S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1354
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2025
                                ___________
 
 Introduced  by Sens. CLEARE, GOUNARDES, HOYLMAN-SIGAL, JACKSON, KRUEGER,
   MYRIE -- 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 and the real property  law,  in
   relation  to  providing  expanded homeownership opportunities from the
   conversion of certain  residential  rental  buildings  to  condominium
   status by property owners that commit to the stewardship of permanent-
   ly  affordable units and the preservation of expiring affordable hous-
   ing inventory in the city of New York; and providing for the repeal of
   such provisions upon expiration thereof
 
   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 THEIR PURCHASE DECISION
 AND  THAT THE PRESERVATION PLAN IS OTHERWISE COMPLETE, CURRENT AND ACCU-
 RATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04052-01-5
              

 S. 1354                             2
 
   (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 THEIR OR ITS EXERCISE OF ONE OF THE RIGHTS ACCORDED  TO
 TENANTS IN OCCUPANCY IN SUBDIVISION FIVE OF THIS SECTION, OR (II) A BONA
 FIDE NON-TENANT PURCHASER.
   (C) "BONA FIDE NON-TENANT PURCHASER". A BONA FIDE NON-TENANT PURCHASER
 IS  A  PURCHASER  OF  A DWELLING UNIT WHO HAS REPRESENTED THAT THEY OR A
 MEMBER OR MEMBERS OF THEIR IMMEDIATE FAMILY INTEND TO OCCUPY THE  DWELL-
 ING 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.
 S. 1354                             3
 
   (H)  "ELIGIBLE PROJECT". AN ELIGIBLE PROJECT SHALL REFER TO A BUILDING
 OR GROUP OF BUILDINGS OR DEVELOPMENT WITH ONE HUNDRED OR  MORE  DWELLING
 UNITS  BUILT  AFTER NINETEEN HUNDRED NINETY-SIX THAT IS THE SUBJECT OF A
 PRESERVATION PLAN UNDER THIS SECTION, WHICH SHALL MEET THE CRITERIA  SET
 FORTH  IN  SUBDIVISION THREE OF THIS SECTION.  AN ELIGIBLE PROJECT SHALL
 NOT INCLUDE ANY BUILDING OR GROUP  OF  BUILDINGS  OR  DEVELOPMENT  OWNED
 UNDER  ARTICLE TWO, FOUR OR FIVE OF THE PRIVATE HOUSING FINANCE LAW. FOR
 THE AVOIDANCE OF DOUBT, NO BUILDING, GROUP OF BUILDINGS  OR  DEVELOPMENT
 OTHER  THAN  AN ELIGIBLE PROJECT MAY CONVERT TO CONDOMINIUM STATUS UNDER
 THIS SECTION, THE STATUS OF WHICH SHALL BE  CONFIRMED  BY  THE  RELEVANT
 HOUSING  FINANCE AGENCY PRIOR TO THE DATE OF SUBMISSION OF THE PRESERVA-
 TION PLAN.
   (I) "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 PRESERVATION PLAN FOR FILING, AND THE SPOUSES OF  ANY  SUCH
 TENANTS  ON  SUCH  DATE,  AND WHO HAVE ELECTED, WITHIN SIXTY DAYS OF THE
 DATE THE PRESERVATION 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.
   (J) "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  REGULATORY  AGREEMENT  WITH  THE
 RELEVANT HOUSING FINANCE AGENCY.
   (K)  "INCLUSIONARY  HOUSING  UNIT". AN INCLUSIONARY HOUSING UNIT IS AN
 INCOME-RESTRICTED RENTAL UNIT THAT IS LOCATED  WITHIN  A  BUILDING  THAT
 RECEIVED  AN  INCREASE  IN  THE MAXIMUM PERMITTED FLOOR AREA PURSUANT TO
 SECTIONS 23-154 AND 23-90 OF THE ZONING RESOLUTION OR IS  LOCATED  IN  A
 MANDATORY INCLUSIONARY HOUSING AREA.
   (L)  "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.
   (M)  "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  OF  AN  ELIGIBLE PROJECT 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
 S. 1354                             4
 
   (III)  PREVIOUSLY  MET THE DEFINITION OF "LOW-INCOME UNIT" PURSUANT TO
 SUBPARAGRAPH (I) OR (II) OF  THIS  PARAGRAPH,  AND  NOTWITHSTANDING  THE
 EXPIRATION  OF  A  REGULATORY  AGREEMENT WITH A RELEVANT HOUSING 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 SUBDIVISION
 FIFTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE  REAL  PROPERTY  TAX
 LAW,  THE LOCAL HOUSING AGENCY SHALL HAVE REQUIRED TO BE A UNIT AFFORDA-
 BLE 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.
   (N) "MANDATORY INCLUSIONARY HOUSING AREA".  A  MANDATORY  INCLUSIONARY
 HOUSING  AREA  IS  A  SPECIFIED  AREA  IN WHICH THE INCLUSIONARY HOUSING
 PROGRAM IS APPLICABLE, PURSUANT TO THE REGULATIONS SET  FORTH  FOR  SUCH
 AREAS IN SECTION 23-90 OF THE ZONING RESOLUTION. THE LOCATIONS OF MANDA-
 TORY  INCLUSIONARY  HOUSING  AREAS ARE IDENTIFIED IN EITHER (I) APPENDIX
 "F" OF THE ZONING RESOLUTION OR (II) IN A SPECIAL  PURPOSE  DISTRICT  AS
 DESCRIBED IN SECTION 15-011 OF THE ZONING RESOLUTION.
   (O)  "NON-PURCHASING TENANT". A PERSON WHO HAS NOT PURCHASED UNDER THE
 PRESERVATION  PLAN  FROM  OFFEROR  AND  WHO  IS  A  TENANT  ENTITLED  TO
 POSSESSION  AT THE TIME THE PRESERVATION PLAN IS DECLARED EFFECTIVE OR A
 PERSON TO WHOM A DWELLING UNIT IS RENTED FROM OFFEROR AFTER THE  PRESER-
 VATION PLAN WAS DECLARED EFFECTIVE. 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-RES-
 TRICTED RENTAL UNIT AT THE TIME THE PRESERVATION PLAN IS DECLARED EFFEC-
 TIVE    IS   A   NON-PURCHASING   TENANT,   NOTWITHSTANDING   THAT   THE
 INCOME-RESTRICTED RENTAL UNITS ARE NOT OFFERED FOR SALE PURSUANT TO SUCH
 PRESERVATION PLAN.
   (P) "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.
   (Q) "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 OF AN  ELIGIBLE  PROJECT
 FROM  RENTAL  STATUS TO CONDOMINIUM OWNERSHIP, WHEREIN THE OFFEROR DOCU-
 MENTS THAT IT HAS AGREED TO  AN  EXTENDED  AFFORDABILITY  TERM  FOR  THE
 INCOME-RESTRICTED RENTAL UNITS WITH A RELEVANT HOUSING FINANCE AGENCY.
   (R)  "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.
   (S) "QUALIFIED OWNER". A QUALIFIED OWNER REFERS TO THE ENTITY APPROVED
 BY  THE  RELEVANT  HOUSING  FINANCE  AGENCY  ON  OR  BEFORE  THE DATE OF
 SUBMISSION OF A PRESERVATION PLAN TO THE DEPARTMENT  OF  LAW  THAT  WILL
 OWN,  OPERATE  AND  MAINTAIN  THE INCOME-RESTRICTED RENTAL UNIT OR UNITS
 THAT ARE IN THE BUILDING, GROUP OF BUILDINGS OR DEVELOPMENT THAT ARE THE
 SUBJECT OF THE PRESERVATION PLAN. THE ENTITY WHICH IS A QUALIFIED  OWNER
 S. 1354                             5
 
