Bill Text: NY A06921 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the conversion to condominium ownership for the preservation of expiring affordable housing in the city of New York; provides expanded homeownership opportunities from the conversion of certain residential rental buildings to condominium status by property owners that commit to preserve the inventory of expiring affordable housing in the city of New York.
Spectrum: Partisan Bill (Democrat 17-0)
Status: (Introduced) 2024-01-18 - print number 6921b [A06921 Detail]
Download: New_York-2023-A06921-Introduced.html
Bill Title: Relates to the conversion to condominium ownership for the preservation of expiring affordable housing in the city of New York; provides expanded homeownership opportunities from the conversion of certain residential rental buildings to condominium status by property owners that commit to preserve the inventory of expiring affordable housing in the city of New York.
Spectrum: Partisan Bill (Democrat 17-0)
Status: (Introduced) 2024-01-18 - print number 6921b [A06921 Detail]
Download: New_York-2023-A06921-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6921 2023-2024 Regular Sessions IN ASSEMBLY May 9, 2023 ___________ Introduced by M. of A. EPSTEIN -- read once and referred to the Commit- tee on Housing AN ACT to amend the general business law, the real property law and the state finance law, in relation to providing expanded homeownership opportunities from the conversion of certain residential rental build- ings to condominium status by property owners that commit to preserve the inventory of expiring affordable housing 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. The general business law is amended by adding a new section 2 352-eeeee to read as follows: 3 § 352-eeeee. Conversions to condominium ownership for the preservation 4 of expiring affordable housing in the city of New York. 1. As used in 5 this section, the following words and terms shall have the following 6 meanings: 7 (a) "Annual update amendment". An annual update amendment is an amend- 8 ment to the preservation plan that shall be submitted to the attorney 9 general every year that a dwelling unit is unsold, with the first such 10 annual update amendment due within forty-five days of the anniversary of 11 the acceptance of the post-closing amendment to the preservation plan. 12 An annual update amendment shall supply the evidence, data and informa- 13 tion required in this section, and such other information as the attor- 14 ney general's regulations shall require, so that the attorney general is 15 satisfied that the preservation plan as amended discloses the informa- 16 tion necessary for a reasonable investor to make his or her purchase 17 decision and that the preservation plan is otherwise complete, current 18 and accurate. 19 (b) "Bona fide purchaser". A bona fide purchaser is either (i) a 20 tenant in occupancy who enters into a purchase agreement for a dwelling 21 unit pursuant to his, her, or its exercise of one of the rights accorded EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08163-01-3A. 6921 2 1 to tenants in occupancy in subdivision five of this section, or (ii) a 2 bona fide non-tenant purchaser. 3 (c) "Bona fide non-tenant purchaser". A bona fide non-tenant purchaser 4 is a purchaser of a dwelling unit who has represented that he, she, or 5 they or a member or members of his, her or their immediate family intend 6 to occupy the dwelling unit when it becomes vacant. 7 (d) "Commercially reasonable good faith effort". A commercially 8 reasonable good faith effort on the part of an offeror of a preservation 9 plan shall, at minimum, include (i) the filing of an annual update 10 amendment to the preservation plan; (ii) all of the condominium's dwell- 11 ing units other than any income-restricted rental units as the units 12 being offered for sale under the preservation plan, each at an offering 13 price that is consistent with comparable dwelling units recently sold 14 within the locality; and (iii) entering into a written agreement with a 15 licensed real estate broker or selling agent in connection with the sale 16 of dwelling units offered for sale under the preservation plan. For the 17 avoidance of doubt, a commercially reasonable good faith effort shall 18 not require an offeror to sell dwelling units at a price substantially 19 below the market-rate for comparable units recently sold within the 20 locality, nor shall it require an offeror to offer for sale dwelling 21 units that are occupied by non-purchasing tenants. 22 (e) "Condominium". A condominium shall also include a qualified lease- 23 hold condominium as defined in subdivision twelve of section three 24 hundred thirty-nine-e of the real property law. 25 (f) "Consummation of the preservation plan". Consummation of the pres- 26 ervation plan shall refer to the filing of the declaration for the 27 condominium and the first transfer of title to at least one purchaser 28 under the preservation plan following a declaration of effectiveness by 29 the department of law declaring the preservation plan effective. 30 (g) "Eligible disabled persons". Non-purchasing tenants who have an 31 impairment which results from anatomical, physiological or psychological 32 conditions, other than addiction to alcohol, gambling, or any controlled 33 substance, which are demonstrable by medically acceptable clinical and 34 laboratory diagnostic techniques, and which are expected to be permanent 35 and which prevent the tenant from engaging in any substantial gainful 36 employment on the date the preservation plan is submitted to the depart- 37 ment of law or on the date the attorney general has accepted the preser- 38 vation plan for filing, and the spouses of any such tenants on such 39 date, and who have elected, within sixty days of the date the preserva- 40 tion plan is submitted to the department of law or on the date the 41 attorney general has accepted the preservation plan for filing, on forms 42 promulgated by the attorney general and presented to such tenants by the 43 offeror, to become non-purchasing tenants under the provisions of this 44 section; provided, however, that if the disability first occurs after 45 acceptance of the preservation plan for filing, then such election may 46 be made within sixty days following the onset of such disability unless 47 during the period subsequent to sixty days following the acceptance of 48 the preservation plan for filing but prior to such election, the offeror 49 accepts a written agreement to purchase the apartment from a bona fide 50 purchaser; and provided further that such election shall not preclude 51 any such tenant from subsequently purchasing the dwelling unit if it is 52 not an income-restricted rental unit on the terms then offered to 53 tenants in occupancy. 54 (h) "Eligible senior citizens". Non-purchasing tenants who are sixty- 55 two years of age or older on the date the preservation plan is submitted 56 to the department of law or on the date the attorney general hasA. 6921 3 1 accepted the plan for filing, and the spouses of any such tenants on 2 such date, and who have elected, within sixty days of the date the pres- 3 ervation plan is submitted to the department of law or on the date the 4 attorney general has accepted the preservation plan for filing, on forms 5 promulgated by the attorney general and presented to such tenants by the 6 offeror, to become non-purchasing tenants under the provisions of this 7 section; provided that such election shall not preclude any such tenant 8 from subsequently purchasing the dwelling unit on the terms then offered 9 to tenants in occupancy. 10 (i) "Extended affordability term". The extended affordability term for 11 the income-restricted rental units shall be in perpetuity for so long as 12 the building or group of buildings or development are in existence, and 13 subject to any obligation to rebuild in the event of condemnation, 14 damage or destruction required by the new regulatory agreement with the 15 relevant housing finance agency. 