S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9340
 
                           I N  A S S E M B L Y
 
                             February 23, 2022
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Housing
 
 AN ACT to amend the general business law, the real property law, and the
   state finance law, in relation  to  providing  expanded  homeownership
   opportunities from the conversion of certain residential rental build-
   ings  to condominium status by property owners that commit to preserve
   the inventory of expiring affordable housing in the city of New York
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 352-eeeee to read as follows:
   § 352-EEEEE. CONVERSIONS TO CONDOMINIUM OWNERSHIP FOR THE PRESERVATION
 OF  EXPIRING  AFFORDABLE HOUSING IN THE CITY OF NEW YORK.  1. AS USED IN
 THIS SECTION, THE FOLLOWING WORDS AND TERMS  SHALL  HAVE  THE  FOLLOWING
 MEANINGS:
   (A) "ANNUAL UPDATE AMENDMENT". AN ANNUAL UPDATE AMENDMENT IS AN AMEND-
 MENT  TO  THE  PRESERVATION PLAN THAT SHALL BE SUBMITTED TO THE ATTORNEY
 GENERAL EVERY YEAR THAT A DWELLING UNIT IS UNSOLD, WITH THE  FIRST  SUCH
 ANNUAL UPDATE AMENDMENT DUE WITHIN FORTY-FIVE DAYS OF THE ANNIVERSARY OF
 THE  ACCEPTANCE  OF THE POST-CLOSING AMENDMENT TO THE PRESERVATION PLAN.
 AN ANNUAL UPDATE AMENDMENT SHALL SUPPLY THE EVIDENCE, DATA AND  INFORMA-
 TION  REQUIRED IN THIS SECTION, AND SUCH OTHER INFORMATION AS THE ATTOR-
 NEY GENERAL'S REGULATIONS SHALL REQUIRE, SO THAT THE ATTORNEY GENERAL IS
 SATISFIED THAT THE PRESERVATION PLAN AS AMENDED DISCLOSES  THE  INFORMA-
 TION  NECESSARY  FOR  A  REASONABLE INVESTOR TO MAKE HIS OR HER PURCHASE
 DECISION AND THAT THE PRESERVATION PLAN IS OTHERWISE  COMPLETE,  CURRENT
 AND ACCURATE.
   (B)  "BONA  FIDE  PURCHASER".  A  BONA  FIDE PURCHASER IS EITHER (I) A
 TENANT IN OCCUPANCY WHO ENTERS INTO A PURCHASE AGREEMENT FOR A  DWELLING
 UNIT PURSUANT TO HIS, HER, OR ITS EXERCISE OF ONE OF THE RIGHTS ACCORDED
 TO  TENANTS  IN OCCUPANCY IN SUBDIVISION FIVE OF THIS SECTION, OR (II) A
 BONA FIDE NONTENANT PURCHASER.
   (C) "BONA FIDE NON-TENANT PURCHASER". A BONA FIDE NON-TENANT PURCHASER
 IS A PURCHASER OF A DWELLING UNIT WHO HAS REPRESENTED THAT HE,  SHE,  OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14678-01-2
 A. 9340                             2
 
 THEY OR A MEMBER OR MEMBERS OF HIS, HER OR THEIR IMMEDIATE FAMILY INTEND
 TO OCCUPY THE DWELLING UNIT WHEN IT BECOMES VACANT.
   (D)  "COMMERCIALLY  REASONABLE  GOOD  FAITH  EFFORT".  A  COMMERCIALLY
 REASONABLE GOOD FAITH EFFORT ON THE PART OF AN OFFEROR OF A PRESERVATION
 PLAN SHALL, AT MINIMUM, INCLUDE (I)  THE  FILING  OF  AN  ANNUAL  UPDATE
 AMENDMENT TO THE PRESERVATION PLAN; (II) ALL OF THE CONDOMINIUM'S DWELL-
 ING  UNITS  OTHER  THAN  ANY INCOME-RESTRICTED RENTAL UNITS AS THE UNITS
 BEING OFFERED FOR SALE UNDER THE PRESERVATION PLAN, EACH AT AN  OFFERING
 PRICE  THAT  IS  CONSISTENT WITH COMPARABLE DWELLING UNITS RECENTLY SOLD
 WITHIN THE LOCALITY; AND (III) ENTERING INTO A WRITTEN AGREEMENT WITH  A
 LICENSED REAL ESTATE BROKER OR SELLING AGENT IN CONNECTION WITH THE SALE
 OF  DWELLING UNITS OFFERED FOR SALE UNDER THE PRESERVATION PLAN. FOR THE
 AVOIDANCE OF DOUBT, A COMMERCIALLY REASONABLE GOOD  FAITH  EFFORT  SHALL
 NOT  REQUIRE  AN OFFEROR TO SELL DWELLING UNITS AT A PRICE SUBSTANTIALLY
 BELOW THE MARKET-RATE FOR COMPARABLE  UNITS  RECENTLY  SOLD  WITHIN  THE
 LOCALITY,  NOR  SHALL  IT  REQUIRE AN OFFEROR TO OFFER FOR SALE DWELLING
 UNITS THAT ARE OCCUPIED BY NON-PURCHASING TENANTS.
   (E) "CONDOMINIUM". A CONDOMINIUM SHALL ALSO INCLUDE A QUALIFIED LEASE-
 HOLD CONDOMINIUM AS DEFINED  IN  SUBDIVISION  TWELVE  OF  SECTION  THREE
 HUNDRED THIRTY-NINE-E OF THE REAL PROPERTY LAW.
   (F) "CONSUMMATION OF THE PRESERVATION PLAN". CONSUMMATION OF THE PRES-
 ERVATION  PLAN  SHALL  REFER  TO  THE  FILING OF THE DECLARATION FOR THE
 CONDOMINIUM AND THE FIRST TRANSFER OF TITLE TO AT  LEAST  ONE  PURCHASER
 UNDER  THE PRESERVATION PLAN FOLLOWING A DECLARATION OF EFFECTIVENESS BY
 THE DEPARTMENT OF LAW DECLARING THE PRESERVATION PLAN EFFECTIVE.
   (G) "ELIGIBLE DISABLED PERSONS". NON-PURCHASING TENANTS  WHO  HAVE  AN
 IMPAIRMENT WHICH RESULTS FROM ANATOMICAL, PHYSIOLOGICAL OR PSYCHOLOGICAL
 CONDITIONS, OTHER THAN ADDICTION TO ALCOHOL, GAMBLING, OR ANY CONTROLLED
 SUBSTANCE,  WHICH  ARE DEMONSTRABLE BY MEDICALLY ACCEPTABLE CLINICAL AND
 LABORATORY DIAGNOSTIC TECHNIQUES, AND WHICH ARE EXPECTED TO BE PERMANENT
 AND WHICH PREVENT THE TENANT FROM ENGAGING IN  ANY  SUBSTANTIAL  GAINFUL
 EMPLOYMENT ON THE DATE THE PRESERVATION PLAN IS SUBMITTED TO THE DEPART-
 MENT OF LAW OR ON THE DATE THE ATTORNEY GENERAL HAS ACCEPTED THE PRESER-
 VATION  PLAN  FOR  FILING,  AND  THE SPOUSES OF ANY SUCH TENANTS ON SUCH
 DATE, AND WHO HAVE ELECTED, WITHIN SIXTY DAYS OF THE DATE THE  PRESERVA-
 TION  PLAN  IS  SUBMITTED  TO  THE  DEPARTMENT OF LAW OR ON THE DATE THE
 ATTORNEY GENERAL HAS ACCEPTED THE PRESERVATION PLAN FOR FILING, ON FORMS
 PROMULGATED BY THE ATTORNEY GENERAL AND PRESENTED TO SUCH TENANTS BY THE
 OFFEROR, TO BECOME NON-PURCHASING TENANTS UNDER THE PROVISIONS  OF  THIS
 SECTION;  PROVIDED,  HOWEVER,  THAT IF THE DISABILITY FIRST OCCURS AFTER
 ACCEPTANCE OF THE PRESERVATION PLAN FOR FILING, THEN SUCH  ELECTION  MAY
 BE  MADE WITHIN SIXTY DAYS FOLLOWING THE ONSET OF SUCH DISABILITY UNLESS
 DURING THE PERIOD SUBSEQUENT TO SIXTY DAYS FOLLOWING THE  ACCEPTANCE  OF
 THE PRESERVATION PLAN FOR FILING BUT PRIOR TO SUCH ELECTION, THE OFFEROR
 ACCEPTS  A  WRITTEN AGREEMENT TO PURCHASE THE APARTMENT FROM A BONA FIDE
 PURCHASER; AND PROVIDED FURTHER THAT SUCH ELECTION  SHALL  NOT  PRECLUDE
 ANY  SUCH TENANT FROM SUBSEQUENTLY PURCHASING THE DWELLING UNIT IF IT IS
 NOT AN INCOME-RESTRICTED RENTAL  UNIT  ON  THE  TERMS  THEN  OFFERED  TO
 TENANTS IN OCCUPANCY.
   (H)  "ELIGIBLE SENIOR CITIZENS". NON-PURCHASING TENANTS WHO ARE SIXTY-
 TWO YEARS OF AGE OR OLDER ON THE DATE THE PRESERVATION PLAN IS SUBMITTED
 TO THE DEPARTMENT OF LAW  OR  ON  THE  DATE  THE  ATTORNEY  GENERAL  HAS
 ACCEPTED  THE  PLAN  FOR  FILING, AND THE SPOUSES OF ANY SUCH TENANTS ON
 SUCH DATE, AND WHO HAVE ELECTED, WITHIN SIXTY DAYS OF THE DATE THE PRES-
 ERVATION PLAN IS SUBMITTED TO THE DEPARTMENT OF LAW OR ON THE  DATE  THE
 ATTORNEY GENERAL HAS ACCEPTED THE PRESERVATION PLAN FOR FILING, ON FORMS
 A. 9340                             3
 
