S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    401
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sens.  MYRIE,  BAILEY,  BRISPORT, BROUK, CLEARE, COONEY,
   FERNANDEZ, GIANARIS, GONZALEZ, HINCHEY, HOYLMAN-SIGAL,  JACKSON,  MAY,
   RAMOS,  RIVERA,  SALAZAR,  SANDERS,  SEPULVEDA,  SERRANO, WEBB -- 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  real  property  actions and proceedings law, in
   relation to establishing the tenant opportunity to purchase act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "tenant opportunity to purchase act".
   § 2. The real property actions  and  proceedings  law  is  amended  by
 adding a new article 7-E to read as follows:
                                ARTICLE 7-E
                    TENANT OPPORTUNITY TO PURCHASE ACT
 SECTION 799.   DEFINITIONS.
         799-A. AUTHORITY.
         799-B. APPLICABILITY.
         799-C. EXEMPTIONS.
         799-D. RIGHT OF FIRST REFUSAL.
         799-E. TENANT DECISION-MAKING; TENANT ORGANIZATIONS.
         799-F. QUALIFIED PURCHASERS.
         799-G. SUPPORTIVE PARTNERS.
         799-H. ASSIGNMENT OF RIGHTS.
         799-I. WAIVER OF RIGHTS.
         799-J. NOTICE REQUIREMENTS.
         799-K. THIRD-PARTY PURCHASER RIGHTS.
         799-L. RIGHT TO APPRAISAL.
         799-M. PURCHASE CONTRACT NEGOTIATION.
         799-N. NO SELLING OF RIGHTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01564-01-5
 S. 401                              2
 
         799-O. TENANT PROTECTIONS.
         799-P. PRICE STABILIZATION.
         799-Q. INCENTIVES.
         799-R. ENFORCEMENT.
         799-S. STATUTORY CONSTRUCTION.
         799-T. ADMINISTRATION AND REPORTS.
 
   §  799.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AMI" OR "AREA MEDIAN INCOME" MEANS AREA MEDIAN INCOME  ESTABLISHED
 BY  THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), PURSUANT
 TO 42 U.S.C. § 1427 ET SEQ., TO ESTABLISH  LOCAL  INCOME  CLASSIFICATION
 LEVELS.
   2.  "APPRAISED  VALUE"  MEANS THE VALUE OF THE RENTAL HOUSING ACCOMMO-
 DATION AS OF THE DATE OF THE APPRAISAL, BASED ON AN OBJECTIVE, INDEPEND-
 ENT PROPERTY VALUATION, PERFORMED ACCORDING  TO  PROFESSIONAL  APPRAISAL
 INDUSTRY STANDARDS.
   3. "BONA FIDE OFFER OF SALE" MEANS AN OFFER OF SALE FOR A RENTAL HOUS-
 ING ACCOMMODATION THAT IS EITHER:
   (A)  FOR  A  PRICE AND OTHER MATERIAL TERMS AT LEAST AS FAVORABLE TO A
 TENANT, TENANT ORGANIZATION, AND QUALIFIED PURCHASER AS THOSE  THAT  THE
 OWNER  HAS  OFFERED,  ACCEPTED, OR IS CONSIDERING OFFERING OR ACCEPTING,
 FROM A PURCHASER IN AN ARM'S LENGTH THIRD-PARTY PURCHASE CONTRACT; OR
   (B) IN THE ABSENCE OF AN ARM'S LENGTH THIRD-PARTY  PURCHASE  CONTRACT,
 AN  OFFER OF SALE CONTAINING A SALES PRICE LESS THAN OR EQUAL TO A PRICE
 AND OTHER MATERIAL TERMS COMPARABLE TO THAT AT WHICH  A  WILLING  SELLER
 AND  A WILLING BUYER WOULD SELL AND PURCHASE THE RENTAL HOUSING ACCOMMO-
 DATION, OR AN APPRAISED VALUE.
   4. "CPI" OR "CONSUMER PRICE INDEX"  MEANS  THE  CONSUMER  PRICE  INDEX
 PUBLISHED  BY  THE  UNITED  STATES  DEPARTMENT OF LABOR, BUREAU OF LABOR
 STATISTICS FOR THE  NORTHEAST  CENSUS  REGION.  IF  PUBLICATION  OF  THE
 CONSUMER  PRICE  INDEX  CEASES,  OR IF IT IS OTHERWISE UNAVAILABLE OR IS
 ALTERED IN A WAY AS TO BE UNUSABLE, DHCR SHALL DETERMINE THE USE  OF  AN
 APPROPRIATE  SUBSTITUTE  INDEX PUBLISHED BY THE UNITED STATES DEPARTMENT
 OF LABOR, BUREAU OF LABOR STATISTICS OR ANY SUCCESSOR AGENCY.
   5. "COMMUNITY LAND TRUST"  MEANS  A  NONPROFIT  CORPORATION  ORGANIZED
 PURSUANT  TO  SECTION 501 (C) (3) OF THE U.S. INTERNAL REVENUE CODE THAT
 SATISFIES ALL OF THE FOLLOWING CRITERIA:
   (A) SUCH NONPROFIT CORPORATION'S PRIMARY PURPOSE IS THE  CREATION  AND
 MAINTENANCE OF PERMANENTLY AFFORDABLE SINGLE-FAMILY OR MULTIFAMILY RESI-
 DENCES;
   (B)  ALL DWELLINGS AND UNITS ON THE LAND OWNED BY THE NONPROFIT CORPO-
 RATION ARE SOLD TO A QUALIFIED OWNER TO BE  OCCUPIED  AS  THE  QUALIFIED
 OWNER'S  PRIMARY  RESIDENCE  OR  RENTED  TO  PERSONS AND FAMILIES OF LOW
 INCOME AS DEFINED IN SUBDIVISION TEN OF SECTION TWELVE  OF  THE  PRIVATE
 HOUSING FINANCE LAW; AND
   (C)  THE  LAND OWNED BY THE NONPROFIT CORPORATION, ON WHICH A DWELLING
 OR UNIT SOLD TO A QUALIFIED OWNER IS SITUATED, IS LEASED BY SUCH  CORPO-
 RATION  TO  THE QUALIFIED OWNER FOR THE CONVENIENT OCCUPATION AND USE OF
 SUCH DWELLING OR UNIT FOR A RENEWABLE TERM OF NINETY-NINE YEARS.
   6. "DAYS" SHALL MEAN CALENDAR DAYS UNLESS OTHERWISE INDICATED.
   7. "GOVERNING DOCUMENT" MEANS A CONSTITUTION, ARTICLES, BYLAWS,  OPER-
 ATING AGREEMENT, OR OTHER WRITINGS THAT GOVERN THE PURPOSE AND OPERATION
 OF  A TENANT ORGANIZATION AND THE RIGHTS AND OBLIGATIONS OF ITS MEMBERS,
 WHICH SHALL INCLUDE PROVISIONS ON THE  TENANT  ORGANIZATION'S  DECISION-
 S. 401                              3
 
 MAKING  PROCESSES AND APPOINTING OFFICERS AND OTHER AUTHORIZED AGENTS TO
 ACT ON ITS BEHALF.
   8.  "DHCR"  MEANS  NEW  YORK  STATE  DIVISION OF HOUSING AND COMMUNITY
 RENEWAL, OR ITS SUCCESSOR AGENCY.
   9. "HIGHEST AND BEST USE" MEANS THE REASONABLY PROBABLE LEGAL USE OF A
 PROPERTY THAT  IS  PHYSICALLY  POSSIBLE,  APPROPRIATELY  SUPPORTED,  AND
 FINANCIALLY  FEASIBLE AND THAT RESULTS IN THE HIGHEST VALUE OF THE PROP-
 ERTY.
   10. "MATTER-OF-RIGHT" MEANS A LAND USE, DEVELOPMENT DENSITY, OR STRUC-
 TURAL DIMENSION TO WHICH A PROPERTY OWNER IS ENTITLED BY CURRENT  ZONING
 REGULATIONS OR LAW.
   11.  "OWNER"  MEANS  ONE  OR  MORE  PERSONS, CORPORATION, PARTNERSHIP,
 LIMITED LIABILITY COMPANY, TRUSTEE, OR ANY  OTHER  ENTITY,  WHO  IS  THE
 OWNER  OF RECORD OF A RENTAL HOUSING ACCOMMODATION AT THE TIME OF GIVING
 NOTICE OF INTENTION TO SELL, AND EACH PERSON, CORPORATION,  PARTNERSHIP,
 LIMITED  LIABILITY  COMPANY, TRUSTEE, OR ANY OTHER ENTITY, WHO, DIRECTLY
 OR INDIRECTLY, OWNS FIFTY PERCENT OR MORE OF  THE  EQUITY  INTERESTS  IN
 SUCH RENTAL HOUSING ACCOMMODATION AT THE TIME OF GIVING NOTICE OF INTEN-
 TION  TO  SELL.  FOR  PURPOSES OF COMPLYING WITH THE NOTICE REQUIREMENTS
 DESCRIBED IN THIS ARTICLE, "OWNER" MAY REFER TO ANY PERSON ACTING AS  AN
 AUTHORIZED AGENT OF THE OWNER.
