S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    107
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by Sens. KRUEGER, BAILEY, HOYLMAN-SIGAL, JACKSON, LIU, SERRA-
   NO, STAVISKY -- 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 private housing finance law, in relation to right of
   first refusal
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The private housing finance law is amended by adding a new
 article 2-A to read as follows:
                               ARTICLE II-A
                          RIGHT OF FIRST REFUSAL
 SECTION 38.   DEFINITIONS.
         38-A. NOTIFICATION OF IMPENDING CONVERSION.
         38-B. NOTIFICATION OF BONA FIDE OFFER TO PURCHASE.
         38-C. APPRAISAL DETERMINATION.
         38-D. RIGHT OF FIRST REFUSAL.
         38-E. FIRST OPPORTUNITY TO PURCHASE.
         38-F. PRIOR NOTIFICATION.
         38-G. LONG TERM AFFORDABILITY.
         38-H. RIGHT OF TRANSFER.
         38-I. CONVERSION OF PROPERTY.
         38-J. PENALTY.
         38-K. EXCLUSIONS.
         38-L. JUDICIAL REVIEW.
   § 38. DEFINITIONS. FOR THE PURPOSES OF  THIS  ARTICLE,  THE  FOLLOWING
 DEFINITIONS SHALL APPLY:
   1.  "AFFORDABLE" SHALL MEAN THAT RENTAL EXPENSES FOR DWELLING UNITS DO
 NOT EXCEED THIRTY PERCENT OF THE ANNUAL GROSS HOUSEHOLD  INCOME  OF  THE
 EXISTING  TENANTS,  AND/OR  WHERE RENTAL EXPENSES DO NOT EXCEED THE RENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00691-01-5
 S. 107                              2
 
 LEVELS ALLOWABLE PURSUANT TO THE RENT RESTRICTIONS  APPLICABLE  TO  SUCH
 DWELLING UNITS PRIOR TO CONVERSION, PROVIDED HOWEVER THAT DWELLING UNITS
 WHICH  BECOME  VACANT IN ASSISTED RENTAL HOUSING SHOULD NOT BE RENTED TO
 HOUSEHOLDS WHOSE INCOME EXCEEDS EIGHTY PERCENT OF THE NEW YORK METROPOL-
 ITAN AREA MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF
 HOUSING AND URBAN DEVELOPMENT.
   2.  "APPRAISED VALUE" SHALL MEAN THE VALUE AS DETERMINED BY A MAJORITY
 VOTE OF AN ADVISORY PANEL OF THREE APPRAISERS  WHO  SHALL  PERFORM  SUCH
 APPRAISAL  IN  ACCORDANCE  WITH  THE  AMERICAN ARBITRATION ASSOCIATION'S
 RULES FOR THE REAL ESTATE INDUSTRY.
   3. "ASSISTED RENTAL HOUSING" SHALL  MEAN  A  PRIVATELY-OWNED  MULTIPLE
 DWELLING  OR GROUP OF MULTIPLE DWELLING UNITS MANAGED TOGETHER UNDER THE
 SAME OWNERSHIP IN WHICH THE  MAJORITY  OF  DWELLING  UNITS  THEREIN  ARE
 SUBJECT TO FEDERAL, STATE OR CITY INCOME ELIGIBILITY RESTRICTIONS AND IN
 WHICH  RENTS  FOR  SUCH  DWELLING  UNITS  ARE  CONTROLLED,  REGULATED OR
 ASSISTED BY A FEDERAL, STATE OR CITY AGENCY  PURSUANT  TO  A  REGULATORY
 AGREEMENT  OR RENTAL ASSISTANCE AGREEMENT DESIGNED TO MAKE SUCH DWELLING
 UNITS AFFORDABLE ON A PROJECT-BASED  BASIS.    ASSISTED  RENTAL  HOUSING
 PROGRAMS SHALL INCLUDE:
   (A) ANY PROGRAM CREATED, ADMINISTERED, OR SUPERVISED BY A MUNICIPALITY
 OR STATE UNDER ARTICLE TWO OR ARTICLE FOUR OF THIS CHAPTER.
   (B) ANY PROGRAM PROVIDING PROJECT-BASED ASSISTANCE UNDER SECTION EIGHT
 OF THE UNITED STATES HOUSING ACT OF 1937, AS IT MAY BE AMENDED FROM TIME
 TO TIME; AND
   (C)  HOUSING  PROGRAMS GOVERNED BY SECTION 202, 207, 221, 232, 236, OR
 811 OF THE NATIONAL HOUSING ACT, (12 U.S.C. 1701 ET SEQ.), AS  THEY  MAY
 BE AMENDED FROM TIME TO TIME.
   4.  "BONA  FIDE  PURCHASER"  SHALL  MEAN  A  PERSON OR ENTITY THAT HAS
 TENDERED A BONA FIDE OFFER TO PURCHASE THE ASSISTED RENTAL HOUSING.
   5. "BONA FIDE OFFER TO PURCHASE" SHALL MEAN A GOOD FAITH  AND  WITHOUT
 FRAUD  OFFER,  MADE  IN  WRITING  AND  APPROVED  BY THE DIVISION THAT IS
 TENDERED BY A BONA FIDE PURCHASER NO LATER THAN ONE HUNDRED TWENTY  DAYS
 AFTER  AN APPRAISAL PERFORMED PURSUANT TO SECTION THIRTY-EIGHT-C OF THIS
 ARTICLE, AND THAT IS NON-BINDING ON THE OWNER WITH INTENT TO CONVERT.
   6. "CONVERSION" OR "CONVERT" SHALL MEAN THE TRANSFER OF  TITLE,  LEAS-
 ING,  INTENTION  TO SELL OR LEASE, MORTGAGE PRE-PAYMENT, WITHDRAWAL FROM
 AN ASSISTED HOUSING PROGRAM, DECISION NOT TO  EXTEND  OR  RENEW  PARTIC-
 IPATION IN THE PROGRAM OR ANY OTHER ACTION TAKEN BY THE OWNER THAT WOULD
 RESULT  IN THE TERMINATION OF PARTICIPATION BY THE OWNER IN THE ASSISTED
 RENTAL HOUSING PROGRAM.
