Section 352-EEEE. Conversions to cooperative or condominium ownership in the city of New York

1. As used in this section,  the  following  words
  and terms shall have the following meanings:
    (a)  "Plan".  Every  offering statement or prospectus submitted to the
  department of law pursuant to section three hundred fifty-two-e of  this
  article  for  the  conversion  of  a  building  or group of buildings or
  development from residential rental status to cooperative or condominium
  ownership or other form of cooperative interest in realty, other than an
  offering statement or prospectus for such conversion pursuant to article
  two, eight or eleven of the private housing finance law.
    (b) "Non-eviction plan". A plan which may not  be  declared  effective
  until  written  purchase agreements have been executed and delivered for
  at least fifteen percent of all dwelling units in the building or  group
  of  buildings  or  development by bona fide tenants in occupancy or bona
  fide purchasers who represent that they intend that they or one or  more
  members  of  their  immediate  family  intend to occupy the unit when it
  becomes vacant. As to tenants who were in occupancy on the date a letter
  was issued by the attorney general accepting the plan  for  filing,  the
  purchase  agreement  shall  be  executed  and  delivered  pursuant to an
  offering made in good faith without fraud and discriminatory  repurchase
  agreements or other discriminatory inducements.
    (c)  "Eviction plan". A plan which, pursuant to the provisions of this
  section, can result in the eviction of a non-purchasing tenant by reason
  of the tenant failing to purchase pursuant thereto, and which may not be
  declared effective until at least fifty-one percent  of  the  bona  fide
  tenants  in  occupancy of all dwelling units in the building or group of
  buildings  or  development  on  the  date  the  offering  statement   or
  prospectus  was  accepted for filing by the attorney general (excluding,
  for the purposes of determining the  number  of  bona  fide  tenants  in
  occupancy  on  such date, eligible senior citizens and eligible disabled
  persons)  shall  have  executed  and  delivered  written  agreements  to
  purchase  under  the  plan  pursuant  to  an offering made in good faith
  without fraud and with no discriminatory repurchase agreements or  other
  discriminatory inducements.
    (d) "Purchaser under the plan". A person who owns the shares allocated
  to a dwelling unit or who owns such dwelling unit itself.
    (e)  "Non-purchasing tenant". A person who has not purchased under the
  plan and who is a tenant entitled to possession at the time the plan  is
  declared  effective  or  a  person  to  whom  a  dwelling unit is rented
  subsequent to the effective date. A person who sublets a  dwelling  unit
  from  a  purchaser  under  the plan shall not be deemed a non-purchasing
  tenant.
    (f)  "Eligible  senior  citizens".  Non-purchasing  tenants  who   are
  sixty-two  years  of  age  or older on the date the attorney general has
  accepted the plan for filing, and the spouses of  any  such  tenants  on
  such  date,  and  who  have  elected,  within sixty days of the date the
  attorney general has accepted the plan for filing, on forms  promulgated
  by the attorney general and presented to such tenants by the offeror, to
  become  non-purchasing  tenants  under  the  provisions of this section;
  provided that such election shall not  preclude  any  such  tenant  from
  subsequently  purchasing  the dwelling unit on the terms then offered to
  tenants in occupancy.
    (g) "Eligible disabled persons". Non-purchasing tenants  who  have  an
  impairment which results from anatomical, physiological or psychological
  conditions, other than addiction to alcohol, gambling, or any controlled
  substance,  which  are demonstrable by medically acceptable clinical and
  laboratory diagnostic techniques, and which are expected to be permanent
  and which prevent the tenant from engaging in  any  substantial  gainful

  employment  on  the  date the attorney general has accepted the plan for
  filing, and the spouses of any such tenants on such date, and  who  have
  elected, within sixty days of the date the attorney general has accepted
  the  plan  for  filing, on forms promulgated by the attorney general and
  presented to such tenants  by  the  offeror,  to  become  non-purchasing
  tenants under the provisions of this section; provided, however, that if
  the  disability  first  occurs  after acceptance of the plan for filing,
  then such election may be made within sixty days following the onset  of
  such  disability  unless  during  the  period  subsequent  to sixty days
  following the acceptance of the  plan  for  filing  but  prior  to  such
  election,  the  offeror  accepts  a  written  agreement  to purchase the
  apartment from a bona fide purchaser; and  provided  further  that  such
  election shall not preclude any such tenant from subsequently purchasing
  the  dwelling  unit  or  the  shares allocated thereto on the terms then
  offered to tenants in occupancy.