   12. "PERMANENT AFFORDABILITY" MEANS THAT FUTURE RENTS AND FUTURE SALES
 PRICES  OF  A RENTAL HOUSING ACCOMMODATION, OR SEPARATE OWNERSHIP INTER-
 ESTS IN SUCH RENTAL HOUSING ACCOMMODATION, SHALL BE MADE  AFFORDABLE  TO
 HOUSEHOLDS WITH TARGETED INCOME LEVELS NO GREATER THAN ONE HUNDRED THIR-
 TY PERCENT AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE.
   13.  "PURCHASE  CONTRACT" MEANS A BINDING WRITTEN AGREEMENT WHEREBY AN
 OWNER AGREES TO SELL PROPERTY INCLUDING, WITHOUT LIMITATION, A  PURCHASE
 AND  SALE  AGREEMENT, CONTRACT OF SALE, PURCHASE OPTION OR OTHER SIMILAR
 INSTRUMENT.
   14. "QUALIFIED PURCHASER" MEANS  A  QUALIFIED  PURCHASER  MEETING  THE
 CRITERIA  DESCRIBED IN SECTION SEVEN HUNDRED NINETY-NINE-F OF THIS ARTI-
 CLE.
   15. "RENT" SHALL HAVE THE SAME MEANING AS IN SECTION SEVEN HUNDRED TWO
 OF THIS CHAPTER.
   16. "RENTAL AGREEMENT" MEANS AN AGREEMENT, ORAL, WRITTEN  OR  IMPLIED,
 BETWEEN  AN  OWNER  AND  A TENANT FOR USE OR OCCUPANCY OF A UNIT AND FOR
 HOUSING SERVICES.
   17. "RENTAL HOUSING ACCOMMODATION" MEANS ANY REAL PROPERTY,  INCLUDING
 THE  LAND  APPURTENANT  THERETO, CONTAINING ONE OR MORE RENTAL UNITS AND
 LOCATED IN NEW YORK STATE.
   18. "RENTAL UNIT" OR "UNIT" MEANS  ANY  UNIT  IN  ANY  REAL  PROPERTY,
 INCLUDING  THE  LAND APPURTENANT THERETO, THAT IS AVAILABLE FOR RENT FOR
 RESIDENTIAL USE OR OCCUPANCY, LOCATED IN NEW YORK STATE,  TOGETHER  WITH
 ALL HOUSING SERVICES CONNECTED WITH THE USE OR OCCUPANCY OF SUCH PROPER-
 TY  SUCH AS COMMON AREAS AND RECREATIONAL FACILITIES HELD OUT FOR USE BY
 THE TENANT.
   19. "SALE" OR "SELL" MEANS THE TRANSFER, IN EXCHANGE FOR MONEY OR  ANY
 OTHER THING OF ECONOMIC VALUE, OF A PRESENT INTEREST IN THE RENTAL HOUS-
 ING  ACCOMMODATION,  INCLUDING  BENEFICIAL  USE,  WHERE THE VALUE OF THE
 PRESENT INTEREST IS THE FEE INTEREST  IN  THE  RENTAL  HOUSING  ACCOMMO-
 DATION,  OR  SUBSTANTIALLY  EQUAL TO THE VALUE OF THAT FEE INTEREST. FOR
 PURPOSES OF THIS DEFINITION, A "TRANSFER" MAY INCLUDE THOSE COMPLETED IN
 ONE TRANSACTION OR A SERIES OF TRANSACTIONS OVER A PERIOD OF TIME.
 S. 401                              4
 
   20. "SUPPORTIVE PARTNER" MEANS  A  "SUPPORTIVE  PARTNER"  MEETING  THE
 CRITERIA  SET FORTH IN SECTION SEVEN HUNDRED NINETY-NINE-G OF THIS ARTI-
 CLE.
   21.  "TENANT" MEANS ONE OR MORE RENTER, TENANT, SUBTENANT, LESSEE, SUB
 LESSEE, OR OTHER PERSON ENTITLED TO THE POSSESSION, OCCUPANCY, OR  BENE-
 FITS  OF  A  RENTAL UNIT WITHIN A RENTAL HOUSING ACCOMMODATION. "TENANT"
 SHALL NOT INCLUDE TRANSIENT GUESTS WHO USE OR OCCUPY A  UNIT  REGARDLESS
 OF  ANY CONSIDERATION PAID OR EXCHANGED BY SUCH A TRANSIENT GUEST OR ANY
 TENANT THAT PREVIOUSLY OCCUPIED THE UNIT PRIOR TO THE CURRENT OCCUPANT.
   22. "TENANT ORGANIZATION" MEANS TENANTS WHO HAVE ORGANIZED  THEMSELVES
 AS A LEGAL ENTITY THAT:
   (A) CAN ACQUIRE AN INTEREST IN REAL PROPERTY;
   (B) REPRESENTS AT LEAST A MAJORITY OF THE TENANT-OCCUPIED RENTAL UNITS
 IN  A  RENTAL HOUSING ACCOMMODATION AS OF THE DATE OF THE OWNER'S NOTICE
 OF INTENT TO SELL;
   (C) HAS ADOPTED A GOVERNING DOCUMENT; AND
   (D) HAS APPOINTED OFFICERS AND ANY  OTHER  AUTHORIZED  AGENTS  SPECIF-
 ICALLY DESIGNATED TO EXECUTE CONTRACTS OR ACT ON ITS BEHALF.
   23.  "THIRD-PARTY  PURCHASER"  MEANS ANY PERSON OR ENTITY OTHER THAN A
 TENANT, TENANT ORGANIZATION, OR QUALIFIED PURCHASER, ENGAGED OR  SEEKING
 TO  ENGAGE,  IN  PURCHASING A RENTAL HOUSING ACCOMMODATION FROM AN OWNER
 UNDER THIS ARTICLE.
   24. "TOPA BUYER" MEANS A TENANT,  TENANT  ORGANIZATION,  OR  QUALIFIED
 PURCHASER  THAT IS PURCHASING OR HAS PURCHASED A RENTAL HOUSING ACCOMMO-
 DATION FROM AN OWNER UNDER THIS ARTICLE.
   25. "UNDER THREAT OF EMINENT DOMAIN" REFERS TO THE COMMENCEMENT OF THE
 PROCESS OF EMINENT DOMAIN, INCLUDING BUT NOT LIMITED TO, ANY  FORMAL  OR
 INFORMAL  CONTACT  WITH THE OWNER BY THE GOVERNMENT OR GOVERNMENT AGENTS
 REGARDING THE POTENTIAL OR ONGOING ASSERTION OF EMINENT DOMAIN, AND  ANY
 HEARINGS OR COURT PROCEEDINGS REGARDING THE SAME.
   §  799-A.  AUTHORITY.  DHCR AND THEIR DESIGNEES SHALL BE AUTHORIZED TO
 ENFORCE THE PROVISIONS OF THIS ARTICLE, AND  FOR  SUCH  PURPOSES,  SHALL
 HAVE  THE  POWERS OF A LAW ENFORCEMENT OFFICER. DHCR SHALL BE AUTHORIZED
 TO ESTABLISH STANDARDS, POLICIES, AND PROCEDURES FOR THE  IMPLEMENTATION
 OF  THE  PROVISIONS  OF THIS ARTICLE TO FURTHER THE PURPOSE SET FORTH IN
 THIS ARTICLE.
   § 799-B. APPLICABILITY. THE TENANT OPPORTUNITY TO PURCHASE  ACT  SHALL
 APPLY  TO  ALL RENTAL HOUSING ACCOMMODATIONS WHICH CONTAIN THREE OR MORE
 RENTAL UNITS UNLESS OTHERWISE EXEMPTED BY THIS ARTICLE.
   § 799-C. EXEMPTIONS. 1. RESIDENTIAL  PROPERTY  TYPES  EXEMPTED.    THE
 FOLLOWING RESIDENTIAL PROPERTIES SHALL NOT BE CONSIDERED COVERED PROPER-
 TIES FOR PURPOSES OF THIS ARTICLE:
   (A) PROPERTIES OWNED BY THE MUNICIPAL, STATE, OR FEDERAL GOVERNMENTS.
   (B)  PROPERTIES  OWNED  BY AND OPERATED AS A HOSPITAL, CONVENT, MONAS-
 TERY, EXTENDED CARE FACILITY, CONVALESCENT HOME, ASSISTED  LIVING  RESI-
 DENCE,  FACILITIES  PROVIDING  HOUSING  TO RUNAWAY AND HOMELESS YOUTH OR
 YOUNG ADULTS, COLLEGE OR SCHOOL DORMITORY OR  ANY  INSTITUTION  OPERATED
 FOR CHARITABLE, HOSPITAL OR EDUCATIONAL PURPOSES.