 SHALL  ONLY  BE  EITHER: (I) A HOUSING DEVELOPMENT FUND COMPANY INCORPO-
 RATED PURSUANT TO ARTICLE ELEVEN OF THE PRIVATE FINANCE HOUSING LAW;  OR
 (II)  A  COMMUNITY  LAND TRUST OR OTHER CHARITABLE CORPORATION ORGANIZED
 UNDER  THE NOT-FOR-PROFIT CORPORATION LAW THAT HAS AS ITS PRIMARY CHARI-
 TABLE PURPOSE THE OWNERSHIP, OPERATION AND  MAINTENANCE  OF  MULTIFAMILY
 HOUSING FOR PERSONS AND FAMILIES OF LOW INCOME AS DEFINED BY SUBDIVISION
 NINETEEN OF SECTION TWO OF THE PRIVATE FINANCE HOUSING LAW.
   (T) "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.
   (U) "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.
   (V) "RENT STABILIZATION". RENT STABILIZATION SHALL MEAN, COLLECTIVELY,
 THE  RENT  STABILIZATION LAW OF NINETEEN SIXTY-NINE, THE RENT STABILIZA-
 TION CODE, THE EMERGENCY TENANT PROTECTION ACT  OF    NINETEEN  SEVENTY-
 FOUR,  AND  THE HOUSING STABILITY AND TENANT PROTECTION ACT OF TWO THOU-
 SAND NINETEEN, TOGETHER WITH ANY OTHER SUCCESSOR STATUTES THERETO.
   (W)  "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.
   (X) "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  IF  THE  RELEVANT  HOUSING FINANCE AGENCY HAS NOT CONFIRMED
 THAT THE PRESERVATION PLAN IS FOR AN ELIGIBLE PROJECT,  WHICH  SHALL  BE
 DEFINED  AS  A  BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT THAT MEETS
 THE DEFINITION OF AN ELIGIBLE PROJECT AND ONE OR MORE OF  THE  FOLLOWING
 REQUIREMENTS AS OF THE DATE OF SUBMISSION OF THE PRESERVATION PLAN:
   (A)  THE  PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT THAT (I) RECEIVES A PARTIAL PROPERTY TAX EXEMPTION  PURSUANT
 TO  SUBDIVISION FIFTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL
 PROPERTY TAX LAW, (II)  CONTAINS  INCOME-RESTRICTED  RENTAL  UNITS,  AND
 (III)  IS NOT SUBJECT TO AN EXISTING REGULATORY AGREEMENT THAT PROHIBITS
 THE CONVERSION OF THE DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
   (B) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF  BUILDINGS  OR
 DEVELOPMENT THAT (I) RECEIVES LOW INCOME HOUSING TAX CREDITS PURSUANT TO
 SECTION  FORTY-TWO  OF  THE INTERNAL REVENUE CODE, (II) CONTAINS INCOME-
 RESTRICTED RENTAL UNITS, (III) IS NOT SUBJECT TO ANY AGREEMENT PROVIDING
 FOR A RIGHT OF FIRST REFUSAL WITH A  NOT-FOR-PROFIT  CORPORATION  UNLESS
 EVIDENCE  DEEMED SATISFACTORY TO THE DEPARTMENT OF LAW HAS BEEN PROVIDED
 THAT SUCH RIGHT OF FIRST REFUSAL HAS EITHER EXPIRED OR  THAT  SUCH  NOT-
 FOR-PROFIT  DECLINED  TO EXERCISE SUCH RIGHT, AND (IV) IS NOT SUBJECT TO
 AN EXISTING REGULATORY AGREEMENT THAT PROHIBITS THE  CONVERSION  OF  THE
 DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
 S. 1354                             6
 
