Provides for an extension of time to the purchasing period for tenants to purchase a dwelling unit in a cooperative apartment building

2 Co-sponsors

• Ruth Hassell-Thompson
• Toby Ann Stavisky

Title of bill

An act to amend the general business law, in relation to providing an extension of time to the purchasing period for tenants to purchase a dwelling unit in a cooperative apartment building

Purpose

To protect the opportunity for low and middle income families to purchase a cooperative or condominium dwelling during their purchase period and to prevent the recent mortgage and credit crisis from affecting or denying such opportunity of home ownership.

Summary of provisions

Section 352-eeee of the General Business Law is amended by adding three new subdivisions: 2-a, 2-b, and 2-c.

2-a: allows for the offeror to extend the purchase period for one year. 2-b: requires sponsor to return deposits to purchasers upon denial of financing. 2-c: allows purchaser to void purchase agreement if sponsor refinances during purchase period.

Justification

Due to the sub prime mortgage crisis for low and middle income residents seeking to purchase a coop in a non-eviction plan, these residents have been placed in a precarious situation vis-a-vis the opportunity to obtain financing.

In addition, based upon the sub-prime mortgage fiasco, it is necessary to move diligently with regards to financing by the sponsor of the property after the acceptance of the coop plan. This relates to the refinancing of the properties which will result in an apparent diminution of value of the apartments/coop.

Legislative history

New Bill.

Effective date

This law shall take effect immediately.