   (C) PROPERTIES PROPERLY LICENSED AS A HOTEL OR MOTEL.
   (D)  RESIDENTIAL  PROPERTIES  UNDERGOING REFINANCING, A LOAN MODIFICA-
 TION, SHORT SALE, DEED IN LIEU OF FORECLOSURE OR ANY OTHER  LOSS-MITIGA-
 TION OPTION IN ORDER TO MAINTAIN OWNERSHIP OF SUCH PROPERTIES.
   (E)  MULTIPLE  DWELLING  UNITS  OR  GROUPS  OF MULTIPLE DWELLING UNITS
 MANAGED TOGETHER UNDER THE SAME PRIVATE OWNERSHIP IN WHICH THE  MAJORITY
 OF  DWELLING  UNITS THEREIN THAT WILL CONTINUE TO BE SUBJECT TO FEDERAL,
 STATE, OR CITY INCOME ELIGIBILITY RESTRICTIONS AND IN  WHICH  RENTS  FOR
 S. 401                              5
 
 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:
   (I)  ANY  PROGRAM  CREATED, ADMINISTERED, OR SUPERVISED BY THE CITY OR
 STATE UNDER ARTICLE TWO, FOUR, OR ELEVEN OF THE PRIVATE HOUSING  FINANCE
 LAW,  BUT SHALL NOT INCLUDE ANY MULTIPLE DWELLING OWNED OR OPERATED BY A
 COMPANY ORGANIZED UNDER ARTICLE TWO  OR  FOUR  OF  THE  PRIVATE  HOUSING
 FINANCE  LAW  THAT WAS OCCUPIED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED
 SEVENTY-FOUR;
   (II) ANY PROGRAM  PROVIDING  PROJECT-BASED  ASSISTANCE  UNDER  SECTION
 EIGHT OF THE UNITED STATES HOUSING ACT OF 1937, AS AMENDED; AND
   (III)  HOUSING  PROGRAMS GOVERNED BY SECTIONS 202, 207, 221, 232, 236,
 OR 811 OF THE FEDERAL NATIONAL HOUSING ACT, 12 U.S.C. 1701 ET  SEQ.,  AS
 AMENDED.
   (F) PROPERTY HELD IN COOPERATIVE OR CONDOMINIUM FORMS OF OWNERSHIP.
   (G)  MANUFACTURED  HOMES  AND  MOBILE  HOMES AS DEFINED IN SECTION TWO
 HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW.
   2. TRANSFERS EXEMPTED. THE FOLLOWING TRANSFERS SHALL BE  EXEMPTED  FOR
 THE PURPOSES OF THIS ARTICLE:
   (A)  AN  INTER-VIVOS  TRANSFER,  EVEN WHEN TRANSFERRED IN EXCHANGE FOR
 CONSIDERATION, BETWEEN SPOUSES, DOMESTIC  PARTNERS,  PARENT  AND  CHILD,
 SIBLINGS, GRANDPARENT AND GRANDCHILD.
   (B) A TRANSFER FOR CONSIDERATION, BY A DECEDENT'S ESTATE TO MEMBERS OF
 THE  DECEDENT'S  FAMILY  IF  THE CONSIDERATION ARISING FROM THE TRANSFER
 WILL PASS FROM THE DECEDENT'S ESTATE TO, OR SOLELY FOR THE  BENEFIT  OF,
 CHARITY.  FOR  THE  PURPOSES OF THIS PARAGRAPH, THE TERM "MEMBERS OF THE
 DECEDENT'S FAMILY" SHALL INCLUDE:
   (I) A SPOUSE, DOMESTIC PARTNER, PARENT, CHILD,  SIBLING,  GRANDPARENT,
 GRANDCHILD; AND
   (II)  A  TRUST  FOR THE PRIMARY BENEFIT OF A SPOUSE, DOMESTIC PARTNER,
 PARENT, CHILD, SIBLING, GRANDPARENT, OR GRANDCHILD.
   (C) A TRANSFER OF BARE LEGAL TITLE INTO  A  REVOCABLE  TRUST,  WITHOUT
 ACTUAL  CONSIDERATION  FOR  THE  TRANSFER,  WHERE  THE TRANSFEROR IS THE
 CURRENT BENEFICIARY OF THE TRUST.
   (D) A TRANSFER TO A NAMED BENEFICIARY OF A REVOCABLE TRUST  BY  REASON
 OF THE DEATH OF THE GRANTOR OF THE REVOCABLE TRUST.
   (E) A TRANSFER PURSUANT TO COURT ORDER OR COURT-APPROVED SETTLEMENT.
   (F) A TRANSFER BY EMINENT DOMAIN OR UNDER THREAT OF EMINENT DOMAIN.
   (G)  A  TRANSFER OF A RESIDENTIAL BUILDING TO A TENANT ORGANIZATION OR
 QUALIFIED PURCHASER PURSUANT TO A TRANSFER AGREEMENT 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.
   (H)  A  TRANSFER  OF  LEGAL  TITLE OR AN INTEREST IN AN ENTITY HOLDING
 LEGAL TITLE TO A HOUSING ACCOMMODATION PURSUANT TO A BONA FIDE  DEED  OF
 TRUST  OR  MORTGAGE,  AND THEREAFTER ANY TRANSFER BY FORECLOSURE SALE OR
 DEED IN LIEU OF FORECLOSURE PURSUANT TO A BONA FIDE  DEED  OF  TRUST  OR
 MORTGAGE.
   (I) A TAX SALE OR TRANSFER PURSUANT TO TAX FORECLOSURE.
   (J) A BANKRUPTCY SALE.
   3. EXEMPTION PROCEDURES.  THE OWNER OF A RENTAL HOUSING ACCOMMODATION,
 OR  AN  INDIVIDUAL, GROUP OF INDIVIDUALS, ORGANIZATION OR FACILITY WHICH
 BELIEVE THAT THEY ARE EXEMPT UNDER THIS ARTICLE SHALL COMPLY WITH PROCE-
 DURES THAT DHCR SHALL CREATE FOR CLAIMING SUCH AN EXEMPTION.
 S. 401                              6
 
   4. VOLUNTARY ELECTION TO  PARTICIPATE.  AN  OWNER  WHOSE  PROPERTY  OR
 PLANNED  TRANSACTION  IS  EXEMPT  FROM THIS ARTICLE PURSUANT TO SECTIONS
 SEVEN HUNDRED NINETY-NINE-B OR SEVEN HUNDRED NINETY-NINE-C OF THIS ARTI-
 CLE MAY ELECT TO SUBJECT THEIR PROPERTY TO  THIS  ARTICLE  BY  COMPLYING
 WITH PROCEDURES THAT DHCR SHALL PROMULGATE THROUGH REGULATIONS, PROVIDED
 THAT  THE  OWNER WHO VOLUNTARILY SUBJECTS THEIR PROPERTY TO THIS ARTICLE
 SHALL COMPLY WITH THIS ARTICLE IN ITS ENTIRETY. EACH  TENANT  LIVING  IN
 SUCH PROPERTY SHALL BE GRANTED ALL OF THE RIGHTS DESCRIBED IN THIS ARTI-
 CLE, INCLUDING THE OPPORTUNITY TO DECIDE WHETHER TO EXERCISE THEIR RIGHT
 OF FIRST REFUSAL UNDER SECTION SEVEN HUNDRED NINETY-NINE-D OF THIS ARTI-
 CLE.  NO  OWNER  SHALL  BE  ELIGIBLE FOR INCENTIVES DESCRIBED IN SECTION
 SEVEN HUNDRED NINETY-NINE-Q OF THIS ARTICLE WITHOUT COMPLYING WITH  THIS
 ARTICLE IN ITS ENTIRETY.
   §  799-D.    RIGHT  OF  FIRST  REFUSAL.  1. GENERAL CONSTRUCTION. THIS
 SECTION SHALL BE CONSTRUED TO CONFER A RIGHT OF FIRST REFUSAL ONLY  UPON
 EACH TENANT, TENANT ORGANIZATION, AND QUALIFIED PURCHASER.
   2.  OFFER  OF  SALE  TO  TENANTS,  TENANT ORGANIZATIONS, AND QUALIFIED
 PURCHASERS. BEFORE AN OWNER OF A RENTAL HOUSING ACCOMMODATION  MAY  SELL
 OR  ACCEPT  AN  OFFER  TO SELL A RENTAL HOUSING ACCOMMODATION, THE OWNER
 SHALL GIVE EACH TENANT, TENANT ORGANIZATION OR  QUALIFIED  PURCHASER  AN
 OPPORTUNITY TO PURCHASE SUCH RENTAL HOUSING ACCOMMODATION AT A PRICE AND
 TERMS THAT REPRESENT A BONA FIDE OFFER OF SALE.