16 (j) "Inclusionary housing unit". An inclusionary housing unit is an 17 income-restricted rental unit that is located within an inclusionary 18 housing designated area or a mandatory inclusionary housing area. 19 (k) "Inclusionary housing designated area". An inclusionary housing 20 designated area is a specified area in which the inclusionary housing 21 program (also known as the voluntary inclusionary housing program) is 22 applicable, pursuant to the regulations set forth for such areas in 23 section 23-90 of the zoning resolution. The locations of inclusionary 24 housing designated areas are identified in either (i) appendix "F" of 25 the zoning resolution or (ii) in a special purpose district as described 26 in section 15-011 of the zoning resolution. 27 (l) "Income-restricted rental unit". An income-restricted rental unit 28 shall refer to a dwelling unit located in a building or group of build- 29 ings or development that is the subject of a preservation plan submitted 30 to the attorney general pursuant to this section, and such dwelling 31 unit: 32 (i) meets the definition of a "low-income unit" as such term is 33 defined in section forty-two of the internal revenue code and is subject 34 to a regulatory agreement with a relevant housing finance agency; or 35 (ii) meets the definition of a "low-income unit" as such term is 36 defined in subdivision (d) of section one hundred forty-two of the 37 internal revenue code and is subject to a regulatory agreement with a 38 relevant housing finance agency; or 39 (iii) previously met the definition of "low-income unit" pursuant to 40 subparagraph (i) or (ii) of this paragraph, and notwithstanding the 41 expiration of a regulatory agreement with a relevant housing finance 42 agency, the owner of such dwelling unit affirms, under the penalty of 43 perjury, that it has continuously operated and rented the dwelling unit 44 (A) as if it remained an income-restricted rental unit and (B) as if all 45 of the restrictions of the expired regulatory agreement had continuously 46 been extended or otherwise remained in effect; or 47 (iv) is a dwelling unit located within a building or group of build- 48 ings or development that, in accordance with provisions of section four 49 hundred twenty-one-a of the real property tax law, the local housing 50 agency shall have required to be a unit affordable to families of low 51 and moderate income; or 52 (v) is a dwelling unit that is rented to persons of low income or 53 families of low income as defined in subdivision nineteen of section two 54 of the private housing finance law or as otherwise required by a feder- 55 al, state, or local law or mandate.A. 6921 4 1 (m) "Mandatory inclusionary housing area". A mandatory inclusionary 2 housing area is a specified area in which the inclusionary housing 3 program is applicable, pursuant to the regulations set forth for such 4 areas in section 23-90 of the zoning resolution. The locations of manda- 5 tory inclusionary housing areas are identified in either (i) appendix 6 "F" of the zoning resolution or (ii) in a special purpose district as 7 described in section 15-011 of the zoning resolution. 8 (n) "Non-purchasing tenant". A person who has not purchased under the 9 preservation plan and who is a tenant entitled to possession at the time 10 the preservation plan is declared effective or a person to whom a dwell- 11 ing unit is rented subsequent to the effective date. A person who 12 sublets a dwelling unit from a purchaser under the preservation plan 13 shall not be deemed a non-purchasing tenant. A tenant entitled to 14 possession of an income-restricted rental unit at the time the preserva- 15 tion plan is declared effective is a non-purchasing tenant, notwith- 16 standing that the income-restricted rental units are not offered for 17 sale pursuant to such preservation plan. 18 (o) "Post-closing amendment". A post-closing amendment is an amendment 19 to a preservation plan filed with the attorney general confirming that 20 the preservation plan has been consummated. 21 (p) "Preservation plan". An offering statement or prospectus submitted 22 to the department of law pursuant to this section for the conversion of 23 a building or group of buildings or development from rental status to 24 condominium ownership, wherein the offeror documents that it has agreed 25 to an extended affordability term for the income-restricted rental units 26 with a relevant housing finance agency. 27 (q) "Purchaser under the preservation plan". A purchaser under the 28 preservation plan is a person who purchases a dwelling unit from offeror 29 pursuant to the terms of a preservation plan that has been accepted for 30 filing by the attorney general. A person or entity that acquires dwell- 31 ing units and assumes certain obligations of offeror shall not be 32 considered a purchaser under the preservation plan. 33 (r) "Relevant housing finance agency". Relevant housing finance agency 34 shall refer to a city or state agency with oversight over income-res- 35 tricted rental units due to the receipt of substantial government 36 assistance prior to the date of submission of a preservation plan. For 37 purposes of this section, a relevant housing finance agency shall also 38 refer to the city or state agency that will continue to have oversight 39 of income-restricted rental units after consummation of the preservation 40 plan. 41 (s) "Regulatory agreement". A regulatory agreement shall refer to the 42 written agreement with a relevant housing finance agency that restricts 43 the income and rents of income-restricted rental units that is either: 44 (i) in effect prior to the date of submission of a preservation plan; or 45 (ii) in effect after consummation of the preservation plan. 46 (t) "Substantial government assistance". Substantial government 47 assistance shall refer to either (i) low income housing tax credits 48 under section forty-two of the internal revenue code or (ii) bond 49 financing under section one hundred forty-two of the internal revenue 50 code. 51 (u) "Zoning resolution". Zoning resolution shall refer to the zoning 52 resolution of the city of New York. 53 2. The attorney general shall refuse to accept for submission a pres- 54 ervation plan for the conversion of a building or group of buildings or 55 development to condominium ownership under this section where the attor- 56 ney general determines that any of the following is applicable:A. 6921 5 1 (a) The preservation plan is for a building or group of buildings or 2 development that receives a partial property tax exemption pursuant to 3 section four hundred twenty-one-a of the real property tax law, and the 4 applicable governing provisions of section four hundred twenty-one-a of 5 the real property tax law prohibit the dwelling units being offered for 6 sale from being owned pursuant to condominium ownership; or 7 (b) The preservation plan is for a building or group of buildings or 8 development that the offeror or a predecessor-in-title to offeror volun- 9 tarily renounced the receipt of a full or partial tax exemption, tax 10 abatement or benefit under the real property tax law or the private 11 housing finance law, or satisfied the terms and conditions of a regula- 12 tory agreement involving substantial government assistance prior to its 13 expiration date, for purposes of complying with this section; or 14 (c) The preservation plan is for a building or group of buildings or 15 development that either: (i) receives a partial tax exemption under 16 section four hundred twenty-one-a of the real property tax law which has 17 a remaining term of more than three years as of the date of submission 18 of the preservation plan; or (ii) includes income-restricted dwelling 19 units with a regulatory agreement where the compliance period, as such 20 term is defined by section forty-two of the internal revenue code, has 21 not yet expired. Nothing in this paragraph shall be interpreted as 22 prohibiting the attorney general from accepting for filing a preserva- 23 tion plan that contains income-restricted rental units as defined in 24 subparagraph (iii) of paragraph (l) of subdivision one of this section; 25 or 26 (d) The preservation plan is for a building or group of buildings or 27 development, wherein the only income-restricted rental units of the 28 building or group of buildings or development are inclusionary housing 29 units unless the owner of such building or group of buildings or devel- 30 opment has agreed to set aside twenty percent of the total number of 31 dwelling units that are not inclusionary housing units as income-res- 32 tricted rental units. 