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

1 Co-sponsor

• Martin Malavé Dilan

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 1. Amends the General Business Law, section 352-eeee by adding two new subdivisions: 2-a and 2-b. Subdivision 2-a allows an offeror to extend the purchase period for an additional year from the original date set forth in the offering statement or prospectus, provided that a plan has not been deemed to be abandoned, void and not in effect. Subdivision 2-b requires the sponsor to return deposits to purchasers upon denial of financing from two independent financial institutions.

Section 2. Effective Date

Existing law

General Business Law; Article 23-A, Fraudulent Practices in Respect to Stocks, Bonds and Other Securities; Section 352-eeee, Conversions to Cooperative or Condominium Ownership in the City of New York.

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

2014: S.298A - Referred to Housing/ A.3170A - Referred to Housing 2013: S.298A - Amend and Recommit to Housing, Construction and Community Development/A.3170A - Ordered to 3rd Reading Rules Cal. 2012: S.314 - Referred to Banks 2011: S.314 - Discharged from Housing, Construction and Community Development and Committed to Banks 2010: S.2570 - Referred to Housing, Construction and Community Development/A.8138 Enacting Clause Stricken 2009: S.2570 - Referred to Housing, Construction and Community Development/A.8138 Referred to Housing 2009: Uni Bill S.2570 - Referred to Housing, Construction and Community Development A.6004 - Enacting Clause Stricken

Effective date

Immediately, with provisions.