 PROMULGATED BY THE ATTORNEY GENERAL AND PRESENTED TO SUCH TENANTS BY THE
 OFFEROR,  TO  BECOME NON-PURCHASING TENANTS UNDER THE PROVISIONS OF THIS
 SECTION; PROVIDED THAT SUCH ELECTION SHALL NOT PRECLUDE ANY SUCH  TENANT
 FROM SUBSEQUENTLY PURCHASING THE DWELLING UNIT ON THE TERMS THEN OFFERED
 TO TENANTS IN OCCUPANCY.
   (I) "EXTENDED AFFORDABILITY TERM". THE EXTENDED AFFORDABILITY TERM FOR
 THE INCOME-RESTRICTED RENTAL UNITS SHALL BE IN PERPETUITY FOR SO LONG AS
 THE  BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT ARE IN EXISTENCE, AND
 SUBJECT TO ANY OBLIGATION TO  REBUILD  IN  THE  EVENT  OF  CONDEMNATION,
 DAMAGE  OR DESTRUCTION REQUIRED BY THE NEW REGULATORY AGREEMENT WITH THE
 RELEVANT HOUSING FINANCE AGENCY.
   (J) "INCLUSIONARY HOUSING UNIT". AN INCLUSIONARY HOUSING  UNIT  IS  AN
 INCOME-RESTRICTED  RENTAL  UNIT  THAT  IS LOCATED WITHIN AN INCLUSIONARY
 HOUSING DESIGNATED AREA OR A MANDATORY INCLUSIONARY HOUSING AREA.
   (K) "INCLUSIONARY HOUSING DESIGNATED AREA".  AN  INCLUSIONARY  HOUSING
 DESIGNATED  AREA  IS  A SPECIFIED AREA IN WHICH THE INCLUSIONARY HOUSING
 PROGRAM (ALSO KNOWN AS THE VOLUNTARY INCLUSIONARY  HOUSING  PROGRAM)  IS
 APPLICABLE,  PURSUANT  TO  THE  REGULATIONS  SET FORTH FOR SUCH AREAS IN
 SECTION 23-90 OF THE ZONING RESOLUTION. THE  LOCATIONS  OF  INCLUSIONARY
 HOUSING  DESIGNATED  AREAS  ARE IDENTIFIED IN EITHER (I) APPENDIX "F" OF
 THE ZONING RESOLUTION OR (II) IN A SPECIAL PURPOSE DISTRICT AS DESCRIBED
 IN SECTION 15-011 OF THE ZONING RESOLUTION.
   (L) "INCOME-RESTRICTED RENTAL UNIT". AN INCOME-RESTRICTED RENTAL  UNIT
 SHALL  REFER TO A DWELLING UNIT LOCATED IN A BUILDING OR GROUP OF BUILD-
 INGS OR DEVELOPMENT THAT IS THE SUBJECT OF A PRESERVATION PLAN SUBMITTED
 TO THE ATTORNEY GENERAL PURSUANT TO  THIS  SECTION,  AND  SUCH  DWELLING
 UNIT:
   (I)  MEETS  THE  DEFINITION  OF  A  "LOW-INCOME  UNIT" AS SUCH TERM IS
 DEFINED IN SECTION FORTY-TWO OF THE INTERNAL REVENUE CODE AND IS SUBJECT
 TO A REGULATORY AGREEMENT WITH A RELEVANT HOUSING FINANCE AGENCY; OR
   (II) MEETS THE DEFINITION OF A  "LOW-INCOME  UNIT"  AS  SUCH  TERM  IS
 DEFINED  IN  SUBDIVISION  (D)  OF  SECTION  ONE HUNDRED FORTY-TWO OF THE
 INTERNAL REVENUE CODE AND IS SUBJECT TO A REGULATORY  AGREEMENT  WITH  A
 RELEVANT HOUSING FINANCE AGENCY; OR
   (III)  PREVIOUSLY  MET THE DEFINITION OF "LOW-INCOME UNIT" PURSUANT TO
 THE PRECEDING SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH,  AND  NOTWITH-
 STANDING  THE EXPIRATION OF A REGULATORY AGREEMENT WITH A RELEVANT HOUS-
 ING FINANCE AGENCY, THE OWNER OF SUCH DWELLING UNIT AFFIRMS,  UNDER  THE
 PENALTY  OF  PERJURY,  THAT  IT HAS CONTINUOUSLY OPERATED AND RENTED THE
 DWELLING UNIT (A) AS IF IT REMAINED AN INCOME-RESTRICTED RENTAL UNIT AND
 (B) AS IF ALL OF THE RESTRICTIONS OF THE  EXPIRED  REGULATORY  AGREEMENT
 HAD CONTINUOUSLY BEEN EXTENDED OR OTHERWISE REMAINED IN EFFECT; OR
   (IV)  IS  A DWELLING UNIT LOCATED WITHIN A BUILDING OR GROUP OF BUILD-
 INGS OR DEVELOPMENT THAT, IN ACCORDANCE WITH PROVISIONS OF SECTION  FOUR
 HUNDRED  TWENTY-ONE-A  OF  THE  REAL PROPERTY TAX LAW, THE LOCAL HOUSING
 AGENCY SHALL HAVE REQUIRED TO BE A UNIT AFFORDABLE TO  FAMILIES  OF  LOW
 AND MODERATE INCOME; OR
   (V)  IS  A  DWELLING  UNIT  THAT IS RENTED TO PERSONS OF LOW INCOME OR
 FAMILIES OF LOW INCOME AS DEFINED IN SUBDIVISION NINETEEN OF SECTION TWO
 OF THE PRIVATE HOUSING FINANCE LAW OR AS OTHERWISE REQUIRED BY A  FEDER-
 AL, STATE, OR LOCAL LAW OR MANDATE.
   (M)  "MANDATORY  INCLUSIONARY  HOUSING AREA". A MANDATORY INCLUSIONARY
 HOUSING AREA IS A SPECIFIED  AREA  IN  WHICH  THE  INCLUSIONARY  HOUSING
 PROGRAM  IS  APPLICABLE,  PURSUANT TO THE REGULATIONS SET FORTH FOR SUCH
 AREAS IN SECTION 23-90 OF THE ZONING RESOLUTION. THE LOCATIONS OF MANDA-
 TORY INCLUSIONARY HOUSING AREAS ARE IDENTIFIED IN  EITHER  (I)  APPENDIX
 A. 9340                             4
 
 "F"  OF  THE  ZONING RESOLUTION OR (II) IN A SPECIAL PURPOSE DISTRICT AS
 DESCRIBED IN SECTION 15-011 OF THE ZONING RESOLUTION.
   (N)  "NON-PURCHASING TENANT". A PERSON WHO HAS NOT PURCHASED UNDER THE
 PRESERVATION PLAN AND WHO IS A TENANT ENTITLED TO POSSESSION AT THE TIME
 THE PRESERVATION PLAN IS DECLARED EFFECTIVE OR A PERSON TO WHOM A DWELL-
 ING UNIT IS RENTED SUBSEQUENT  TO  THE  EFFECTIVE  DATE.  A  PERSON  WHO
 SUBLETS  A  DWELLING  UNIT  FROM A PURCHASER UNDER THE PRESERVATION PLAN
 SHALL NOT BE DEEMED  A  NON-PURCHASING  TENANT.  A  TENANT  ENTITLED  TO
 POSSESSION OF AN INCOME-RESTRICTED RENTAL UNIT AT THE TIME THE PRESERVA-
 TION  PLAN  IS  DECLARED  EFFECTIVE IS A NON-PURCHASING TENANT, NOTWITH-
 STANDING THAT THE INCOME-RESTRICTED RENTAL UNITS  ARE  NOT  OFFERED  FOR
 SALE PURSUANT TO SUCH PRESERVATION PLAN.
   (O) "POST-CLOSING AMENDMENT". A POST-CLOSING AMENDMENT IS AN AMENDMENT
 TO  A  PRESERVATION PLAN FILED WITH THE ATTORNEY GENERAL CONFIRMING THAT
 THE PRESERVATION PLAN HAS BEEN CONSUMMATED.
   (P) "PRESERVATION PLAN". AN OFFERING STATEMENT OR PROSPECTUS SUBMITTED
 TO THE DEPARTMENT OF LAW PURSUANT TO THIS SECTION FOR THE CONVERSION  OF
 A  BUILDING  OR  GROUP OF BUILDINGS OR DEVELOPMENT FROM RENTAL STATUS TO
 CONDOMINIUM OWNERSHIP, WHEREIN THE OFFEROR DOCUMENTS THAT IT HAS  AGREED
 TO AN EXTENDED AFFORDABILITY TERM FOR THE INCOME-RESTRICTED RENTAL UNITS
 WITH A RELEVANT HOUSING FINANCE AGENCY.
   (Q)  "PURCHASER  UNDER  THE  PRESERVATION PLAN". A PURCHASER UNDER THE
 PRESERVATION PLAN IS A PERSON WHO PURCHASES A DWELLING UNIT FROM OFFEROR
 PURSUANT TO THE TERMS OF A PRESERVATION PLAN THAT HAS BEEN ACCEPTED  FOR
 FILING  BY THE ATTORNEY GENERAL. A PERSON OR ENTITY THAT ACQUIRES DWELL-
 ING UNITS AND ASSUMES  CERTAIN  OBLIGATIONS  OF  OFFEROR  SHALL  NOT  BE
 CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
   (R) "RELEVANT HOUSING FINANCE AGENCY". RELEVANT HOUSING FINANCE AGENCY
 SHALL  REFER  TO  A CITY OR STATE AGENCY WITH OVERSIGHT OVER INCOME-RES-
 TRICTED RENTAL UNITS  DUE  TO  THE  RECEIPT  OF  SUBSTANTIAL  GOVERNMENT
 ASSISTANCE  PRIOR  TO THE DATE OF SUBMISSION OF A PRESERVATION PLAN. FOR
 PURPOSES OF THIS SECTION, A RELEVANT HOUSING FINANCE AGENCY  SHALL  ALSO
 REFER  TO  THE CITY OR STATE AGENCY THAT WILL CONTINUE TO HAVE OVERSIGHT
 OF INCOME-RESTRICTED RENTAL UNITS AFTER CONSUMMATION OF THE PRESERVATION
 PLAN.
   (S) "REGULATORY AGREEMENT". A REGULATORY AGREEMENT SHALL REFER TO  THE
 WRITTEN  AGREEMENT WITH A RELEVANT HOUSING FINANCE AGENCY THAT RESTRICTS
 THE INCOME AND RENTS OF INCOME-RESTRICTED RENTAL UNITS THAT  IS  EITHER:
 (I) IN EFFECT PRIOR TO THE DATE OF SUBMISSION OF A PRESERVATION PLAN; OR
 (II) IN EFFECT AFTER CONSUMMATION OF THE PRESERVATION PLAN.
   (T)   "SUBSTANTIAL   GOVERNMENT  ASSISTANCE".  SUBSTANTIAL  GOVERNMENT
 ASSISTANCE SHALL REFER TO EITHER (I)  LOW  INCOME  HOUSING  TAX  CREDITS
 UNDER  SECTION  FORTY-TWO  OF  THE  INTERNAL  REVENUE  CODE OR (II) BOND
 FINANCING UNDER SECTION ONE HUNDRED FORTY-TWO OF  THE  INTERNAL  REVENUE
 CODE.
   (U)  "ZONING  RESOLUTION". ZONING RESOLUTION SHALL REFER TO THE ZONING
 RESOLUTION OF THE CITY OF NEW YORK.
   2. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR SUBMISSION A  PRES-
 ERVATION  PLAN FOR THE CONVERSION OF A BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT TO CONDOMINIUM OWNERSHIP UNDER THIS SECTION WHERE THE ATTOR-
 NEY GENERAL DETERMINES THAT ANY OF THE FOLLOWING IS APPLICABLE:
   (A) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF  BUILDINGS  OR
 DEVELOPMENT  THAT  RECEIVES A PARTIAL PROPERTY TAX EXEMPTION PURSUANT TO
 SECTION FOUR HUNDRED-TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW, AND  THE
 APPLICABLE  GOVERNING PROVISIONS OF SECTION FOUR HUNDRED-TWENTY-ONE-A OF
 A. 9340                             5
 