   (C)  THE  PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT THAT (I) RECEIVES BOND FINANCING UNDER  SUBDIVISION  (D)  OF
 SECTION  ONE  HUNDRED  FORTY-TWO  OF  THE  INTERNAL  REVENUE  CODE, (II)
 CONTAINS INCOME-RESTRICTED RENTAL UNITS, AND (III) IS NOT SUBJECT TO  AN
 EXISTING  REGULATORY  AGREEMENT  THAT  PROHIBITS  THE  CONVERSION OF THE
 DWELLING UNITS TO CONDOMINIUM OWNERSHIP; OR
   (D) THE PRESERVATION PLAN IS FOR A BUILDING OR GROUP OF  BUILDINGS  OR
 DEVELOPMENT,  THAT  (I) CONTAINS ONE OR MORE INCLUSIONARY HOUSING UNITS,
 (II) IS NOT SUBJECT TO AN EXISTING REGULATORY AGREEMENT  THAT  PROHIBITS
 THE CONVERSION OF THE DWELLING UNITS TO CONDOMINIUM OWNERSHIP, AND (III)
 CONTAINS  A  REPRESENTATION  THAT AN AGREEMENT HAS BEEN REACHED WITH THE
 RELEVANT HOUSING FINANCE AGENCY TO INCREASE THE TOTAL NUMBER OF  INCOME-
 RESTRICTED  RENTAL UNITS IN THE BUILDING OR GROUP OF BUILDINGS OR DEVEL-
 OPMENT TO THIRTY  PERCENT  FOR  THE  EXTENDED  AFFORDABILITY  TERM  UPON
 CONSUMMATION OF THE PRESERVATION PLAN.
   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 DISCLOSURES
 IN THE PRESERVATION PLAN:
   (A) A LIST OF THE PROPOSED INCOME-RESTRICTED RENTAL UNITS;
   (B) THE PROPOSED  QUALIFIED  OWNER  OF  THE  INCOME-RESTRICTED  RENTAL
 UNITS,  WHICH  QUALIFIED OWNER SHALL TAKE TITLE TO THE INCOME-RESTRICTED
 RENTAL UNITS NO LATER THAN THREE HUNDRED SIXTY-FIVE DAYS FROM  THE  DATE
 OF CONSUMMATION OF THE PRESERVATION PLAN;
   (C)  THE OPERATING EXPENSES AND REVENUES APPLICABLE TO THE INCOME-RES-
 TRICTED RENTAL UNITS, WHICH SHALL BE REFLECTED IN THE UPDATED SCHEDULE A
 AND SCHEDULE B FOR THE FIRST YEAR OF OPERATION OF THE  CONDOMINIUM,  THE
 ALLOCATION OF COMMON INTERESTS, PROJECTED COMMON CHARGES, ESTIMATED REAL
 ESTATE  TAXES,  AND  RENTS  TO  BE COLLECTED FROM EACH INCOME-RESTRICTED
 RENTAL UNIT, AND THE ALLOCATION OF COMMON EXPENSES UNDER  SECTION  THREE
 HUNDRED  THIRTY-NINE-M  OF  THE  REAL  PROPERTY  LAW,  APPLICABLE TO THE
 INCOME-RESTRICTED RENTAL UNITS, WHICH SHALL BE  USED  TO  LIMIT  CERTAIN
 CONDOMINIUM EXPENSES ALLOCABLE TO THE INCOME-RESTRICTED RENTAL UNITS AND
 TO  COVER  ANY  SHORTFALL IN THE REVENUE FROM RENT TO COVER THE COSTS OF
 OPERATION OF THE INCOME-RESTRICTED RENTAL UNITS;
   (D) A DESCRIPTION OF ANY FINANCING ENCUMBERING  THE  INCOME-RESTRICTED
 RENTAL  UNITS,  AND  WHETHER A TAX EXEMPTION OR ABATEMENT IS IN PLACE TO
 REDUCE REAL ESTATE TAXES FOR THE INCOME-RESTRICTED RENTAL UNITS;
   (E) A DESCRIPTION OF ANY REGULATORY  AGREEMENT  OR  AGREEMENTS  TO  BE
 RECORDED AGAINST THE INCOME-RESTRICTED RENTAL UNITS AND THE TERM THEREOF
 AND  THE  RELEVANT  HOUSING  FINANCE AGENCY OR AGENCIES WITH SUPERVISORY
 OVERSIGHT;
   (F) A DESCRIPTION OF THE PROVISIONS OF THE DECLARATION AND BY-LAWS FOR
 THE CONDOMINIUM THAT PROVIDES  FOR  THE  SPECIAL  ALLOCATION  OF  COMMON
 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 QUALIFIED OWNER  OF  THE  INCOME-RESTRICTED  RENTAL
 UNITS ARE TO BE ADEQUATELY REPRESENTED;
   (H)  A DESCRIPTION OF THE BUILDING-WIDE AMENITIES AND A REPRESENTATION
 THAT THE DECLARATION AND BY-LAWS FOR THE CONDOMINIUM SHALL REQUIRE  THAT
 S. 1354                             7
 
 TENANTS OF THE INCOME-RESTRICTED RENTAL UNITS BE PROVIDED AN OPPORTUNITY
 TO  USE  COMMONLY ACCESSIBLE AMENITIES OF THE CONDOMINIUM AND NOT UNIQUE
 TO AN INDIVIDUAL UNIT, INCLUDING BUT  NOT  LIMITED  TO:  POOLS,  FITNESS
 CENTERS,  STORAGE  SPACES, PARKING, AND ROOFS OR GARDENS ACCESSIBLE ON A
 BUILDING-WIDE BASIS, AND  THAT  THE  TENANTS  OF  THE  INCOME-RESTRICTED
 RENTAL  UNITS  MAY ONLY BE CHARGED A NOMINAL AND REASONABLE FEE FOR SUCH
 USE, WHICH SHALL NOT BE TREATED AS RENT UNDER ANY RENTAL AGREEMENT;
   (I) 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;
   (J)  THAT THE REGULATORY AGREEMENT CONTAINS A PROVISION WHICH REQUIRES
 THAT ONCE A VACANCY OCCURS OF AN INCOME-RESTRICTED  RENTAL  UNIT,  AFTER
 CONSUMMATION OF THE PRESERVATION PLAN, THEN SAID UNIT MAY ONLY BE LEASED
 TO  LOW  INCOME  HOUSEHOLDS WHOSE ANNUAL HOUSEHOLD INCOME IS NOT GREATER
 THAN SIXTY PERCENT OF AREA MEDIAN INCOME AT  THE  TIME  OF  THE  INITIAL
 LEASE;
   (K) 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;
   (L) TO THE EXTENT NOT ALREADY SUBJECT THERETO  PRIOR  TO  THE  CONSUM-
 MATION  OF  THE  PRESERVATION PLAN, A REPRESENTATION BY OFFEROR THAT THE
 REGULATORY AGREEMENT SHALL REQUIRE ALL INCOME RESTRICTED RENTAL UNITS BE
 SUBJECT TO RENT STABILIZATION DURING THE  EXTENDED  AFFORDABILITY  TERM,
 AND  THAT  NO  INCOME-RESTRICTED  RENTAL  UNITS MAY 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
   (M)  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.
   4.  UPON SUBMISSION OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW,
 EACH TENANT IN THE BUILDING OR GROUP OF BUILDINGS OR  DEVELOPMENT  OF  A
 DWELLING  UNIT  BEING  OFFERED FOR SALE SHALL BE PROVIDED WITH A WRITTEN
 NOTICE STATING THAT SUCH PRESERVATION PLAN HAS  BEEN  SUBMITTED  TO  THE
 DEPARTMENT  OF  LAW.  WRITTEN  NOTICE  TO EACH TENANT IN OCCUPANCY SHALL
 CONTAIN OR BE ACCOMPANIED BY:
   (A) A COPY OF THE PRESERVATION PLAN;
   (B) A STATEMENT THAT TENANTS OF THE DWELLING UNITS BEING  OFFERED  FOR
 SALE  PURSUANT  TO  THE  PRESERVATION  PLAN OR THEIR REPRESENTATIVES MAY
 PHYSICALLY INSPECT THE PREMISES AT ANY TIME SUBSEQUENT TO THE SUBMISSION
 OF THE PRESERVATION PLAN TO THE DEPARTMENT OF LAW, DURING  NORMAL  BUSI-
 NESS  HOURS,  UPON WRITTEN REQUEST MADE BY THEM TO THE OFFEROR, PROVIDED
 SUCH REPRESENTATIVES ARE REGISTERED ARCHITECTS OR PROFESSIONAL ENGINEERS
 LICENSED BY THE OFFICE OF THE PROFESSIONS OF THE EDUCATION DEPARTMENT OF
 THE STATE OF NEW YORK; AND
   (C) A STATEMENT THAT TENANTS OF THE INCOME-RESTRICTED RENTAL UNITS ARE
 NOT BEING OFFERED FOR SALE THE DWELLING UNITS  THEY  OCCUPY,  BUT  THEIR
 TENANCIES  SHALL CONTINUE UNDISTURBED DURING AND AFTER THE CONVERSION OF
 THE PROPERTY TO CONDOMINIUM OWNERSHIP. THE STATEMENT SHALL ALSO DISCLOSE
 S. 1354                             8