33 3. At the time of submission of the preservation plan, the offeror 34 shall confirm that it has reached an agreement with a relevant housing 35 finance agency regarding the income-restricted rental units during the 36 extended affordability term, and shall include the following disclo- 37 sures: 38 (a) A list of the proposed income-restricted rental units; 39 (b) The proposed owner of the income-restricted rental units, if not 40 the offeror; 41 (c) The operating expenses and revenues applicable to the income-res- 42 tricted rental units, which shall be reflected in the updated Schedule A 43 and Schedule B for the first year of operation of the condominium, the 44 allocation of common interests, projected common charges, estimated real 45 estate taxes, and rents to be collected from each income-restricted 46 rental unit, and the allocation of common expenses under section three 47 hundred thirty-nine-m of the real property law, applicable to the 48 income-restricted rental units, which shall be used to limit certain 49 condominium expenses allocable to the income-restricted rental units and 50 to cover any shortfall in the revenue from rent to cover the costs of 51 operation of the income-restricted rental units; 52 (d) A description of any financing encumbering the income-restricted 53 rental units, and whether a tax exemption or abatement is in place to 54 reduce real estate taxes for the income-restricted rental units; 55 (e) A description of any regulatory agreement or agreements to be 56 recorded against the income-restricted rental units and the term thereofA. 6921 6 1 and the relevant housing finance agency or agencies with supervisory 2 oversight; 3 (f) A description of the provisions of the declaration and by-laws for 4 the condominium that provides for the special allocation of common 5 expenses in accordance with section three hundred thirty-nine-m of the 6 real property law, and any specific requirements set forth in a regula- 7 tory agreement requiring unit owners in the condominium to cover any 8 shortfall in the revenue from rent to cover the costs of operation of 9 the income-restricted rental units; 10 (g) A description of the contemplated structure of the board of manag- 11 ers of the condominium, including specifically an explanation as to how 12 the interests of the owner of the income-restricted rental units are to 13 be adequately represented; 14 (h) The name, address and contact details for the relevant housing 15 finance agency or agencies with supervisory oversight of the income-res- 16 tricted rental units and the occupants within; 17 (i) A provision that once a vacancy occurs of an income-restricted 18 rental unit, that income-restricted rental unit may only be leased to 19 low income households whose annual household income is at or below fifty 20 percent of area median income at the time of the initial lease, and that 21 the initial rent shall not exceed the rent set forth by the relevant 22 housing finance agency for a household with an annual income at or below 23 fifty percent of the area median income; 24 (j) A representation by offeror that the regulatory agreement includes 25 and accounts for (i) all of the existing on-site income-restricted 26 rental units in an existing building or group of buildings or develop- 27 ment, or (ii) all of the income-restricted rental units associated with 28 an existing building or group of buildings or development located on a 29 zoning lot where one or more buildings were set aside as affordable 30 housing for purposes of qualifying for a partial property tax exemption 31 pursuant to section four hundred twenty-one-a of the real property tax 32 law; 33 (k) The income-restricted rental units may not be removed from rent 34 stabilization pursuant to the exemption for units owned as a condominium 35 under sections 2520.11 and 2500.9 of the rent stabilization code or 36 section 26-504 of the administrative code of the city of New York; and 37 (l) The recording of the condominium declaration and commencement of 38 condominium operations does not modify the requirement under section 39 four hundred twenty-one-a of the real property tax law that all residen- 40 tial rental apartments are subject to rent stabilization laws. 41 4. Upon submission of the preservation plan to the department of law, 42 each tenant in the building or group of buildings or development of a 43 dwelling unit being offered for sale shall be provided with a written 44 notice stating that such preservation plan has been submitted to the 45 department of law. Written notice to each tenant in occupancy shall 46 contain or be accompanied by: 47 (a) a copy of the preservation plan; 48 (b) a statement that tenants of the dwelling units being offered for 49 sale pursuant to the preservation plan or their representatives may 50 physically inspect the premises at any time subsequent to the submission 51 of the preservation plan to the department of law, during normal busi- 52 ness hours, upon written request made by them to the offeror, provided 53 such representatives are registered architects or professional engineers 54 licensed by the office of the professions of the education department of 55 the state of New York; andA. 6921 7 1 (c) a statement that tenants of the income-restricted rental units are 2 not being offered for sale the dwelling units they occupy, but their 3 tenancies shall continue undisturbed during and after the conversion of 4 the property to condominium ownership. The statement shall also disclose 5 that the income-restricted rental units shall remain subject to the rent 6 stabilization code for the duration of the current tenant's occupancy of 7 an income-restricted rental unit, and for all future tenants of an 8 income-restricted rental unit, throughout the extended affordability 9 term. 10 5. The tenants in occupancy of dwelling units being offered for sale 11 on the date the attorney general accepts the preservation plan for 12 filing shall have the exclusive right to purchase their dwelling units 13 for ninety days after the preservation plan has been accepted for filing 14 by the attorney general, during which time the offering price available 15 to the tenant in occupancy may not be increased and a tenant's dwelling 16 unit shall not be shown to a third party unless he or she has, in writ- 17 ing, waived his or her right to purchase. Subsequent to the expiration 18 of such ninety-day period, a tenant in occupancy of a dwelling unit who 19 has not purchased shall be given the exclusive right for an additional 20 six months from said expiration date to purchase said dwelling unit on 21 the same terms and conditions as are contained in any executed contract 22 to purchase said dwelling unit entered into by a purchaser under the 23 preservation plan, such exclusive right to be exercisable within fifteen 24 days from the date of mailing by registered mail of notice of the 25 execution of a contract of sale together with a copy of said executed 26 purchase agreement to said tenant. 27 6. The preservation plan shall also disclose that the offeror shall: 28 (a) market and sell all the dwelling units (other than the income-res- 29 tricted rental units) in the building or group of buildings or develop- 30 ment, as each such dwelling unit becomes vacant, to a purchaser under 31 the preservation plan through the use of commercially reasonable good 32 faith efforts; 33 (b) fund a reserve in the manner and amount as provided in section 34 three hundred thirty-nine-mm of the real property law; 35 (c) file an annual update amendment every year which shall include an 36 updated Schedule A of all dwelling units being offered for sale under 37 the preservation plan; and 38 (d) exercise commercially reasonable good faith efforts to sell at 39 least fifty-one percent of the total number of dwelling units offered 40 for sale under the preservation plan (excluding any income-restricted 41 rental units not offered for sale) within five years from the date of 42 the post-closing amendment. 