without fraud and WITH NO discrimina-
41 tory repurchase agreements or other discriminatory inducements.
42 S 5. Paragraph (c) of subdivision 2 of section 352-eee of the general
43 business law is amended by adding a new subparagraph (viii) to read as
44 follows:
45 (VIII) THE TENANTS IN OCCUPANCY ON THE DATE THE ATTORNEY GENERAL
46 ACCEPTS THE PLAN FOR FILING SHALL HAVE THE EXCLUSIVE RIGHT TO PURCHASE
47 THEIR DWELLING UNITS OR THE SHARES ALLOCATED THERETO FOR NINETY DAYS
48 AFTER THE PLAN IS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL AND
49 PRESENTED TO THE TENANTS, DURING WHICH TIME A TENANT'S DWELLING UNIT
50 SHALL NOT BE SHOWN TO A THIRD PARTY UNLESS HE OR SHE HAS, IN WRITING,
51 WAIVED HIS OR HER RIGHT TO PURCHASE; SUBSEQUENT TO THE EXPIRATION OF
52 SUCH NINETY DAY PERIOD, A TENANT IN OCCUPANCY OF A DWELLING UNIT WHO HAS
53 NOT PURCHASED SHALL BE GIVEN THE EXCLUSIVE RIGHT FOR AN ADDITIONAL PERI-
54 OD OF SIX MONTHS FROM SAID EXPIRATION DATE TO PURCHASE SAID DWELLING
55 UNIT OR THE SHARES ALLOCATED THERETO ON THE SAME TERMS AND CONDITIONS AS
56 ARE CONTAINED IN AN EXECUTED CONTRACT TO PURCHASE, SUBJECT TO THE
A. 2360 3
1 PROVISIONS OF THIS PARAGRAPH, SAID DWELLING UNIT OR SHARES ENTERED INTO
2 BY A BONA FIDE PURCHASER, SUCH EXCLUSIVE RIGHT TO BE EXERCISABLE WITHIN
3 FIFTEEN DAYS FROM THE DATE OF MAILING BY REGISTERED MAIL OF NOTICE OF
4 THE EXECUTION OF A CONTRACT OF SALE TOGETHER WITH A COPY OF SAID
5 EXECUTED CONTRACT TO SAID TENANT.
6 S 6. Paragraph (b) of subdivision 1 of section 352-eeee of the general
7 business law, as added by chapter 555 of the laws of 1982, is amended to
8 read as follows:
9 (b) "Non-eviction plan". A plan which may not be declared effective
10 until [written purchase agreements have been executed and delivered for]
11 at least [fifteen] TWENTY-FIVE percent of THE BONA FIDE TENANTS IN OCCU-
12 PANCY OF all dwelling units in the building or group of buildings or
13 development [by bona fide tenants in occupancy or bona fide purchasers
14 who represent that they intend that they or one or more members of their
15 immediate family intend to occupy the unit when it becomes vacant. As to
16 tenants who were in occupancy on the date a letter was issued by the
17 attorney general accepting the plan for filing, the purchase agreement
18 shall be executed and delivered] ON THE DATE THE OFFERING STATEMENT OR
19 PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
20 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
21 pursuant to an offering made in good faith without fraud and WITH NO
22 discriminatory repurchase agreements or other discriminatory induce-
23 ments.
24 S 7. Subparagraph (i) of paragraph (c) of subdivision 2 of section
25 352-eeee of the general business law, as added by chapter 555 of the
26 laws of 1982, is amended to read as follows:
27 (i) The plan may not be declared effective until [written purchase
28 agreements have been executed and delivered for] at least [fifteen]
29 TWENTY-FIVE percent of THE BONA FIDE TENANTS IN OCCUPANCY OF all dwell-
30 ing units in the building or group of buildings or development
31 [subscribed for by bona fide tenants in occupancy or bona fide purchas-
32 ers who represent that they intend that they or one or more members of
33 their immediate family occupy the dwelling unit when it becomes vacant.
34 As to tenants who were in occupancy on the date a letter was issued by
35 the attorney general accepting the plan for filing, the purchase agree-
36 ment shall be executed and delivered] ON THE DATE THE OFFERING STATEMENT
37 OR PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
38 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
39 pursuant to an offering made IN GOOD FAITH without FRAUD AND WITH NO
40 discriminatory repurchase agreements or other discriminatory induce-
41 ments.