 THAT ALL  INCOME-RESTRICTED  RENTAL  UNITS  SHALL  BE  SUBJECT  TO  RENT
 STABILIZATION 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  SUCH  TENANT  HAS,  IN
 WRITING, WAIVED THEIR 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  PRES-
 ERVATION  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 THE 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 THE RESERVE FUND AND DEDICATED CAPITAL FUND IN THE MANNER AND
 AMOUNTS  AS PROVIDED IN SECTION THREE HUNDRED THIRTY-NINE-MM OF THE REAL
 PROPERTY LAW;
   (C) FILE AN ANNUAL UPDATE AMENDMENT EVERY YEAR WHICH SHALL INCLUDE  AN
 UPDATED  SCHEDULE  A  OF ALL DWELLING UNITS BEING OFFERED FOR SALE UNDER
 THE PRESERVATION PLAN; AND
   (D) EXERCISE COMMERCIALLY REASONABLE GOOD FAITH  EFFORTS  TO  SELL  AT
 LEAST  FIFTY-ONE  PERCENT  OF THE TOTAL NUMBER OF DWELLING UNITS OFFERED
 FOR SALE UNDER THE PRESERVATION PLAN  (EXCLUDING  ANY  INCOME-RESTRICTED
 RENTAL  UNITS  NOT  OFFERED FOR SALE) WITHIN FIVE YEARS FROM THE DATE OF
 THE POST-CLOSING AMENDMENT.
   7. AFTER THE ISSUANCE OF THE LETTER FROM THE ATTORNEY GENERAL  STATING
 THAT  THE  PRESERVATION  PLAN  HAS BEEN ACCEPTED FOR FILING, THE OFFEROR
 SHALL, ON THE THIRTIETH, SIXTIETH, EIGHTY-EIGHTH AND NINETIETH DAY AFTER
 SUCH DATE AND AT LEAST ONCE EVERY THIRTY  DAYS  UNTIL  THE  PRESERVATION
 PLAN  IS DECLARED EFFECTIVE OR ABANDONED, AS THE CASE MAY BE, AND ON THE
 SECOND DAY BEFORE  THE  EXPIRATION  OF  ANY  EXCLUSIVE  PURCHASE  PERIOD
 PROVIDED IN A SUBSTANTIAL AMENDMENT TO THE PRESERVATION PLAN:
   (A)  FILE  WITH  THE  ATTORNEY  GENERAL A WRITTEN STATEMENT UNDER OATH
 SETTING FORTH THE PERCENTAGE OF BONA FIDE TENANTS IN  OCCUPANCY  OF  ALL
 DWELLING  UNITS  IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT ON
 THE DATE THE PRESERVATION PLAN WAS ACCEPTED FOR FILING BY  THE  ATTORNEY
 GENERAL  WHO  HAVE EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE
 UNDER THE PRESERVATION PLAN AS OF THE DATE  OF  SUCH  WRITTEN  STATEMENT
 UNDER OATH; AND
   (B) BEFORE NOON ON THE DAY SUCH STATEMENT IS FILED POST A COPY OF SUCH
 WRITTEN  STATEMENT  UNDER  OATH  IN  A PROMINENT PLACE ACCESSIBLE TO ALL
 TENANTS IN EACH BUILDING COVERED BY THE PRESERVATION PLAN.
   8. A PRESERVATION PLAN MAY NOT BE  DECLARED  EFFECTIVE  UNTIL  WRITTEN
 PURCHASE  AGREEMENTS  HAVE  BEEN  EXECUTED  AND  DELIVERED  FOR AT LEAST
 FIFTEEN PERCENT OF ALL DWELLING UNITS OFFERED FOR SALE IN  THE  BUILDING
 S. 1354                             9
 
 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  NON-TENANT  PURCHASERS  AND  THEN  DIVIDING  THE  SUM OF THOSE TWO
 NUMBERS BY THE TOTAL NUMBER OF DWELLING UNITS OFFERED FOR SALE UNDER THE
 PRESERVATION PLAN;
   (D) WHETHER OR NOT THE OFFEROR INTENDS TO CLAIM A CREDIT  AGAINST  THE
 MANDATORY  INITIAL CONTRIBUTION THE 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 THE OFFEROR HAS BEGUN AFTER THE PRES-
 ERVATION 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  THE  OFFEROR  SHALL  BE MAKING ITS RESERVE FUND
 CONTRIBUTIONS 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 THE 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, THE OFFEROR
 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
 S. 1354                            10
 