   7. "HOUSEHOLD" SHALL MEAN ALL LAWFUL OCCUPANTS OF ANY DWELLING UNIT.
   8. "HOUSEHOLD INCOME" SHALL MEAN, FOR ANY HOUSEHOLD, THE  SUM  OF  THE
 AMOUNT  REPORTED  SEPARATELY  IN THE MOST RECENT INDIVIDUAL OR JOINT TAX
 RETURN FOR WAGE OR SALARY INCOME, NET  SELF-EMPLOYED  INCOME,  INTEREST,
 DIVIDENDS, RENT RECEIVED, ROYALTIES, SOCIAL SECURITY OR RAILROAD RETIRE-
 MENT  BENEFITS  OR  DISABILITY  BENEFITS  AND  ALL OTHER INCOME FOR EACH
 MEMBER OF THE HOUSEHOLD REPORTED ON A TAX RETURN.
   9. "DIVISION" SHALL MEAN THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
 OR SUCCESSOR AGENCY.
   10.   "FINANCIAL ASSISTANCE" SHALL MEAN ANY  BENEFITS  RECEIVED  AS  A
 RESULT  OF  AN  ASSISTED  RENTAL  HOUSING  PROGRAM  THAT ACT TO MAINTAIN
 AFFORDABLE RENTS IN THE ASSISTED RENTAL HOUSING.
   11. "FIRST OPPORTUNITY TO PURCHASE" SHALL MEAN THE  OPPORTUNITY  BY  A
 TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY, TO PURCHASE IN
 GOOD FAITH AND WITHOUT FRAUD THE ASSISTED RENTAL HOUSING AT OR BELOW ITS
 S. 107                              3
 
 APPRAISED  VALUE  BEFORE SUCH ASSISTED RENTAL HOUSING BECOMES SUBJECT TO
 CONVERSION.
   12.  "NOTICE" SHALL MEAN A WRITTEN COMMUNICATION ADDRESSED TO A TENANT
 ASSOCIATION, OR IF NO TENANT ASSOCIATION EXISTS, TO EACH TENANT,  OR  IF
 APPLICABLE,  TO  A  QUALIFIED ENTITY, BY MEANS OF FIRST CLASS AND REGIS-
 TERED MAIL, OR PERSONAL DELIVERY UPON A TENANT  ASSOCIATION,  OR  IF  NO
 TENANT  ASSOCIATION EXISTS, UPON EACH TENANT, OR IF APPLICABLE, A QUALI-
 FIED ENTITY. EACH SUCH NOTICE SHALL BE DEEMED TO HAVE  BEEN  GIVEN  UPON
 THE  DEPOSIT  OF  SUCH FIRST CLASS AND REGISTERED MAIL IN THE CUSTODY OF
 THE UNITED STATES POSTAL SERVICE OR UPON RECEIPT OF  PERSONAL  DELIVERY,
 AND BY POSTING OF SUCH NOTICE IN THE COMMON AREAS OF THE ASSISTED RENTAL
 HOUSING.
   13.  "OWNER"  SHALL  MEAN ANY PERSON OR ENTITY, OR COMBINATION OF SUCH
 PERSONS OR ENTITIES, OR ANY AGENT OF SUCH PERSONS OR ENTITIES, THAT  HAS
 A  CONTROLLING  INTEREST  IN  ASSISTED RENTAL HOUSING THAT IS SUBJECT TO
 CONVERSION.
   14. "QUALIFIED ENTITY" SHALL MEAN ANY INDIVIDUAL, PARTNERSHIP, LIMITED
 LIABILITY PARTNERSHIP,  LIMITED  LIABILITY  CORPORATION,  NOT-FOR-PROFIT
 CORPORATION  OR  BUSINESS  CORPORATION, OR OTHER ENTITY AUTHORIZED TO DO
 BUSINESS IN NEW YORK STATE AND EXPERIENCED IN THE MANAGEMENT OF AFFORDA-
 BLE HOUSING, DESIGNATED BY  THE  TENANTS  RESIDING  IN  AT  LEAST  SIXTY
 PERCENT  OF  THE OCCUPIED DWELLING UNITS WITHIN THE SAME ASSISTED RENTAL
 HOUSING TO ACT ON ITS BEHALF PURSUANT TO SECTION THIRTY-EIGHT-H OF  THIS
 ARTICLE  AND  APPROVED  IN  WRITING  BY THE DIVISION AND WHICH OBLIGATES
 ITSELF AND ANY SUCCESSORS IN INTEREST TO ASSUME THE ONGOING RESPONSIBIL-
 ITY OF CONTINUING MAINTENANCE AND OPERATION OF THE ASSISTED RENTAL HOUS-
 ING AS AFFORDABLE FOR THE DURATION OF THE HOUSING'S USEFUL LIFE  AND  IN
 ACCORDANCE WITH THE PURPOSES OF THIS ARTICLE.
   15.  "RIGHT OF FIRST REFUSAL" SHALL MEAN THE RIGHT OF A TENANT ASSOCI-
 ATION, OR IF APPLICABLE, A QUALIFIED ENTITY, TO SUBMIT A GOOD FAITH  AND
 WITHOUT  FRAUD  OFFER, IN WRITING TO THE OWNER TO PURCHASE THE HIGHER OF
 THE ASSISTED RENTAL HOUSING'S APPRAISED VALUE OR  THE  IDENTICAL  PRICE,
 TERMS AND CONDITIONS OFFERED BY A BONA FIDE PURCHASER AS APPROVED BY THE
 DIVISION.
   16.  "TENANT" SHALL MEAN A LAWFUL OCCUPANT WHO RESIDES WITHIN A DWELL-
 ING UNIT WITHIN SUCH ASSISTED RENTAL HOUSING PURSUANT TO LAW OR A  LEASE
 RECOGNIZED  BY  EITHER  THE  OWNER  OF SUCH ASSISTED RENTAL HOUSING, THE
 DIVISION OR A COURT OF COMPETENT JURISDICTION.