   (A) THE OWNER'S OFFER OF SALE SHALL INCLUDE, AT MINIMUM:
   (I)  THE  ASKING PRICE AND TERMS OF THE SALE. THE TERMS AND CONDITIONS
 SHALL BE CONSISTENT WITH THE APPLICABLE TIMEFRAMES DESCRIBED IN SUBDIVI-
 SIONS THREE AND FOUR OF THIS SECTION;
   (II) A STATEMENT AS TO WHETHER A PURCHASE CONTRACT WITH A  THIRD-PARTY
 PURCHASER  EXISTS  FOR THE SALE OF THE RENTAL HOUSING ACCOMMODATION, AND
 IF SO, A COPY OF SUCH PURCHASE CONTRACT; AND
   (III) A STATEMENT IN ENGLISH AND AT LEAST ONE  OTHER  LANGUAGE  WITHIN
 THE  PROPERTY'S  CENSUS  TRACT BASED ON THE LATEST UNITED STATES CENSUS,
 STATING THAT IF THE TENANT REQUIRES THE OFFER  OF  SALE  IN  A  LANGUAGE
 OTHER  THAN ENGLISH, THEY MAY CONTACT DHCR AND REQUEST THE OFFER OF SALE
 IN THEIR REQUESTED LANGUAGE AND/OR THE ASSISTANCE OF AN INTERPRETER.
   (B) IF A TENANT OR TENANT ORGANIZATION IS RECEIVING THE OFFER OF SALE,
 THE OWNER SHALL DELIVER A WRITTEN COPY OF THE  OFFER  OF  SALE  TO  EACH
 TENANT OR TENANT ORGANIZATION BY CERTIFIED MAIL OR E-MAIL.
   (C) IF A QUALIFIED PURCHASER IS RECEIVING THE OFFER OF SALE, THE OWNER
 SHALL  DELIVER THE OFFER OF SALE TO EACH QUALIFIED PURCHASER THAT PREVI-
 OUSLY MADE AN OFFER TO PURCHASE THE RENTAL HOUSING ACCOMMODATION, AND TO
 EACH TENANT, BY CERTIFIED MAIL OR E-MAIL.  THE  OWNER  SHALL  SUBMIT  AN
 OFFER  OF  SALE TO EACH SUCH QUALIFIED PURCHASER ON THE SAME DAY, AND TO
 THE EXTENT POSSIBLE, AT THE SAME TIME.
   (D) IF THE OWNER HAS A PURCHASE CONTRACT WITH A THIRD-PARTY  PURCHASER
 FOR THE SALE OF THE RENTAL HOUSING ACCOMMODATION, THE OWNER SHALL DELIV-
 ER  THE  OFFER  OF SALE TO EACH TENANT, TENANT ORGANIZATION OR QUALIFIED
 PURCHASER WITHIN TWO DAYS OF ENTERING INTO A PURCHASE CONTRACT WITH  THE
 THIRD-PARTY PURCHASER.
   (E) THE OWNER SHALL ALSO PROVIDE DHCR WITH A WRITTEN COPY OF THE OFFER
 OF SALE AND A STATEMENT CERTIFYING THAT THE ITEMS DESCRIBED BY PARAGRAPH
 (A)  OF THIS SUBDIVISION WERE DELIVERED TO EACH TENANT, TENANT ORGANIZA-
 TION, OR QUALIFIED PURCHASER.
   3. TIME TO ACCEPT OFFER. (A) THE FOLLOWING PROCEDURES SHALL APPLY:
   (I) UPON RECEIPT OF THE OFFER OF SALE FROM THE OWNER, A TENANT  ORGAN-
 IZATION SHALL HAVE FORTY-FIVE DAYS TO ACCEPT THE OFFER OF SALE.
 S. 401                              7
 
   (II)  UPON  RECEIPT  OF  THE OFFER OF SALE FROM THE OWNER, A QUALIFIED
 PURCHASER SHALL HAVE THIRTY DAYS TO ACCEPT THE OFFER OF SALE.
   (III)  THE  DEADLINE  TO ACCEPT ANY OFFER OF SALE SHALL BE EXTENDED AS
 NECESSARY TO ALLOW THE TENANT ORGANIZATION  OR  QUALIFIED  PURCHASER  TO
 EXERCISE  THEIR  RIGHT TO AN APPRAISAL PURSUANT TO SECTION SEVEN HUNDRED
 NINETY-NINE-L OF THIS ARTICLE, IF THEY BELIEVE THAT THE OFFER OF SALE IS
 NOT A BONA FIDE OFFER OF SALE.
   (B) IF, DURING THESE TIME PERIODS, ANY QUALIFIED  PURCHASER  THAT  HAS
 RECEIVED SUCH OFFER OF SALE DECIDES TO ACCEPT THE OWNER'S OFFER OF SALE,
 SUCH  QUALIFIED  PURCHASER SHALL NOTIFY THE OWNER AND EVERY OTHER QUALI-
 FIED PURCHASER OF SUCH DECISION BY E-MAIL OR  CERTIFIED  MAIL.  AFTER  A
 QUALIFIED  PURCHASER  NOTIFIES  THE  OWNER OF ITS DECISION TO ACCEPT THE
 OWNER'S OFFER OF SALE, MEANING BEFORE ANY OTHER QUALIFIED  PURCHASER  SO
 NOTIFIED  THE  OWNER,  SUCH  QUALIFIED PURCHASER SHALL BE DEEMED TO HAVE
 ACCEPTED THE OFFER OF SALE,  AND  NO  OTHER  QUALIFIED  PURCHASER  SHALL
 ACCEPT  THE  OWNER'S  OFFER  OF SALE, WHETHER OR NOT THE TIME PERIODS IN
 THIS SUBDIVISION HAVE ELAPSED.
   4. TIME TO SECURE FINANCING AND CLOSE. IF A TENANT,  TENANT  ORGANIZA-
 TION, OR QUALIFIED PURCHASER ACCEPTS AN OWNER'S OFFER OF SALE IN ACCORD-
 ANCE  WITH  THIS  ARTICLE,  THE  OWNER  SHALL AFFORD SUCH TENANT, TENANT
 ORGANIZATION, OR QUALIFIED PURCHASER TIME TO SECURE FINANCING AND CLOSE,
 CONSISTENT WITH THIS ARTICLE.
   5. REJECTION OF OFFER. IF EACH TENANT, EACH TENANT  ORGANIZATION,  AND
 QUALIFIED  PURCHASER THAT RECEIVED AN OFFER OF SALE CONSISTENT WITH THIS
 ARTICLE, REJECTS SUCH OFFER OF SALE OR FAILS TO RESPOND WITHIN THE TIME-
 LINES DESCRIBED IN THIS SECTION, THE OWNER MAY IMMEDIATELY PROCEED  WITH
 THE  SALE OF THE RENTAL HOUSING ACCOMMODATION TO A THIRD-PARTY PURCHASER
 CONSISTENT WITH THE PRICE AND MATERIAL TERMS OF THAT OFFER OF SALE.
   § 799-E. TENANT DECISION-MAKING;  TENANT  ORGANIZATIONS.  1.    TENANT
 DECISION-MAKING.    EXCEPT IN THE CASE OF A DULY FORMED TENANT ORGANIZA-
 TION, ANY ACTION  REQUIRED  OF  TENANTS  UNDER  THIS  ARTICLE  SHALL  BE
 APPROVED BY AT LEAST A MAJORITY OF TENANT-OCCUPIED UNITS.
   2.  TENANT  ORGANIZATIONS. (A) IN ORDER TO SUBMIT AN OFFER AND RESPOND
 TO THE OWNER'S OFFER OF SALE PURSUANT TO SECTION SEVEN  HUNDRED  NINETY-
 NINE-D OF THIS ARTICLE, TENANTS SHALL:
   (I) FORM A TENANT ORGANIZATION, APPROVED BY THE REQUIREMENTS DESCRIBED
 IN  SUBDIVISION  ONE  OF THIS SECTION, UNLESS SUCH A TENANT ORGANIZATION
 ALREADY EXISTS IN A FORM APPROVED BY THE TENANTS.
   (II) SELECT A SUPPORTIVE PARTNER, MEETING THE  CRITERIA  DESCRIBED  IN
 SECTION SEVEN HUNDRED NINETY-NINE-G OF THIS ARTICLE.
   (III)  DELIVER AN APPLICATION FOR REGISTRATION OF THE TENANT ORGANIZA-
 TION TO DHCR, AND DELIVER A COPY OF SUCH APPLICATION TO  THE  OWNER,  BY
 HAND  OR  BY  CERTIFIED  MAIL ON OR BEFORE THE DEADLINE OF SUBMITTING AN
 OFFER OF PURCHASE PURSUANT TO SECTION  SEVEN  HUNDRED  NINETY-NINE-D  OF
 THIS ARTICLE. SUCH APPLICATION SHALL INCLUDE:
   (A)  THE  NAME,  ADDRESS,  AND PHONE NUMBER OF TENANT OFFICERS AND THE
 SUPPORTIVE PARTNER;
   (B) A COPY OF THE FORMATION DOCUMENT, AS FILED;
   (C) A COPY OF THE GOVERNING DOCUMENT;
   (D) DOCUMENTED APPROVAL THAT  THE  TENANT  ORGANIZATION  REPRESENTS  A
 MAJORITY  UNDER SUBDIVISION ONE OF THIS SECTION AS OF THE TIME OF REGIS-
 TRATION; AND
   (E) SUCH OTHER INFORMATION AS DHCR MAY REASONABLY REQUIRE.