43 7. After the issuance of the letter from the attorney general stating 44 that the preservation plan has been accepted for filing, the offeror 45 shall, on the thirtieth, sixtieth, eighty-eighth and ninetieth day after 46 such date and at least once every thirty days until the preservation 47 plan is declared effective or abandoned, as the case may be, and on the 48 second day before the expiration of any exclusive purchase period 49 provided in a substantial amendment to the preservation plan: 50 (a) file with the attorney general a written statement under oath 51 setting forth the percentage of bona fide tenants in occupancy of all 52 dwelling units in the building or group of buildings or development on 53 the date the preservation plan was accepted for filing by the attorney 54 general who have executed and delivered written agreements to purchase 55 under the preservation plan as of the date of such written statement 56 under oath; andA. 6921 8 1 (b) before noon on the day such statement is filed post a copy of such 2 written statement under oath in a prominent place accessible to all 3 tenants in each building covered by the preservation plan. 4 8. A preservation plan may not be declared effective until written 5 purchase agreements have been executed and delivered for at least 6 fifteen percent of all dwelling units offered for sale in the building 7 or group of buildings or development from either (a) bona fide tenants 8 who were in occupancy on the date a letter was issued by the attorney 9 general accepting the preservation plan for filing or (b) bona fide 10 non-tenant purchasers. The purchase agreement shall be executed and 11 delivered pursuant to an offering made in good faith without fraud and 12 discriminatory repurchase agreements or other discriminatory induce- 13 ments. A negotiated reduction from the original offering price extended 14 shall not, by itself, be deemed a discriminatory inducement. 15 9. Those written statements under oath that the offeror is required to 16 file with the attorney general pursuant to subdivision seven of this 17 section shall also include: 18 (a) the total number of written agreements to purchase under the pres- 19 ervation plan received from bona fide non-tenant purchasers; 20 (b) the total number of written agreements to purchase under the pres- 21 ervation plan received from all bona fide tenants in occupancy; 22 (c) the percentage of dwelling units under contract, calculated by 23 adding the number of written purchase agreements for a unit that were 24 received from (i) all bona fide tenants in occupancy plus (ii) all bona 25 fide non-tenant purchasers and then dividing the sum of those two 26 numbers by the total number of dwelling units offered for sale under the 27 preservation plan; 28 (d) whether or not the offeror intends to claim a credit against the 29 mandatory initial contribution the offeror is obligated to deposit into 30 the condominium's reserve fund pursuant to subdivision three of section 31 three hundred thirty-nine-mm of the real property law for the actual 32 cost of capital replacements which the offeror has begun after the pres- 33 ervation plan was submitted for filing to the department of law but 34 before the preservation plan is declared effective, together with their 35 actual or estimated costs which credit shall not exceed the actual cost 36 of the credit; 37 (e) whether or not the offeror shall be making its reserve fund 38 contributions required pursuant to section three hundred thirty-nine-mm 39 earlier or in an amount greater than required; and 40 (f) a representation that no purchaser counted for purposes of declar- 41 ing the preservation plan effective is the offeror, the selling agent or 42 the managing agent, or is a principal of the offeror, the selling agent, 43 or the managing agent or is related to any principal of the offeror, any 44 principal of the selling agent or any principal of the managing agent by 45 blood, marriage, or adoption, or is an affiliate, business associate, an 46 employee, a shareholder, a member, a manager, a director, an officer, a 47 limited partner of the offeror, selling agent or managing agent. 48 10. The preservation plan shall provide that it will be deemed aban- 49 doned, void and of no effect if it does not become effective within 50 fifteen months from the date of issue of the letter of the attorney 51 general stating that the preservation plan has been accepted for filing 52 and, in the event of such abandonment, no new plan for the conversion of 53 such building or group of buildings or development shall be submitted to 54 the attorney general for at least twelve months after such abandonment. 55 11. No closings of title of a dwelling unit to a purchaser under the 56 preservation plan shall take place until the attorney general shall haveA. 6921 9 1 also accepted for filing an amendment that declares the preservation 2 plan effective. Within forty-five days of the first closing of title of 3 a dwelling unit to a purchaser under the preservation plan, the offeror 4 shall submit to the attorney general its post-closing amendment to the 5 preservation plan. Thereafter, the preservation plan shall continually 6 be updated with the filing of an annual update amendment, no later than 7 thirty days from the anniversary of the date the attorney general 8 accepted the post-closing amendment for filing. An offeror or successor 9 offeror shall only be relieved of its obligation to file an annual 10 update amendment to the preservation plan after the last dwelling unit 11 offered for sale is conveyed to a purchaser under the preservation plan. 12 12. After the date of acceptance for filing of the post-closing amend- 13 ment, the offeror shall continue to make commercially reasonable good 14 faith efforts to sell the dwelling units it owns. 15 13. The attorney general shall refuse to accept for filing an annual 16 update amendment to the preservation plan unless: 17 (a) The annual update amendment discloses, in addition to the other 18 disclosures required elsewhere in this section or the regulations of the 19 attorney general, the following data and information: 20 (i) an accounting of the dwelling units sold and closed by the offeror 21 in the preceding twelve months, with an indication if the dwelling unit 22 was conveyed to a purchaser under the preservation plan or to a succes- 23 sor offeror; 24 (ii) an inventory of the offeror's unsold dwelling units at the end of 25 the preceding twelve months, in form and substance as shall satisfy the 26 attorney general; and 27 (iii) all the information, data and literature presented by the board 28 of managers in its semi-annual reports on the status of the reserve fund 29 as required under subdivision five of section three hundred thirty-nine- 30 mm of the real property law. 31 (b) The annual update amendment shall be accompanied by an affidavit 32 from a principal of the offeror attesting to the following data and 33 information with respect to all the dwelling units the offeror then 34 owns: 35 (i) the dwelling units' identifying information and general location; 36 (ii) whether, on the date of submission of the annual update amend- 37 ment, the unsold dwelling unit is subject to a fully executed purchase 38 agreement, and if so, whether the purchaser is a purchaser under the 39 preservation plan or otherwise; 40 (iii) whether, on the date of submission of the annual update amend- 41 ment, the dwelling unit is occupied or vacant, and if occupied, an indi- 42 cation that occupancy is: 43 (A) by a rent-regulated tenant; 44 (B) by a market-rate tenant; 45 (C) a month-to-month tenancy; 46 (D) a tenancy at sufferance; or 47 (E) other. 