42 S 8. Paragraph (c) of subdivision 2 of section 352-eeee of the general
43 business law is amended by adding a new subparagraph (viii) to read as
44 follows:
45 (VIII) THE TENANTS IN OCCUPANCY ON THE DATE THE ATTORNEY GENERAL
46 ACCEPTS THE PLAN FOR FILING SHALL HAVE THE EXCLUSIVE RIGHT TO PURCHASE
47 THEIR DWELLING UNITS OR THE SHARES ALLOCATED THERETO FOR NINETY DAYS
48 AFTER THE PLAN IS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL AND
49 PRESENTED TO THE TENANTS, DURING WHICH TIME A TENANT'S DWELLING UNIT
50 SHALL NOT BE SHOWN TO A THIRD PARTY UNLESS HE OR SHE HAS, IN WRITING,
51 WAIVED HIS OR HER RIGHT TO PURCHASE; SUBSEQUENT TO THE EXPIRATION OF
52 SUCH NINETY DAY PERIOD, A TENANT IN OCCUPANCY OF A DWELLING UNIT WHO HAS
53 NOT PURCHASED SHALL BE GIVEN THE EXCLUSIVE RIGHT FOR AN ADDITIONAL PERI-
54 OD OF SIX MONTHS FROM SAID EXPIRATION DATE TO PURCHASE SAID DWELLING
55 UNIT OR THE SHARES ALLOCATED THERETO ON THE SAME TERMS AND CONDITIONS AS
56 ARE CONTAINED IN AN EXECUTED CONTRACT TO PURCHASE SAID DWELLING UNIT OR
A. 2360 4
1 SHARES ENTERED INTO BY A BONA FIDE PURCHASER, SUCH EXCLUSIVE RIGHT TO BE
2 EXERCISABLE WITHIN FIFTEEN DAYS FROM THE DATE OF MAILING BY REGISTERED
3 MAIL OF NOTICE OF THE EXECUTION OF A CONTRACT OF SALE TOGETHER WITH A
4 COPY OF SAID EXECUTED CONTRACT TO SAID TENANT.
5 S 9. Subdivision 2 of section 352-eee of the general business law is
6 amended by adding a new paragraph (g) to read as follows:
7 (G) THE PLAN PROVIDES THAT WITHIN THIRTY DAYS AFTER THE CLOSING OF A
8 CONVERSION PURSUANT TO THIS SECTION, THE OFFEROR SHALL ESTABLISH AND
9 TRANSFER TO THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAG-
10 ERS, A RESERVE FUND TO BE USED EXCLUSIVELY FOR MAKING CAPITAL REPAIRS,
11 REPLACEMENTS AND IMPROVEMENTS NECESSARY FOR THE HEALTH AND SAFETY OF THE
12 RESIDENTS OF THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT. SUCH
13 RESERVE FUND SHALL BE EXCLUSIVE OF ANY OTHER FUNDS REQUIRED TO BE
14 RESERVED UNDER THE PLAN OR APPLICABLE LAW OR REGULATION OF THE ATTORNEY
15 GENERAL, EXCEPT A FUND FOR CAPITAL REPAIRS, REPLACEMENTS AND IMPROVE-
16 MENTS SUBSTANTIALLY SIMILAR IN PURPOSE TO AND IN AN AMOUNT NOT LESS THAN
17 THE RESERVE FUND MANDATED BY THIS PARAGRAPH. SUCH RESERVE FUND ALSO
18 SHALL BE EXCLUSIVE OF ANY WORKING CAPITAL FUND AND SHALL NOT BE SUBJECT
19 TO REDUCTION FOR CLOSING APPORTIONMENTS.
20 AS USED IN THIS PARAGRAPH, "CAPITAL REPLACEMENT" SHALL MEAN A BUILD-
21 ING-WIDE REPLACEMENT OF A MAJOR COMPONENT OF THE HEATING, VENTILATION,
22 AIR CONDITIONING, PLUMBING, WIRING, ELEVATOR OR WINDOW SYSTEM, OR A
23 MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED HOWEVER, THAT
24 REPLACEMENTS MADE TO CURE CODE VIOLATIONS OF RECORD SHALL NOT BE
25 INCLUDED. "TOTAL PRICE" SHALL MEAN, WITH RESPECT TO COOPERATIVE CONVER-
26 SIONS, THE NUMBER OF ALL SHARES IN THE OFFERING MULTIPLIED BY THE LAST
27 PRICE PER SHARE WHICH WAS OFFERED TO TENANTS IN OCCUPANCY PRIOR TO THE
28 EFFECTIVE DATE OF THE PLAN REGARDLESS OF NUMBER OF SALES MADE; AND SHALL
29 MEAN, WITH RESPECT TO CONDOMINIUM CONVERSIONS, THE SUM OF THE COST OF
30 ALL UNITS IN THE OFFERING AT THE LAST PRICE WHICH WAS OFFERED TO TENANTS
31 IN OCCUPANCY PRIOR TO THE EFFECTIVE DATE OF THE PLAN REGARDLESS OF
32 NUMBER OF SALES MADE.
33 (I) SUCH FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO EITHER THREE
34 PERCENT OF THE TOTAL PRICE OR, THREE PERCENT OF THE ACTUAL SALES PRICE
35 OF ALL COOPERATIVE SHARES OR CONDOMINIUM UNITS SOLD BY THE OFFEROR AT
36 THE TIME THE PLAN IS DECLARED EFFECTIVE, PROVIDED, HOWEVER, THAT IF SUCH
37 AMOUNT IS LESS THAN ONE PERCENT OF THE TOTAL PRICE, THEN THE FUND SHALL
38 BE ESTABLISHED AS A MINIMUM OF ONE PERCENT OF THE TOTAL PRICE; PLUS
39 SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE OFFEROR AT A RATE OF THREE
40 PERCENT OF THE ACTUAL SALES PRICE OF COOPERATIVE SHARES OR CONDOMINIUM
41 UNITS FOR EACH UNIT OR ITS ALLOCABLE SHARES HELD BY THE OFFEROR AND SOLD
42 TO BONA FIDE PURCHASERS SUBSEQUENT TO THE EFFECTIVE DATE OF THE PLAN AND
43 WITHIN FIVE YEARS OF THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN
44 NOTWITHSTANDING THAT THE TOTAL AMOUNT CONTRIBUTED MAY EXCEED THREE
45 PERCENT OF THE TOTAL PRICE; AND PROVIDED, FURTHER, THAT IF FIVE YEARS
46 FROM THIRTY DAYS AFTER THE CLOSING OF THE CONVERSION PURSUANT TO SUCH
47 PLAN THE TOTAL CONTRIBUTIONS BY THE OFFEROR TO THE FUND ARE LESS THAN
48 THREE PERCENT OF THE TOTAL PRICE THE OFFEROR SHALL PAY THE DIFFERENCE
49 BETWEEN THE AMOUNT CONTRIBUTED AND THREE PERCENT OF THE TOTAL PRICE.
50 SUPPLEMENTAL CONTRIBUTIONS SHALL BE MADE WITHIN THIRTY DAYS OF EACH
51 SALE.
52 (II) THE CONTRIBUTIONS REQUIRED PURSUANT TO THIS SECTION MAY BE MADE
53 EARLIER OR IN AN AMOUNT GREATER THAN SO PROVIDED. AN OFFEROR MAY CLAIM
54 AND RECEIVE CREDIT AGAINST THE MANDATORY INITIAL CONTRIBUTION TO THE
55 RESERVE FUND FOR THE ACTUAL COST OF CAPITAL REPLACEMENTS WHICH HE OR SHE
56 HAS BEGUN AFTER THE PLAN IS SUBMITTED FOR FILING TO THE ATTORNEY GENERAL
A. 2360 5
1 AND BEFORE THE PLAN IS DECLARED EFFECTIVE; PROVIDED, HOWEVER, THAT ANY
2 SUCH REPLACEMENTS MUST BE SET FORTH IN THE PLAN TOGETHER WITH THEIR
3 ACTUAL OR ESTIMATED COSTS AND FURTHER PROVIDED, THAT SUCH CREDIT SHALL
4 NOT EXCEED THE LESSER OF THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR
5 ONE PERCENT OF THE TOTAL PRICE.
6 (III) ANY BUILDING, CONSTRUCTION OF WHICH WAS COMPLETED WITHIN THREE
7 YEARS PRIOR TO THE CLOSING OF A CONVERSION PURSUANT TO THIS SECTION,
8 SHALL BE EXEMPT FROM THE REQUIREMENTS OF THIS PARAGRAPH.