 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 SEMI-ANNUAL 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 THE 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, THE OFFEROR SHALL ALSO
 DISCLOSE:
   (A) THE DATE RANGE THAT THE DWELLING UNIT WAS VACANT;
   (B) THE DATE RANGE FOR ANY PERIOD OF TIME THAT THE DWELLING  UNIT  WAS
 MARKETED FOR SALE;
   (C) DATE OF SALE;
   (D) THE DATE THE DWELLING UNIT WAS LEASED BY A TENANT; AND
   (E) THE DATE THE LEASE IS SET TO EXPIRE (IF APPLICABLE).
   14.  NO  EVICTION  PROCEEDINGS  SHALL BE COMMENCED AT ANY TIME AGAINST
 NON-PURCHASING TENANTS FOR FAILURE TO PURCHASE OR FOR ANY  OTHER  REASON
 APPLICABLE  TO EXPIRATION OF TENANCY; PROVIDED THAT SUCH PROCEEDINGS MAY
 BE COMMENCED FOR NON-PAYMENT OF RENT, ILLEGAL USE OR  OCCUPANCY  OF  THE
 S. 1354                            11
 
 PREMISES,  REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR BREACH
 BY THE NON-PURCHASING TENANT OF 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 THEY SEEK THE  DWELLING  UNIT  FOR
 THE USE AND OCCUPANCY OF THEMSELF 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 THEIR OBLIGATIONS TO THE OWNER OF  THE  DWELLING
 UNIT.
   16.  ELIGIBLE SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE
 IN DWELLING UNITS SUBJECT TO GOVERNMENT REGULATION  AS  TO  RENTALS  AND
 CONTINUED OCCUPANCY SHALL CONTINUE TO BE SUBJECT THERETO.
   17.  THE RIGHTS GRANTED UNDER THE PRESERVATION PLAN TO ELIGIBLE SENIOR
 CITIZENS AND ELIGIBLE DISABLED PERSONS MAY NOT BE ABROGATED  OR  REDUCED
 NOTWITHSTANDING ANY EXPIRATION OF, OR AMENDMENT TO, THIS SECTION.
   18.  ANY OFFEROR WHO DISPUTES THE ELECTION BY A PERSON TO BE AN ELIGI-
 BLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON  SHALL  APPLY  TO  THE
 ATTORNEY GENERAL WITHIN THIRTY DAYS OF THE RECEIPT OF THE ELECTION FORMS
 FOR  A  DETERMINATION BY THE ATTORNEY GENERAL OF SUCH PERSON'S ELIGIBIL-
 ITY. THE ATTORNEY GENERAL SHALL, WITHIN THIRTY DAYS THEREAFTER, ISSUE  A
 DETERMINATION  OF  ELIGIBILITY.  THE  FOREGOING SHALL, IN THE ABSENCE OF
 FRAUD, BE THE SOLE METHOD FOR DETERMINING A  DISPUTE  AS  TO  WHETHER  A
 PERSON IS AN ELIGIBLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON. THE
 DETERMINATION OF THE ATTORNEY GENERAL SHALL BE REVIEWABLE ONLY THROUGH A
 PROCEEDING  UNDER  ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND
 RULES, WHICH PROCEEDING SHALL BE COMMENCED WITHIN THIRTY DAYS AFTER SUCH
 DETERMINATION BY THE ATTORNEY GENERAL BECOMES FINAL.
   19. NON-PURCHASING TENANTS WHO RESIDE IN  DWELLING  UNITS  SUBJECT  TO
 GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY PRIOR TO THE
 CONVERSION  OF  THE  BUILDING  OR  GROUP  OF BUILDINGS OR DEVELOPMENT TO
 CONDOMINIUM OWNERSHIP SHALL CONTINUE TO BE SUBJECT THERETO.
   20. THE RENTALS OF NON-PURCHASING TENANTS WHO RESIDE IN DWELLING UNITS
 NOT SUBJECT TO GOVERNMENT REGULATION AS TO RENTALS AND  CONTINUED  OCCU-
 PANCY  AND  NON-PURCHASING  TENANTS  WHO  RESIDE  IN DWELLING UNITS WITH
 RESPECT TO WHICH GOVERNMENT REGULATION AS TO RENTALS AND CONTINUED OCCU-
 PANCY IS ELIMINATED OR BECOMES INAPPLICABLE AFTER THE PRESERVATION  PLAN
 HAS  BEEN  ACCEPTED  FOR  FILING  BY  THE  ATTORNEY GENERAL SHALL NOT BE
 SUBJECT TO UNCONSCIONABLE INCREASES BEYOND ORDINARY RENTALS FOR COMPARA-
 BLE APARTMENTS DURING THE PERIOD  OF  THEIR  OCCUPANCY.  IN  DETERMINING
 COMPARABILITY,  CONSIDERATION SHALL BE GIVEN TO SUCH FACTORS AS BUILDING
 SERVICES, LEVEL OF MAINTENANCE AND OPERATING EXPENSES.
 S. 1354                            12

   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 THEIR USE OR  OCCU-
 PANCY  OF  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 THEY DEEM IT APPROPRIATE, AN
 ORDER RESTRAINING THE OWNER FROM SELLING THE  DWELLING  UNIT  ITSELF  OR
 FROM  PROCEEDING WITH THE PRESERVATION PLAN OF CONVERSION; PROVIDED THAT
 NOTHING CONTAINED HEREIN SHALL BE DEEMED TO  PRECLUDE  THE  TENANT  FROM
 APPLYING ON 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 AN INCOME-RESTRICTED RENTAL UNIT OR UNITS AS PERMANENTLY
 AFFORDABLE, AND TO THE EXTENT PERMITTED UNDER EXISTING LAW AS IT RELATES
 TO THE INCOME-RESTRICTED RENTAL UNIT  OR  UNITS,  THE  INCOME-RESTRICTED
 RENTAL  UNIT OR UNITS IN A BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT
 OF AN ELIGIBLE PROJECT MAY BE CONVERTED  TO  A  LIMITED  EQUITY  HOUSING
 S. 1354                            13
 