48 (iv) notwithstanding the occupancy status of a dwelling unit on the 49 date of submission of the annual update amendment, an indication if the 50 dwelling unit was vacant for more than one of the twelve preceding 51 months. For each dwelling unit so indicated, the offeror shall also 52 disclose: 53 (A) the date range that the dwelling unit was vacant; 54 (B) the date range for any period of time that the dwelling unit was 55 marketed for sale; 56 (C) date of sale;A. 6921 10 1 (D) the date the dwelling unit was leased by a tenant; and 2 (E) the date the lease is set to expire (if applicable). 3 14. No eviction proceedings shall be commenced at any time against 4 non-purchasing tenants for failure to purchase or for any other reason 5 applicable to expiration of tenancy; provided that such proceedings may 6 be commenced for non-payment of rent, illegal use or occupancy of the 7 premises, refusal of reasonable access to the owner or a similar breach 8 by the non-purchasing tenant of his, her or their obligations to the 9 owner of the dwelling unit; and provided further that an owner of a unit 10 may not commence an action to recover possession of a dwelling unit from 11 a non-purchasing tenant on the grounds that he, she or they seek the 12 dwelling unit for the use and occupancy of himself or herself or his, 13 her or their family's use and occupancy. 14 15. No eviction proceedings shall be commenced, except as provided in 15 this subdivision, at any time against either eligible senior citizens or 16 eligible disabled persons. The rentals of eligible senior citizens and 17 eligible disabled persons who reside in dwelling units not subject to 18 government regulation as to rentals and continued occupancy and eligible 19 senior citizens and eligible disabled persons who reside in dwelling 20 units with respect to which government regulation as to rentals and 21 continued occupancy is eliminated or becomes inapplicable after the 22 preservation plan has been accepted for filing shall not be subject to 23 unconscionable increases beyond ordinary rentals for comparable apart- 24 ments during the period of their occupancy considering, in determining 25 comparability, such factors as building services, level of maintenance 26 and operating expenses; provided that such proceedings may be commenced 27 against such tenants for non-payment of rent, illegal use or occupancy 28 of the premises, refusal of reasonable access to the owner or a similar 29 breach by the tenant of his, her or their obligations to the owner of 30 the dwelling unit. 31 16. Eligible senior citizens and eligible disabled persons who reside 32 in dwelling units subject to government regulation as to rentals and 33 continued occupancy shall continue to be subject thereto. 34 17. The rights granted under the preservation plan to eligible senior 35 citizens and eligible disabled persons may not be abrogated or reduced 36 notwithstanding any expiration of, or amendment to, this section. 37 18. Any offeror who disputes the election by a person to be an eligi- 38 ble senior citizen or an eligible disabled person shall apply to the 39 attorney general within thirty days of the receipt of the election forms 40 for a determination by the attorney general of such person's eligibil- 41 ity. The attorney general shall, within thirty days thereafter, issue a 42 determination of eligibility. The foregoing shall, in the absence of 43 fraud, be the sole method for determining a dispute as to whether a 44 person is an eligible senior citizen or an eligible disabled person. The 45 determination of the attorney general shall be reviewable only through a 46 proceeding under article seventy-eight of the civil practice law and 47 rules, which proceeding shall be commenced within thirty days after such 48 determination by the attorney general becomes final. 49 19. Non-purchasing tenants who reside in dwelling units subject to 50 government regulation as to rentals and continued occupancy prior to the 51 conversion of the building or group of buildings or development to 52 condominium ownership shall continue to be subject thereto. 53 20. The rentals of non-purchasing tenants who reside in dwelling units 54 not subject to government regulation as to rentals and continued occu- 55 pancy and non-purchasing tenants who reside in dwelling units with 56 respect to which government regulation as to rentals and continued occu-A. 6921 11 1 pancy is eliminated or becomes inapplicable after the preservation plan 2 has been accepted for filing by the attorney general shall not be 3 subject to unconscionable increases beyond ordinary rentals for compara- 4 ble apartments during the period of their occupancy. In determining 5 comparability, consideration shall be given to such factors as building 6 services, level of maintenance and operating expenses. 7 21. The rights granted under the preservation plan to purchasers under 8 the preservation plan and to non-purchasing tenants may not be abrogated 9 or reduced notwithstanding any expiration of, or amendment to, this 10 section. 11 22. Any local legislative body may adopt local laws and any agency, 12 officer or public body may prescribe rules and regulations with respect 13 to the continued occupancy by tenants of dwelling units which are 14 subject to regulation as to rentals and continued occupancy pursuant to 15 law, provided that in the event that any such local law, rule or regu- 16 lation shall be inconsistent with the provisions of this section, the 17 provisions of this section shall control. 18 23. The attorney general shall refuse to accept for filing a preserva- 19 tion plan when the attorney general determines: (a) that one or more of 20 the income-restricted rental units within the building, group of build- 21 ings or development was vacant on the date of submission; or (b) of the 22 dwelling units that are not income-restricted rental units, an excessive 23 number of long-term vacancies did not exist on the date that the preser- 24 vation plan was first submitted to the department of law. For purposes 25 of this subdivision, "long-term vacancies" shall mean dwelling units not 26 leased or occupied by bona fide tenants for more than five months prior 27 to the date of such submission to the department of law; and "excessive" 28 shall mean a vacancy rate in excess of the greater of (i) ten percent 29 and (ii) a percentage that is double the normal average vacancy rate for 30 the building or group of buildings or development for two years prior to 31 the January preceding the date the preservation plan was first submitted 32 to the department of law. 33 24. All dwelling units occupied by non-purchasing tenants shall be 34 managed by the same managing agent who manages all other dwelling units 35 in the building or group of buildings or development. Such managing 36 agent shall provide to non-purchasing tenants all services and facili- 37 ties required by law on a non-discriminatory basis. The offeror shall 38 guarantee the obligation of the managing agent to provide all such 39 services and facilities until such time as the offeror surrenders 40 control of the board of managers, at which time the board of managers of 41 the condominium shall assume responsibility for the provision of all 42 services and facilities required by law on a non-discriminatory basis. 43 25. It shall be unlawful for any person to engage in any course of 44 conduct, including, but not limited to, interruption or discontinuance 45 of essential services, which substantially interferes with or disturbs 46 the comfort, repose, peace or quiet of any tenant in his, her or their 47 use or occupancy of his, her or their dwelling unit or the facilities 48 related thereto. The attorney general may apply to a court of competent 49 jurisdiction for an order restraining such conduct and, if he deems it 50 appropriate, an order restraining the owner from selling the dwelling 51 unit itself or from proceeding with the plan of conversion; provided 52 that nothing contained herein shall be deemed to preclude the tenant 53 from applying on his, her or their own behalf for similar relief. 