 THE REAL PROPERTY TAX LAW PROHIBIT THE DWELLING UNITS BEING OFFERED  FOR
 SALE FROM BEING OWNED PURSUANT TO CONDOMINIUM OWNERSHIP; OR
   (B)  THE  PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT THAT THE OFFEROR OR A PREDECESSOR-IN-TITLE TO OFFEROR VOLUN-
 TARILY RENOUNCED THE RECEIPT OF A FULL OR  PARTIAL  TAX  EXEMPTION,  TAX
 ABATEMENT  OR  BENEFIT  UNDER  THE  REAL PROPERTY TAX LAW OR THE PRIVATE
 HOUSING FINANCE LAW, OR SATISFIED THE TERMS AND CONDITIONS OF A  REGULA-
 TORY  AGREEMENT INVOLVING SUBSTANTIAL GOVERNMENT ASSISTANCE PRIOR TO ITS
 EXPIRATION DATE, FOR PURPOSES OF COMPLYING WITH THIS SECTION; OR
   (C) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF  BUILDINGS  OR
 DEVELOPMENT  THAT  EITHER:  (I)  RECEIVES  A PARTIAL TAX EXEMPTION UNDER
 SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW WHICH HAS
 A REMAINING TERM OF MORE THAN THREE YEARS AS OF THE DATE  OF  SUBMISSION
 OF  THE  PRESERVATION  PLAN; OR (II) INCLUDES INCOME-RESTRICTED DWELLING
 UNITS WITH A REGULATORY AGREEMENT WHERE THE COMPLIANCE PERIOD,  AS  SUCH
 TERM  IS  DEFINED BY SECTION FORTY-TWO OF THE INTERNAL REVENUE CODE, HAS
 NOT YET EXPIRED. NOTHING IN  THIS  PARAGRAPH  SHALL  BE  INTERPRETED  AS
 PROHIBITING  THE  ATTORNEY GENERAL FROM ACCEPTING FOR FILING A PRESERVA-
 TION PLAN THAT CONTAINS INCOME-RESTRICTED RENTAL  UNITS  AS  DEFINED  IN
 SUBPARAGRAPH  (III) OF PARAGRAPH (L) OF SUBDIVISION ONE OF THIS SECTION;
 OR
   (D) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF  BUILDINGS  OR
 DEVELOPMENT,  WHEREIN  THE  ONLY  INCOME-RESTRICTED  RENTAL UNITS OF THE
 BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT ARE  INCLUSIONARY  HOUSING
 UNITS  UNLESS THE OWNER OF SUCH BUILDING OR GROUP OF BUILDINGS OR DEVEL-
 OPMENT HAS AGREED TO SET ASIDE TWENTY PERCENT OF  THE  TOTAL  NUMBER  OF
 DWELLING  UNITS  THAT  ARE NOT INCLUSIONARY HOUSING UNITS AS INCOME-RES-
 TRICTED RENTAL UNITS.
   3. AT THE TIME OF SUBMISSION OF THE  PRESERVATION  PLAN,  THE  OFFEROR
 SHALL  CONFIRM  THAT IT HAS REACHED AN AGREEMENT WITH A RELEVANT HOUSING
 FINANCE AGENCY REGARDING THE INCOME-RESTRICTED RENTAL UNITS  DURING  THE
 EXTENDED  AFFORDABILITY  TERM,  AND  SHALL INCLUDE THE FOLLOWING DISCLO-
 SURES:
   (A) A LIST OF THE PROPOSED INCOME-RESTRICTED RENTAL UNITS;
   (B) THE PROPOSED OWNER OF THE INCOME-RESTRICTED RENTAL UNITS,  IF  NOT
 THE OFFEROR;
   (C)  THE OPERATING EXPENSES AND REVENUES APPLICABLE TO THE INCOME-RES-
 TRICTED RENTALS UNITS, WHICH SHALL BE REFLECTED IN THE UPDATED  SCHEDULE
 A AND SCHEDULE B FOR THE FIRST YEAR OF OPERATION OF THE CONDOMINIUM, THE
 ALLOCATION OF COMMON INTERESTS, PROJECTED COMMON CHARGES, ESTIMATED REAL
 ESTATE  TAXES,  AND  RENTS  TO  BE COLLECTED FROM EACH INCOME-RESTRICTED
 RENTAL UNIT, AND THE ALLOCATION OF COMMON EXPENSES UNDER  SECTION  THREE
 HUNDRED  THIRTY-NINE-M  OF  THE  REAL  PROPERTY  LAW,  APPLICABLE TO THE
 INCOME-RESTRICTED RENTAL UNITS, WHICH SHALL BE  USED  TO  LIMIT  CERTAIN
 CONDOMINIUM EXPENSES ALLOCABLE TO THE INCOME-RESTRICTED RENTAL UNITS AND
 TO  COVER  ANY  SHORTFALL IN THE REVENUE FROM RENT TO COVER THE COSTS OF
 OPERATION OF THE INCOME-RESTRICTED RENTAL UNITS;
   (D) A DESCRIPTION OF ANY FINANCING ENCUMBERING  THE  INCOME-RESTRICTED
 RENTAL  UNITS,  AND  WHETHER A TAX EXEMPTION OR ABATEMENT IS IN PLACE TO
 REDUCE REAL ESTATE TAXES FOR THE INCOME-RESTRICTED RENTAL UNITS;
   (E) A DESCRIPTION OF ANY REGULATORY  AGREEMENT  OR  AGREEMENTS  TO  BE
 RECORDED AGAINST THE INCOME-RESTRICTED RENTAL UNITS AND THE TERM THEREOF
 AND  THE  RELEVANT  HOUSING  FINANCE AGENCY OR AGENCIES WITH SUPERVISORY
 OVERSIGHT;
   (F) A DESCRIPTION OF THE PROVISIONS OF THE DECLARATION AND BY-LAWS FOR
 THE CONDOMINIUM THAT PROVIDES  FOR  THE  SPECIAL  ALLOCATION  OF  COMMON
 A. 9340                             6
 
 EXPENSES  IN  ACCORDANCE WITH SECTION THREE HUNDRED THIRTY-NINE-M OF THE
 REAL PROPERTY LAW, AND ANY SPECIFIC REQUIREMENTS SET FORTH IN A  REGULA-
 TORY  AGREEMENT  REQUIRING  UNIT  OWNERS IN THE CONDOMINIUM TO COVER ANY
 SHORTFALL  IN  THE  REVENUE FROM RENT TO COVER THE COSTS OF OPERATION OF
 THE INCOME-RESTRICTED RENTAL UNITS;
   (G) A DESCRIPTION OF THE CONTEMPLATED STRUCTURE OF THE BOARD OF MANAG-
 ERS OF THE CONDOMINIUM, INCLUDING SPECIFICALLY AN EXPLANATION AS TO  HOW
 THE  INTERESTS OF THE OWNER OF THE INCOME-RESTRICTED RENTAL UNITS ARE TO
 BE ADEQUATELY REPRESENTED;
   (H) THE NAME, ADDRESS AND CONTACT DETAILS  FOR  THE  RELEVANT  HOUSING
 FINANCE AGENCY OR AGENCIES WITH SUPERVISORY OVERSIGHT OF THE INCOME-RES-
 TRICTED RENTAL UNITS AND THE OCCUPANTS WITHIN;
   (I)  A  PROVISION  THAT  ONCE A VACANCY OCCURS OF AN INCOME-RESTRICTED
 RENTAL UNIT, THAT INCOME-RESTRICTED RENTAL UNIT MAY ONLY  BE  LEASED  TO
 LOW INCOME HOUSEHOLDS WHOSE ANNUAL HOUSEHOLD INCOME IS AT OR BELOW FIFTY
 PERCENT OF AREA MEDIAN INCOME AT THE TIME OF THE INITIAL LEASE, AND THAT
 THE  INITIAL  RENT  SHALL  NOT EXCEED THE RENT SET FORTH BY THE RELEVANT
 HOUSING FINANCE AGENCY FOR A HOUSEHOLD WITH AN ANNUAL INCOME AT OR BELOW
 FIFTY PERCENT OF THE AREA MEDIAN INCOME;
   (J) A REPRESENTATION BY OFFEROR THAT THE REGULATORY AGREEMENT INCLUDES
 AND ACCOUNTS FOR (I)  ALL  OF  THE  EXISTING  ON-SITE  INCOME-RESTRICTED
 RENTAL  UNITS  IN AN EXISTING BUILDING OR GROUP OF BUILDINGS OR DEVELOP-
 MENT, OR (II) ALL OF THE INCOME-RESTRICTED RENTAL UNITS ASSOCIATED  WITH
 AN  EXISTING  BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT LOCATED ON A
 ZONING LOT WHERE ONE OR MORE BUILDINGS  WERE  SET  ASIDE  AS  AFFORDABLE
 HOUSING  FOR PURPOSES OF QUALIFYING FOR A PARTIAL PROPERTY TAX EXEMPTION
 PURSUANT TO SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL  PROPERTY  TAX
 LAW;
   (K)  THE  INCOME-RESTRICTED  RENTAL UNITS MAY NOT BE REMOVED FROM RENT
 STABILIZATION PURSUANT TO THE EXEMPTION FOR UNITS OWNED AS A CONDOMINIUM
 UNDER SECTIONS 2520.11 AND 2500.9 OF  THE  RENT  STABILIZATION  CODE  OR
 SECTION 26-504 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK; AND
   (L)  THE  RECORDING OF THE CONDOMINIUM DECLARATION AND COMMENCEMENT OF
 CONDOMINIUM OPERATIONS DOES NOT MODIFY  THE  REQUIREMENT  UNDER  SECTION
 FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW THAT ALL RESIDEN-
 TIAL RENTAL APARTMENTS ARE SUBJECT TO RENT STABILIZATION LAWS.
   4.  UPON SUBMISSION OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW,
 EACH TENANT IN THE BUILDING OR GROUP OF BUILDINGS OR  DEVELOPMENT  OF  A
 DWELLING  UNIT  BEING  OFFERED FOR SALE SHALL BE PROVIDED WITH A WRITTEN
 NOTICE STATING THAT SUCH PRESERVATION PLAN HAS  BEEN  SUBMITTED  TO  THE
 DEPARTMENT  OF  LAW.  WRITTEN  NOTICE  TO EACH TENANT IN OCCUPANCY SHALL
 CONTAIN OR BE ACCOMPANIED BY:
   (A) A COPY OF THE PRESERVATION PLAN;
   (B) A STATEMENT THAT TENANTS OF THE DWELLING UNITS BEING  OFFERED  FOR
 SALE  PURSUANT  TO  THE  PRESERVATION  PLAN OR THEIR REPRESENTATIVES MAY
 PHYSICALLY INSPECT THE PREMISES AT ANY TIME SUBSEQUENT TO THE SUBMISSION
 OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW, DURING  NORMAL  BUSI-
 NESS  HOURS,  UPON WRITTEN REQUEST MADE BY THEM TO THE OFFEROR, PROVIDED
 SUCH REPRESENTATIVES ARE REGISTERED ARCHITECTS OR PROFESSIONAL ENGINEERS
 LICENSED BY THE OFFICE OF THE PROFESSIONS OF THE EDUCATION DEPARTMENT OF
 THE STATE OF NEW YORK; AND
   (C) A STATEMENT THAT TENANTS OF THE INCOME-RESTRICTED RENTAL UNITS ARE
 NOT BEING OFFERED FOR SALE THE DWELLING UNITS  THEY  OCCUPY,  BUT  THEIR
 TENANCIES  SHALL CONTINUE UNDISTURBED DURING AND AFTER THE CONVERSION OF
 THE PROPERTY TO CONDOMINIUM OWNERSHIP. THE STATEMENT SHALL ALSO DISCLOSE
 THAT THE INCOME-RESTRICTED RENTAL UNITS SHALL REMAIN SUBJECT TO THE RENT
 A. 9340                             7
 
