S298-2013 Actions

• Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S298-2013 Memo

BILL NUMBER:S298

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.

S298-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          298
 2013-2014 Regular Sessions
 I N  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.

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