54 26. Any provision of a lease or other rental agreement which purports 55 to waive a tenant's rights under this section or rules and regulations 56 promulgated pursuant hereto shall be void as contrary to public policy.A. 6921 12 1 27. Notwithstanding the requirements of this section regarding the 2 preservation of income-restricted rental units as rental housing, and to 3 the extent permitted under existing law as it relates to the income-res- 4 tricted rental units, the income-restricted rental units in a building 5 or group of buildings or development that is the subject of a preserva- 6 tion plan may be offered for sale to existing tenants in occupancy or 7 other qualified low-income purchasers, if the relevant housing finance 8 agency provides a letter of ownership support to the department of law 9 prior to the preservation plan being accepted for filing confirming that 10 the proposed offering of such income-restricted ownership units meet the 11 following criteria: (a) the offering prices are affordable to the exist- 12 ing tenants and/or the qualified low-income purchasers who meet the 13 definition of persons of low income or families of low income as defined 14 by subdivision nineteen of section two of the private housing finance 15 law; (b) adequate provisions exist in a regulatory agreement, condomin- 16 ium declaration and by-laws to ensure that once conveyed, income-res- 17 tricted ownership units shall remain affordable to qualified low-income 18 owners and subsequent purchasers and owners for so long as the condomin- 19 ium is in existence; (c) the regulatory agreement, condominium declara- 20 tion and by-laws allow for adequate oversight of the income-restricted 21 ownership units by the relevant housing finance agency to ensure such 22 dwelling units are occupied by qualified low-income purchasers; and (d) 23 that the relevant housing finance agency is legally authorized and capa- 24 ble of enforcing these provisions and covenants to do so. If the 25 income-restricted rental units to be sold are subject to a regulatory 26 agreement or agreements with more than one relevant housing finance 27 agency, each such relevant housing finance agency must provide a letter 28 of ownership support. 29 28. It shall be unlawful for an offeror, its designees and/or succes- 30 sors to have or exercise voting control of the condominium's board of 31 managers for more than ninety days from the fifth anniversary date of 32 the first closing of title to a dwelling unit, or whenever the unsold 33 dwelling units constitute less than fifty percent of the common inter- 34 ests appurtenant to all dwelling units, whichever is sooner. 35 29. The attorney general may, in his or her discretion, waive the 36 requirement in paragraph (d) of subdivision six of this section that an 37 offeror sell at least fifty-one percent of the dwelling units offered 38 for sale under the preservation plan when the offeror provides proof 39 satisfactory to the attorney general that five years of commercially 40 reasonable good faith efforts did not result in the sale of fifty-one 41 percent of the dwelling units. If such waiver is granted, the offeror 42 shall be required to disclose the new date by which it will sell at 43 least fifty-one percent of the dwelling units offered for sale under the 44 preservation plan in its subsequent annual update amendment. Any waiver 45 granted hereunder shall not alleviate an offeror, its designees and/or 46 successors of the obligation set forth in subdivision twenty-eight of 47 this section. 48 30. Within ninety days of the effective date of this section, the 49 attorney general shall submit a notice of proposed rulemaking for publi- 50 cation in the state register which shall contain the suitable rules 51 necessary to carry out the provisions of this section. The authority of 52 the attorney general to promulgate, adopt, publish, notify, review, 53 amend, modify, reconsider, or rescind any rule or regulation as may be 54 conferred anywhere within this section shall comply with the state 55 administrative procedure act in all respects.A. 6921 13 1 31. For any offering statement or prospectus (including, without limi- 2 tation, a preservation plan and any amended filings thereto), submitted 3 to the department of law pursuant to this section, the filing fees set 4 forth in paragraph (a) of subdivision seven of section three hundred 5 fifty-two-e of this article shall not apply. Instead, an offeror shall 6 tender the following filing fee with and for its submission: 7 (a) seven hundred fifty dollars for every offering not in excess of 8 two hundred fifty thousand dollars; 9 (b) for every offering in excess of two hundred fifty thousand 10 dollars, four-tenths of one percent of the total amount of the offering 11 but not in excess of sixty thousand dollars, of which one-half of said 12 amount shall be a nonrefundable deposit paid at the time of submitting 13 the preservation plan to the department of law for review and the 14 balance payable upon the attorney general's issuance of a letter of 15 acceptance of the preservation plan for filing; 16 (c) two hundred twenty-five dollars for each price change amendment to 17 a preservation plan; 18 (d) seven hundred fifty dollars for any other amendment to a preserva- 19 tion plan; and 20 (e) seven hundred fifty dollars for each such application, and an 21 additional seven hundred fifty dollars for each and every amendment 22 submitted in furtherance of such an application to permit an offeror to 23 solicit public interest prior to the filing of a preservation plan to 24 the department of law. 25 § 2. Section 339-e of the real property law is amended by adding six 26 new subdivisions 1-a, 6-a, 8-a, 10-a, 11-a and 13-a to read as follows: 27 1-a. "Capital replacement" means a building-wide replacement of a 28 major component of any of the following systems: 29 (a) elevator; 30 (b) heating, ventilation and air conditioning; 31 (c) plumbing; 32 (d) wiring; 33 (e) window; or 34 (f) a major structural replacement to the building; provided, however, 35 that replacements made to cure code violations of record shall not be 36 included. 37 6-a. "Consummation of the preservation plan" means, in the context of 38 a preservation plan for the conversion of residential rental property to 39 condominium ownership that has been accepted for filing by the depart- 40 ment of law pursuant to section three hundred fifty-two-eeeee of the 41 general business law and subsequently amended to disclose that said 42 preservation plan has been declared effective, (i) the recording of the 43 declaration for the condominium and (ii) the closing of title to a 44 dwelling unit with a purchaser under the preservation plan. 45 8-a. "Offeror", as used in section three hundred thirty-nine-mm of 46 this article, means the offeror of a preservation plan to convert resi- 47 dential rental property to condominium ownership pursuant to section 48 three hundred fifty-two-eeeee of the general business law, together with 49 his, her or its nominees, assignees and successors in interest. 50 10-a. "Preservation plan", as used in section three hundred thirty- 51 nine-mm of this article, means an offering statement or prospectus 52 submitted to the department of law pursuant to section three hundred 53 fifty-two-eeeee of the general business law for the conversion of a 54 building or group of buildings or development from rental status to 55 condominium ownership, wherein the offeror documents that it has agreedA. 6921 14 1 to an extended affordability term for the income-restricted rental units 2 with a relevant housing finance agency. 