 STABILIZATION CODE FOR THE DURATION OF THE CURRENT TENANT'S OCCUPANCY OF
 AN INCOME-RESTRICTED RENTAL UNIT, AND  FOR  ALL  FUTURE  TENANTS  OF  AN
 INCOME-RESTRICTED  RENTAL  UNIT,  THROUGHOUT  THE EXTENDED AFFORDABILITY
 TERM.
   5.  THE  TENANTS IN OCCUPANCY OF DWELLING UNITS BEING OFFERED FOR SALE
 ON THE DATE THE ATTORNEY  GENERAL  ACCEPTS  THE  PRESERVATION  PLAN  FOR
 FILING  SHALL  HAVE THE EXCLUSIVE RIGHT TO PURCHASE THEIR DWELLING UNITS
 FOR NINETY DAYS AFTER THE PRESERVATION PLAN HAS BEEN ACCEPTED FOR FILING
 BY THE ATTORNEY GENERAL, DURING WHICH TIME THE OFFERING PRICE  AVAILABLE
 TO  THE TENANT IN OCCUPANCY MAY NOT BE INCREASED AND A TENANT'S DWELLING
 UNIT SHALL NOT BE SHOWN TO A THIRD PARTY UNLESS HE OR SHE HAS, IN  WRIT-
 ING,  WAIVED  HIS OR HER RIGHT TO PURCHASE. SUBSEQUENT TO THE EXPIRATION
 OF SUCH NINETY DAY PERIOD, A TENANT IN OCCUPANCY OF A DWELLING UNIT  WHO
 HAS  NOT  PURCHASED SHALL BE GIVEN THE EXCLUSIVE RIGHT FOR AN ADDITIONAL
 SIX MONTHS FROM SAID EXPIRATION DATE TO PURCHASE SAID DWELLING  UNIT  ON
 THE  SAME TERMS AND CONDITIONS AS ARE CONTAINED IN ANY EXECUTED CONTRACT
 TO PURCHASE SAID DWELLING UNIT ENTERED INTO BY  A  PURCHASER  UNDER  THE
 PRESERVATION PLAN, SUCH EXCLUSIVE RIGHT TO BE EXERCISABLE WITHIN FIFTEEN
 DAYS  FROM  THE  DATE  OF  MAILING  BY  REGISTERED MAIL OF NOTICE OF THE
 EXECUTION OF A CONTRACT OF SALE TOGETHER WITH A COPY  OF  SAID  EXECUTED
 PURCHASE AGREEMENT TO SAID TENANT.
   6. THE PRESERVATION PLAN SHALL ALSO DISCLOSE THAT OFFEROR SHALL:
   (A) MARKET AND SELL ALL THE DWELLING UNITS (OTHER THAN THE INCOME-RES-
 TRICTED  RENTAL UNITS) IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOP-
 MENT, AS EACH SUCH DWELLING UNIT BECOMES VACANT, TO  A  PURCHASER  UNDER
 THE  PRESERVATION  PLAN  THROUGH THE USE OF COMMERCIALLY REASONABLE GOOD
 FAITH EFFORTS;
   (B) FUND A RESERVE IN THE MANNER AND AMOUNT  AS  PROVIDED  IN  SECTION
 THREE HUNDRED THIRTY-NINE-MM OF THE REAL PROPERTY LAW;
   (C)  FILE AN ANNUAL UPDATE AMENDMENT EVERY YEAR WHICH SHALL INCLUDE AN
 UPDATED SCHEDULE A OF ALL DWELLING UNITS BEING OFFERED  FOR  SALE  UNDER
 THE PRESERVATION PLAN; AND
   (D)  EXERCISE  COMMERCIALLY  REASONABLE  GOOD FAITH EFFORTS TO SELL AT
 LEAST FIFTY-ONE PERCENT OF THE TOTAL NUMBER OF  DWELLING  UNITS  OFFERED
 FOR  SALE  UNDER  THE PRESERVATION PLAN (EXCLUDING ANY INCOME-RESTRICTED
 RENTAL UNITS NOT OFFERED FOR SALE) WITHIN FIVE YEARS FROM  THE  DATE  OF
 THE POST-CLOSING AMENDMENT.
   7.  AFTER THE ISSUANCE OF THE LETTER FROM THE ATTORNEY GENERAL STATING
 THAT THE PRESERVATION PLAN HAS BEEN ACCEPTED  FOR  FILING,  THE  OFFEROR
 SHALL, ON THE THIRTIETH, SIXTIETH, EIGHTY-EIGHTH AND NINETIETH DAY AFTER
 SUCH  DATE  AND  AT  LEAST ONCE EVERY THIRTY DAYS UNTIL THE PRESERVATION
 PLAN IS DECLARED EFFECTIVE OR ABANDONED, AS THE CASE MAY BE, AND ON  THE
 SECOND  DAY  BEFORE  THE  EXPIRATION  OF  ANY  EXCLUSIVE PURCHASE PERIOD
 PROVIDED IN A SUBSTANTIAL AMENDMENT TO THE PRESERVATION PLAN:
   (A) FILE WITH THE ATTORNEY GENERAL  A  WRITTEN  STATEMENT  UNDER  OATH
 SETTING  FORTH  THE  PERCENTAGE OF BONA FIDE TENANTS IN OCCUPANCY OF ALL
 DWELLING UNITS IN THE BUILDING OR GROUP OF BUILDINGS OR  DEVELOPMENT  ON
 THE  DATE  THE PRESERVATION PLAN WAS ACCEPTED FOR FILING BY THE ATTORNEY
 GENERAL WHO HAVE EXECUTED AND DELIVERED WRITTEN AGREEMENTS  TO  PURCHASE
 UNDER  THE  PRESERVATION  PLAN  AS OF THE DATE OF SUCH WRITTEN STATEMENT
 UNDER OATH; AND
   (B) BEFORE NOON ON THE DAY SUCH STATEMENT IS FILED POST A COPY OF SUCH
 WRITTEN STATEMENT UNDER OATH IN A  PROMINENT  PLACE  ACCESSIBLE  TO  ALL
 TENANTS IN EACH BUILDING COVERED BY THE PRESERVATION PLAN.
   8.  A  PRESERVATION  PLAN  MAY NOT BE DECLARED EFFECTIVE UNTIL WRITTEN
 PURCHASE AGREEMENTS HAVE  BEEN  EXECUTED  AND  DELIVERED  FOR  AT  LEAST
 A. 9340                             8
 
 FIFTEEN  PERCENT  OF ALL DWELLING UNITS OFFERED FOR SALE IN THE BUILDING
 OR GROUP OF BUILDINGS OR DEVELOPMENT FROM EITHER (A) BONA  FIDE  TENANTS
 WHO  WERE  IN  OCCUPANCY ON THE DATE A LETTER WAS ISSUED BY THE ATTORNEY
 GENERAL  ACCEPTING  THE  PRESERVATION  PLAN  FOR FILING OR (B) BONA FIDE
 NON-TENANT PURCHASERS. THE PURCHASE  AGREEMENT  SHALL  BE  EXECUTED  AND
 DELIVERED  PURSUANT  TO AN OFFERING MADE IN GOOD FAITH WITHOUT FRAUD AND
 DISCRIMINATORY REPURCHASE AGREEMENTS  OR  OTHER  DISCRIMINATORY  INDUCE-
 MENTS.  A NEGOTIATED REDUCTION FROM THE ORIGINAL OFFERING PRICE EXTENDED
 SHALL NOT, BY ITSELF, BE DEEMED A DISCRIMINATORY INDUCEMENT.
   9. THOSE WRITTEN STATEMENTS UNDER OATH THAT THE OFFEROR IS REQUIRED TO
 FILE WITH THE ATTORNEY GENERAL PURSUANT TO  SUBDIVISION  SEVEN  OF  THIS
 SECTION SHALL ALSO INCLUDE:
   (A) THE TOTAL NUMBER OF WRITTEN AGREEMENTS TO PURCHASE UNDER THE PRES-
 ERVATION PLAN RECEIVED FROM BONA FIDE NON-TENANT PURCHASERS;
   (B) THE TOTAL NUMBER OF WRITTEN AGREEMENTS TO PURCHASE UNDER THE PRES-
 ERVATION PLAN RECEIVED FROM ALL BONA FIDE TENANTS IN OCCUPANCY;
   (C)  THE  PERCENTAGE  OF  DWELLING UNITS UNDER CONTRACT, CALCULATED BY
 ADDING THE NUMBER OF WRITTEN PURCHASE AGREEMENTS FOR A  UNIT  THAT  WERE
 RECEIVED  FROM (I) ALL BONA FIDE TENANTS IN OCCUPANCY PLUS (II) ALL BONA
 FIDE NONTENANT PURCHASERS AND THEN DIVIDING THE SUM OF THOSE TWO NUMBERS
 BY THE TOTAL NUMBER OF DWELLING UNITS OFFERED FOR SALE UNDER THE PRESER-
 VATION PLAN;
   (D) WHETHER OR NOT OFFEROR INTENDS  TO  CLAIM  A  CREDIT  AGAINST  THE
 MANDATORY  INITIAL CONTRIBUTION OFFEROR IS OBLIGATED TO DEPOSIT INTO THE
 CONDOMINIUM'S RESERVE FUND PURSUANT  TO  SUBDIVISION  THREE  OF  SECTION
 THREE  HUNDRED  THIRTY-NINE-MM  OF  THE REAL PROPERTY LAW FOR THE ACTUAL
 COST OF CAPITAL REPLACEMENTS WHICH OFFEROR HAS BEGUN AFTER THE PRESERVA-
 TION PLAN WAS SUBMITTED FOR FILING TO THE DEPARTMENT OF LAW  BUT  BEFORE
 THE  PRESERVATION PLAN IS DECLARED EFFECTIVE, TOGETHER WITH THEIR ACTUAL
 OR ESTIMATED COSTS WHICH CREDIT SHALL NOT EXCEED THE ACTUAL COST OF  THE
 CREDIT;
   (E)  WHETHER  OR NOT OFFEROR SHALL BE MAKING ITS RESERVE FUND CONTRIB-
 UTIONS REQUIRED PURSUANT TO SECTION THREE HUNDRED THIRTY-NINE-MM EARLIER
 OR IN AN AMOUNT GREATER THAN REQUIRED; AND
   (F) A REPRESENTATION THAT NO PURCHASER COUNTED FOR PURPOSES OF DECLAR-
 ING THE PRESERVATION PLAN EFFECTIVE IS THE OFFEROR, THE SELLING AGENT OR
 THE MANAGING AGENT, OR IS A PRINCIPAL OF THE OFFEROR, THE SELLING AGENT,
 OR THE MANAGING AGENT OR IS RELATED TO ANY PRINCIPAL OF THE OFFEROR, ANY
 PRINCIPAL OF THE SELLING AGENT OR ANY PRINCIPAL OF THE MANAGING AGENT BY
 BLOOD, MARRIAGE, OR ADOPTION, OR IS AN AFFILIATE, BUSINESS ASSOCIATE, AN
 EMPLOYEE, A SHAREHOLDER, A MEMBER, A MANAGER, A DIRECTOR, AN  OFFICER  A
 LIMITED PARTNER OF OFFEROR, SELLING AGENT OR MANAGING AGENT.
   10.  THE  PRESERVATION PLAN SHALL PROVIDE THAT IT WILL BE DEEMED ABAN-
 DONED, VOID AND OF NO EFFECT IF IT  DOES  NOT  BECOME  EFFECTIVE  WITHIN
 FIFTEEN  MONTHS  FROM  THE  DATE  OF ISSUE OF THE LETTER OF THE ATTORNEY
 GENERAL STATING THAT THE PRESERVATION PLAN HAS BEEN ACCEPTED FOR  FILING
 AND, IN THE EVENT OF SUCH ABANDONMENT, NO NEW PLAN FOR THE CONVERSION OF
 SUCH BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT SHALL BE SUBMITTED TO
 THE ATTORNEY GENERAL FOR AT LEAST TWELVE MONTHS AFTER SUCH ABANDONMENT.
   11.  NO  CLOSINGS OF TITLE OF A DWELLING UNIT TO A PURCHASER UNDER THE
 PRESERVATION PLAN SHALL TAKE PLACE UNTIL THE ATTORNEY GENERAL SHALL HAVE
 ALSO ACCEPTED FOR FILING AN AMENDMENT  THAT  DECLARES  THE  PRESERVATION
 PLAN  EFFECTIVE. WITHIN FORTY-FIVE DAYS OF THE FIRST CLOSING OF TITLE OF
 A DWELLING UNIT TO A PURCHASER  UNDER  THE  PRESERVATION  PLAN,  OFFEROR
 SHALL  SUBMIT  TO THE ATTORNEY GENERAL ITS POST-CLOSING AMENDMENT TO THE
 PRESERVATION PLAN. THEREAFTER, THE PRESERVATION PLAN  SHALL  CONTINUALLY
 A. 9340                             9
 