 COOPERATIVE  PURSUANT  TO  ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE
 LAW UNDER A SEPARATE OFFERING STATEMENT OR PROSPECTUS, IF  THE  RELEVANT
 HOUSING  FINANCE  AGENCY ENSURES THAT THE PROPOSED OFFERING STATEMENT OR
 PROSPECTUS DISCLOSES THAT THE REGULATORY AGREEMENT PROVIDES AS FOLLOWS:
   (A)  THE OFFERING PRICES ARE AFFORDABLE TO THE EXISTING 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 NINE-
 TEEN OF SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW;
   (B) ANY TENANT OF AN INCOME-RESTRICTED RENTAL UNIT THAT CHOOSES NOT TO
 BUY THE INCOME-RESTRICTED RENTAL UNIT SUCH TENANT OCCUPIES SHALL CONTIN-
 UE TO BE PROTECTED UNDER RENT STABILIZATION THROUGHOUT  THE  PROCESS  OF
 CONVERSION  TO  A LIMITED EQUITY HOUSING COOPERATIVE AND THEREAFTER, AND
 THAT NO EXISTING TENANT OF AN INCOME-RESTRICTED  RENTAL  UNIT  SHALL  BE
 EVICTED  SOLELY  DUE  TO  SUCH  TENANT'S  DECISION NOT TO PURCHASE THEIR
 INCOME-RESTRICTED RENTAL UNIT;
   (C) THE REGULATORY AGREEMENT AND CERTIFICATE OF INCORPORATION  OF  THE
 LIMITED  EQUITY  HOUSING  COOPERATIVE  SHALL ENSURE THAT THE INCOME-RES-
 TRICTED RENTAL UNITS CONVERTED TO A LIMITED EQUITY  HOUSING  COOPERATIVE
 SHALL BE RESERVED FOR OCCUPANCY BY PERSONS OF LOW INCOME AND FAMILIES OF
 LOW INCOME IN PERPETUITY;
   (D) THE RELEVANT HOUSING FINANCE AGENCY SHALL HAVE OVERSIGHT AUTHORITY
 OVER THE LIMITED EQUITY HOUSING COOPERATIVE IN THE REGULATORY AGREEMENT,
 CONDOMINIUM DECLARATION, CONDOMINIUM BY-LAWS AND CERTIFICATE OF INCORPO-
 RATION  OF THE LIMITED EQUITY HOUSING COOPERATIVE, INCLUDING THE ABILITY
 TO APPOINT A NEW BOARD OF DIRECTORS OF THE LIMITED EQUITY HOUSING  COOP-
 ERATIVE IN THE EVENT OF A VIOLATION OF A TERM OF, OR AN EVENT OF DEFAULT
 BY  THE  LIMITED  EQUITY  HOUSING COOPERATIVE UNDER ANY OF ITS GOVERNING
 DOCUMENTS; AND
   (E) THAT THE OWNERSHIP OF THE DEDICATED CAPITAL ACCOUNT BY THE  QUALI-
 FIED  OWNER,  AND  THE  FUNDING  OF THE DEDICATED CAPITAL ACCOUNT BY THE
 OFFEROR OF THE PRESERVATION PLAN, SHALL EACH BE SUBJECT TO THE OVERSIGHT
 AUTHORITY OF THE RELEVANT HOUSING FINANCE AGENCY AS PROVIDED IN  SECTION
 THREE HUNDRED THIRTY-NINE-MM OF THE REAL PROPERTY LAW.
   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 THEIR DISCRETION, WAIVE THE  REQUIRE-
 MENT 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,
 S. 1354                            14
 
 AMEND,  MODIFY,  RECONSIDER, OR RESCIND ANY RULE OR REGULATION AS MAY BE
 CONFERRED ANYWHERE WITHIN THIS  SECTION  SHALL  COMPLY  WITH  THE  STATE
 ADMINISTRATIVE PROCEDURE ACT IN ALL RESPECTS.
   31. FOR ANY OFFERING STATEMENT OR PROSPECTUS (INCLUDING, WITHOUT LIMI-
 TATION,  A PRESERVATION PLAN AND ANY AMENDED FILINGS THERETO), SUBMITTED
 TO THE DEPARTMENT OF LAW PURSUANT TO THIS SECTION, THE FILING  FEES  SET
 FORTH  IN  PARAGRAPH  (A)  OF SUBDIVISION SEVEN OF SECTION THREE HUNDRED
 FIFTY-TWO-E OF THIS ARTICLE SHALL NOT APPLY. INSTEAD, AN  OFFEROR  SHALL
 TENDER THE FOLLOWING FILING FEE WITH AND FOR ITS SUBMISSION:
   (A)  SEVEN  HUNDRED  FIFTY DOLLARS FOR EVERY OFFERING NOT IN EXCESS OF
 TWO HUNDRED FIFTY THOUSAND DOLLARS;
   (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  nine
 new  subdivisions 1-a, 6-a, 7-a, 8-a, 10-a, 11-a, 12-a, 12-b 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) ENVIRONMENTAL AND SUSTAINABILITY UPGRADES;
   (D) PLUMBING;
   (E) WIRING;
   (F) WINDOW; OR
   (G) A MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED, HOWEVER,
 THAT  MAJOR  STRUCTURAL  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.
   7-A. "INCOME-RESTRICTED RENTAL UNIT", AS USED IN SECTION THREE HUNDRED
 THIRTY-NINE-MM OF THIS ARTICLE, MEANS A UNIT THAT ALSO MEETS  THE  DEFI-
 NITION  OF  "INCOME-RESTRICTED  RENTAL  UNIT" SET FORTH IN SECTION THREE
 HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW.
   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
 S. 1354                            15
 
 THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW, TOGETHER WITH
 THEIR 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, MEANS  A  PURCHASER  UNDER
 THE  PRESERVATION  PLAN SHALL REFER TO A PERSON WHO PURCHASES A DWELLING
 UNIT FROM THE OFFEROR PURSUANT TO THE TERMS OF A PRESERVATION PLAN  THAT
 HAS BEEN ACCEPTED FOR FILING BY THE ATTORNEY GENERAL. A PERSON OR ENTITY
 THAT  ACQUIRES  DWELLING  UNITS  AND  ASSUMES CERTAIN OBLIGATIONS OF THE
 OFFEROR SHALL NOT BE CONSIDERED A PURCHASER UNDER THE PRESERVATION PLAN.
   12-A. "QUALIFIED OWNER", AS USED IN SECTION THREE HUNDRED THIRTY-NINE-
 MM OF THIS ARTICLE, SHALL REFER TO A UNIT  OWNER  THAT  ALSO  MEETS  THE
 DEFINITION  OF  "QUALIFIED  OWNER" AS SET FORTH IN SECTION THREE HUNDRED
 FIFTY-TWO-EEEEE OF THE GENERAL BUSINESS LAW.
   12-B. "RELEVANT HOUSING FINANCE AGENCY",  AS  USED  IN  SECTION  THREE
 HUNDRED  THIRTY-NINE-MM  OF THIS ARTICLE, SHALL HAVE THE SAME MEANING AS
 SET FORTH IN SECTION THREE HUNDRED FIFTY-TWO-EEEEE OF THE GENERAL  BUSI-
 NESS LAW.
   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,
 BUT  EXCLUDING  ANY INCOME-RESTRICTED RENTAL UNITS OWNED OR TO BE TRANS-
 FERRED TO A QUALIFIED OWNER, AT THE LAST  PRICE  WHICH  WAS  OFFERED  TO
 TENANTS  IN  OCCUPANCY  PRIOR  TO THE EFFECTIVE DATE OF THE PRESERVATION
 PLAN REGARDLESS OF THE 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 AND DEDICATED CAPITAL 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:
   (A)  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 (INCLUDING RESI-
 DENTS OF THE INCOME-RESTRICTED RENTAL UNITS) OF SUCH BUILDING  OR  GROUP
 OF  BUILDINGS  OR DEVELOPMENT.   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 GENERAL, 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  OR  DEDICATED  CAPITAL  FUND  AND SHALL NOT BE SUBJECT TO
 REDUCTION FOR CLOSING APPORTIONMENTS.
   (B) TO THE QUALIFIED OWNER OF THE INCOME-RESTRICTED RENTAL UNITS,  AND
 SUBJECT  TO  THE  OVERSIGHT  OF  THE RELEVANT HOUSING FINANCE AGENCY SET
 FORTH IN A REGULATORY AGREEMENT, A DEDICATED CAPITAL  FUND  TO  BE  USED
 EXCLUSIVELY  FOR  MAKING  UNIT  REPAIRS,  REPLACEMENTS  AND IMPROVEMENTS
 NECESSARY FOR THE HEALTH AND SAFETY OF THE RESIDENTS OF  AN  INCOME-RES-
 S. 1354                            16
 
 TRICTED  RENTAL  UNIT OR UNITS OF SUCH BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT. SUCH DEDICATED CAPITAL FUND SHALL BE EXCLUSIVE AND  SUPPLE-
 MENTAL OF ANY OTHER FUNDS REQUIRED TO BE RESERVED UNDER THE PRESERVATION
 PLAN  OR APPLICABLE LAW OR REGULATION. SUCH DEDICATED CAPITAL FUND SHALL
 ALSO BE EXCLUSIVE AND SUPPLEMENTAL OF ANY RESERVE FUND OR WORKING  CAPI-
 TAL  FUND  AND  SHALL NOT BE SUBJECT TO REDUCTION FOR CLOSING APPORTION-
 MENTS. THE DEDICATED CAPITAL FUND SHALL NOT BE USED TOWARDS  ANY  BUILD-
 ING-WIDE  CAPITAL REPLACEMENT, AND INSTEAD SHALL BE USED SOLELY FOR UNIT
 REPAIRS, REPLACEMENTS AND IMPROVEMENTS OF THE  INCOME-RESTRICTED  RENTAL
 UNITS.
   2.  (A)  SUCH  RESERVE FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO
 EITHER (I) THREE PERCENT OF THE TOTAL PRICE OR, (II) (A)  THREE  PERCENT
 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 PERCENT OF THE TOTAL
 PRICE, THEN THE FUND SHALL BE ESTABLISHED AS A MINIMUM OF ONE PERCENT OF
 THE TOTAL PRICE; PLUS (B) SUPPLEMENTAL CONTRIBUTIONS TO BE MADE  BY  THE
 OFFEROR  AT  A RATE OF THREE PERCENT OF THE ACTUAL SALES PRICE OF CONDO-
 MINIUM 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, NOTWITH-
 STANDING  THAT  THE TOTAL AMOUNT CONTRIBUTED MAY EXCEED THREE PERCENT OF
 THE TOTAL PRICE; AND PROVIDED, FURTHER, THAT IF FIVE YEARS  FROM  THIRTY
 DAYS  AFTER THE CONSUMMATION OF THE PRESERVATION PLAN THE TOTAL CONTRIB-
 UTIONS BY THE OFFEROR TO THE FUND ARE LESS THAN  THREE  PERCENT  OF  THE
 TOTAL  PRICE  THE  OFFEROR  SHALL  PAY THE DIFFERENCE BETWEEN THE AMOUNT
 CONTRIBUTED AND THREE PERCENT OF THE TOTAL PRICE.  SUPPLEMENTAL CONTRIB-
 UTIONS SHALL BE MADE WITHIN THIRTY DAYS OF EACH SALE.
   (B) SUCH DEDICATED CAPITAL FUND SHALL  BE  ESTABLISHED  IN  AN  AMOUNT
 EQUAL TO ONE-HALF OF ONE PERCENT OF THE TOTAL PRICE, AND SHALL BE TRANS-
 FERRED  IN  FULL  WITHIN  THIRTY DAYS OF THE DATE OF CONSUMMATION OF THE
 PRESERVATION PLAN INTO AN ACCOUNT AT A FINANCIAL  INSTITUTION  REGULATED
 BY  THE  DEPARTMENT  OF FINANCIAL SERVICES OF THE STATE OF NEW YORK THAT
 SHALL HAVE BEEN OPENED BY, AND SHALL AT ALL  TIMES  BE  SUBJECT  TO  THE
 OVERSIGHT AUTHORITY OF THE RELEVANT HOUSING FINANCE AGENCY OF THE QUALI-
 FIED OWNER OF THE INCOME-RESTRICTED RENTAL UNIT OR UNITS.
   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  SUCH
 OFFEROR HAS BEGUN AFTER THE PRESERVATION PLAN IS SUBMITTED FOR FILING TO
 THE  DEPARTMENT  OF  LAW  AND  BEFORE  THE PRESERVATION PLAN IS DECLARED
 EFFECTIVE; PROVIDED, HOWEVER, THAT ANY SUCH REPLACEMENTS  SHALL  BE  SET
 FORTH  IN  THE PRESERVATION PLAN TOGETHER WITH THEIR ACTUAL OR ESTIMATED
 COSTS AND FURTHER PROVIDED, THAT SUCH CREDIT SHALL NOT EXCEED THE LESSER
 OF THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR ONE AND A HALF PERCENT
 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 RESERVE FUND REQUIREMENTS OF THIS SECTION  BUT  NOT  THE
 DEDICATED CAPITAL FUND 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 PARAGRAPH (A) OF SUBDIVISION  TWO  OF  THIS
 SECTION.
 S. 1354                            17
 