   17. "TENANT ASSOCIATION" SHALL MEAN AN ASSOCIATION,  WHETHER  INCORPO-
 RATED  OR NOT, FOR WHICH WRITTEN CONSENT TO FORMING A TENANT ASSOCIATION
 HAS BEEN GIVEN BY TENANTS REPRESENTING AT LEAST  SIXTY  PERCENT  OF  THE
 OCCUPIED  DWELLING  UNITS  WITHIN  THE SAME ASSISTED RENTAL HOUSING, AND
 WHICH ASSOCIATION NOTIFIES OR HAS NOTIFIED THE  OWNER  OF  THE  ASSISTED
 RENTAL  HOUSING  AND  THE DIVISION OF ITS EXISTENCE OR ESTABLISHMENT AND
 HAS PROVIDED TO SUCH OWNER AND THE DIVISION THE NAMES AND  ADDRESSES  OF
 AT  LEAST  TWO  OF  THE OFFICERS OR REPRESENTATIVES OF SUCH ASSOCIATION.
 WHERE MORE THAN ONE GROUP OF TENANTS IN THE SAME ASSISTED RENTAL HOUSING
 CLAIMS TO BE THE TENANT ASSOCIATION FOR SUCH  ASSISTED  RENTAL  HOUSING,
 THE  DIVISION SHALL DETERMINE WHICH GROUP, IF ANY, IS THE TENANT ASSOCI-
 ATION FOR THE PURPOSES OF THIS ARTICLE IN THE SAME MANNER AS  THE  DIVI-
 SION  CERTIFIES  A TENANT ASSOCIATION FOR THE PURPOSES OF ARTICLE TWO OF
 THIS CHAPTER.
   § 38-A. NOTIFICATION OF  IMPENDING  CONVERSION.  1.  NOTICE  SHALL  BE
 PROVIDED BY THE OWNER TO THE TENANT ASSOCIATION, OR IF NO TENANT ASSOCI-
 ATION  EXISTS,  TO  EACH TENANT, AND TO THE DIVISION OF THE INTENTION OF
 S. 107                              4
 
 THE OWNER TO TAKE ANY ACTION THAT WILL RESULT IN THE CONVERSION  OF  THE
 ASSISTED RENTAL HOUSING.
   2.  SUCH  NOTICE SHALL BE PROVIDED NO LESS THAN TWELVE MONTHS PRIOR TO
 THE TAKING OF SUCH ACTION BY THE OWNER. SUCH NOTICE  SHALL  INCLUDE  THE
 FOLLOWING INFORMATION:
   (A) THE NAME AND ADDRESS OF EACH OWNER OF THE ASSISTED RENTAL HOUSING.
 FOR  ANY OWNER THAT IS A CORPORATION, THE NOTICE SHALL CONTAIN THE NAMES
 AND ADDRESSES OF THE OFFICERS AND DIRECTORS OF THE  CORPORATION  AND  OF
 ANY  PERSON  DIRECTLY OR INDIRECTLY HOLDING MORE THAN TEN PERCENT OF ANY
 CLASS OF THE OUTSTANDING STOCK OF THE CORPORATION. FOR ANY OWNER THAT IS
 A PARTNERSHIP OR JOINT VENTURE, THE NOTICE SHALL CONTAIN  THE  NAME  AND
 ADDRESS  OF  EACH  INDIVIDUAL WHO IS A PRINCIPAL OR EXERCISES CONTROL OF
 SUCH ENTITIES;
   (B) THE ADDRESS AND/OR ADDRESSES AND THE  NAME  AND/OR  NAMES  OF  THE
 ASSISTED RENTAL HOUSING AND THE TYPE OF PROGRAM OR PROGRAMS TO WHICH THE
 ASSISTED RENTAL HOUSING IS SUBJECT;
   (C)  THE NATURE OF THE ACTION THAT THE OWNER INTENDS TO TAKE THAT WILL
 RESULT IN A CONVERSION;
   (D) THE DATE ON WHICH SUCH  ACTION  RESULTING  IN  THE  CONVERSION  IS
 ANTICIPATED TO TAKE PLACE;
   (E)  THE  PROVISION  OF LAW, RULE OR REGULATION PURSUANT TO WHICH SUCH
 ACTION IS AUTHORIZED;
   (F) THE TOTAL NUMBER AND TYPE OF DWELLING UNITS SUBJECT TO  A  CONVER-
 SION;
   (G)  THE  CURRENT  RENT  SCHEDULE FOR THE DWELLING UNITS ALONG WITH AN
 ESTIMATION OF THE RENT INCREASES ANTICIPATED UPON CONVERSION;
   (H) THE INCOME AND EXPENSE REPORT FOR THE TWELVE-MONTH PERIOD PRIOR TO
 THE NOTICE INCLUDING CAPITAL IMPROVEMENTS, REAL PROPERTY TAXES AND OTHER
 MUNICIPAL CHARGES;
   (I) THE AMOUNT OF THE OUTSTANDING MORTGAGE  AS  OF  THE  DATE  OF  THE
 NOTICE;
   (J)  THE  TWO  MOST  RECENT  INSPECTION  REPORTS  FROM THE REAL ESTATE
 ASSESSMENT CENTER OF THE UNITED STATES DEPARTMENT OF HOUSING  AND  URBAN
 DEVELOPMENT, FOR THE ASSISTED RENTAL HOUSING OR GROUP OF MULTIPLE DWELL-
 ING  UNITS  OPERATED  TOGETHER  UNDER  THE SAME OWNERSHIP FOR WHICH SUCH
 INSPECTION REPORTS ARE REQUIRED, OR, THE REPORTS OF THE TWO MOST  RECENT
 COMPREHENSIVE  BUILDING-WIDE  INSPECTION  REPORTS  THAT  MAY  HAVE  BEEN
 CONDUCTED BY THE DIVISION;
   (K) A STATEMENT OF NOTICE IN A MANNER APPROVED BY THE  DIVISION  WHICH
 ADVISES  A  TENANT  ASSOCIATION,  OR  IF  NO  TENANT ASSOCIATION EXISTS,
 ADVISES EACH TENANT, OF THE FIRST OPPORTUNITY TO PURCHASE AS REQUIRED BY
 SECTION THIRTY-EIGHT-E OF  THIS  ARTICLE,  OR  OF  THE  RIGHT  OF  FIRST
 REFUSAL, AS REQUIRED BY SECTION THIRTY-EIGHT-D OF THIS ARTICLE; AND
   (L) SUCH OTHER INFORMATION THE DIVISION MAY REQUIRE.