9 (IV) THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAGERS
10 SHALL REPORT TO SHAREHOLDERS AND UNIT OWNERS ON A SEMI-ANNUAL BASIS WITH
11 RESPECT TO ALL DEPOSITS INTO AND WITHDRAWALS FROM THE RESERVE FUND
12 MANDATED BY THIS PARAGRAPH.
13 (V) THE OFFEROR, NOT LATER THAN THE THIRTIETH DAY FOLLOWING THE
14 ACCEPTANCE OF A PLAN FOR FILING BY THE ATTORNEY GENERAL PURSUANT TO THIS
15 SECTION AND UNTIL THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN,
16 SHALL POST AND MAINTAIN IN A PROMINENT PLACE, ACCESSIBLE TO ALL TENANTS
17 IN EACH BUILDING COVERED BY THE PLAN, A LISTING OF ALL VIOLATIONS OF
18 RECORD AGAINST SUCH BUILDINGS AS DETERMINED BY THE LOCAL DEPARTMENT OF
19 BUILDINGS OR SIMILAR AGENCY OF APPROPRIATE JURISDICTION. ALL NEWLY
20 ISSUED VIOLATIONS SHALL BE POSTED WITHIN FORTY-EIGHT HOURS OF THEIR
21 ISSUANCE AND MAINTAINED AS DESCRIBED ABOVE. THE OFFEROR MAY SATISFY THE
22 REQUIREMENTS OF THIS SECTION BY DESIGNATING AN AGENT ON THE PREMISES
23 WITH WHOM SUCH LISTING SHALL BE MADE AVAILABLE FOR INSPECTION BY THE
24 TENANTS.
25 (VI) WHERE, PURSUANT TO LAW OR REGULATION OF THE ATTORNEY GENERAL, AN
26 OFFEROR IS REQUIRED TO FILE A REPORT WITH THE ATTORNEY GENERAL DESCRIB-
27 ING THE CONDITION OF THE PHYSICAL ASPECTS OF THE PREMISES TO BE
28 CONVERTED AND THE SURROUNDING NEIGHBORHOOD A COPY OF SUCH REPORT SHALL
29 BE SUBMITTED SIMULTANEOUSLY TO THE LOCAL COMMISSIONER OF BUILDINGS OR
30 SIMILAR AGENCY OF APPROPRIATE JURISDICTION.
31 (VII) ANY PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS PARA-
32 GRAPH IN ANY CONTRACT TO PURCHASE OR AGREEMENT BETWEEN AN OFFEROR AND
33 THE COOPERATIVE CORPORATION OR THE CONDOMINIUM BOARD OF MANAGERS PURSU-
34 ANT TO A CONVERSION PLAN SHALL BE VOID AS AGAINST PUBLIC POLICY.
35 (VIII) ENFORCEMENT. (1) EXCEPT AS OTHERWISE PROVIDED BELOW, ANY PERSON
36 WHO VIOLATES OR ASSISTS IN THE VIOLATION OF THIS PARAGRAPH SHALL BE
37 SUBJECT TO A CIVIL PENALTY OF ONE HUNDRED DOLLARS PER DAY PER UNIT FOR
38 EACH DAY THAT A BUILDING IS NOT IN COMPLIANCE WITH THE PROVISIONS OF
39 SUCH PARAGRAPH, PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT
40 EXCEED ONE THOUSAND DOLLARS PER UNIT.
41 (2) ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE VIOLATION OF
42 SUCH PARAGRAPH SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE THOUSAND
43 DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND IS NOT ESTABLISHED;
44 PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT EXCEED THE AMOUNT
45 REQUIRED TO BE RESERVED PURSUANT TO THIS PARAGRAPH.
46 (3) ANY ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDICTION
47 THAT MAY BE APPROPRIATE OR NECESSARY FOR THE ENFORCEMENT OF THE
48 PROVISIONS OF THIS PARAGRAPH MAY BE BROUGHT IN THE NAME OF THE CITY,
49 TOWN OR VILLAGE WHEREIN SUCH BUILDING OR BUILDINGS ARE LOCATED, INCLUD-
50 ING ACTIONS TO SECURE PERMANENT INJUNCTIONS ENJOINING ANY ACTS OR PRAC-
51 TICES WHICH CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS PARAGRAPH,
52 MANDATING COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH OR FOR SUCH
53 OTHER RELIEF AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING THE
54 CITY, TOWN OR VILLAGE MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION,
55 OR TO A JUDGE OR JUSTICE THEREOF, FOR A TEMPORARY RESTRAINING ORDER OR
56 PRELIMINARY INJUNCTION ENJOINING AND RESTRAINING ALL PERSONS FROM
A. 2360 6
1 VIOLATING ANY PROVISION OF THIS PARAGRAPH MANDATING COMPLIANCE WITH THE
2 PROVISIONS OF THIS PARAGRAPH OR FOR SUCH OTHER RELIEF AS MAY BE APPRO-
3 PRIATE UNTIL THE HEARING AND DETERMINATION OF SUCH ACTION OR PROCEEDING
4 AND THE ENTRY OF FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR
5 JUSTICE THEREOF, TO WHOM SUCH APPLICATION IS MADE, IS HEREBY AUTHORIZED
6 FORTHWITH TO MAKE ANY OR ALL OF THE ORDERS ABOVE SPECIFIED, AS MAY BE
7 REQUIRED IN SUCH APPLICATION, WITH OR WITHOUT NOTICE, AND TO MAKE SUCH
8 OTHER OR FURTHER ORDERS OR DIRECTIONS AS MAY BE NECESSARY TO RENDER THE
9 SAME EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE
10 GRANTING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
11 (IX) NOTHING CONTAINED IN THIS PARAGRAPH SHALL IMPAIR ANY RIGHTS,
12 REMEDIES OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF COOP-
13 ERATIVE SHARES OR CONDOMINIUM UNITS.
14 S 10. Paragraph (e) of subdivision 2 of section 352-eee of the gener-
15 al business law, as added by chapter 402 of the laws of 1983, is amended
16 to read as follows:
17 (e) The attorney general finds that an excessive number of [long-term]
18 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
19 THE DATE that the offering statement or prospectus was first submitted
20 to the department of law. ["Long-term vacancies"] "VACANCIES" shall mean
21 dwelling units not leased or occupied by bona fide tenants [for more
22 than five months prior to the date of such submission to the department
23 of law] ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
24 rate in excess of [the greater of (i) ten percent and (ii) a percentage
25 that is double the normal average vacancy rate for] FIVE PERCENT OF THE
26 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
27 development [for two years prior to the January preceding the date the
28 offering statement or prospectus was first submitted to the department
29 of law] OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
30 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
31 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
32 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
33 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
34 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
35 CAUSE SHOWN.
36 S 11. Paragraph (e) of subdivision 2 of section 352-eeee of the gener-
37 al business law, as added by chapter 555 of the laws of 1982, is amended
38 to read as follows:
39 (e) The attorney general finds that an excessive number of [long-term]
40 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
41 THE DATE that the offering statement or prospectus was first submitted
42 to the department of law. ["Long-term vacancies"] "VACANCIES" shall mean
43 dwelling units not leased or occupied by bona fide tenants [for more
44 than five months prior to the date of such submission to the department
45 of law] ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
46 rate in excess of [the greater of (i) ten percent and (ii) a percentage
47 that is double the normal average vacancy rate for] FIVE PERCENT OF THE
48 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
49 development [for two years prior to the January preceding the date the
50 offering statement or prospectus was first submitted to the department
51 of law] OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
52 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
53 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
54 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
55 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
A. 2360 7
1 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
2 CAUSE SHOWN.
3 S 12. This act shall take effect immediately and shall apply to every
4 offering statement or prospectus containing a conversion plan to which
5 section 352-eee or 352-eeee of the general business law as amended by
6 this act, is applicable and which is accepted for filing by the attorney
7 general on or after the effective date of this act; provided that the
8 amendments to section 352-eee of the general business law made by
9 sections two, three, four, five, nine and ten of this act shall expire
10 on the same date as such section expires and shall not affect the expi-
11 ration of such section as provided in section 4 of chapter 402 of the
12 laws of 1983, as from time to time amended and provided further, that
13 the amendments to section 352-eeee of the general business law made by
14 sections six, seven, eight and eleven of this act shall expire on the
15 same date as such section expires and shall not affect the expiration of
16 such section as provided in section 10 of chapter 555 of the laws of
17 1982, as from time to time amended.
