What's happening
This bill extends the time for tenants to purchase cooperative apartments and eases requirements if financing is denied.
Why it matters
Gives tenants more time to secure financing. By extending the purchase period for an additional year, tenants who want to buy their cooperative apartments have a better chance to arrange necessary loans, especially in tight credit markets or if their initial attempts fail.
Protects tenants from repeated loan denials. If a tenant is denied financing by two separate financial institutions, they are not required to keep seeking other lenders, reducing both financial stress and administrative burdens.
Ensures return of tenants’ deposits. Tenants who cannot obtain financing after two denials are entitled to have any money they deposited refunded, protecting them from financial loss due to circumstances often outside their control.
Could impact the pace and certainty of coop conversions. By mandating an extension and easing requirements for tenants, the bill may slow down the conversion process for building owners, but enhances fairness and opportunity for residents aiming for homeownership.
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Who cares
Headline styles
Extend Coop Purchase Period
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extend Co-op Purchase Window
Stricken · Sponsor Luis R. Sepúlveda
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4912
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sens. DIAZ, DILAN -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
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.
Sponsor's memo
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
2106: S.271 -REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/A5552 - referred to housing, reported, advanced to third reading cal.770 2015: S.271 -REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/A5552 - referred to housing, reported, advanced to third reading cal.770 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.