   3.  DURING THE TWELVE-MONTH NOTIFICATION PERIOD PROVIDED FOR IN SUBDI-
 VISION TWO OF THIS SECTION THE OWNER MAY NOT SELL OR  CONTRACT  TO  SELL
 THE  ASSISTED  RENTAL  HOUSING,  BUT MAY ENGAGE IN SUCH DISCUSSIONS WITH
 OTHER INTERESTED PARTIES.
   4. NOTICE SHALL NOT BE REQUIRED OF AN OWNER WHO  INTENDS  TO  MAINTAIN
 THE PROPERTY AS ASSISTED RENTAL HOUSING OR INTENDS TO TRANSFER, LEASE OR
 REFINANCE  A  MORTGAGE  IN  ORDER  TO  MAINTAIN THE PROPERTY AS ASSISTED
 RENTAL HOUSING.
   5. WHERE AN OWNER DECIDES NOT TO CONVERT THE ASSISTED  RENTAL  HOUSING
 PROGRAM,  SUCH OWNER MAY WITHDRAW THE NOTICE OF INTENTION TO CONVERT THE
 ASSISTED RENTAL HOUSING PROGRAM, SUBJECT TO THE TERMS  OF  ANY  ACCEPTED
 OFFER TO PURCHASE OR EXECUTED PURCHASE AND SALE AGREEMENT, AND TO EXIST-
 S. 107                              5
 
 ING  STATUTORY  AND  COMMON LAW REMEDIES. IN SUCH EVENT, THE OWNER SHALL
 GIVE NOTICE TO THE TENANT  ASSOCIATION,  OR  IF  NO  TENANT  ASSOCIATION
 EXISTS,  TO EACH TENANT, OR IF APPLICABLE, TO A QUALIFIED ENTITY, AND TO
 THE  DIVISION.  HOWEVER,  SHOULD THE OWNER AT ANY TIME DECIDE TO TAKE AN
 ACTION THAT WILL RESULT IN CONVERSION, THE TWELVE-MONTH NOTICE PERIOD OF
 THIS SECTION AS WELL AS ALL OTHER APPLICABLE REQUIREMENTS OF THIS  ARTI-
 CLE SHALL BE COMPLIED WITH.
   6. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, IF ANY APPLI-
 CABLE  SUPERVENING  STATUTE OR PROGRAM HAS A NOTICE REQUIREMENT SUBSTAN-
 TIALLY SIMILAR TO ANY NOTICE  REQUIREMENT  OF  THIS  SECTION,  THEN  THE
 NOTICE  REQUIREMENT  UNDER THIS SECTION SHALL BE THAT OF THE SUPERVENING
 STATUTE OR PROGRAM.
   7. NOTWITHSTANDING ANY  OTHER  PROVISIONS  OF  THIS  SECTION,  IF  THE
 NOTICES  REQUIRED  BY  THIS  SECTION  REQUIRE  MORE  INFORMATION THAN IS
 REQUIRED BY ANY APPLICABLE SUPERVENING CITY, STATE OR FEDERAL STATUTE OR
 PROGRAM, THEN SUCH ADDITIONAL INFORMATION SHALL BE PROVIDED  WITHIN  THE
 TIME PERIOD ESTABLISHED BY THE SUPERVENING STATUTE OR PROGRAM.
   §  38-B.  NOTIFICATION OF BONA FIDE OFFER TO PURCHASE. 1. IF THE OWNER
 RECEIVES A BONA FIDE OFFER TO  PURCHASE  AND  INTENDS  TO  CONSIDER,  OR
 RESPOND  TO  SUCH  BONA  FIDE  OFFER  TO  PURCHASE, THEN NOTICE SHALL BE
 PROVIDED BY THE OWNER TO A TENANT ASSOCIATION, OR IF NO  TENANT  ASSOCI-
 ATION  EXISTS, TO EACH TENANT, OR IF APPLICABLE, A QUALIFIED ENTITY, AND
 THE DIVISION, NO MORE THAN FIFTEEN DAYS FROM THE  DATE  THAT  SUCH  BONA
 FIDE  OFFER  TO  PURCHASE  IS  DELIVERED TO THE OWNER. SUCH NOTICE SHALL
 CONTAIN THE FOLLOWING INFORMATION:
   (A) THE NAME AND ADDRESS OF THE PROPOSED BONA FIDE PURCHASER; AND
   (B) THE PRICE AND TERMS AND CONDITIONS OF THE OFFER.
   2. THE OWNER SHALL NOT BE REQUIRED TO  PROVIDE  NOTICE  IN  ACCORDANCE
 WITH  SUBDIVISION  ONE OF THIS SECTION IF THE BONA FIDE PURCHASER MAKING
 THE OFFER AGREES TO MAINTAIN THE ASSISTED RENTAL HOUSING AS  AFFORDABLE.
 THE  BONA  FIDE PURCHASER SHALL BE REQUIRED TO INFORM THE DIVISION AS TO
 HOW SUCH BONA FIDE PURCHASER INTENDS TO KEEP THE ASSISTED RENTAL HOUSING
 AS AFFORDABLE.
   § 38-C. APPRAISAL DETERMINATION. 1.  THE  DIVISION  SHALL  CONVENE  AN
 ADVISORY PANEL, WHICH ADVISORY PANEL SHALL DETERMINE THE APPRAISED VALUE
 OF  THE  ASSISTED  RENTAL HOUSING WITHIN THIRTY DAYS OF A TENANT ASSOCI-
 ATION'S, OR IF APPLICABLE, A QUALIFIED ENTITY'S NOTICE TO THE OWNER  AND
 THE  DIVISION  PURSUANT  TO SUBDIVISION ONE OF SECTION THIRTY-EIGHT-D OR
 SUBDIVISION ONE OF SECTION THIRTY-EIGHT-E OF THIS ARTICLE.