   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 PRESERVATION PLAN, A LISTING OF ALL VIOLATIONS OF RECORD AGAINST
 SUCH BUILDINGS 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, ANY AGREEMENT BETWEEN AN OFFEROR  AND  A  UNIT
 PURCHASER, ANY AGREEMENT BETWEEN AN OFFEROR AND THE CONDOMINIUM BOARD OF
 MANAGERS  CREATED  UNDER  A  PRESERVATION PLAN, ANY AGREEMENT BETWEEN AN
 OFFEROR AND THE OWNER OF THE  INCOME-RESTRICTED  RENTAL  UNIT  OR  UNITS
 SHALL BE VOID AS AGAINST PUBLIC POLICY.
   8.  (A) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVI-
 SION, ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE  VIOLATION  OF
 ANY PROVISION OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY OF ONE
 HUNDRED  DOLLARS PER DAY PER UNIT FOR EACH DAY THAT A BUILDING IS NOT IN
 COMPLIANCE WITH THE PROVISIONS OF SUCH SECTION; PROVIDED, HOWEVER,  THAT
 SUCH CIVIL PENALTY SHALL NOT EXCEED ONE THOUSAND DOLLARS PER UNIT.
   (B) ANY PERSON WHO VIOLATES OR ASSISTS IN THE VIOLATION OF SUBDIVISION
 TWO  OF  THIS  SECTION  SHALL  ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE
 THOUSAND DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND REQUIRED  BY
 SUBDIVISION  TWO  OF THIS SECTION IS NOT ESTABLISHED; PROVIDED, HOWEVER,
 THAT SUCH CIVIL PENALTY SHALL NOT  EXCEED  THE  AMOUNT  REQUIRED  TO  BE
 RESERVED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   (C) ANY OTHER ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDIC-
 TION  THAT  MAY  BE  APPROPRIATE OR NECESSARY FOR THE ENFORCEMENT OF THE
 PROVISIONS OF THIS SECTION MAY BE BROUGHT IN THE NAME OF THE  PEOPLE  OF
 THE  STATE  OF  NEW  YORK  BY THE ATTORNEY GENERAL, INCLUDING ACTIONS TO
 SECURE PERMANENT INJUNCTIONS  ENJOINING  ANY  ACTS  OR  PRACTICES  WHICH
 CONSTITUTE  A  VIOLATION  OF  ANY  PROVISION  OF THIS SECTION, MANDATING
 COMPLIANCE WITH THE PROVISIONS OF THIS SECTION OR FOR SUCH OTHER  RELIEF
 AS  MAY  BE  APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING, THE ATTORNEY
 GENERAL MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION, OR TO A  JUDGE
 OR  JUSTICE  THEREOF,  FOR  A TEMPORARY RESTRAINING ORDER OR PRELIMINARY
 INJUNCTION ENJOINING AND RESTRAINING  ALL  PERSONS  FROM  VIOLATING  ANY
 PROVISION  OF  THIS SECTION, MANDATING COMPLIANCE WITH THE PROVISIONS OF
 THIS SECTION, OR FOR SUCH OTHER RELIEF AS MAY BE APPROPRIATE, UNTIL  THE
 HEARING  AND DETERMINATION OF SUCH ACTION OR PROCEEDING AND THE ENTRY OF
 FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR JUSTICE THEREOF,
 TO WHOM SUCH APPLICATION IS MADE, IS HEREBY AUTHORIZED TO  MAKE  ANY  OR
 ALL  OF  THE  ORDERS  SPECIFIED IN THIS PARAGRAPH, AS MAY BE REQUIRED IN
 SUCH APPLICATION, WITH OR WITHOUT NOTICE, AND  TO  MAKE  SUCH  OTHER  OR
 FURTHER  ORDERS  OR  DIRECTIONS  AS  MAY BE NECESSARY TO RENDER THE SAME
 EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE GRANT-
 ING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
   (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 THE  RESERVE  FUND  AND  CAPITAL
 FUND UNDER THIS SECTION.
 S. 1354                            18
 
   (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 to read 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] OFFEROR 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 indicat-
 ing 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  occu-
 pied  in  whole or in part for residential purposes AND WHICH IS NOT THE
 SUBJECT OF A PRESERVATION  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  statements  or  prospectus does not clearly set
 forth the specific property or properties to be purchased, leased, mort-
 gaged, or otherwise to be acquired, financed or the subject of  specific
 investment with a substantial 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] FIFTY thousand dollars of which one-half of said amount shall  be  a
 nonrefundable deposit paid at the time of submitting the offering state-
 ment  to  the  department of law for review and the balance payable upon
 the issuance of a letter of acceptance for filing said  offering  state-
 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
 S. 1354                            19

 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] FIFTY 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  REAL  ESTATE FINANCE BUREAU FUND, ESTABLISHED PURSUANT TO
 SECTION EIGHTY 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. This act shall take effect on the one hundred eightieth day after
 it  shall  have  become  a law and shall expire and be deemed repealed 4
 years after such date.