    2. The attorney general shall refuse to issue a  letter  stating  that
  the  offering  statement  or  prospectus  required in subdivision one of
  section three  hundred  fifty-two-e  of  this  chapter  has  been  filed
  whenever it appears that the offering statement or prospectus offers for
  sale residential cooperative apartments or condominium units pursuant to
  a plan unless:
    (a) The plan provides that it will be deemed abandoned, void and of no
  effect  if  it  does not become effective within fifteen months from the
  date of issue of the letter of the attorney  general  stating  that  the
  offering  statement  or  prospectus has been accepted for filing and, in
  the event of such abandonment, no new plan for the  conversion  of  such
  building  or group of buildings or development shall be submitted to the
  attorney general for at least twelve months after such abandonment.
    (b) The plan provides either that it is an eviction plan or that it is
  a non-eviction plan.
    (c) The plan provides, if it is a non-eviction plan, as follows:
    (i) The plan may not be  declared  effective  until  written  purchase
  agreements have been executed and delivered for at least fifteen percent
  of  all  dwelling  units  in  the  building  or  group  of  buildings or
  development subscribed for by bona fide tenants  in  occupancy  or  bona
  fide  purchasers who represent that they intend that they or one or more
  members of their immediate family  occupy  the  dwelling  unit  when  it
  becomes vacant. As to tenants who were in occupancy on the date a letter
  was  issued  by  the attorney general accepting the plan for filing, the
  purchase agreement shall  be  executed  and  delivered  pursuant  to  an
  offering  made  without  discriminatory  repurchase  agreements or other
  discriminatory inducements.
    (ii) No eviction proceedings will be commenced  at  any  time  against
  non-purchasing  tenants  for  failure  to  purchase  or any other reason
  applicable to expiration of tenancy; provided that such proceedings  may
  be  commenced  for  non-payment of rent, illegal use or occupancy of the
  premises, refusal of reasonable access to the owner or a similar  breach
  by  the  non-purchasing  tenant  of  his obligations to the owner of the
  dwelling unit or the shares allocated thereto; and provided further that
  an owner of a unit or of the shares allocated thereto may  not  commence
  an action to recover possession of a dwelling unit from a non-purchasing
  tenant  on  the  grounds that he seeks the dwelling unit for the use and
  occupancy of himself or his family.
    (iii) Non-purchasing tenants who reside in dwelling units  subject  to
  government regulation as to rentals and continued occupancy prior to the
  conversion  of  the  building  or  group  of buildings or development to
  cooperative or condominimum  ownership  shall  continue  to  be  subject
  thereto.

    (iv)  The  rentals  of  non-purchasing  tenants who reside in dwelling
  units not subject to government regulation as to rentals  and  continued
  occupancy  and  non-purchasing tenants who reside in dwelling units with
  respect to which government  regulation  as  to  rentals  and  continued
  occupancy  is eliminated or becomes inapplicable after the plan has been
  accepted for filing by the attorney general  shall  not  be  subject  to
  unconscionable   increases   beyond   ordinary  rentals  for  comparable
  apartments  during  the  period  of  their  occupancy.  In   determining
  comparability,  consideration shall be given to such factors as building
  services, level of maintenance and operating expenses.
    (v) The plan may not be amended at any time to provide that  it  shall
  be an eviction plan.
    (vi)  The  rights  granted under the plan to purchasers under the plan
  and  to  non-purchasing  tenants  may  not  be  abrogated   or   reduced
  notwithstanding any expiration of, or amendment to, this section.
    (vii)  After  the  issuance  of  the  letter from the attorney general
  stating  that  the  offering  statement  or   prospectus   required   in
  subdivision one of section three hundred fifty-two-e of this article has
  been filed, the offeror shall, on the thirtieth, sixtieth, eighty-eighth
  and  ninetieth  day  after such date and at least once every thirty days
  until the plan is declared effective or is abandoned, as  the  case  may
  be,  and  on  the  second  day  before  the  expiration of any exclusive
  purchase period provided in a substantial amendment  to  the  plan,  (1)
  file  with the attorney general a written statement, under oath, setting
  forth the percentage of the dwelling units in the building or  group  of
  buildings  or  development  subscribed  for  by  bona  fide  tenants  in
  occupancy or bona fide purchasers who represent that  they  intend  that
  they  or  one  or  more  members  of  their  immediate family occupy the
  dwelling unit when it becomes vacant as of the date  of  such  statement
  and,  (2)  before noon on the day such statement is filed post a copy of
  such statement in a prominent place accessible to all  tenants  in  each
  building covered by the plan.
    (d) The plan provides, if it is an eviction plan, as follows:
    (i)  The  plan may not be declared effective unless at least fifty-one
  percent of the bona fide tenants in occupancy of all dwelling  units  in
  the  building  or  group  of  buildings  or  development on the date the
  offering statement or prospectus was accepted for filing by the attorney
  general (excluding, for the purposes of determining the number  of  bona
  fide  tenants  in  occupancy  on such date, eligible senior citizens and
  eligible disabled persons) shall have  executed  and  delivered  written
  agreements  to  purchase  under the plan pursuant to an offering made in
  good  faith  without  fraud  and  with  no   discriminatory   repurchase
  agreements or other discriminatory inducements.