   2. THE ADVISORY PANEL SHALL CONSIST OF ONE APPRAISER SELECTED  BY  THE
 OWNER,  ONE APPRAISER SELECTED BY THE TENANT ASSOCIATION, OR IF APPLICA-
 BLE, A QUALIFIED ENTITY, AND ONE APPRAISER  TO  BE  SELECTED  EITHER  BY
 MUTUAL  AGREEMENT  BETWEEN  THE  OWNER  AND THE TENANT ASSOCIATION OR IF
 APPLICABLE, A QUALIFIED ENTITY,  OR  BY  MUTUAL  AGREEMENT  BETWEEN  THE
 APPRAISER  THAT  WAS SELECTED BY THE OWNER AND THE APPRAISER SELECTED BY
 THE TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED  ENTITY,  IF  SUCH
 CONDITION IS DEEMED ACCEPTABLE TO THE OWNER AND THE TENANTS ASSOCIATION,
 OR  IF  APPLICABLE,  A  QUALIFIED ENTITY, AND IS AGREED UPON IN WRITING,
 EXCEPT THAT IN THE CASE OF WHERE THERE IS NO AGREEMENT BETWEEN THE OWNER
 AND THE TENANT ASSOCIATION, OR IF APPLICABLE,  A  QUALIFIED  ENTITY,  OR
 BETWEEN  THE  APPRAISER THAT WAS SELECTED BY THE OWNER AND THE APPRAISER
 SELECTED BY THE TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED  ENTI-
 TY,  THEN  THE  APPRAISER WILL BE SELECTED BY THE DIVISION. THE COST FOR
 THE APPRAISER SHALL BE BORNE BY  THE  PARTY  RESPONSIBLE  FOR  PROVIDING
 SUCH  APPRAISER.  HOWEVER,  WHERE  THE  DIVISION  MUST  SELECT THE THIRD
 S. 107                              6
 
 APPRAISER, THE COST FOR SUCH APPRAISER SHALL BE  EQUALLY  BORNE  BY  THE
 OWNER AND THE TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY.
   3.  NOTICE  SHALL  BE  PROVIDED  BY  THE DIVISION TO THE OWNER AND THE
 TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY,  FIFTEEN  DAYS
 BEFORE  THE  INTENDED  DATE  THAT SUCH ADVISORY PANEL IS TO INITIATE THE
 PERFORMANCE OF THE APPRAISAL. IN THE  INSTANCE  WHEN  EITHER  THE  OWNER
 FAILS TO PROVIDE AN APPRAISER WITHIN FIFTEEN DAYS OF SUCH NOTICE OR WHEN
 THE  TENANT  ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY, FAILS TO
 PROVIDE AN APPRAISER WITHIN FIFTEEN DAYS OF SUCH NOTICE THEN  THE  DIVI-
 SION  SHALL  SELECT THE APPRAISER ON BEHALF OF THE PARTY OR PARTIES THAT
 FAILED TO SELECT AN APPRAISER. IN SUCH CIRCUMSTANCE, THE  COST  FOR  THE
 APPRAISER SELECTED BY THE DIVISION SHALL BE BORNE BY THE PARTY RESPONSI-
 BLE FOR PROVIDING THAT APPRAISER.
   4. THE DIVISION SHALL PROMULGATE RULES FOR THE TIMELY DETERMINATION OF
 THE  APPRAISED  VALUE  AND THAT SUCH RULES ARE TO BE CONSISTENT WITH THE
 NOTICE REQUIREMENTS MANDATED UNDER THIS CHAPTER. THE DIVISION SHALL MAKE
 SUCH APPRAISED VALUE PUBLICLY AVAILABLE WITHIN  FIFTEEN  DAYS  FROM  THE
 DATE OF SUCH ADVISORY PANEL'S DETERMINATION.
   5.  IN  THE INSTANCE WHERE THE OWNER AND THE TENANT ASSOCIATION, OR IF
 APPLICABLE, A QUALIFIED ENTITY, HAVE MUTUALLY AGREED UPON  AN  APPRAISED
 VALUE  FOR  THE  ASSISTED  RENTAL  HOUSING PRIOR TO THE CONVENING OF THE
 ADVISORY PANEL, THE OWNER AND THE TENANT ASSOCIATION, OR IF  APPLICABLE,
 A  QUALIFIED  ENTITY,  MAY IN WRITING APPLY TO THE DIVISION FOR A WAIVER
 FROM SUBDIVISIONS ONE THROUGH FOUR OF THIS SECTION. THE  DIVISION  SHALL
 MAKE  A  DETERMINATION UPON SUCH APPLICATION FOR A WAIVER WITHIN FIFTEEN
 DAYS FROM RECEIPT OF SUCH APPLICATION.
   § 38-D. RIGHT OF FIRST REFUSAL. 1. A TENANT ASSOCIATION, OR IF  APPLI-
 CABLE,  A  QUALIFIED  ENTITY, SHALL NOTIFY THE OWNER AND THE DIVISION IN
 WRITING OF ITS INTENT TO EXERCISE ITS  RIGHT  OF  FIRST  REFUSAL  WITHIN
 SIXTY DAYS FROM RECEIPT OF NOTICE FROM THE OWNER PURSUANT TO SUBDIVISION
 ONE OF SECTION THIRTY-EIGHT-A OF THIS ARTICLE.
   2.  THE  TENANT  ASSOCIATION,  OR  IF  APPLICABLE, A QUALIFIED ENTITY,
 FOLLOWING NOTICE BY THE OWNER IN  COMPLIANCE  WITH  SUBDIVISION  ONE  OF
 SECTION  THIRTY-EIGHT-A  OF  THIS ARTICLE, SHALL HAVE ONE HUNDRED TWENTY
 DAYS FROM THE DATE OF THE NOTICE OF THE DETERMINATION OF  THE  APPRAISED
 VALUE TO SUBMIT ITS OFFER TO PURCHASE.