   (B) TENANTS MAY FORM AND REGISTER THE TENANT  ORGANIZATION  WITH  DHCR
 PURSUANT  TO  THIS  SUBDIVISION  AT ANY TIME, PROVIDED THAT THIS SECTION
 S. 401                              8

 SHALL NOT BE CONSTRUED TO ALTER THE TIME PERIODS WITHIN WHICH  A  TENANT
 ORGANIZATION MAY EXERCISE THE RIGHTS AFFORDED BY THIS ARTICLE.
   (C) UPON REGISTRATION WITH DHCR, THE TENANT ORGANIZATION SHALL CONSTI-
 TUTE  THE  SOLE REPRESENTATIVE OF THE TENANTS FOR PURPOSES OF THIS ARTI-
 CLE.
   § 799-F. QUALIFIED PURCHASERS. 1. QUALIFIED PURCHASER  CRITERIA.  DHCR
 SHALL  ESTABLISH  AN  ADMINISTRATIVE  PROCESS  FOR  CERTIFYING QUALIFIED
 PURCHASERS THAT SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,  THE  FOLLOWING
 MINIMUM CRITERIA:
   (A)  THE  PURCHASER IS A BONA FIDE NONPROFIT, AS EVIDENCED BY THE FACT
 THAT IT IS EXEMPT FROM FEDERAL INCOME TAX UNDER 26 U.S.C. § 501(C)(3);
   (B) THE PURCHASER HAS DEMONSTRATED A COMMITMENT TO EITHER:
   (I) DEMOCRATIC RESIDENTIAL CONTROL, AS EVIDENCED BY ITS OWNERSHIP  AND
 GOVERNANCE STRUCTURE AND RELATIONSHIP WITH RESIDENTS; OR
   (II)  A  COMMITMENT TO COMMUNITY ENGAGEMENT, AS EVIDENCED BY RELATION-
 SHIPS WITH NEIGHBORHOOD-BASED ORGANIZATIONS OR TENANT COUNSELING  ORGAN-
 IZATIONS;
   (C) THE PURCHASER HAS AGREED TO TRANSFER OWNERSHIP OF THE RENTAL HOUS-
 ING  ACCOMMODATION  TO  THE TENANTS WHEN FEASIBLE IF ITS TENANTS REQUEST
 SUCH TRANSFER OF OWNERSHIP;
   (D) THE PURCHASER HAS DEMONSTRATED A COMMITMENT TO  THE  PROVISION  OF
 AFFORDABLE HOUSING FOR MODERATE, LOW, VERY LOW, AND EXTREMELY LOW INCOME
 NEW  YORK STATE RESIDENTS, AND TO PREVENT THE DISPLACEMENT OF SUCH RESI-
 DENTS;
   (E) THE PURCHASER HAS AGREED TO OBLIGATE ITSELF AND ANY SUCCESSORS  IN
 INTEREST  TO  MAINTAIN THE PERMANENT AFFORDABILITY OF THE RENTAL HOUSING
 ACCOMMODATION, IN ACCORDANCE WITH SECTION SEVEN HUNDRED NINETY-NINE-P OF
 THIS ARTICLE;
   (F) THE PURCHASER HAS DEMONSTRATED THE CAPACITY,  INCLUDING,  BUT  NOT
 LIMITED TO, THE LEGAL AND FINANCIAL CAPACITY, TO EFFECTIVELY ACQUIRE AND
 MANAGE RESIDENTIAL REAL PROPERTY IN NEW YORK STATE;
   (G)  THE  PURCHASER  HAS  ACQUIRED  OR  PARTNERED WITH ANOTHER HOUSING
 DEVELOPMENT ORGANIZATION OR NONPROFIT ORGANIZATION TO ACQUIRE  AT  LEAST
 ONE  RESIDENTIAL  BUILDING USING ANY PUBLIC OR COMMUNITY FUNDING, OR HAS
 ENTERED INTO A WRITTEN MEMORANDUM OF UNDERSTANDING WITH ANOTHER  HOUSING
 DEVELOPMENT  ORGANIZATION  OR  NONPROFIT ORGANIZATION FOR THE PURPOSE OF
 PARTNERING WITH A HOUSING DEVELOPMENT ORGANIZATION OR  NONPROFIT  ORGAN-
 IZATION TO ACQUIRE RESIDENTIAL BUILDINGS USING PUBLIC OR COMMUNITY FUND-
 ING; AND
   (H) THE PURCHASER HAS AGREED TO ATTEND MANDATORY TRAINING TO BE DETER-
 MINED, FROM TIME TO TIME, BY DHCR.
   2. CERTIFICATION, TERM, AND RENEWAL. PURCHASERS THAT DHCR CERTIFIES AS
 HAVING  MET  THE  CRITERIA  IN  SUBDIVISION ONE OF THIS SECTION SHALL BE
 KNOWN AS "QUALIFIED PURCHASERS".  A PURCHASER'S CERTIFICATION AS A QUAL-
 IFIED PURCHASER SHALL BE VALID FOR FOUR YEARS.  DHCR SHALL  SOLICIT  NEW
 APPLICATIONS  FOR QUALIFIED PURCHASER STATUS AT LEAST ONCE EACH CALENDAR
 YEAR, AT WHICH TIME EXISTING QUALIFIED PURCHASERS SHALL BE  ELIGIBLE  TO
 APPLY FOR RENEWED CERTIFICATION AS QUALIFIED PURCHASERS.
   3. EXISTENCE AND PUBLICATION OF QUALIFIED PURCHASERS LIST.  DHCR SHALL
 PUBLISH ON ITS WEBSITE, AND MAKE AVAILABLE UPON REQUEST, A LIST OF QUAL-
 IFIED  PURCHASERS.  IN  ADDITION  TO  SUCH OTHER INFORMATION AS DHCR MAY
 INCLUDE, SUCH LIST SHALL INCLUDE CONTACT INFORMATION FOR EACH  QUALIFIED
 PURCHASER.  SUCH  CONTACT  INFORMATION  SHALL  INCLUDE,  BUT NEED NOT BE
 LIMITED TO, A MAILING ADDRESS, AN  E-MAIL  ADDRESS  THAT  THE  QUALIFIED
 PURCHASER MONITORS REGULARLY, AND A TELEPHONE NUMBER.
 S. 401                              9

   4.  DISQUALIFICATION OF QUALIFIED PURCHASER AND CONFLICTS OF INTEREST.
 DHCR SHALL PROMPTLY INVESTIGATE ANY COMPLAINT ALLEGING THAT A  QUALIFIED
 PURCHASER HAS FAILED TO COMPLY WITH THIS SECTION. SUBJECT TO REGULATIONS
 PROMULGATED  BY  DHCR,  IF, AFTER PROVIDING THE QUALIFIED PURCHASER WITH
 NOTICE  AND  OPPORTUNITY  TO  BE HEARD, DHCR DETERMINES THAT A PURCHASER
 LISTED AS A QUALIFIED PURCHASER HAS FAILED TO COMPLY WITH THIS  SECTION,
 DHCR MAY SUSPEND OR REVOKE THAT PURCHASER'S CERTIFICATION AS A QUALIFIED
 PURCHASER.   DHCR SHALL ESTABLISH A PROCESS FOR ADDRESSING POTENTIAL AND
 ACTUAL CONFLICTS OF INTERESTS THAT MAY ARISE AMONG SUPPORTIVE  PARTNERS,
 QUALIFIED PURCHASERS, AND TENANTS THROUGH PROMULGATION OF REGULATIONS.
