S T A T E   O F   N E W   Y O R K
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                                   8334
 
                             I N  S E N A T E
 
                             February 15, 2022
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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, 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14678-01-2
              

 S. 8334                             2
 
   (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
 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-
 S. 8334                             3
 
 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
 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
 S. 8334                             4
 
 AREAS IN SECTION 23-90 OF THE ZONING RESOLUTION. THE LOCATIONS OF MANDA-
 TORY INCLUSIONARY HOUSING 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.
   (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
 S. 8334                             5
 
 APPLICABLE  GOVERNING PROVISIONS OF SECTION FOUR HUNDRED-TWENTY-ONE-A OF
 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;
 S. 8334                             6

   (F) A DESCRIPTION OF THE PROVISIONS OF THE DECLARATION AND BY-LAWS FOR
 THE CONDOMINIUM THAT PROVIDES  FOR  THE  SPECIAL  ALLOCATION  OF  COMMON
 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
 S. 8334                             7
 
 THE PROPERTY TO CONDOMINIUM OWNERSHIP. THE STATEMENT SHALL ALSO DISCLOSE
 THAT THE INCOME-RESTRICTED RENTAL UNITS SHALL REMAIN SUBJECT TO THE RENT
 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.
 S. 8334                             8
 
   8.  A  PRESERVATION  PLAN  MAY NOT BE DECLARED EFFECTIVE UNTIL WRITTEN
 PURCHASE AGREEMENTS HAVE  BEEN  EXECUTED  AND  DELIVERED  FOR  AT  LEAST
 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
 S. 8334                             9
 
 SHALL SUBMIT TO THE ATTORNEY GENERAL ITS POST-CLOSING AMENDMENT  TO  THE
 PRESERVATION  PLAN.  THEREAFTER, THE PRESERVATION PLAN SHALL CONTINUALLY
 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
 S. 8334                            10
 
 APPLICABLE TO EXPIRATION OF TENANCY; PROVIDED THAT SUCH PROCEEDINGS  MAY
 BE  COMMENCED  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  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
 S. 8334                            11
 
 COMPARABILITY, CONSIDERATION SHALL BE GIVEN TO SUCH FACTORS AS  BUILDING
 SERVICES, LEVEL OF MAINTENANCE AND OPERATING EXPENSES.
   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
 S. 8334                            12
 
 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
 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:
 S. 8334                            13
 
   (A)  SEVEN  HUNDRED  FIFTY DOLLARS FOR EVERY OFFERING NOT IN EXCESS OF
 TWO HUNDRED FIFTY THOUSAND DOLLARS;
   (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
 S. 8334                            14
 
 THAT ACQUIRES DWELLING UNITS AND  ASSUMES  CERTAIN  OBLIGATIONS  OF  THE
 OFFEROR SHALL NOT BE CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
   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
 S. 8334                            15

 THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR ONE PER CENT OF THE TOTAL
 PRICE.
   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
 S. 8334                            16
 
 EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE GRANT-
 ING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
   (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-
 S. 8334                            17
 
 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-
 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:
 S. 8334                            18
 
   § 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".
   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.