   3.  THE  TENANT  ASSOCIATION,  OR  IF  APPLICABLE  A QUALIFIED ENTITY,
 FOLLOWING NOTICE BY THE OWNER IN  COMPLIANCE  WITH  SUBDIVISION  ONE  OF
 SECTION  THIRTY-EIGHT-B  OF  THIS ARTICLE, SHALL HAVE ONE HUNDRED TWENTY
 DAYS FROM THE DATE OF A BONA FIDE OFFER TO PURCHASE TO SUBMIT ITS  OFFER
 TO PURCHASE.
   4.  IF  THROUGH  NO FAULT OF A TENANT ASSOCIATION, OR IF APPLICABLE, A
 QUALIFIED ENTITY, OR THE OWNER, THE TIME PERIODS PROVIDED FOR IN  SUBDI-
 VISION  TWO OR THREE OF THIS SECTION NEED TO BE EXTENDED, THEN SUCH TIME
 PERIODS MAY BE EXTENDED BY THE DIVISION. SHOULD  SUCH  TIME  PERIODS  BE
 EXTENDED  PAST  THE  NOTICE  PERIOD  PROVIDED  FOR IN SUBDIVISION ONE OF
 SECTION THIRTY-EIGHT-A OF THIS  ARTICLE,  THEN  THE  PROVISIONS  OF  THE
 APPLICABLE  ASSISTED  RENTAL  HOUSING PROGRAM SHALL REMAIN IN FULL FORCE
 AND EFFECT TO THE EXTENT PERMITTED BY LAW.
   5. UNLESS THE OWNER AND A TENANT  ASSOCIATION,  OR  IF  APPLICABLE,  A
 QUALIFIED  ENTITY, OTHERWISE AGREE TO PURCHASE THE ASSISTED RENTAL HOUS-
 ING BELOW ITS APPRAISED VALUE, THE OWNER SHALL SELL SUCH ASSISTED RENTAL
 HOUSING AT THE APPRAISED VALUE OR AT THE PRICE CONTAINED IN A BONA  FIDE
 OFFER TO PURCHASE PRICE AS APPROVED BY THE DIVISION.
   6.  THE  DIVISION  SHALL PROMULGATE RULES FOR THE TIMELY COMPLETION OF
 ALL LENDING PROGRAM APPLICATIONS, CREDIT REVIEWS AND LOAN CLOSINGS.
 S. 107                              7

   7. IF A TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY, DOES
 NOT SUBMIT ITS OFFER IN WRITING TO THE OWNER AND THE DIVISION WITHIN THE
 TIME PERIODS STATED IN SUBDIVISION TWO OR THREE OF THIS SECTION  FOLLOW-
 ING  NOTICE  BY  THE OWNER IN COMPLIANCE WITH SUBDIVISION ONE OF SECTION
 THIRTY-EIGHT-A  OF  THIS  ARTICLE, THEN SUCH RIGHT WILL BE DEEMED WAIVED
 AND THE OWNER SHALL HAVE NO  FURTHER  OBLIGATIONS  UNDER  THIS  SECTION.
 HOWEVER, WHERE A TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTI-
 TY, HAS PREVIOUSLY SUBMITTED A NOTICE IN ACCORDANCE WITH SUBDIVISION ONE
 OF THIS SECTION DECIDES NOT TO EXERCISE SUCH RIGHT, IT MAY WITHDRAW SUCH
 NOTICE  BY  GIVING WRITTEN NOTICE TO THAT EFFECT TO THE OWNER AND TO THE
 DIVISION.
   § 38-E. FIRST OPPORTUNITY TO PURCHASE. 1. A TENANT ASSOCIATION, OR  IF
 APPLICABLE,  A QUALIFIED ENTITY, SHALL NOTIFY THE OWNER AND THE DIVISION
 IN WRITING OF ITS INTENT TO EXERCISE ITS RIGHT OF FIRST  OPPORTUNITY  TO
 PURCHASE  WITHIN SIXTY DAYS FROM RECEIPT OF NOTICE FROM THE OWNER PURSU-
 ANT TO SUBDIVISION ONE OF SECTION THIRTY-EIGHT-A OF THIS ARTICLE.
   2. THE TENANT ASSOCIATION,  OR  IF  APPLICABLE,  A  QUALIFIED  ENTITY,
 FOLLOWING  NOTICE  BY  THE  OWNER  IN COMPLIANCE WITH SUBDIVISION ONE OF
 SECTION THIRTY-EIGHT-A OF THIS ARTICLE, SHALL HAVE  ONE  HUNDRED  TWENTY
 DAYS  FROM  THE DATE OF THE NOTICE OF THE DETERMINATION OF THE APPRAISED
 VALUE TO SUBMIT ITS OFFER TO PURCHASE.
   3. IF THROUGH NO FAULT OF A TENANT ASSOCIATION, OR  IF  APPLICABLE,  A
 QUALIFIED ENTITY, OR THE OWNER, THE TIME PERIOD PROVIDED FOR IN SUBDIVI-
 SION TWO OF THIS SECTION NEEDS TO BE EXTENDED, THEN SUCH TIME PERIOD MAY
 BE  EXTENDED  BY  THE DIVISION. SHOULD SUCH TIME PERIOD BE EXTENDED PAST
 THE NOTICE PERIOD PROVIDED FOR IN SUBDIVISION  ONE  OF  SECTION  THIRTY-
 EIGHT-A  OF THIS ARTICLE, THEN THE PROVISIONS OF THE APPLICABLE ASSISTED
 RENTAL HOUSING PROGRAM SHALL REMAIN IN FULL  FORCE  AND  EFFECT  TO  THE
 EXTENT PERMITTED BY LAW.
   4.  EXCEPT WHERE THE OWNER AND A TENANT ASSOCIATION, OR IF APPLICABLE,
 A QUALIFIED ENTITY, AGREE TO A PURCHASE PRICE  OF  THE  ASSISTED  RENTAL
 HOUSING  AT AN AMOUNT BELOW THE APPRAISED VALUE, ANY OFFER MADE PURSUANT
 TO THIS SECTION SHALL BE ACCEPTED BY THE OWNER.