   §  799-G.  SUPPORTIVE  PARTNERS. 1. SUPPORTIVE PARTNER CRITERIA.  DHCR
 SHALL ESTABLISH AN ADMINISTRATIVE PROCESS FOR CERTIFYING INDIVIDUALS  OR
 ORGANIZATIONS THAT MEET THE FOLLOWING MINIMUM CRITERIA:
   (A) THE INDIVIDUAL OR ORGANIZATION HAS DEMONSTRATED ABILITY AND CAPAC-
 ITY TO GUIDE AND SUPPORT TENANTS IN FORMING A TENANT ORGANIZATION;
   (B) THE INDIVIDUAL OR ORGANIZATION HAS DEMONSTRATED ABILITY AND CAPAC-
 ITY TO ASSIST TENANTS IN UNDERSTANDING AND EXERCISING THEIR RIGHTS UNDER
 THIS ARTICLE;
   (C)  THE  INDIVIDUAL  OR  ORGANIZATION  HAS DEMONSTRATED EXPERTISE, OR
 EXISTING PARTNERSHIPS WITH OTHER ORGANIZATIONS WITH DEMONSTRATED  EXPER-
 TISE,  TO  COUNSEL  TENANTS  ON  FIRST-TIME HOMEOWNERSHIP AND COLLECTIVE
 OWNERSHIP STRUCTURES;
   (D) THE INDIVIDUAL OR ORGANIZATION HAS A  DEMONSTRATED  COMMITMENT  TO
 CREATING DEMOCRATIC RESIDENT-CONTROLLED HOUSING; AND
   (E)  THE  INDIVIDUAL  OR  ORGANIZATION  HAS AGREED TO ATTEND MANDATORY
 TRAININGS, TO BE DETERMINED, FROM TIME TO TIME, BY DHCR.
   2. CERTIFICATION, TERM, AND  RENEWAL.  INDIVIDUALS  AND  ORGANIZATIONS
 THAT  DHCR  CERTIFIES  AS  HAVING MET THE CRITERIA IN SUBDIVISION ONE OF
 THIS SECTION SHALL BE KNOWN AS "SUPPORTIVE PARTNERS". AN  INDIVIDUAL  OR
 ORGANIZATION'S  CERTIFICATION AS A SUPPORTIVE PARTNER SHALL BE VALID FOR
 FOUR YEARS. DHCR SHALL SOLICIT NEW APPLICATIONS FOR  SUPPORTIVE  PARTNER
 STATUS AT LEAST ONCE EACH CALENDAR YEAR, AT WHICH TIME EXISTING SUPPORT-
 IVE  PARTNERS  SHALL  BE  ELIGIBLE TO APPLY FOR RENEWED CERTIFICATION AS
 SUPPORTIVE PARTNERS.
   3. PURPOSE OF SUPPORTIVE PARTNER. A SUPPORTIVE PARTNER SHALL  FUNCTION
 IN  A SUPPORTIVE ROLE TO ASSIST TENANTS IN EXERCISING THEIR RIGHTS UNDER
 THIS ARTICLE. THIS ARTICLE SHALL NOT CONFER ANY RIGHTS TO  A  SUPPORTIVE
 PARTNER.  A  SUPPORTIVE  PARTNER  SHALL  BE  DISTINCT  FROM  A QUALIFIED
 PURCHASER THAT IS CONFERRED SUBORDINATED RIGHTS UNDER  THIS  ARTICLE  AS
 DESCRIBED  IN  SECTION SEVEN HUNDRED NINETY-NINE-G OF THIS ARTICLE. DHCR
 MAY DETERMINE THAT A QUALIFIED  PURCHASER  DESCRIBED  IN  SECTION  SEVEN
 HUNDRED  NINETY-NINE-F OF THIS ARTICLE THAT MEETS THE CRITERIA IN SUBDI-
 VISION ONE OF THIS SECTION SHALL ALSO BE ELIGIBLE TO SERVE AS A SUPPORT-
 IVE PARTNER. DHCR MAY ALSO SERVE AS A SUPPORTIVE PARTNER.
   4. EXISTENCE AND PUBLICATION OF SUPPORTIVE PARTNERS LIST.  DHCR  SHALL
 PUBLISH  ON  ITS  WEBSITE,  AND  MAKE  AVAILABLE UPON REQUEST, A LIST OF
 SUPPORTIVE PARTNERS. IN ADDITION TO SUCH OTHER INFORMATION AS  DHCR  MAY
 INCLUDE, THIS LIST SHALL INCLUDE CONTACT INFORMATION FOR EACH SUPPORTIVE
 PARTNER. SUCH CONTACT INFORMATION SHALL INCLUDE, BUT NEED NOT BE LIMITED
 TO,  A  MAILING  ADDRESS,  AN E-MAIL ADDRESS THAT THE SUPPORTIVE PARTNER
 MONITORS REGULARLY, AND A TELEPHONE NUMBER.
   5. DISQUALIFICATION OF SUPPORTIVE PARTNER AND CONFLICTS  OF  INTEREST.
 DHCR SHALL PROMPTLY INVESTIGATE ANY COMPLAINT ALLEGING THAT A SUPPORTIVE
 PARTNER  HAS  FAILED TO COMPLY WITH THIS SECTION. SUBJECT TO REGULATIONS
 PROMULGATED BY DHCR, IF, AFTER PROVIDING  THE  SUPPORTIVE  PARTNER  WITH
 NOTICE  AND  OPPORTUNITY TO BE HEARD, DHCR DETERMINES THAT AN INDIVIDUAL
 S. 401                             10
 
 OR ORGANIZATION LISTED AS A SUPPORTIVE PARTNER HAS FAILED TO COMPLY WITH
 THIS SECTION, DHCR MAY SUSPEND OR REVOKE SUCH  INDIVIDUAL  OR  ORGANIZA-
 TION'S  CERTIFICATION  AS  A  SUPPORTIVE PARTNER. DHCR SHALL ESTABLISH A
 PROCESS  FOR ADDRESSING POTENTIAL AND ACTUAL CONFLICTS OF INTERESTS THAT
 MAY ARISE AMONG SUPPORTIVE PARTNERS, QUALIFIED PURCHASERS,  AND  TENANTS
 THROUGH PROMULGATION OF REGULATIONS.
   §  799-H. ASSIGNMENT OF RIGHTS. 1. A TENANT OR TENANT ORGANIZATION MAY
 ASSIGN RIGHTS UNDER THIS  SECTION  IN  COMPLIANCE  WITH  SECTIONS  SEVEN
 HUNDRED NINETY-NINE-D AND SEVEN HUNDRED NINETY-NINE-E OF THIS ARTICLE TO
 A QUALIFIED PURCHASER OF THEIR CHOICE.
   2.  SUBJECT  TO  REGULATIONS  PROMULGATED  BY  DHCR, THE ASSIGNMENT OF
 RIGHTS DESCRIBED IN THIS SECTION SHALL OCCUR  PRIOR  TO  THE  TENANT  OR
 TENANT  ORGANIZATION  WAIVING  THEIR  RIGHTS  PURSUANT  TO SECTION SEVEN
 HUNDRED NINETY-NINE-I OF THIS  ARTICLE,  AND  ONLY  DURING  THE  PROCESS
 PROVIDED IN SECTION SEVEN HUNDRED NINETY-NINE-D OF THIS ARTICLE.  EXCEPT
 AS  PROVIDED IN SECTION SEVEN HUNDRED NINETY-NINE-I OF THIS ARTICLE, THE
 WAIVER AND ASSIGNMENT OF RIGHTS SHALL BE MADE  IN  A  WRITTEN  AGREEMENT
 EXECUTED BY THE TENANT OR TENANT ORGANIZATION AND THE QUALIFIED PURCHAS-
 ER.
   3.  QUALIFIED  PURCHASERS SHALL NOT ACCEPT ANY PAYMENT, CONSIDERATION,
 OR REWARD IN EXCHANGE FOR THE ASSIGNMENT OF RIGHTS UNDER THIS SECTION.
   § 799-I. WAIVER OF RIGHTS. 1. TENANTS MAY  AFFIRMATIVELY  WAIVE  THEIR
 RIGHTS  BEFORE THE TIME PERIODS SPECIFIED IN SECTION SEVEN HUNDRED NINE-
 TY-NINE-D OF THIS ARTICLE ELAPSE, BY NOTIFYING  THE  OWNER  IN  WRITING,
 SIGNED BY THE TENANTS AND IN COMPLIANCE WITH SECTION SEVEN HUNDRED NINE-
 TY-NINE-E OF THIS ARTICLE.
   2.  TENANTS'  FAILURE TO COMPLETE ACTIONS REQUIRED UNDER SECTION SEVEN
 HUNDRED NINETY-NINE-D OF THIS ARTICLE WITHIN THE ALLOTTED TIME  PERIODS,
 AND  ANY  EXTENSIONS  THEREOF, SHALL BE DEEMED AN IMPLIED WAIVER OF SUCH
 TENANTS' RIGHTS.
   § 799-J. NOTICE REQUIREMENTS. ANY NOTICES  REQUIRED  OR  PERMITTED  BY
 THIS  ARTICLE  SHALL  ALSO  COMPLY WITH REGULATIONS PROMULGATED BY DHCR.
 DHCR SHALL DEVELOP MODEL NOTICES WHICH  OWNERS  MAY  CHOOSE  TO  USE  TO
 COMPLY WITH THE REQUIREMENTS OF THIS SECTION AND SHALL MAKE SUCH NOTICES
 ACCESSIBLE TO OWNERS, INCLUDING BUT NOT LIMITED TO, POSTING SUCH NOTICES
 ON  DHCR'S  WEBSITE. SUCH MODEL NOTICE SHALL INCLUDE A LIST OF CERTIFIED
 QUALIFIED PURCHASERS.
