Provides for an extension of time to the purchasing period for tenants to purchase a dwelling unit in a cooperative apartment building.
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 Section 352-eeee of the General Business Law by adding three new subdivisions: 2-a, 2-b, and 2-c. 2-a: allows the offeror to extend the purchase period for one year. 2-b: requires the sponsor to return deposits to purchasers upon denial of financing. 2-c: allows the purchaser to void purchase agreement if sponsor refinances during purchase period.
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: 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.
STATE OF NEW YORK ________________________________________________________________________ 298 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. DIAZ -- 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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 352-eeee of the general business law is amended by adding three new subdivisions 2-a, 2-b and 2-c to read as follows: 2-A. NOTWITHSTANDING THE TIME PERIODS SET FORTH IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, THE OFFEROR SHALL EXTEND THE PURCHASE PERIOD FOR AN ADDITIONAL YEAR FROM THE ORIGINAL DATE AND AT THE ORIGINAL PURCHASE PRICE 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 COOP- ERATIVE APARTMENT BUILDING WHO HAVE NOT BEEN ABLE TO ACQUIRE THE FINANC- ING 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 A FINANCIAL INSTI- TUTION. SUCH OWNER SHALL RETURN ANY MONIES DEPOSITED BY A TENANT UNABLE TO ATTAIN SUCH FINANCING. 2-C. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY PURCHASER OF A DWELLING UNIT OR CONDOMINIUM OR OTHER FORM OF COOPERATIVE INTEREST IN REALTY, SHALL HAVE THE OPTION TO VOID A PURCHASE AGREEMENT IF THE OFFEROR REFINANCES A COOPERATIVE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT DURING THE PURCHASE PERIOD.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00503-01-3 S. 298 2
S 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.