   5. IF A TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTITY, DOES
 NOT SUBMIT ITS OFFER IN WRITING TO THE OWNER AND THE DIVISION WITHIN THE
 TIME PERIODS STATED IN SUBDIVISION TWO OF THIS SECTION FOLLOWING  NOTICE
 BY   THE   OWNER   IN   COMPLIANCE   WITH  SUBDIVISION  ONE  OF  SECTION
 THIRTY-EIGHT-A OF THIS ARTICLE, THEN SUCH RIGHT WILL  BE  DEEMED  WAIVED
 AND  THE  OWNER  SHALL  HAVE  NO FURTHER OBLIGATIONS UNDER THIS SECTION.
 HOWEVER, WHERE A TENANT ASSOCIATION, OR IF APPLICABLE, A QUALIFIED ENTI-
 TY, HAS PREVIOUSLY SUBMITTED A NOTICE IN ACCORDANCE WITH SUBDIVISION ONE
 OF THIS SECTION DECIDES NOT TO EXERCISE SUCH RIGHT, IT MAY WITHDRAW SUCH
 NOTICE BY GIVING WRITTEN NOTICE TO THAT EFFECT TO THE OWNER AND  TO  THE
 DIVISION.
   §  38-F.  PRIOR  NOTIFICATION.  NOTWITHSTANDING ANY OTHER PROVISION OF
 THIS ARTICLE, WHERE AN OWNER HAS GIVEN NOTICE  PRIOR  TO  THE  EFFECTIVE
 DATE  OF  THIS  ARTICLE  AND  THE INTENT OF SUCH NOTICE IS TO INITIATE A
 PROCEDURE TO WITHDRAW THE ASSISTED RENTAL HOUSING  FROM  A  PROGRAM  SET
 FORTH  IN SUBDIVISION THREE OF SECTION THIRTY-EIGHT OF THIS ARTICLE, AND
 SUCH NOTICE WAS PROPERLY GIVEN IN ACCORDANCE WITH ANY  OTHER  APPLICABLE
 PROVISION OF LAW AND MORE THAN FORTY-FIVE DAYS REMAIN PRIOR TO THE EXPI-
 RATION  OF  THE  TIME PERIOD APPLICABLE TO SUCH NOTICE, A TENANT ASSOCI-
 ATION, OR IF APPLICABLE, A QUALIFIED ENTITY,  MAY  COMPLETE  ANY  ACTION
 AUTHORIZED BY SECTIONS THIRTY-EIGHT-C, THIRTY-EIGHT-D AND THIRTY-EIGHT-E
 OF THIS ARTICLE AT ANY TIME PRIOR TO THE EXPIRATION OF SUCH TIME PERIOD.
 S. 107                              8
 
   §  38-G. LONG TERM AFFORDABILITY. A TENANT ASSOCIATION, OR IF APPLICA-
 BLE, A QUALIFIED ENTITY, INCLUDING ALL  SUCCESSORS  IN  INTEREST,  WHICH
 CHOOSES TO EXERCISE THE RIGHTS PROVIDED FOR IN SECTION THIRTY-EIGHT-D OR
 SECTION THIRTY-EIGHT-E OF THIS ARTICLE WILL BE OBLIGATED TO MAINTAIN THE
 ASSISTED RENTAL HOUSING AS AFFORDABLE.
   § 38-H. RIGHT OF TRANSFER. 1. DURING THE NOTICE PERIOD PROVIDED FOR IN
 SECTION  THIRTY-EIGHT-A OF THIS ARTICLE, THE TENANTS, BY WRITTEN CONSENT
 OF THE TENANTS RESIDING IN AT LEAST SIXTY PERCENT OF THE OCCUPIED DWELL-
 ING UNITS WITHIN THE SAME ASSISTED  RENTAL  HOUSING,  MAY  TRANSFER  THE
 RIGHTS  ESTABLISHED BY SECTION THIRTY-EIGHT-D AND SECTION THIRTY-EIGHT-E
 OF THIS ARTICLE TO A QUALIFIED ENTITY.
   2. NOTICE OF SUCH TRANSFER SHALL BE PROVIDED  TO  THE  OWNER  AND  THE
 DIVISION  IN  WRITING  WITHIN SIXTY DAYS FROM RECEIPT OF NOTICE FROM THE
 OWNER PURSUANT TO SECTION THIRTY-EIGHT-A OF THIS ARTICLE.
   § 38-I. CONVERSION OF  PROPERTY.  NOTWITHSTANDING  THE  PROVISIONS  OF
 SECTION  THIRTY-EIGHT-D AND SECTION THIRTY-EIGHT-E OF THIS ARTICLE, WHEN
 A CONVERSION OCCURS, AN OWNER OR BONA FIDE  PURCHASER  SHALL  ALLOW  THE
 CURRENT  TENANT  OR TENANTS TO REMAIN IN THEIR RESPECTIVE DWELLING UNITS
 FOR THE LONGER OF SIX MONTHS FROM THE EFFECTIVE DATE OF  THE  CONVERSION
 OR  UNTIL  THE  TENANT'S LEASE EXPIRES, AND AT THE SAME TERMS AND CONDI-
 TIONS AS BEFORE SUCH CONVERSION. SUCH OWNER OR PURCHASER MAY,  WITH  THE
 AGREEMENT  OF  THE TENANT OR TENANTS, RELOCATE SUCH TENANT OR TENANTS TO
 COMPARABLE UNITS WITH COMPARABLE RENTS IN ACCORDANCE WITH PROCEDURES  TO
 BE  ESTABLISHED  BY  THE RULES OF THE DIVISION.  NOTHING IN THIS SECTION
 SHALL BE DEEMED TO LIMIT, RESTRICT OR MODIFY THE  RIGHTS  OF  A  CURRENT
 TENANT  OR  TENANTS  PURSUANT  TO THE EMERGENCY TENANT PROTECTION ACT OF
 NINETEEN SEVENTY-FOUR, THE EMERGENCY HOUSING RENT CONTROL LAW, THE  CITY
 RENT  AND  REHABILITATION  LAW OR THE RENT STABILIZATION LAW OF NINETEEN
 HUNDRED SIXTY-NINE.