    (ii)   No   eviction   proceedings   will   be   commenced  against  a
  non-purchasing tenant for  failure  to  purchase  or  any  other  reason
  applicable  to expiration of tenancy until the later to occur of (1) the
  date which is  the  expiration  date  provided  in  such  non-purchasing
  tenant's  lease  or  rental  agreement,  and (2) the date which is three
  years  after  the  date  on  which  the  plan  is  declared   effective.
  Non-purchasing   tenants   who  reside  in  dwelling  units  subject  to
  government regulation as to rentals and  continued  occupancy  prior  to
  conversion  shall  continue  to  be subject thereto during the period of
  occupancy provided in this paragraph.  Thereafter, if a tenant  has  not
  purchased,  he  may  be removed by the owner of the dwelling unit or the
  shares allocated to such dwelling unit.
    (iii) No eviction proceedings will be commenced, except as hereinafter
  provided, at  any  time  against  either  eligible  senior  citizens  or
  eligible  disabled  persons. The rentals of eligible senior citizens and

  eligible disabled persons who reside in dwelling units  not  subject  to
  government regulation as to rentals and continued occupancy and eligible
  senior  citizens  and  eligible  disabled persons who reside in dwelling
  units  with  respect  to  which  government regulation as to rentals and
  continued occupancy is eliminated or becomes inapplicable after the plan
  has been accepted for filing shall  not  be  subject  to  unconscionable
  increases  beyond  ordinary rentals for comparable apartments during the
  period of their occupancy  considering,  in  determining  comparability,
  such  factors  as  building services, level of maintenance and operating
  expenses; provided that such proceedings may be commenced  against  such
  tenants  for  non-payment  of  rent,  illegal  use  or  occupancy of the
  premises, refusal of reasonable access to the owner or a similar  breach
  by  the  tenant  of his obligations to the owner of the dwelling unit or
  the shares allocated thereto.
    (iv) Eligible senior citizens and eligible disabled persons who reside
  in dwelling units subject to government regulation  as  to  rentals  and
  continued occupancy shall continue to be subject thereto.
    (v)  The rights granted under the plan to eligible senior citizens and
  eligible  disabled   persons   may   not   be   abrogated   or   reduced
  notwithstanding any expiration of, or amendment to, this section.
    (vi)  Any  offeror  who  disputes  the  election  by a person to be an
  eligible senior citizen or an eligible disabled person must apply to the
  attorney general within thirty days of the receipt of the election forms
  for  a  determination  by  the  attorney  general   of   such   person's
  eligibility.  The attorney general shall, within thirty days thereafter,
  issue his determination of eligibility.  The  foregoing  shall,  in  the
  absence  of  fraud,  be  the sole method for determining a dispute as to
  whether a person is an eligible senior citizen or an  eligible  disabled
  person.  The  determination  of the attorney general shall be reviewable
  only through a proceeding  under  article  seventy-eight  of  the  civil
  practice law and rules, which proceeding must be commenced within thirty
  days after such determination by the attorney general becomes final.
    (vii)  After  the  issuance  of  the  letter from the attorney general
  stating  that  the  offering  statement  or   prospectus   required   in
  subdivision one of section three hundred fifty-two-e of this article has
  been accepted for filing, the offeror shall, on the thirtieth, sixtieth,
  eighty-eighth and ninetieth days after such date and at least once every
  thirty  days  until  the plan is declared effective or abandoned, as the
  case may be, and  on  the  second  day  before  the  expiration  of  any
  exclusive  purchase  period  provided  in a substantial amendment to the
  plan, (1) file with the attorney  general  a  written  statement,  under
  oath,  setting forth the percentage of bona fide tenants in occupancy of
  all dwelling units in the building or group of buildings or  development
  on the date the offering statement or prospectus was accepted for filing
  by  the  attorney  general  who  have  executed  and  delivered  written
  agreements to purchase under the plan as of the date of such  statement,
  and  (2)  before  noon on the day such statement is filed post a copy of
  such statement in a prominent place accessible to all  tenants  in  each
  building covered by the plan.
    (viii)  If  the  plan  is  amended  before it is declared effective to
  provide that it shall be a non-eviction plan, any person who has  agreed
  to  purchase  under the plan prior to such amendment shall have a period
  of thirty days after receiving  written  notice  of  such  amendment  to
  revoke his agreement to purchase under the plan.