   § 799-K. THIRD-PARTY PURCHASER RIGHTS. THE RIGHT OF A  THIRD-PARTY  TO
 PURCHASE  A  RENTAL  HOUSING ACCOMMODATION SHALL BE CONDITIONAL UPON THE
 EXERCISE OF TENANT, TENANT ORGANIZATION, AND QUALIFIED PURCHASER  RIGHTS
 UNDER  THIS  ARTICLE.  THE  TIME PERIODS FOR SUBMITTING AND ACCEPTING AN
 OFFER, SECURING FINANCING, AND CLOSING UNDER THIS ARTICLE SHALL BE MINI-
 MUM PERIODS, AND THE OWNER MAY AFFORD ANY TENANT,  TENANT  ORGANIZATION,
 AND  QUALIFIED  PURCHASER A REASONABLE EXTENSION OF SUCH PERIOD, WITHOUT
 LIABILITY UNDER A  THIRD-PARTY  PURCHASE  CONTRACT.    OWNERS  SHALL  BE
 RESPONSIBLE FOR ALERTING ANY THIRD-PARTY PURCHASERS REGARDING THE APPLI-
 CABILITY  OF  THE  TENANT'S RIGHT TO PURCHASE THE PROPERTY.  THIRD-PARTY
 PURCHASERS SHALL BE PRESUMED TO ACT WITH FULL KNOWLEDGE OF THE RIGHTS OF
 TENANTS, TENANT ORGANIZATIONS, AND QUALIFIED PURCHASERS AND PUBLIC POLI-
 CY UNDER THIS ARTICLE.
   § 799-L. RIGHT TO APPRAISAL. 1. RIGHT TO APPRAISAL. THIS SECTION SHALL
 APPLY WHENEVER AN OFFER OF SALE IS MADE TO A  TENANT,  TENANT  ORGANIZA-
 TION,  OR QUALIFIED PURCHASERS AS REQUIRED BY THIS ARTICLE AND THE OFFER
 IS MADE IN THE ABSENCE OF AN ARM'S-LENGTH THIRD-PARTY PURCHASE CONTRACT.
   2. REQUEST FOR APPRAISAL. THE TENANT, TENANT ORGANIZATION,  OR  QUALI-
 FIED PURCHASER THAT RECEIVES AN OWNER'S OFFER OF SALE MAY CHALLENGE SUCH
 S. 401                             11
 
 OFFER  OF  SALE  AS  NOT BEING A BONA FIDE OFFER OF SALE, AND REQUEST AN
 APPRAISAL TO DETERMINE THE FAIR  MARKET  VALUE  OF  THE  RENTAL  HOUSING
 ACCOMMODATION.  THE  PARTY  REQUESTING THE APPRAISAL SHALL BE DEEMED THE
 "PETITIONER"  FOR PURPOSES OF THIS SECTION. THE PETITIONER SHALL DELIVER
 THE WRITTEN REQUEST FOR AN APPRAISAL TO DHCR AND THE OWNER BY HAND OR BY
 CERTIFIED MAIL WITHIN FIVE DAYS OF RECEIVING THE OFFER OF SALE.
   3. TIME FOR APPRAISAL. BEGINNING WITH THE DATE OF RECEIPT OF A WRITTEN
 REQUEST FOR AN APPRAISAL, AND FOR EACH DAY THEREAFTER  UNTIL  THE  PETI-
 TIONER RECEIVES THE APPRAISAL, THE TIME PERIODS DESCRIBED IN SUBDIVISION
 THREE  OF  SECTION  SEVEN HUNDRED NINETY-NINE-D OF THIS ARTICLE SHALL BE
 EXTENDED BY AN ADDITIONAL TIME OF UP TO TEN BUSINESS DAYS.
   4. SELECTION OF APPRAISER. THE PETITIONER SHALL  SELECT  AN  APPRAISER
 FROM  A LIST OF INDEPENDENT, QUALIFIED APPRAISERS, THAT DHCR SHALL MAIN-
 TAIN.  DHCR-APPROVED APPRAISERS SHALL HOLD AN ACTIVE  APPRAISER  LICENSE
 ISSUED BY THE NEW YORK STATE BOARD OF REAL ESTATE APPRAISAL AND SHALL BE
 ABLE  TO CONDUCT AN OBJECTIVE, INDEPENDENT PROPERTY VALUATION, PERFORMED
 ACCORDING TO  PROFESSIONAL  INDUSTRY  STANDARDS.  ALL  APPRAISERS  SHALL
 UNDERGO TRAINING ORGANIZED BY DHCR BEFORE THEY ARE APPROVED AND ADDED TO
 THE DHCR'S LIST.
   5.  COST  OF  APPRAISAL.  THE PETITIONER SHALL BE RESPONSIBLE FOR TWO-
 THIRDS AND THE OWNER SHALL BE RESPONSIBLE FOR  ONE-THIRD  OF  THE  TOTAL
 COST OF THE APPRAISAL.
   6.  APPRAISAL  PROCEDURES  AND  STANDARDS.  THE  OWNER  SHALL GIVE THE
 APPRAISER FULL, UNFETTERED ACCESS  TO  THE  PROPERTY.  THE  OWNER  SHALL
 RESPOND  WITHIN  FIVE  DAYS  TO  ANY  REQUEST  FOR  INFORMATION FROM THE
 APPRAISER. THE PETITIONER MAY GIVE THE APPRAISER INFORMATION RELEVANT TO
 THE VALUATION OF THE PROPERTY. THE APPRAISAL SHALL  BE  COMPLETED  EXPE-
 DITIOUSLY  ACCORDING TO STANDARD INDUSTRY TIMEFRAMES. AN APPRAISED VALUE
 SHALL ONLY BE BASED ON RIGHTS AN OWNER HAS AS A  MATTER-OF-RIGHT  AS  OF
 THE  DATE OF THE ALLEGED BONA FIDE OFFER OF SALE, INCLUDING ANY EXISTING
 RIGHT AN OWNER MAY HAVE TO CONVERT THE PROPERTY TO ANOTHER USE.   WITHIN
 THE  RESTRICTIONS  IN THIS SUBDIVISION, AN APPRAISED VALUE MAY TAKE INTO
 CONSIDERATION THE HIGHEST AND BEST USE OF THE PROPERTY.
   7. VALIDITY OF APPRAISAL. THE DETERMINATION OF THE APPRAISED VALUE  OF
 THE RENTAL HOUSING ACCOMMODATION, IN ACCORDANCE WITH THIS SECTION, SHALL
 BECOME  THE  SALES PRICE OF THE RENTAL HOUSING ACCOMMODATION IN THE BONA
 FIDE OFFER OF SALE, UNLESS:
   (A) THE OWNER AND THE PETITIONER AGREE UPON A DIFFERENT SALES PRICE OF
 THE RENTAL HOUSING ACCOMMODATION; OR
   (B) THE OWNER ELECTS TO WITHDRAW THE OFFER OF SALE  ALTOGETHER  WITHIN
 FOURTEEN DAYS OF RECEIPT OF THE APPRAISAL, IN WHICH CASE:
   (I) THE OWNER SHALL WITHDRAW THE OFFER OF SALE BY DELIVERING A WRITTEN
 NOTICE BY HAND OR BY CERTIFIED MAIL TO DHCR AND TO THE PETITIONER;
   (II)  UPON  WITHDRAWAL,  THE  OWNER SHALL REIMBURSE THE PETITIONER AND
 DHCR FOR THEIR SHARE OF THE COST OF THE APPRAISAL WITHIN  FOURTEEN  DAYS
 OF DELIVERY OF WRITTEN NOTICE OF WITHDRAWAL; AND
   (III)  AN OWNER WHO WITHDRAWS AN OFFER OF SALE IN ACCORDANCE WITH THIS
 PARAGRAPH SHALL BE PRECLUDED FROM PROCEEDING TO SELL THE RENTAL  HOUSING
 ACCOMMODATION  TO  A  THIRD-PARTY  PURCHASER WITHOUT COMPLYING WITH THIS
 SECTION BY HONORING THE RIGHT OF FIRST REFUSAL OF TENANTS, TENANT ORGAN-
 IZATIONS AND QUALIFIED PURCHASERS; OR
   (C) THE PETITIONER ELECTS TO WITHDRAW THE  OFFER  OF  SALE  ALTOGETHER
 WITHIN FOURTEEN DAYS OF RECEIPT OF THE APPRAISAL, IN WHICH CASE:
   (I)  THE  PETITIONER  SHALL WITHDRAW THE OFFER OF SALE BY DELIVERING A
 WRITTEN NOTICE BY HAND OR BY CERTIFIED MAIL TO DHCR AND  TO  THE  OWNER;
 AND
 S. 401                             12

   (II)  UPON  WITHDRAWAL,  THE  PETITIONER SHALL REIMBURSE THE OWNER AND
 DHCR FOR THEIR SHARE OF THE COST OF THE APPRAISAL WITHIN  FOURTEEN  DAYS
 OF DELIVERY OF WRITTEN NOTICE OF WITHDRAWAL.
