BILL NUMBER:  S271

 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.