 BE  UPDATED WITH THE FILING OF AN ANNUAL UPDATE AMENDMENT, NO LATER THAN
 THIRTY DAYS FROM THE  ANNIVERSARY  OF  THE  DATE  THE  ATTORNEY  GENERAL
 ACCEPTED  THE POST-CLOSING AMENDMENT FOR FILING. AN OFFEROR OR SUCCESSOR
 OFFEROR  SHALL  ONLY  BE  RELIEVED  OF  ITS OBLIGATION TO FILE AN ANNUAL
 UPDATE AMENDMENT TO THE PRESERVATION PLAN AFTER THE LAST  DWELLING  UNIT
 OFFERED FOR SALE IS CONVEYED TO A PURCHASER UNDER THE PRESERVATION PLAN.
   12. AFTER THE DATE OF ACCEPTANCE FOR FILING OF THE POST-CLOSING AMEND-
 MENT,  THE  OFFEROR  SHALL CONTINUE TO MAKE COMMERCIALLY REASONABLE GOOD
 FAITH EFFORTS TO SELL THE DWELLING UNITS IT OWNS.
   13. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR FILING  AN  ANNUAL
 UPDATE AMENDMENT TO THE PRESERVATION PLAN UNLESS:
   (A)  THE  ANNUAL  UPDATE AMENDMENT DISCLOSES, IN ADDITION TO THE OTHER
 DISCLOSURES REQUIRED ELSEWHERE IN THIS SECTION OR THE REGULATIONS OF THE
 ATTORNEY GENERAL, THE FOLLOWING DATA AND INFORMATION:
   (I) AN ACCOUNTING OF THE DWELLING UNITS SOLD AND CLOSED BY THE OFFEROR
 IN THE PRECEDING TWELVE MONTHS, WITH AN INDICATION IF THE DWELLING  UNIT
 WAS  CONVEYED TO A PURCHASER UNDER THE PRESERVATION PLAN OR TO A SUCCES-
 SOR OFFEROR;
   (II) AN INVENTORY OF THE OFFEROR'S UNSOLD DWELLING UNITS AT THE END OF
 THE PRECEDING TWELVE MONTHS, IN FORM AND SUBSTANCE AS SHALL SATISFY  THE
 ATTORNEY GENERAL; AND
   (III)  ALL THE INFORMATION, DATA AND LITERATURE PRESENTED BY THE BOARD
 OF MANAGERS IN ITS SEMIANNUAL REPORTS ON THE STATUS OF THE RESERVE  FUND
 AS REQUIRED UNDER SUBDIVISION FIVE OF SECTION THREE HUNDRED THIRTY-NINE-
 MM OF THE REAL PROPERTY LAW.
   (B)  THE  ANNUAL UPDATE AMENDMENT SHALL BE ACCOMPANIED BY AN AFFIDAVIT
 FROM A PRINCIPAL OF THE OFFEROR ATTESTING  TO  THE  FOLLOWING  DATA  AND
 INFORMATION WITH RESPECT TO ALL THE DWELLING UNITS OFFEROR THEN OWNS:
   (I) THE DWELLING UNITS' IDENTIFYING INFORMATION AND GENERAL LOCATION;
   (II)  WHETHER,  ON  THE DATE OF SUBMISSION OF THE ANNUAL UPDATE AMEND-
 MENT, THE UNSOLD DWELLING UNIT IS SUBJECT TO A FULLY  EXECUTED  PURCHASE
 AGREEMENT,  AND  IF  SO,  WHETHER THE PURCHASER IS A PURCHASER UNDER THE
 PRESERVATION PLAN OR OTHERWISE;
   (III) WHETHER, ON THE DATE OF SUBMISSION OF THE ANNUAL  UPDATE  AMEND-
 MENT, THE DWELLING UNIT IS OCCUPIED OR VACANT, AND IF OCCUPIED, AN INDI-
 CATION THAT OCCUPANCY IS:
   (A) BY A RENT-REGULATED TENANT;
   (B) BY A MARKET-RATE TENANT;
   (C) A MONTH-TO-MONTH TENANCY;
   (D) A TENANCY AT SUFFERANCE; OR
   (E) OTHER.
   (IV)  NOTWITHSTANDING  THE  OCCUPANCY STATUS OF A DWELLING UNIT ON THE
 DATE OF SUBMISSION OF THE ANNUAL UPDATE AMENDMENT, AN INDICATION IF  THE
 DWELLING  UNIT  WAS  VACANT  FOR  MORE  THAN ONE OF THE TWELVE PRECEDING
 MONTHS.  FOR  EACH  DWELLING  UNIT  SO  INDICATED,  OFFEROR  SHALL  ALSO
 DISCLOSE:
   (A) THE DATE RANGE OF THAT THE DWELLING UNIT WAS VACANT;
   (B)  THE  DATE RANGE FOR ANY PERIOD OF TIME THAT THE DWELLING UNIT WAS
 MARKETED FOR SALE;
   (C) DATE OF SALE;
   (D) THE DATE THE DWELLING UNIT WAS LEASED BY A TENANT; AND
   (E) THE DATE THE LEASE IS SET TO EXPIRE (IF APPLICABLE).
   14. NO EVICTION PROCEEDINGS SHALL BE COMMENCED  AT  ANY  TIME  AGAINST
 NON-PURCHASING  TENANTS  FOR FAILURE TO PURCHASE OR FOR ANY OTHER REASON
 APPLICABLE TO EXPIRATION OF TENANCY; PROVIDED THAT SUCH PROCEEDINGS  MAY
 BE  COMMENCED  FOR  NON-PAYMENT OF RENT, ILLEGAL USE OR OCCUPANCY OF THE
 A. 9340                            10
 
 PREMISES, REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR  BREACH
 BY  THE  NON-PURCHASING  TENANT  OF HIS, HER OR THEIR OBLIGATIONS TO THE
 OWNER OF THE DWELLING UNIT; AND PROVIDED FURTHER THAT AN OWNER OF A UNIT
 MAY NOT COMMENCE AN ACTION TO RECOVER POSSESSION OF A DWELLING UNIT FROM
 A  NON-PURCHASING  TENANT  ON  THE GROUNDS THAT HE, SHE OR THEY SEEK THE
 DWELLING UNIT FOR THE USE AND OCCUPANCY OF HIMSELF OR  HERSELF  OR  HIS,
 HER OR THEIR FAMILY'S USE AND OCCUPANCY.
   15.  NO EVICTION PROCEEDINGS SHALL BE COMMENCED, EXCEPT AS PROVIDED IN
 THIS SUBDIVISION, AT ANY TIME AGAINST EITHER ELIGIBLE SENIOR CITIZENS OR
 ELIGIBLE DISABLED PERSONS. THE RENTALS OF ELIGIBLE SENIOR  CITIZENS  AND
 ELIGIBLE  DISABLED  PERSONS  WHO RESIDE IN DWELLING UNITS NOT SUBJECT TO
 GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY AND ELIGIBLE
 SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS  WHO  RESIDE  IN  DWELLING
 UNITS  WITH  RESPECT  TO  WHICH  GOVERNMENT REGULATION AS TO RENTALS AND
 CONTINUED OCCUPANCY IS ELIMINATED  OR  BECOMES  INAPPLICABLE  AFTER  THE
 PRESERVATION  PLAN  HAS BEEN ACCEPTED FOR FILING SHALL NOT BE SUBJECT TO
 UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR  COMPARABLE  APART-
 MENTS  DURING  THE PERIOD OF THEIR OCCUPANCY CONSIDERING, IN DETERMINING
 COMPARABILITY, SUCH FACTORS AS BUILDING SERVICES, LEVEL  OF  MAINTENANCE
 AND  OPERATING EXPENSES; PROVIDED THAT SUCH PROCEEDINGS MAY BE COMMENCED
 AGAINST SUCH TENANTS FOR NON-PAYMENT OF RENT, ILLEGAL USE  OR  OCCUPANCY
 OF  THE PREMISES, REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR
 BREACH BY THE TENANT OF HIS, HER OR THEIR OBLIGATIONS TO  THE  OWNER  OF
 THE DWELLING UNIT.
   16.  ELIGIBLE SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE
 IN DWELLING UNITS SUBJECT TO GOVERNMENT REGULATION  AS  TO  RENTALS  AND
 CONTINUED OCCUPANCY SHALL CONTINUE TO BE SUBJECT THERETO.
   17.  THE RIGHTS GRANTED UNDER THE PRESERVATION PLAN TO ELIGIBLE SENIOR
 CITIZENS AND ELIGIBLE DISABLED PERSONS MAY NOT BE ABROGATED  OR  REDUCED
 NOTWITHSTANDING ANY EXPIRATION OF, OR AMENDMENT TO, THIS SECTION.
   18.  ANY OFFEROR WHO DISPUTES THE ELECTION BY A PERSON TO BE AN ELIGI-
 BLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON  SHALL  APPLY  TO  THE
 ATTORNEY GENERAL WITHIN THIRTY DAYS OF THE RECEIPT OF THE ELECTION FORMS
 FOR  A  DETERMINATION BY THE ATTORNEY GENERAL OF SUCH PERSON'S ELIGIBIL-
 ITY. THE ATTORNEY GENERAL SHALL, WITHIN THIRTY DAYS THEREAFTER, ISSUE  A
 DETERMINATION  OF  ELIGIBILITY.  THE  FOREGOING SHALL, IN THE ABSENCE OF
 FRAUD, BE THE SOLE METHOD FOR DETERMINING A  DISPUTE  AS  TO  WHETHER  A
 PERSON IS AN ELIGIBLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON. THE
 DETERMINATION OF THE ATTORNEY GENERAL SHALL BE REVIEWABLE ONLY THROUGH A
 PROCEEDING  UNDER  ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND
 RULES, WHICH PROCEEDING SHALL BE COMMENCED WITHIN THIRTY DAYS AFTER SUCH
 DETERMINATION BY THE ATTORNEY GENERAL BECOMES FINAL.
   19. NON-PURCHASING TENANTS WHO RESIDE IN  DWELLING  UNITS  SUBJECT  TO
 GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY PRIOR TO THE
 CONVERSION  OF  THE  BUILDING  OR  GROUP  OF BUILDINGS OR DEVELOPMENT TO
 CONDOMINIUM OWNERSHIP SHALL CONTINUE TO BE SUBJECT THERETO.
   20. THE RENTALS OF NON-PURCHASING TENANTS WHO RESIDE IN DWELLING UNITS
 NOT SUBJECT TO GOVERNMENT REGULATION AS TO RENTALS AND  CONTINUED  OCCU-
 PANCY  AND  NON-PURCHASING  TENANTS  WHO  RESIDE  IN DWELLING UNITS WITH
 RESPECT TO WHICH GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCU-
 PANCY IS ELIMINATED OR BECOMES INAPPLICABLE AFTER THE PRESERVATION  PLAN
 HAS  BEEN  ACCEPTED  FOR  FILING  BY  THE  ATTORNEY GENERAL SHALL NOT BE
 SUBJECT TO UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR COMPARA-
 BLE APARTMENTS DURING THE PERIOD  OF  THEIR  OCCUPANCY.  IN  DETERMINING
 COMPARABILITY,  CONSIDERATION SHALL BE GIVEN TO SUCH FACTORS AS BUILDING
 SERVICES, LEVEL OF MAINTENANCE AND OPERATING EXPENSES.
 A. 9340                            11
 
   21. THE RIGHTS GRANTED UNDER THE PRESERVATION PLAN TO PURCHASERS UNDER
 THE PRESERVATION PLAN AND TO NON-PURCHASING TENANTS MAY NOT BE ABROGATED
 OR REDUCED NOTWITHSTANDING ANY EXPIRATION  OF,  OR  AMENDMENT  TO,  THIS
 SECTION.
   22.  ANY  LOCAL  LEGISLATIVE BODY MAY ADOPT LOCAL LAWS AND ANY AGENCY,
 OFFICER OR PUBLIC BODY MAY PRESCRIBE RULES AND REGULATIONS WITH  RESPECT
 TO  THE  CONTINUED  OCCUPANCY  BY  TENANTS  OF  DWELLING UNITS WHICH ARE
 SUBJECT TO REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY PURSUANT  TO
 LAW,  PROVIDED  THAT IN THE EVENT THAT ANY SUCH LOCAL LAW, RULE OR REGU-
 LATION SHALL BE INCONSISTENT WITH THE PROVISIONS OF  THIS  SECTION,  THE
 PROVISIONS OF THIS SECTION SHALL CONTROL.
   23. THE ATTORNEY GENERAL SHALL REFUSE TO ACCEPT FOR FILING A PRESERVA-
 TION  PLAN WHEN THE ATTORNEY GENERAL DETERMINES: (A) THAT ONE OR MORE OF
 THE INCOME-RESTRICTED RENTAL UNITS WITHIN THE BUILDING, GROUP OF  BUILD-
 INGS  OR DEVELOPMENT WAS VACANT ON THE DATE OF SUBMISSION; OR (B) OF THE
 DWELLING UNITS THAT ARE NOT INCOME-RESTRICTED RENTAL UNITS, AN EXCESSIVE
 NUMBER OF LONG-TERM VACANCIES DID NOT EXIST ON THE DATE THAT THE PRESER-
 VATION PLAN WAS FIRST SUBMITTED TO THE DEPARTMENT OF LAW.  FOR  PURPOSES
 OF THIS SUBDIVISION, "LONG-TERM VACANCIES" SHALL MEAN DWELLING UNITS NOT
 LEASED  OR OCCUPIED BY BONA FIDE TENANTS FOR MORE THAN FIVE MONTHS PRIOR
 TO THE DATE OF SUCH SUBMISSION TO THE DEPARTMENT OF LAW; AND "EXCESSIVE"
 SHALL MEAN A VACANCY RATE IN EXCESS OF THE GREATER OF  (I)  TEN  PERCENT
 AND (II) A PERCENTAGE THAT IS DOUBLE THE NORMAL AVERAGE VACANCY RATE FOR
 THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT FOR TWO YEARS PRIOR TO
 THE JANUARY PRECEDING THE DATE THE PRESERVATION PLAN WAS FIRST SUBMITTED
 TO THE DEPARTMENT OF LAW.
   24.  ALL  DWELLING  UNITS  OCCUPIED BY NON-PURCHASING TENANTS SHALL BE
 MANAGED BY THE SAME MANAGING AGENT WHO MANAGES ALL OTHER DWELLING  UNITS
 IN  THE  BUILDING  OR  GROUP  OF BUILDINGS OR DEVELOPMENT. SUCH MANAGING
 AGENT SHALL PROVIDE TO NON-PURCHASING TENANTS ALL SERVICES  AND  FACILI-
 TIES  REQUIRED  BY LAW ON A NON-DISCRIMINATORY BASIS.  THE OFFEROR SHALL
 GUARANTEE THE OBLIGATION OF THE  MANAGING  AGENT  TO  PROVIDE  ALL  SUCH
 SERVICES  AND  FACILITIES  UNTIL  SUCH  TIME  AS  THE OFFEROR SURRENDERS
 CONTROL OF THE BOARD OF MANAGERS, AT WHICH TIME THE BOARD OF MANAGERS OF
 THE CONDOMINIUM SHALL ASSUME RESPONSIBILITY FOR  THE  PROVISION  OF  ALL
 SERVICES AND FACILITIES REQUIRED BY LAW ON A NON-DISCRIMINATORY BASIS.
   25.  IT  SHALL  BE  UNLAWFUL FOR ANY PERSON TO ENGAGE IN ANY COURSE OF
 CONDUCT, INCLUDING, BUT NOT LIMITED TO, INTERRUPTION  OR  DISCONTINUANCE
 OF  ESSENTIAL  SERVICES, WHICH SUBSTANTIALLY INTERFERES WITH OR DISTURBS
 THE COMFORT, REPOSE, PEACE OR QUIET OF ANY TENANT IN HIS, HER  OR  THEIR
 USE  OR  OCCUPANCY  OF HIS, HER OR THEIR DWELLING UNIT OR THE FACILITIES
 RELATED THERETO. THE ATTORNEY GENERAL MAY APPLY TO A COURT OF  COMPETENT
 JURISDICTION  FOR  AN ORDER RESTRAINING SUCH CONDUCT AND, IF HE DEEMS IT
 APPROPRIATE, AN ORDER RESTRAINING THE OWNER FROM  SELLING  THE  DWELLING
 UNIT  ITSELF  OR  FROM  PROCEEDING WITH THE PLAN OF CONVERSION; PROVIDED
 THAT NOTHING CONTAINED HEREIN SHALL BE DEEMED  TO  PRECLUDE  THE  TENANT
 FROM APPLYING ON HIS, HER OR THEIR OWN BEHALF FOR SIMILAR RELIEF.
   26.  ANY PROVISION OF A LEASE OR OTHER RENTAL AGREEMENT WHICH PURPORTS
 TO WAIVE A TENANT'S RIGHTS UNDER THIS SECTION OR RULES  AND  REGULATIONS
 PROMULGATED PURSUANT HERETO SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
   27.  NOTWITHSTANDING  THE  REQUIREMENTS  OF THIS SECTION REGARDING THE
 PRESERVATION OF INCOME-RESTRICTED RENTAL UNITS AS RENTAL HOUSING, AND TO
 THE EXTENT PERMITTED UNDER EXISTING LAW AS IT RELATES TO THE INCOME-RES-
 TRICTED RENTAL UNITS, THE INCOME-RESTRICTED RENTAL UNITS IN  A  BUILDING
 OR  GROUP OF BUILDINGS OR DEVELOPMENT THAT IS THE SUBJECT OF A PRESERVA-
 TION PLAN MAY BE OFFERED FOR SALE TO EXISTING TENANTS  IN  OCCUPANCY  OR
 A. 9340                            12
 