    (ix) The tenants in occupancy on the date the attorney general accepts
  the  plan  for  filing  shall have the exclusive right to purchase their
  dwelling units or the shares allocated thereto for ninety days after the
  plan is accepted for filing by the attorney general, during which time a

  tenant's dwelling unit shall not be shown to a  third  party  unless  he
  has,  in  writing,  waived  his  right  to  purchase;  subsequent to the
  expiration of such ninety  day  period,  a  tenant  in  occupancy  of  a
  dwelling  unit  who has not purchased shall be given the exclusive right
  for an additional period of six months  from  said  expiration  date  to
  purchase  said dwelling unit or the shares allocated thereto on the same
  terms and conditions  as  are  contained  in  an  executed  contract  to
  purchase  said  dwelling  unit  or  shares  entered  into by a bona fide
  purchaser, such exclusive right to be exercisable  within  fifteen  days
  from  the  date of mailing by registered mail of notice of the execution
  of a contract of sale together with a copy of said executed contract  to
  said tenant.
    (e)  The  attorney general finds that an excessive number of long-term
  vacancies did not exist on the  date  that  the  offering  statement  or
  prospectus  was  first  submitted  to  the department of law. "Long-term
  vacancies" shall mean dwelling units not leased or occupied by bona fide
  tenants for more than five months prior to the date of  such  submission
  to  the  department  of  law.  "Excessive"  shall mean a vacancy rate in
  excess of the greater of (i) ten percent and (ii) a percentage  that  is
  double  the  normal  average  vacancy  rate for the building or group of
  buildings or development for two years prior to  the  January  preceding
  the date the offering statement or prospectus was first submitted to the
  department of law.
    (f)  The  attorney general finds that, following the submission of the
  offering statement or prospectus to the department of law,  each  tenant
  in the building or group of buildings or development was provided with a
  written  notice  stating  that such offering statement or prospectus has
  been submitted to the department of law for filing. Such notice shall be
  accompanied by a copy of the offering  statement  or  prospectus  and  a
  statement  that  the statements submitted pursuant to subparagraph (vii)
  of paragraph  (c)  or  subparagraph  (vii)  of  paragraph  (d)  of  this
  subdivision,  whichever  is applicable, will be available for inspection
  and copying at the office of the department of law where the  submission
  was  made  and  at  the  office of the offeror or a selling agent of the
  offeror. Such notice shall also  be  accompanied  by  a  statement  that
  tenants  or their representatives may physically inspect the premises at
  any time subsequent to the submission of the plan to the  department  of
  law,  during normal business hours, upon written request made by them to
  the offeror, provided such representatives are registered architects  or
  professional  engineers  licensed  to practice in the state of New York.
  Such notice shall be sent to each tenant in occupancy on  the  date  the
  plan is first submitted to the department of law.
    3.  All  dwelling  units  occupied  by non-purchasing tenants shall be
  managed by the same managing agent who manages all other dwelling  units
  in  the  building  or  group  of buildings or development. Such managing
  agent  shall  provide  to  non-purchasing  tenants  all   services   and
  facilities  required  by  law on a non-discriminatory basis. The offeror
  shall guarantee the obligation of the managing agent to provide all such
  services and facilities  until  such  time  as  the  offeror  surrenders
  control  to  the  board of directors or board of managers, at which time
  the cooperative corporation or the condominium association shall  assume
  responsibility for the provision of all services and facilities required
  by law on a non-discriminatory basis.
    4.  It  shall  be  unlawful  for any person to engage in any course of
  conduct, including, but not limited to, interruption  or  discontinuance
  of  essential  services, which substantially interferes with or disturbs
  the comfort, repose, peace  or  quiet  of  any  tenant  in  his  use  or
  occupancy  of  his  dwelling unit or the facilities related thereto. The

  attorney general may apply to a court of competent jurisdiction  for  an
  order restraining such conduct and, if he deems it appropriate, an order
  restraining  the owner from selling the shares allocated to the dwelling
  unit  or  the  dwelling  unit itself or from proceeding with the plan of
  conversion; provided that nothing contained herein shall  be  deemed  to
  preclude the tenant from applying on his own behalf for similar relief.
    5.  Any  local  legislative  body may adopt local laws and any agency,
  officer or public body may prescribe rules and regulations with  respect
  to  the  continued  occupancy  by  tenants  of  dwelling units which are
  subject to regulation as to rentals and continued occupancy pursuant  to
  law,  provided  that  in  the  event  that  any  such local law, rule or
  regulation shall be inconsistent with the provisions  of  this  section,
  the provisions of this section shall control.
    6.  Any  provision of a lease or other rental agreement which purports
  to waive a tenant's rights under this section or rules  and  regulations
  promulgated pursuant hereto shall be void as contrary to public policy.
    7. The provisions of this section shall only be applicable in the city
  of New York.
    * NB Expires June 15, 2011