Section 26-801. Definitions

For the purposes of this section, the following
  definitions shall apply:
    (a) "Affordable" shall mean that rental expenses for dwelling units do
  not exceed thirty percent of the annual gross household  income  of  the
  existing  tenants,  and/or  where rental expenses do not exceed the rent
  levels allowable pursuant to the rent restrictions  applicable  to  such
  dwelling units prior to conversion, provided however that dwelling units
  which  become  vacant in assisted rental housing should not be rented to
  households  whose  income  exceeds  eighty  percent  of  the  New   York
  metropolitan  area  median  income  as  determined  by the United States
  department of housing and urban development.
    (b) "Appraised value" shall mean the value as determined by a majority
  vote of an advisory panel of three appraisers  who  shall  perform  such
  appraisal  in  accordance  with  the  American Arbitration Association's
  rules for the real estate industry.
    (c) "Assisted rental housing" shall mean  a  privately-owned  multiple
  dwelling  or group of multiple dwelling units managed together under the
  same ownership in which the  majority  of  dwelling  units  therein  are
  subject to federal, state or city income eligibility restrictions and in
  which  rents  for  such  dwelling  units  are  controlled,  regulated or
  assisted by a federal, state or city agency  pursuant  to  a  regulatory
  agreement  or rental assistance agreement designed to make such dwelling
  units affordable on  a  project-based  basis.  Assisted  rental  housing
  programs shall include:
    (1)  any  program  created, administered, or supervised by the city or
  state under article II or article IV of the private housing finance law,
  but shall not include any multiple  dwelling  owned  or  operated  by  a
  company  organized under article II or article IV of the private housing
  finance law that was occupied prior to January 1, 1974.
    (2) any program providing project-based assistance under section eight
  of the United States housing act of 1937, as it may be amended from time
  to time; and
    (3) housing programs governed by sections 202, 207, 221, 232, 236,  or
  811  of  the national housing act, (12 U.S.C. 1701 et seq.), as they may
  be amended from time to time;
    (d) "Bona fide purchaser" shall mean  a  person  or  entity  that  has
  tendered a bona fide offer to purchase the assisted rental housing.
    (e)  "Bona fide offer to purchase" shall mean a good faith and without
  fraud offer, made in writing and approved  by  the  department  that  is
  tendered  by  a bona fide purchaser no later than one hundred and twenty
  days after an appraisal performed pursuant to  section  26-804  of  this
  chapter, and that is non-binding on the owner with intent to convert.
    (f)  "Conversion"  or  "convert"  shall  mean  the  transfer of title,
  leasing, intention to sell or lease,  mortgage  pre-payment,  withdrawal
  from  an  assisted  housing  program,  decision  not  to extend or renew
  participation in the program or any other action taken by the owner that
  would result in the termination of participation by  the  owner  in  the
  assisted rental housing program.
    (g)  "Household"  shall mean all lawful occupants of any dwelling unit
  as defined in section 27-2004 of this code.
    (h) "Household income" shall mean, for any household, the sum  of  the
  amount  reported  separately  in the most recent individual or joint tax
  return for wage or salary income, net  self-employed  income,  interest,
  dividends,   rent  received,  royalties,  social  security  or  railroad
  retirement benefits or disability benefits and all other income for each
  member of the household reported on a tax return.
    (i) "Department" shall mean the department of housing preservation and
  development or successor agency.

    (j) "Financial assistance" shall  mean  any  benefits  received  as  a
  result  of  an  assisted  rental  housing  program  that act to maintain
  affordable rents in the assisted rental housing.
    (k)  "First  opportunity  to purchase" shall mean the opportunity by a
  tenant association, or if applicable, a qualified entity, to purchase in
  good faith and without fraud the assisted rental housing at or below its
  appraised value before such assisted rental housing becomes  subject  to
  conversion.
    (l)  "Notice" shall mean a written communication addressed to a tenant
  association, or if no tenant association exists, to each tenant,  or  if
  applicable,  to  a  qualified  entity,  by  means  of  first  class  and
  registered mail, or personal delivery upon a tenant association,  or  if
  no  tenant  association  exists,  upon  each tenant, or if applicable, a
  qualified entity. Each such notice shall be deemed to  have  been  given
  upon  the deposit of such first class and registered mail in the custody
  of the  United  States  postal  service  or  upon  receipt  of  personal
  delivery,  and  by  posting  of  such  notice in the common areas of the
  assisted rental housing.
    (m) "Owner" shall mean any person or entity, or  combination  of  such
  persons  or entities, or any agent of such persons or entities, that has
  a controlling interest in assisted rental housing  that  is  subject  to
  conversion.
    (n) "Qualified entity" shall mean any individual, partnership, limited
  liability  partnership,  limited  liability  corporation, not-for-profit
  corporation or business corporation, or other entity  authorized  to  do
  business  in  New  York  state  and  experienced  in  the  management of
  affordable housing, designated by the tenants residing in at least sixty
  percent of the occupied dwelling units within the same  assisted  rental
  housing  to act on its behalf pursuant to section 26-809 of this chapter
  and approved in writing by the department and which obligates itself and
  any successors in interest  to  assume  the  ongoing  responsibility  of
  continuing  maintenance  and operation of the assisted rental housing as
  affordable for  the  duration  of  the  housing's  useful  life  and  in
  accordance with the purposes of this chapter.
    (o)  "Right  of  first  refusal"  shall  mean  the  right  of a tenant
  association, or if applicable, a qualified  entity,  to  submit  a  good
  faith  and  without fraud offer, in writing to the owner to purchase the
  higher of the assisted rental housing's appraised value or the identical
  price, terms and conditions offered by a bona fide purchaser as approved
  by the department.
    (p) "Tenant" shall  mean  a  lawful  occupant  who  resides  within  a
  dwelling  unit  within such assisted rental housing pursuant to law or a
  lease recognized by either the owner of such  assisted  rental  housing,
  the department or a court of competent jurisdiction.
    (q)   "Tenant   association"   shall   mean  an  association,  whether
  incorporated or not, for which  written  consent  to  forming  a  tenant
  association  has  been  given  by  tenants  representing  at least sixty
  percent of the occupied dwelling units within the same  assisted  rental
  housing, and which association notifies or has notified the owner of the
  assisted   rental  housing  and  the  department  of  its  existence  or
  establishment and has provided to such  owner  and  the  department  the
  names  and  addresses of at least two of the officers or representatives
  of such association.  Where more than one group of tenants in  the  same
  assisted  rental  housing  claims  to be the tenant association for such
  assisted rental housing, the department shall determine which group,  if
  any,  is  the tenant association for the purposes of this chapter in the
  same manner as the department certifies a  tenant  association  for  the
  purposes of article II of the private housing finance law.