 OTHER  QUALIFIED  LOW-INCOME PURCHASERS, IF THE RELEVANT HOUSING FINANCE
 AGENCY PROVIDES A LETTER OF OWNERSHIP SUPPORT TO THE DEPARTMENT  OF  LAW
 PRIOR TO THE PRESERVATION PLAN BEING ACCEPTED FOR FILING CONFIRMING THAT
 THE PROPOSED OFFERING OF SUCH INCOME-RESTRICTED OWNERSHIP UNITS MEET THE
 FOLLOWING CRITERIA: (A) THE OFFERING PRICES ARE AFFORDABLE TO THE EXIST-
 ING  TENANTS  AND/OR  THE  QUALIFIED  LOW-INCOME PURCHASERS WHO MEET THE
 DEFINITION OF PERSONS OF LOW INCOME OR FAMILIES OF LOW INCOME AS DEFINED
 BY SUBDIVISION NINETEEN OF SECTION TWO OF THE  PRIVATE  HOUSING  FINANCE
 LAW;  (B) ADEQUATE PROVISIONS EXIST IN A REGULATORY AGREEMENT, CONDOMIN-
 IUM DECLARATION AND BY-LAWS TO ENSURE THAT  ONCE  CONVEYED,  INCOME-RES-
 TRICTED  OWNERSHIP UNITS SHALL REMAIN AFFORDABLE TO QUALIFIED LOW-INCOME
 OWNERS AND SUBSEQUENT PURCHASERS AND OWNERS FOR SO LONG AS THE CONDOMIN-
 IUM IS IN EXISTENCE; (C) THE REGULATORY AGREEMENT, CONDOMINIUM  DECLARA-
 TION  AND  BY-LAWS ALLOW FOR ADEQUATE OVERSIGHT OF THE INCOME-RESTRICTED
 OWNERSHIP UNITS BY THE RELEVANT HOUSING FINANCE AGENCY  TO  ENSURE  SUCH
 DWELLING  UNITS ARE OCCUPIED BY QUALIFIED LOW-INCOME PURCHASERS; AND (D)
 THAT THE RELEVANT HOUSING FINANCE AGENCY IS LEGALLY AUTHORIZED AND CAPA-
 BLE OF ENFORCING THESE  PROVISIONS  AND  COVENANTS  TO  DO  SO.  IF  THE
 INCOME-RESTRICTED  RENTAL  UNITS  TO BE SOLD ARE SUBJECT TO A REGULATORY
 AGREEMENT OR AGREEMENTS WITH MORE  THAN  ONE  RELEVANT  HOUSING  FINANCE
 AGENCY,  EACH SUCH RELEVANT HOUSING FINANCE AGENCY MUST PROVIDE A LETTER
 OF OWNERSHIP SUPPORT.
   28. IT SHALL BE UNLAWFUL FOR AN OFFEROR, ITS DESIGNEES AND/OR  SUCCES-
 SORS  TO  HAVE  OR EXERCISE VOTING CONTROL OF THE CONDOMINIUM'S BOARD OF
 MANAGERS FOR MORE THAN NINETY DAYS FROM THE FIFTH  ANNIVERSARY  DATE  OF
 THE  FIRST  CLOSING  OF TITLE TO A DWELLING UNIT, OR WHENEVER THE UNSOLD
 DWELLING UNITS CONSTITUTE LESS THAN FIFTY PERCENT OF THE  COMMON  INTER-
 ESTS APPURTENANT TO ALL DWELLING UNITS, WHICHEVER IS SOONER.
   29. THE ATTORNEY GENERAL MAY, IN HER DISCRETION, WAIVE THE REQUIREMENT
 IN PARAGRAPH (D) OF SUBDIVISION SIX OF THIS SECTION THAT AN OFFEROR SELL
 AT  LEAST FIFTY-ONE PERCENT OF THE DWELLING UNITS OFFERED FOR SALE UNDER
 THE PRESERVATION PLAN WHEN THE OFFEROR PROVIDES  PROOF  SATISFACTORY  TO
 THE  ATTORNEY  GENERAL  THAT  FIVE YEARS OF COMMERCIALLY REASONABLE GOOD
 FAITH EFFORTS DID NOT RESULT IN THE SALE OF  FIFTY-ONE  PERCENT  OF  THE
 DWELLING UNITS. IF SUCH WAIVER IS GRANTED, THE OFFEROR SHALL BE REQUIRED
 TO  DISCLOSE  THE  NEW  DATE  BY  WHICH  IT WILL SELL AT LEAST FIFTY-ONE
 PERCENT OF THE DWELLING UNITS OFFERED FOR SALE  UNDER  THE  PRESERVATION
 PLAN IN ITS SUBSEQUENT ANNUAL UPDATE AMENDMENT. ANY WAIVER GRANTED HERE-
 UNDER SHALL NOT ALLEVIATE AN OFFEROR, ITS DESIGNEES AND/OR SUCCESSORS OF
 THE OBLIGATION SET FORTH IN SUBDIVISION TWENTY-EIGHT OF THIS SECTION.
   30.  WITHIN  NINETY  DAYS  OF  THE EFFECTIVE DATE OF THIS SECTION, THE
 ATTORNEY GENERAL SHALL SUBMIT A NOTICE OF PROPOSED RULEMAKING FOR PUBLI-
 CATION IN THE STATE REGISTER WHICH  SHALL  CONTAIN  THE  SUITABLE  RULES
 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.  THE AUTHORITY OF
 THE  ATTORNEY  GENERAL  TO  PROMULGATE,  ADOPT, PUBLISH, NOTIFY, REVIEW,
 AMEND, MODIFY, RECONSIDER, OR RESCIND ANY RULE OR REGULATION AS  MAY  BE
 CONFERRED  ANYWHERE  WITHIN  THIS  SECTION  SHALL  COMPLY WITH THE STATE
 ADMINISTRATIVE PROCEDURE ACT IN ALL RESPECTS.
   31. FOR ANY OFFERING STATEMENT OR PROSPECTUS (INCLUDING, WITHOUT LIMI-
 TATION, A PRESERVATION PLAN AND ANY AMENDED FILINGS THERETO),  SUBMITTED
 TO  THE  DEPARTMENT OF LAW PURSUANT TO THIS SECTION, THE FILING FEES SET
 FORTH IN PARAGRAPH (A) OF SUBDIVISION SEVEN  OF  SECTION  THREE  HUNDRED
 FIFTY-TWO-E  OF  THIS ARTICLE SHALL NOT APPLY. INSTEAD, AN OFFEROR SHALL
 TENDER THE FOLLOWING FILING FEE WITH AND FOR ITS SUBMISSION:
   (A) SEVEN HUNDRED FIFTY DOLLARS FOR EVERY OFFERING NOT  IN  EXCESS  OF
 TWO HUNDRED FIFTY THOUSAND DOLLARS;
 A. 9340                            13
 