   § 38-J. PENALTY. AN OWNER FOUND TO HAVE VIOLATED ANY PROVISION OF THIS
 ARTICLE SHALL, IN  ADDITION  TO  ANY  OTHER  MONETARY  AND/OR  EQUITABLE
 DAMAGES FOR WHICH THE OWNER MAY BE LIABLE, BE LIABLE FOR A CIVIL PENALTY
 OF  FIVE  THOUSAND  DOLLARS  PER MONTH PER DWELLING UNIT IN THE ASSISTED
 RENTAL HOUSING, AND SHALL ALSO PAY TO A TENANT  ASSOCIATION,  OR  IF  NO
 TENANT  ASSOCIATION  EXISTS,  EACH TENANT, OR IF APPLICABLE, A QUALIFIED
 ENTITY, FEES AND COSTS INCURRED IN BRINGING AN  ENFORCEMENT  PROCEEDING.
 THE  TOTAL  CIVIL  PENALTIES MAY NOT EXCEED ONE HUNDRED THOUSAND DOLLARS
 PER DWELLING UNIT. NOTHING IN  THIS  SECTION  SHALL  BE  INTERPRETED  AS
 PROHIBITING  THE TENANT ASSOCIATION, OR IF NO TENANT ASSOCIATION EXISTS,
 THE TENANTS, OR IF APPLICABLE, A QUALIFIED ENTITY, FROM SEEKING  INJUNC-
 TIVE  RELIEF  AGAINST  A  NON-COMPLIANT  OWNER. SUCH PROCEEDING SHALL BE
 BROUGHT IN A COURT OF COMPETENT JURISDICTION.
   § 38-K. EXCLUSIONS. 1. NOTHING IN THIS ARTICLE SHALL AFFECT ANY EXIST-
 ING AGREEMENT BETWEEN A TENANT ASSOCIATION AND AN  OWNER  REGARDING  THE
 MANAGEMENT  AND OPERATION OF THE ASSISTED RENTAL HOUSING OR THE TRANSFER
 OF THE ASSISTED RENTAL HOUSING TO A TENANT ASSOCIATION OR SIMILAR ORGAN-
 IZATION IN EFFECT ON THE EFFECTIVE DATE OF THIS ARTICLE, EXCEPT THAT ANY
 RENEWAL, MODIFICATION OR AMENDMENT OF SUCH  AGREEMENT  OCCURRING  ON  OR
 AFTER  THE  EFFECTIVE  DATE  OF  THIS  ARTICLE  SHALL  BE SUBJECT TO THE
 PROVISIONS OF THIS ARTICLE.
   2. NOTHING IN THIS ARTICLE SHALL AFFECT ANY EXISTING AGREEMENT BETWEEN
 AN OWNER AND ONE OR MORE GOVERNMENTAL ENTITIES RELATING TO  THE  MANAGE-
 MENT  AND OPERATION OF A MULTIPLE DWELLING THAT IS NOT OTHERWISE SUBJECT
 TO THIS CHAPTER OR TO FEDERAL LAW.
 S. 107                              9
 
   3. NOTHING IN THIS ARTICLE SHALL AFFECT  AN  OWNER  OR  PURCHASER  WHO
 WANTS  TO  REFINANCE  IN  ORDER TO MAINTAIN PARTICIPATION IN AN ASSISTED
 RENTAL HOUSING PROGRAM.
   4.  THE  PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO A PURCHASE BY A
 GOVERNMENTAL ENTITY IMPLEMENTING ITS POWERS OF EMINENT DOMAIN;  A  JUDI-
 CIALLY   SUPERVISED   SALE  OR  TRANSFER  OF  PROPERTY;  ANY  BANKRUPTCY
 PROCEEDINGS; OR OPERATION OF LAW.
   5. THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY WHERE  A  NOTICE  AS
 DESCRIBED  IN  SECTION THIRTY-EIGHT-F OF THIS ARTICLE WAS PROPERLY GIVEN
 IN ACCORDANCE WITH ANY OTHER APPLICABLE PROVISION OF LAW AND  FORTY-FIVE
 OR  FEWER  DAYS REMAIN PRIOR TO THE EXPIRATION OF SUCH APPLICABLE NOTICE
 PERIOD.
   6. THE PROVISIONS OF THIS ARTICLE SHALL PREVAIL,  NOTWITHSTANDING  ANY
 CONTRARY  PROVISIONS  OF THIS CHAPTER, THE EMINENT DOMAIN PROCEDURE LAW,
 OR ANY OTHER LAW.
   § 38-L. JUDICIAL REVIEW. ANY PERSON AGGRIEVED BY AN APPRAISAL DETERMI-
 NATION MADE PURSUANT TO SECTION THIRTY-EIGHT-C OF THIS  ARTICLE,  OR  BY
 THE  FAILURE  OF  THE DIVISION TO APPROVE A BONA FIDE OFFER TO PURCHASE,
 MAY, WITHIN THIRTY DAYS OF THE APPRAISAL DETERMINATION OR ACTION BY  THE
 DIVISION,  SEEK JUDICIAL REVIEW PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE
 CIVIL PRACTICE LAW AND RULES IN THE SUPREME  COURT  FOR  THE  COUNTY  IN
 WHICH  THE ASSISTED RENTAL HOUSING IS LOCATED. IN THE EVENT THAT A COURT
 MAY FIND THAT THE APPRAISAL OR ACTION BY THE  DIVISION  CONSTITUTES  THE
 EQUIVALENT  OF  A  TAKING  WITHOUT  JUST  COMPENSATION,  THE COURT SHALL
 REQUIRE THAT A NEW APPRAISAL OR DETERMINATION BE MADE. THE TIME  PERIODS
 SET  FORTH IN THIS ARTICLE SHALL BE TOLLED DURING THE PENDENCY OF SUCH A
 PROCEEDING AND UNTIL A NEW APPRAISAL OR  DETERMINATION,  IF  NEEDED,  IS
 MADE.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.