3 11-a. "Purchaser under the preservation plan", when used in section 4 three hundred thirty-nine-mm of this article, means a purchaser under 5 the preservation plan shall refer to a person who purchases a dwelling 6 unit from the offeror pursuant to the terms of a preservation plan that 7 has been accepted for filing by the attorney general. A person or entity 8 that acquires dwelling units and assumes certain obligations of the 9 offeror shall not be considered a purchaser under the preservation plan. 10 13-a. "Total price", when used in section three hundred thirty-nine-mm 11 of this article, means the sum of the cost of all units in the offering 12 (including any income-restricted ownership units offered for sale to 13 qualified low income purchasers, but excluding any income-restricted 14 rental units whether such income-restricted rental units are retained 15 and operated by the offeror or sold to another entity that shall own and 16 operate the income-restricted rental units to persons of low income) at 17 the last price which was offered to tenants in occupancy prior to the 18 effective date of the preservation plan regardless of number of sales 19 made. 20 § 3. The real property law is amended by adding a new section 339-mm 21 to read as follows: 22 § 339-mm. Establishment of reserve fund for buildings converting to 23 condominium ownership under section three hundred fifty-two-eeeee of the 24 general business law. 1. Within thirty days after the consummation of a 25 preservation plan, the offeror thereof (and/or its designee or designees 26 and/or successor or successors) shall establish and transfer to the 27 condominium board of managers a reserve fund to be used exclusively for 28 making capital repairs, replacements and improvements necessary for the 29 health and safety of the residents of such building. Such reserve fund 30 shall be exclusive of any other funds required to be reserved under the 31 preservation plan or applicable law or regulation of the attorney gener- 32 al, except a fund for capital repairs, replacements and improvements 33 substantially similar in purpose to and in an amount not less than the 34 reserve fund mandated by this section. Such reserve fund shall also be 35 exclusive of any working capital fund and shall not be subject to 36 reduction for closing apportionments. 37 2. Such fund shall be established in an amount equal to either (a) 38 three percent of the total price or, (b) (i) three percent of the actual 39 sales price of all condominium units sold by the offeror at the time the 40 preservation plan is declared effective, provided, however, that if such 41 amount is less than one percent of the total price, then the fund shall 42 be established as a minimum of one percent of the total price; plus (ii) 43 supplemental contributions to be made by the offeror at a rate of three 44 percent of the actual sales price of condominium units for each unit 45 held by the offeror and sold to bona fide purchasers subsequent to the 46 effective date of the preservation plan and within five years of the 47 consummation of the preservation plan, notwithstanding that the total 48 amount contributed may exceed three percent of the total price; and 49 provided, further, that if five years from thirty days after the consum- 50 mation of the preservation plan the total contributions by the offeror 51 to the fund are less than three percent of the total price the offeror 52 shall pay the difference between the amount contributed and three 53 percent of the total price. Supplemental contributions shall be made 54 within thirty days of each sale. 55 3. The contributions required pursuant to this section may be made 56 earlier or in an amount greater than so provided. An offeror may claimA. 6921 15 1 and receive credit against the mandatory initial contribution to the 2 reserve fund for the actual cost of capital replacements which he or she 3 has begun after the preservation plan is submitted for filing to the 4 department of law and before the preservation plan is declared effec- 5 tive; provided, however, that any such replacements shall be set forth 6 in the preservation plan together with their actual or estimated costs 7 and further provided, that such credit shall not exceed the lesser of 8 the actual cost of the capital replacements or one percent of the total 9 price. 10 4. Any building, construction of which was completed within three 11 years prior to the consummation of the preservation plan, shall be 12 exempt from the requirements of this section. 13 5. The condominium board of managers shall report to unit owners on a 14 semi-annual basis with respect to all deposits into and withdrawals from 15 the reserve fund mandated by subdivision two of this section. 16 6. The offeror, not later than the thirtieth day following the accept- 17 ance of a preservation plan for filing by the department of law pursuant 18 to section three hundred fifty-two-eeeee of the general business law and 19 until the consummation of the preservation plan, shall post and maintain 20 in a prominent place, accessible to all tenants in each building covered 21 by the plan, a listing of all violations of record against such build- 22 ings as determined by the department of buildings of the city of New 23 York and the department of housing preservation and development of the 24 city of New York. All newly issued violations shall be posted within 25 forty-eight hours of their issuance and maintained as described in this 26 subdivision. The offeror may satisfy the requirements of this section by 27 designating an agent on the premises with whom such listing shall be 28 made available for inspection by the tenants. 29 7. Any provision purporting to waive the provisions of this section in 30 any contract to purchase or agreement between an offeror and a unit 31 purchaser or an offeror and the condominium board of managers created 32 under a preservation plan shall be void as against public policy. 33 8. (a) Except as otherwise provided in paragraph (b) of this subdivi- 34 sion, any person who knowingly violates or assists in the violation of 35 any provision of this section shall be subject to a civil penalty of one 36 hundred dollars per day per unit for each day that a building is not in 37 compliance with the provisions of such section; provided, however, that 38 such civil penalty shall not exceed one thousand dollars per unit. 39 (b) Any person who violates or assists in the violation of subdivision 40 two of this section shall also be subject to a civil penalty of one 41 thousand dollars per day for each day that the reserve fund required by 42 subdivision two of this section is not established; provided, however, 43 that such civil penalty shall not exceed the amount required to be 44 reserved pursuant to subdivision two of this section. 45 (c) Any other action or proceeding in any court of competent jurisdic- 46 tion that may be appropriate or necessary for the enforcement of the 47 provisions of this section may be brought in the name of the people of 48 the state of New York by the attorney general, including actions to 49 secure permanent injunctions enjoining any acts or practices which 50 constitute a violation of any provision of this section, mandating 51 compliance with the provisions of this section or for such other relief 52 as may be appropriate. In any such action or proceeding, the attorney 53 general may apply to any court of competent jurisdiction, or to a judge 54 or justice thereof, for a temporary restraining order or preliminary 55 injunction enjoining and restraining all persons from violating any 56 provision of this section, mandating compliance with the provisions ofA. 6921 16 1 this section, or for such other relief as may be appropriate, until the 2 hearing and determination of such action or proceeding and the entry of 3 final judgment or order therein. The court, or judge or justice thereof, 4 to whom such application is made, is hereby authorized to make any or 5 all of the orders specified in this paragraph, as may be required in 6 such application, with or without notice, and to make such other or 7 further orders or directions as may be necessary to render the same 8 effectual. No undertaking shall be required as a condition of the grant- 9 ing or issuing of such order, or by reason thereof. 10 (d) Nothing contained in this section shall impair any rights, reme- 11 dies or causes of action accrued or accruing to purchasers of condomin- 12 ium units with regard to the funding of a reserve fund under this 13 section. 14 (e) The attorney general is empowered to enforce the provisions of 15 this section. 