   (B)  FOR  EVERY  OFFERING  IN  EXCESS  OF  TWO  HUNDRED FIFTY THOUSAND
 DOLLARS, FOUR-TENTHS OF ONE PERCENT OF THE TOTAL AMOUNT OF THE  OFFERING
 BUT  NOT  IN EXCESS OF SIXTY THOUSAND DOLLARS, OF WHICH ONE-HALF OF SAID
 AMOUNT SHALL BE A NONREFUNDABLE DEPOSIT PAID AT THE TIME  OF  SUBMITTING
 THE  PRESERVATION  PLAN  TO  THE  DEPARTMENT  OF  LAW FOR REVIEW AND THE
 BALANCE PAYABLE UPON THE ATTORNEY GENERAL'S  ISSUANCE  OF  A  LETTER  OF
 ACCEPTANCE OF THE PRESERVATION PLAN FOR FILING;
   (C) TWO HUNDRED TWENTY-FIVE DOLLARS FOR EACH PRICE CHANGE AMENDMENT TO
 A PRESERVATION PLAN;
   (D) SEVEN HUNDRED FIFTY DOLLARS FOR ANY OTHER AMENDMENT TO A PRESERVA-
 TION PLAN; AND
   (E)  SEVEN  HUNDRED  FIFTY  DOLLARS  FOR EACH SUCH APPLICATION, AND AN
 ADDITIONAL SEVEN HUNDRED FIFTY DOLLARS  FOR  EACH  AND  EVERY  AMENDMENT
 SUBMITTED  IN FURTHERANCE OF SUCH AN APPLICATION TO PERMIT AN OFFEROR TO
 SOLICIT PUBLIC INTEREST PRIOR TO THE FILING OF A  PRESERVATION  PLAN  TO
 THE DEPARTMENT OF LAW.
   §  2.  Section 339-e of the real property law is amended by adding six
 new subdivisions 1-a, 6-a, 8-a, 10-a, 11-a and 13-a to read as follows:
   1-A. "CAPITAL REPLACEMENT" MEANS  A  BUILDING-WIDE  REPLACEMENT  OF  A
 MAJOR COMPONENT OF ANY OF THE FOLLOWING SYSTEMS:
   (A) ELEVATOR;
   (B) HEATING, VENTILATION AND AIR CONDITIONING;
   (C) PLUMBING;
   (D) WIRING;
   (E) WINDOW; OR
   (F) A MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED, HOWEVER,
 THAT  REPLACEMENTS  MADE  TO CURE CODE VIOLATIONS OF RECORD SHALL NOT BE
 INCLUDED.
   6-A. "CONSUMMATION OF THE PRESERVATION PLAN" MEANS, IN THE CONTEXT  OF
 A PRESERVATION PLAN FOR THE CONVERSION OF RESIDENTIAL RENTAL PROPERTY TO
 CONDOMINIUM  OWNERSHIP  THAT HAS BEEN ACCEPTED FOR FILING BY THE DEPART-
 MENT OF LAW PURSUANT TO SECTION THREE  HUNDRED  FIFTY-TWO-EEEEE  OF  THE
 GENERAL  BUSINESS  LAW  AND  SUBSEQUENTLY  AMENDED TO DISCLOSE THAT SAID
 PRESERVATION PLAN HAS BEEN DECLARED EFFECTIVE, (I) THE RECORDING OF  THE
 DECLARATION  FOR  THE  CONDOMINIUM  AND  (II)  THE CLOSING OF TITLE TO A
 DWELLING UNIT WITH A PURCHASER UNDER THE PRESERVATION PLAN.
   8-A. "OFFEROR," AS USED IN SECTION  THREE  HUNDRED  THIRTY-NINE-MM  OF
 THIS  ARTICLE, MEANS THE OFFEROR OF A PRESERVATION PLAN TO CONVERT RESI-
 DENTIAL RENTAL PROPERTY TO CONDOMINIUM  OWNERSHIP  PURSUANT  TO  SECTION
 THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW, TOGETHER WITH
 HIS, HER OR ITS NOMINEES, ASSIGNEES AND SUCCESSORS IN INTEREST.
   10-A.  "PRESERVATION  PLAN,"  AS USED IN SECTION THREE HUNDRED THIRTY-
 NINE-MM OF THIS ARTICLE,  MEANS  AN  OFFERING  STATEMENT  OR  PROSPECTUS
 SUBMITTED  TO  THE  DEPARTMENT  OF LAW PURSUANT TO SECTION THREE HUNDRED
 FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW  FOR  THE  CONVERSION  OF  A
 BUILDING  OR  GROUP  OF  BUILDINGS  OR DEVELOPMENT FROM RENTAL STATUS TO
 CONDOMINIUM OWNERSHIP, WHEREIN THE OFFEROR DOCUMENTS THAT IT HAS  AGREED
 TO AN EXTENDED AFFORDABILITY TERM FOR THE INCOME-RESTRICTED RENTAL UNITS
 WITH A RELEVANT HOUSING FINANCE AGENCY.
   11-A.  "PURCHASER  UNDER  THE PRESERVATION PLAN," WHEN USED IN SECTION
 THREE HUNDRED THIRTY-NINE-MM OF THIS  ARTICLE,  A  PURCHASER  UNDER  THE
 PRESERVATION  PLAN SHALL REFER TO A PERSON WHO PURCHASES A DWELLING UNIT
 FROM THE OFFEROR PURSUANT TO THE TERMS OF A PRESERVATION PLAN  THAT  HAS
 BEEN  ACCEPTED  FOR  FILING  BY THE ATTORNEY GENERAL. A PERSON OR ENTITY
 THAT ACQUIRES DWELLING UNITS AND  ASSUMES  CERTAIN  OBLIGATIONS  OF  THE
 OFFEROR SHALL NOT BE CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
 A. 9340                            14
 
   13-A. "TOTAL PRICE," WHEN USED IN SECTION THREE HUNDRED THIRTY-NINE-MM
 OF  THIS ARTICLE, MEANS THE SUM OF THE COST OF ALL UNITS IN THE OFFERING
 (INCLUDING ANY INCOME-RESTRICTED OWNERSHIP UNITS  OFFERED  FOR  SALE  TO
 QUALIFIED  LOW  INCOME  PURCHASERS,  BUT EXCLUDING ANY INCOME-RESTRICTED
 RENTAL  UNITS  WHETHER  SUCH INCOME-RESTRICTED RENTAL UNITS ARE RETAINED
 AND OPERATED BY THE OFFEROR OR SOLD TO ANOTHER ENTITY THAT SHALL OWN AND
 OPERATE THE INCOME-RESTRICTED RENTAL UNITS TO PERSONS OF LOW INCOME)  AT
 THE  LAST  PRICE  WHICH WAS OFFERED TO TENANTS IN OCCUPANCY PRIOR TO THE
 EFFECTIVE DATE OF THE PRESERVATION PLAN REGARDLESS OF  NUMBER  OF  SALES
 MADE.
   §  3.  The real property law is amended by adding a new section 339-mm
 to read as follows:
   § 339-MM. ESTABLISHMENT OF RESERVE FUND FOR  BUILDINGS  CONVERTING  TO
 CONDOMINIUM OWNERSHIP UNDER SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE
 GENERAL BUSINESS LAW.  1. WITHIN THIRTY DAYS AFTER THE CONSUMMATION OF A
 PRESERVATION PLAN, THE OFFEROR THEREOF (AND/OR ITS DESIGNEE OR DESIGNEES
 AND/OR  SUCCESSOR  OR  SUCCESSORS)  SHALL  ESTABLISH AND TRANSFER TO THE
 CONDOMINIUM BOARD OF MANAGERS A RESERVE FUND TO BE USED EXCLUSIVELY  FOR
 MAKING  CAPITAL REPAIRS, REPLACEMENTS AND IMPROVEMENTS NECESSARY FOR THE
 HEALTH AND SAFETY OF THE RESIDENTS OF SUCH BUILDING.  SUCH RESERVE  FUND
 SHALL  BE EXCLUSIVE OF ANY OTHER FUNDS REQUIRED TO BE RESERVED UNDER THE
 PRESERVATION PLAN OR APPLICABLE LAW OR REGULATION OF THE ATTORNEY GENER-
 AL, EXCEPT A FUND FOR CAPITAL  REPAIRS,  REPLACEMENTS  AND  IMPROVEMENTS
 SUBSTANTIALLY  SIMILAR  IN PURPOSE TO AND IN AN AMOUNT NOT LESS THAN THE
 RESERVE FUND MANDATED BY THIS SECTION. SUCH RESERVE FUND SHALL  ALSO  BE
 EXCLUSIVE  OF  ANY  WORKING  CAPITAL  FUND  AND  SHALL NOT BE SUBJECT TO
 REDUCTION FOR CLOSING APPORTIONMENTS.
   2. SUCH FUND SHALL BE ESTABLISHED IN AN AMOUNT  EQUAL  TO  EITHER  (A)
 THREE  PER  CENT  OF  THE  TOTAL PRICE OR, (B) (I) THREE PER CENT OF THE
 ACTUAL SALES PRICE OF ALL CONDOMINIUM UNITS SOLD BY THE OFFEROR  AT  THE
 TIME  THE  PRESERVATION  PLAN  IS DECLARED EFFECTIVE, PROVIDED, HOWEVER,
 THAT IF SUCH AMOUNT IS LESS THAN ONE PER CENT OF THE TOTAL  PRICE,  THEN
 THE  FUND SHALL BE ESTABLISHED AS A MINIMUM OF ONE PER CENT OF THE TOTAL
 PRICE; PLUS (II) SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE OFFEROR AT
 A RATE OF THREE PER CENT OF THE ACTUAL SALES PRICE OF CONDOMINIUM  UNITS
 FOR  EACH  UNIT  HELD  BY  THE  OFFEROR AND SOLD TO BONA FIDE PURCHASERS
 SUBSEQUENT TO THE EFFECTIVE DATE OF THE  PRESERVATION  PLAN  AND  WITHIN
 FIVE YEARS OF THE CONSUMMATION OF THE PRESERVATION PLAN, NOTWITHSTANDING
 THAT THE TOTAL AMOUNT CONTRIBUTED MAY EXCEED THREE PER CENT OF THE TOTAL
 PRICE;  AND PROVIDED, FURTHER, THAT IF FIVE YEARS FROM THIRTY DAYS AFTER
 THE CONSUMMATION OF THE PRESERVATION PLAN THE TOTAL CONTRIBUTIONS BY THE
 OFFEROR TO THE FUND ARE LESS THAN THREE PER CENT OF THE TOTAL PRICE  THE
 OFFEROR  SHALL  PAY  THE  DIFFERENCE  BETWEEN THE AMOUNT CONTRIBUTED AND
 THREE PER CENT OF THE TOTAL PRICE.  SUPPLEMENTAL CONTRIBUTIONS SHALL  BE
 MADE WITHIN THIRTY DAYS OF EACH SALE.
   3.  THE  CONTRIBUTIONS  REQUIRED  PURSUANT TO THIS SECTION MAY BE MADE
 EARLIER OR IN AN AMOUNT GREATER THAN SO PROVIDED. AN OFFEROR  MAY  CLAIM
 AND  RECEIVE  CREDIT  AGAINST  THE MANDATORY INITIAL CONTRIBUTION TO THE
 RESERVE FUND FOR THE ACTUAL COST OF CAPITAL REPLACEMENTS WHICH HE OR SHE
 HAS BEGUN AFTER THE PRESERVATION PLAN IS SUBMITTED  FOR  FILING  TO  THE
 DEPARTMENT  OF  LAW  AND BEFORE THE PRESERVATION PLAN IS DECLARED EFFEC-
 TIVE; PROVIDED, HOWEVER, THAT ANY SUCH REPLACEMENTS SHALL BE  SET  FORTH
 IN  THE  PRESERVATION PLAN TOGETHER WITH THEIR ACTUAL OR ESTIMATED COSTS
 AND FURTHER PROVIDED, THAT SUCH CREDIT SHALL NOT EXCEED  THE  LESSER  OF
 THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR ONE PER CENT OF THE TOTAL
 PRICE.
 A. 9340                            15

