What's happening
This bill extends the purchase period for tenants buying cooperative apartments by one year and provides protections if financing is denied.
Why it matters
Gives tenants more time to secure financing. , which is especially important for lower- and middle-income residents who may face challenges qualifying for loans quickly in New York’s expensive housing market.
Reduces financial risk for tenants. by ensuring any deposit is returned if a tenant is denied financing by two independent banks, providing a safety net and encouraging more tenants to attempt to buy without fear of losing their money.
Limits pressure from building owners or sponsors. who might otherwise push tenants to keep seeking loans indefinitely; once a tenant is rejected by two lenders, they cannot be forced to continue the process.
May impact the overall pace and predictability of cooperative conversions. , potentially slowing down the process for building owners and affecting their financial planning, but offering greater protections and fairer opportunities for existing tenants.
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Who cares
Headline styles
Extend Co-op Purchase Window
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- Referred to housing
- Referred to housing
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2732
2017-2018 Regular Sessions
IN ASSEMBLY
January 23, 2017
Introduced by M. of A. SEPULVEDA -- read once and referred to the Committee on Housing
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 352-eeee of the general business law is amended by adding two new subdivisions 2-a and 2-b to read as follows:
2-a. Provided that a plan has not been deemed to be abandoned, void and not in effect as described in paragraph a of subdivision two of this section, an offeror shall extend the purchase period for an additional year from the original date set forth in the offering statement or prospectus, required by subdivision one of section three hundred fifty-two-e of this article, to tenants intending to purchase a dwelling unit in such cooperative apartment building who have not been able to acquire the financing necessary to make such purchase during the purchase period provided in the initial offering statement or prospectus.
2-b. Notwithstanding any other provision of law to the contrary, the offeror shall not require a tenant to seek any additional financing upon proof that such tenant has been denied financing from two independent financial institutions. Such owner shall return any monies deposited by a tenant unable to attain such financing.
§ 2. This act shall take effect immediately; provided, however, that the amendments made to section 352-eeee of the general business law by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06678-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.