16 § 4. Subdivision 2, subparagraph (i) of paragraph (a) of subdivision 17 2-a, and paragraphs (a) and (c) of subdivision 7 of section 352-e of the 18 general business law, subdivision 2 as amended by chapter 1042 of the 19 laws of 1981, subparagraph (i) of paragraph (a) of subdivision 2-a as 20 added by chapter 771 of the laws of 1983, paragraph (a) of subdivision 7 21 as amended by section 1 of part BBB-1 of chapter 57 of the laws of 2008, 22 and paragraph (c) of subdivision 7 as amended by chapter 637 of the laws 23 of 1989, are amended as follows: 24 2. Unless otherwise provided by regulation issued by the attorney 25 general, the offering statement or statements or prospectus required in 26 subdivision one of this section shall be filed with the department of 27 law at its office in the city of New York, prior to the public offering 28 of the security involved. No offer, advertisement or sale of such secu- 29 rities shall be made in or from the state of New York until the attorney 30 general has issued to the issuer or other offerer a letter stating that 31 the offering has been filed. The attorney general, not later than thirty 32 days after the submission of such filing, shall issue such a letter or, 33 in the alternative, a notification in writing indicating deficiencies in 34 the offering statement, statements or prospectus; provided, however, 35 that in the case of a building or group of buildings to be converted to 36 cooperative or condominium ownership which is occupied in whole or in 37 part for residential purposes and which is not the subject of a preser- 38 vation plan submitted pursuant to section three hundred fifty-two-eeeee 39 of this article, such letter or notification shall be issued in not 40 sooner than four months and not later than six months from the date of 41 submission of such filing. The attorney general may also refuse to issue 42 a letter stating that the offering statement or statements or prospectus 43 has been filed whenever it appears that the offering statement or state- 44 ments or prospectus does not clearly set forth the specific property or 45 properties to be purchased, leased, mortgaged, or otherwise to be 46 acquired, financed or the subject of specific investment with a substan- 47 tial portion of the offering proceeds. 48 (i) "Plan". Every offering statement or prospectus submitted to the 49 department of law for the conversion of a building or group of buildings 50 or development from residential rental status to cooperative or condo- 51 minium ownership, other than a plan governed by the provisions of either 52 section three hundred fifty-two-eee [or], three hundred fifty-two-eeee 53 or section three hundred fifty-two-eeeee of this [chapter] article, or a 54 plan for such conversion pursuant to article two, eight or eleven of the 55 private housing finance law.A. 6921 17 1 (a) The department of law shall collect the following fees for the 2 filing of each offering statement or prospectus as described in subdivi- 3 sion one of this section: seven hundred fifty dollars for every offering 4 not in excess of two hundred fifty thousand dollars; for every offering 5 in excess of two hundred fifty thousand dollars, four-tenths of one 6 percent of the total amount of the offering but not in excess of [thir-7ty] sixty thousand dollars of which one-half of said amount shall be a 8 nonrefundable deposit paid at the time of submitting the offering state- 9 ment to the department of law for review and the balance payable upon 10 the issuance of a letter of acceptance for filing said offering state- 11 ment. The department of law shall, in addition, collect a fee of two 12 hundred twenty-five dollars for each price change amendment to an offer- 13 ing statement and seven hundred fifty dollars for any other amendment to 14 an offering statement. For each application granted by the department of 15 law, which permits the applicant to solicit public interest or public 16 funds preliminary to the filing of an offering statement or for the 17 issuance of a "no-filing required" letter and any amendment thereto, the 18 department of law shall collect a fee of [two] seven hundred [twenty-19five] fifty dollars. [In the event the sponsor thereafter files an20offering statement, the fee paid for the preliminary application shall21be credited against the balance of the fee due and payable on filing.] 22 For each application granted pursuant to section three hundred fifty- 23 two-g of this article, the department of law shall collect a fee of 24 two-tenths of one percent of the amount of the offering of securities; 25 however, the minimum fee shall be seven hundred fifty dollars, and the 26 maximum fee shall be [thirty] sixty thousand dollars. All revenue from 27 that portion of any fee imposed pursuant to this paragraph, which 28 exceeds twenty thousand dollars for offering statements, and five 29 hundred twenty-five dollars for all other filings, shall be paid by the 30 department of law to the state comptroller to be deposited in and cred- 31 ited to the real estate finance bureau fund, established pursuant to 32 section eighty of the state finance law. 33 (c) Notwithstanding the provisions of paragraph (a) of this subdivi- 34 sion, the department of law shall not collect any fees for the filing of 35 an offering statement or prospectus or any amended filings thereto as 36 described in subdivision one of this section whenever: (i) a conversion 37 of a mobile home park, building or group of buildings or development 38 from residential rental status to cooperative or condominium ownership 39 is being made pursuant to article eleven, eighteen, nineteen or twenty 40 of the private housing finance law; or (ii) the offering statement or 41 prospectus or amendment thereto is submitted to the department of law 42 pursuant to section three hundred fifty-two-eeeee of this article. For 43 submissions made pursuant to section three hundred fifty-two-eeeee of 44 this article, the department of law shall instead collect the fees set 45 forth in subdivision thirty-one of such section. All revenue from that 46 portion of any fee imposed pursuant to subdivision thirty-one of section 47 three hundred fifty-two-eeeee of this article shall be paid by the 48 department of law to the state comptroller to be deposited in and cred- 49 ited to the housing protection unit fund, established pursuant to 50 section eighty-b of the state finance law. 51 § 5. Paragraph (a) of subdivision 1 of section 352-eeee of the general 52 business law, as amended by section 1 of part N of chapter 36 of the 53 laws of 2019, is amended to read as follows: 54 (a) "Plan". Every offering statement or prospectus submitted to the 55 department of law pursuant to section three hundred fifty-two-e of this 56 article for the conversion of a building or group of buildings or devel-A. 6921 18 1 opment from residential rental status to cooperative or condominium 2 ownership or other form of cooperative interest in realty, other than an 3 offering statement or prospectus for such conversion pursuant to section 4 three hundred fifty-two-eeeee of this article or article two, eight or 5 eleven of the private housing finance law. 6 § 6. The state finance law is amended by adding a new section 80-b to 7 read as follows: 8 § 80-b. Housing protection unit fund. 1. There is hereby established 9 in the custody of the state comptroller a special fund to be known as 10 the "housing protection unit fund". 11 2. The housing protection unit fund shall consist of moneys appropri- 12 ated thereto, funds transferred from any other fund or sources, and 13 moneys deposited therein pursuant to the fees imposed by section three 14 hundred fifty-two-eeeee of the general business law. 15 3. The moneys in the housing protection unit fund shall be kept sepa- 16 rate from and shall not be commingled with any other moneys in the 17 custody of the state comptroller. All moneys in the housing protection 18 unit fund shall be distributed each state fiscal year and such moneys 19 shall be allocated to and expended by the department of law solely for 20 the operation and administration of its housing protection unit. 21 § 7. This act shall take effect on the one hundred eightieth day after 22 it shall have become a law.