   4.  ANY  BUILDING,  CONSTRUCTION  OF  WHICH WAS COMPLETED WITHIN THREE
 YEARS PRIOR TO THE CONSUMMATION  OF  THE  PRESERVATION  PLAN,  SHALL  BE
 EXEMPT FROM THE REQUIREMENTS OF THIS SECTION.
   5.  THE CONDOMINIUM BOARD OF MANAGERS SHALL REPORT TO UNIT OWNERS ON A
 SEMI-ANNUAL BASIS WITH RESPECT TO ALL DEPOSITS INTO AND WITHDRAWALS FROM
 THE RESERVE FUND MANDATED BY SUBDIVISION TWO OF THIS SECTION.
   6. THE OFFEROR, NOT LATER THAN THE THIRTIETH DAY FOLLOWING THE ACCEPT-
 ANCE OF A PRESERVATION PLAN FOR FILING BY THE DEPARTMENT OF LAW PURSUANT
 TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW AND
 UNTIL THE CONSUMMATION OF THE PRESERVATION PLAN, SHALL POST AND MAINTAIN
 IN A PROMINENT PLACE, ACCESSIBLE TO ALL TENANTS IN EACH BUILDING COVERED
 BY THE PLAN, A LISTING OF ALL VIOLATIONS OF RECORD AGAINST  SUCH  BUILD-
 INGS  AS  DETERMINED  BY  THE DEPARTMENT OF BUILDINGS OF THE CITY OF NEW
 YORK AND THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT  OF  THE
 CITY  OF  NEW  YORK.  ALL NEWLY ISSUED VIOLATIONS SHALL BE POSTED WITHIN
 FORTY-EIGHT HOURS OF THEIR ISSUANCE AND MAINTAINED AS DESCRIBED IN  THIS
 SUBDIVISION. THE OFFEROR MAY SATISFY THE REQUIREMENTS OF THIS SECTION BY
 DESIGNATING  AN  AGENT  ON  THE PREMISES WITH WHOM SUCH LISTING SHALL BE
 MADE AVAILABLE FOR INSPECTION BY THE TENANTS.
   7. ANY PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS SECTION IN
 ANY CONTRACT TO PURCHASE OR AGREEMENT BETWEEN  AN  OFFEROR  AND  A  UNIT
 PURCHASER  OR  AN  OFFEROR AND THE CONDOMINIUM BOARD OF MANAGERS CREATED
 UNDER A PRESERVATION PLAN SHALL BE VOID AS AGAINST PUBLIC POLICY.
   8. (A) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (B) OF THIS  SUBDIVI-
 SION,  ANY  PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE VIOLATION OF
 ANY PROVISION OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY OF ONE
 HUNDRED DOLLARS PER DAY PER UNIT FOR EACH DAY THAT A BUILDING IS NOT  IN
 COMPLIANCE  WITH THE PROVISIONS OF SUCH SECTION; PROVIDED, HOWEVER, THAT
 SUCH CIVIL PENALTY SHALL NOT EXCEED ONE THOUSAND DOLLARS PER UNIT.
   (B) ANY PERSON WHO VIOLATES OR ASSISTS IN THE VIOLATION OF SUBDIVISION
 TWO OF THIS SECTION SHALL ALSO BE SUBJECT TO  A  CIVIL  PENALTY  OF  ONE
 THOUSAND  DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND REQUIRED BY
 SUBDIVISION TWO OF THIS SECTION IS NOT ESTABLISHED;  PROVIDED,  HOWEVER,
 THAT  SUCH  CIVIL  PENALTY  SHALL  NOT  EXCEED THE AMOUNT REQUIRED TO BE
 RESERVED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   (C) ANY OTHER ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDIC-
 TION THAT MAY BE APPROPRIATE OR NECESSARY FOR  THE  ENFORCEMENT  OF  THE
 PROVISIONS  OF  THIS SECTION MAY BE BROUGHT IN THE NAME OF THE PEOPLE OF
 THE STATE OF NEW YORK BY THE  ATTORNEY  GENERAL,  INCLUDING  ACTIONS  TO
 SECURE  PERMANENT  INJUNCTIONS  ENJOINING  ANY  ACTS  OR PRACTICES WHICH
 CONSTITUTE A VIOLATION OF  ANY  PROVISION  OF  THIS  SECTION,  MANDATING
 COMPLIANCE  WITH THE PROVISIONS OF THIS SECTION OR FOR SUCH OTHER RELIEF
 AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR  PROCEEDING,  THE  ATTORNEY
 GENERAL  MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION, OR TO A JUDGE
 OR JUSTICE THEREOF, FOR A TEMPORARY  RESTRAINING  ORDER  OR  PRELIMINARY
 INJUNCTION  ENJOINING  AND  RESTRAINING  ALL  PERSONS FROM VIOLATING ANY
 PROVISION OF THIS SECTION, MANDATING COMPLIANCE WITH THE  PROVISIONS  OF
 THIS  SECTION, OR FOR SUCH OTHER RELIEF AS MAY BE APPROPRIATE, UNTIL THE
 HEARING AND DETERMINATION OF SUCH ACTION OR PROCEEDING AND THE ENTRY  OF
 FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR JUSTICE THEREOF,
 TO  WHOM  SUCH  APPLICATION IS MADE, IS HEREBY AUTHORIZED TO MAKE ANY OR
 ALL OF THE ORDERS SPECIFIED IN THIS PARAGRAPH, AS  MAY  BE  REQUIRED  IN
 SUCH  APPLICATION,  WITH  OR  WITHOUT  NOTICE, AND TO MAKE SUCH OTHER OR
 FURTHER ORDERS OR DIRECTIONS AS MAY BE  NECESSARY  TO  RENDER  THE  SAME
 EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE GRANT-
 ING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
 A. 9340                            16
 
   (D)  NOTHING  CONTAINED IN THIS SECTION SHALL IMPAIR ANY RIGHTS, REME-
 DIES OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF  CONDOMIN-
 IUM  UNITS  WITH  REGARD  TO  THE  FUNDING  OF A RESERVE FUND UNDER THIS
 SECTION.
   (E)  THE  ATTORNEY  GENERAL  IS EMPOWERED TO ENFORCE THE PROVISIONS OF
 THIS SECTION.
   § 4. Subdivision 2, subparagraph (i) of paragraph (a)  of  subdivision
 2-a, and paragraphs (a) and (c) of subdivision 7 of section 352-e of the
 general  business  law,  subdivision 2 as amended by chapter 1042 of the
 laws of 1981, subparagraph (i) of paragraph (a) of  subdivision  2-a  as
 added by chapter 771 of the laws of 1983, paragraph (a) of subdivision 7
 as amended by section 1 of part BBB-1 of chapter 57 of the laws of 2008,
 and paragraph (c) of subdivision 7 as amended by chapter 637 of the laws
 of 1989, are amended as follows:
   2.  Unless  otherwise  provided  by  regulation issued by the attorney
 general, the offering statement or statements or prospectus required  in
 subdivision  one  of  this section shall be filed with the department of
 law at its office in the city of New York, prior to the public  offering
 of  the security involved. No offer, advertisement or sale of such secu-
 rities shall be made in or from the state of New York until the attorney
 general has issued to the issuer or other offerer a letter stating  that
 the offering has been filed. The attorney general, not later than thirty
 days  after the submission of such filing, shall issue such a letter or,
 in the alternative, a notification in writing indicating deficiencies in
 the offering statement, statements  or  prospectus;  provided,  however,
 that  in the case of a building or group of buildings to be converted to
 cooperative or condominium ownership which is occupied in  whole  or  in
 part  for residential purposes AND WHICH IS NOT THE SUBJECT OF A PRESER-
 VATION PLAN SUBMITTED PURSUANT TO SECTION THREE HUNDRED  FIFTY-TWO-EEEEE
 OF  THIS  ARTICLE,  such  letter  or notification shall be issued in not
 sooner than four months and not later than six months from the  date  of
 submission of such filing. The attorney general may also refuse to issue
 a letter stating that the offering statement or statements or prospectus
 has been filed whenever it appears that the offering statement or state-
 ments  or prospectus does not clearly set forth the specific property or
 properties to be  purchased,  leased,  mortgaged,  or  otherwise  to  be
 acquired, financed or the subject of specific investment with a substan-
 tial portion of the offering proceeds.
   (i)  "Plan".  Every  offering statement or prospectus submitted to the
 department of law for the conversion of a building or group of buildings
 or development from residential rental status to cooperative  or  condo-
 minium ownership, other than a plan governed by the provisions of either
 section  three  hundred fifty-two-eee [or], three hundred fifty-two-eeee
 OR SECTION THREE HUNDRED FIFTY-TWO-EEEEE of this [chapter] ARTICLE, or a
 plan for such conversion pursuant to article two, eight or eleven of the
 private housing finance law.
   (a) The department of law shall collect the  following  fees  for  the
 filing of each offering statement or prospectus as described in subdivi-
 sion one of this section: seven hundred fifty dollars for every offering
 not  in excess of two hundred fifty thousand dollars; for every offering
 in excess of two hundred fifty  thousand  dollars,  four-tenths  of  one
 percent  of the total amount of the offering but not in excess of [thir-
 ty] SIXTY thousand dollars of which one-half of said amount shall  be  a
 nonrefundable deposit paid at the time of submitting the offering state-
 ment  to  the  department of law for review and the balance payable upon
 the issuance of a letter of acceptance for filing said  offering  state-
 A. 9340                            17
 
 ment.  The  department  of  law shall, in addition, collect a fee of two
 hundred twenty-five dollars for each PRICE CHANGE AMENDMENT TO AN OFFER-
 ING STATEMENT AND SEVEN HUNDRED FIFTY DOLLARS FOR ANY OTHER amendment to
 an offering statement. For each application granted by the department of
 law,  which  permits  the applicant to solicit public interest or public
 funds preliminary to the filing of an  offering  statement  or  for  the
 issuance of a "no-filing required" letter AND ANY AMENDMENT THERETO, the
 department  of  law  shall collect a fee of [two] SEVEN hundred [twenty-
 five] FIFTY dollars. [In the  event  the  sponsor  thereafter  files  an
 offering  statement,  the fee paid for the preliminary application shall
 be credited against the balance of the fee due and payable  on  filing.]
 For  each  application  granted pursuant to section three hundred fifty-
 two-g of this article, the department of law  shall  collect  a  fee  of
 two-tenths  of  one percent of the amount of the offering of securities;
 however, the minimum fee shall be seven hundred fifty dollars,  and  the
 maximum  fee  shall be [thirty] SIXTY thousand dollars. All revenue from
 that portion of any  fee  imposed  pursuant  to  this  paragraph,  which
 exceeds  twenty  thousand  dollars  FOR  OFFERING  STATEMENTS,  AND FIVE
 HUNDRED TWENTY-FIVE DOLLARS FOR ALL OTHER FILINGS, shall be paid by  the
 department  of law to the state comptroller to be deposited in and cred-
 ited to the real estate finance bureau  fund,  established  pursuant  to
 section eighty of the state finance law.
   (c)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
 sion, the department of law shall not collect any fees for the filing of
 an offering statement or prospectus or any amended  filings  thereto  as
 described  in subdivision one of this section whenever: (I) a conversion
 of a mobile home park, building or group  of  buildings  or  development
 from  residential  rental status to cooperative or condominium ownership
 is being made pursuant to article ELEVEN, eighteen, nineteen  or  twenty
 of  the  private  housing finance law; OR (II) THE OFFERING STATEMENT OR
 PROSPECTUS OR AMENDMENT THERETO IS SUBMITTED TO THE  DEPARTMENT  OF  LAW
 PURSUANT  TO SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE.  FOR
 SUBMISSIONS MADE PURSUANT TO SECTION THREE  HUNDRED  FIFTY-TWO-EEEEE  OF
 THIS  ARTICLE,  THE DEPARTMENT OF LAW SHALL INSTEAD COLLECT THE FEES SET
 FORTH IN SUBDIVISION THIRTY-ONE OF SUCH SECTION. ALL REVENUE  FROM  THAT
 PORTION OF ANY FEE IMPOSED PURSUANT TO SUBDIVISION THIRTY-ONE OF SECTION
 THREE  HUNDRED  FIFTY-TWO-EEEEE  OF  THIS  ARTICLE  SHALL BE PAID BY THE
 DEPARTMENT OF LAW TO THE STATE COMPTROLLER TO BE DEPOSITED IN AND  CRED-
 ITED  TO  THE  HOUSING  UNIT  PROTECTION  FUND,  ESTABLISHED PURSUANT TO
 SECTION EIGHTY-B OF THE STATE FINANCE LAW.
   § 5. Paragraph (a) of subdivision 1 of section 352-eeee of the general
 business law, as amended by section 1 of part N of  chapter  36  of  the
 laws of 2019, is amended to read as follows:
   (a)  "Plan".  Every  offering statement or prospectus submitted to the
 department of law pursuant to section three hundred fifty-two-e of  this
 article for the conversion of a building or group of buildings or devel-
 opment  from  residential  rental  status  to cooperative or condominium
 ownership or other form of cooperative interest in realty, other than an
 offering statement or prospectus for such conversion pursuant to SECTION
 THREE HUNDRED FIFTY-TWO-EEEEE OF THIS ARTICLE OR article two,  eight  or
 eleven of the private housing finance law.
   §  6. The state finance law is amended by adding a new section 80-b to
 read as follows:
   § 80-B. HOUSING PROTECTION UNIT FUND.  1. THERE IS HEREBY  ESTABLISHED
 IN  THE  CUSTODY  OF THE STATE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS
 THE "HOUSING PROTECTION UNIT FUND".
 A. 9340                            18
 
   2. THE HOUSING PROTECTION UNIT FUND SHALL CONSIST OF MONEYS  APPROPRI-
 ATED  THERETO,  FUNDS  TRANSFERRED  FROM  ANY OTHER FUND OR SOURCES, AND
 MONEYS DEPOSITED THEREIN PURSUANT TO THE FEES IMPOSED BY  SECTION  THREE
 HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW.
   3.  THE MONEYS IN THE HOUSING PROTECTION UNIT FUND SHALL BE KEPT SEPA-
 RATE FROM AND SHALL NOT BE COMMINGLED  WITH  ANY  OTHER  MONEYS  IN  THE
 CUSTODY  OF  THE STATE COMPTROLLER. ALL MONEYS IN THE HOUSING PROTECTION
 UNIT FUND SHALL BE DISTRIBUTED EACH STATE FISCAL YEAR  AND  SUCH  MONEYS
 SHALL  BE  ALLOCATED TO AND EXPENDED BY THE DEPARTMENT OF LAW SOLELY FOR
 THE OPERATION AND ADMINISTRATION OF ITS HOUSING PROTECTION UNIT.
   § 7. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.