   §  799-M.  PURCHASE CONTRACT NEGOTIATION. 1. BARGAINING IN GOOD FAITH.
 THE OWNER AND ANY TENANT, TENANT ORGANIZATION, AND/OR QUALIFIED PURCHAS-
 ER SHALL BARGAIN IN GOOD FAITH REGARDING THE  TERMS  OF  ANY  OFFER  FOR
 SALE.  ANY ONE OF THE FOLLOWING SHALL CONSTITUTE PRIMA FACIE EVIDENCE OF
 BARGAINING WITHOUT GOOD FAITH:
   (A) THE FAILURE OF AN OWNER TO OFFER A TENANT, TENANT ORGANIZATION, OR
 QUALIFIED PURCHASER A PRICE AND OTHER MATERIAL TERMS AT LEAST AS FAVORA-
 BLE AS THAT OFFERED TO A THIRD-PARTY PURCHASER;
   (B) ANY REQUIREMENT BY AN OWNER THAT A TENANT, TENANT ORGANIZATION, OR
 QUALIFIED PURCHASER WAIVE ANY RIGHT UNDER THIS ARTICLE; OR
   (C) THE INTENTIONAL FAILURE OF AN OWNER, TENANT, TENANT  ORGANIZATION,
 OR QUALIFIED PURCHASER TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE.
   2.  REDUCED  PRICE. IF THE OWNER SELLS OR CONTRACTS TO SELL THE RENTAL
 HOUSING ACCOMMODATION TO A THIRD-PARTY PURCHASER FOR A PRICE  LESS  THAN
 THE  PRICE  OFFERED  TO  THE  TENANT,  TENANT ORGANIZATION, OR QUALIFIED
 PURCHASER IN THE OFFER OF SALE, OR FOR OTHER TERMS, WHICH WOULD  CONSTI-
 TUTE BARGAINING WITHOUT GOOD FAITH, THE OWNER SHALL COMPLY ANEW WITH ALL
 REQUIREMENTS OF THIS ARTICLE, AS APPLICABLE.
   3.  TERMINATION  OF  RIGHTS.  THE  INTENTIONAL  FAILURE OF ANY TENANT,
 TENANT  ORGANIZATION,  OR  QUALIFIED  PURCHASER  TO  COMPLY   WITH   THE
 PROVISIONS  OF  THIS  ARTICLE  SHALL  RESULT IN THE TERMINATION OF THEIR
 RIGHTS UNDER THIS ARTICLE.
   § 799-N. NO SELLING OF RIGHTS. 1. A TENANT,  TENANT  ORGANIZATION,  OR
 QUALIFIED  PURCHASER SHALL NOT SELL OR OTHERWISE CONVEY ANY RIGHTS UNDER
 THIS ARTICLE.
   2. AN OWNER SHALL NOT COERCE A TENANT OR TENANT ORGANIZATION TO  WAIVE
 THEIR RIGHTS UNDER THIS ARTICLE.
   § 799-O. TENANT PROTECTIONS. 1. NO TENANT IN THE RENTAL HOUSING ACCOM-
 MODATION, INCLUDING TENANTS WHO DO NOT EXERCISE RIGHTS TO PURCHASE UNDER
 THIS  ARTICLE,  SHALL  BE  EVICTED  BY  THE TOPA BUYER, FOR A FAILURE TO
 PURCHASE OR FOR ANY OTHER REASON APPLICABLE TO  EXPIRATION  OF  TENANCY,
 EXCEPT  FOR  GOOD CAUSE; PROVIDED THAT SUCH PROCEEDINGS MAY BE COMMENCED
 FOR NON-PAYMENT OF RENT, ILLEGAL  USE  OR  OCCUPANCY  OF  THE  PREMISES,
 REFUSAL  OF  REASONABLE  ACCESS  TO THE OWNER OR A SIMILAR BREACH BY THE
 NON-PURCHASING TENANT OF THEIR OBLIGATIONS TO THE PURCHASER.
   2. SHOULD THERE  BY  AN  EXPIRATION  OF  THE  MAXIMUM  ALLOWABLE  RENT
 PROVISION  OF  THE  STATE'S EMERGENCY TENANT PROTECTION REGULATIONS, AND
 THE STATE'S RENT STABILIZATION CODE,  PROMULGATED  BY  THE  DIVISION  OF
 HOUSING AND COMMUNITY RENEWAL, TOPA BUYERS SHALL ADJUST THE RENT ANNUAL-
 LY TO ALLOW AN INCREASE OF NO MORE THAN THE INCREASE IN THE CPI.
   § 799-P. PRICE STABILIZATION. 1. PRICE STABILIZATION. A RENTAL HOUSING
 ACCOMMODATION  PURCHASED  BY  A  TOPA  BUYER UNDER THIS ARTICLE SHALL BE
 SUBJECT TO PERMANENT AFFORDABILITY RESTRICTIONS AS  SET  FORTH  IN  THIS
 SECTION  AND  BY REGULATIONS PROMULGATED BY DHCR, WHICH SHALL BE PROMUL-
 GATED WITH THE INTENT OF FULFILLING THE PURPOSE OF THIS SECTION.
   2. TERM. SUBJECT TO REGULATIONS PROMULGATED BY DHCR, PERMANENT AFFORD-
 ABILITY STANDARDS SHALL RESTRICT THE USE OF THE RENTAL HOUSING  ACCOMMO-
 DATION  TO  REQUIRE  THAT PERMANENT AFFORDABILITY RESTRICTIONS REMAIN IN
 FORCE FOR NINETY-NINE YEARS AND WITH AN OPTION  TO  RENEW  AT  YEAR  ONE
 HUNDRED. THIS SUBDIVISION SHALL NOT BE CONSTRUED TO APPLY ONLY TO COMMU-
 NITY LAND TRUSTS.
   3. PERMANENT AFFORDABILITY. IN EXCHANGE FOR THE RIGHTS CONFERRED UNDER
 THIS  SECTION,  EACH  TOPA  BUYER  SHALL AGREE TO MAINTAIN THE PERMANENT
 S. 401                             13
 
 AFFORDABILITY OF THE RENTAL HOUSING ACCOMMODATION. NO TOPA  BUYER  SHALL
 BE  ENTITLED TO A PURCHASE CONTRACT UNDER THIS SECTION WITHOUT EXECUTING
 AN AGREEMENT WITH DHCR TO LIMIT THE FUTURE APPRECIATION  OF  THE  RENTAL
 HOUSING  ACCOMMODATION AND ONLY SELL, OR RENT, TO INCOME-ELIGIBLE HOUSE-
 HOLDS IN ACCORDANCE WITH THIS SECTION,  SECTION  SEVEN  HUNDRED  NINETY-
 NINE-Q  OF THIS ARTICLE AND RELEVANT STANDARDS AND EXEMPTIONS CREATED BY
 DHCR THROUGH REGULATION. UNDER SUCH AGREEMENT,  EACH  TOPA  BUYER  SHALL
 REPRESENT  TO DHCR THAT THEY AGREE TO BE BOUND BY THE PERMANENT AFFORDA-
 BILITY REQUIREMENTS UNDER THIS SECTION. THE  TOPA  BUYER  SHALL  DELIVER
 SUCH  AGREEMENT  TO  DHCR  NO  LATER THAN THE DEADLINE FOR SUBMITTING AN
 OFFER PROVIDED UNDER SECTION SEVEN HUNDRED NINETY-NINE-D OF  THIS  ARTI-
 CLE.
   4.  PERMANENT  AFFORDABILITY STANDARDS FOR TENANTS OR TENANT ORGANIZA-
 TIONS. FOR A TENANT OR TENANT ORGANIZATION PURCHASING A  RENTAL  HOUSING
 ACCOMMODATION, PERMANENT AFFORDABILITY STANDARDS CREATED BY DHCR SHALL:
   (A)  RESTRICT THE RESALE PRICE OF THE RENTAL HOUSING ACCOMMODATION, OR
 SEPARATE OWNERSHIP INTERESTS IN THE  RENTAL  HOUSING  ACCOMMODATION,  BY
 LIMITING  THE  ANNUAL MARKET APPRECIATION OF THE RENTAL HOUSING ACCOMMO-
 DATION, OR SEPARATE OWNERSHIP INTEREST,  TO  A  PERCENTAGE  INCREASE  AS
 AGREED  UPON  BY DHCR OR THE REGULATING MUNICIPAL HOUSING AGENCY, NOT TO
 EXCEED AN ANNUAL INTEREST RATE OF THREE PERCENT SIMPLE;
   (B) ENSURE THAT A UNIT IN WHICH A TENANT DETERMINES TO REMAIN A RENTER
 FOLLOWING A PURCHASE UNDER THIS ARTICLE SHALL BE MAINTAINED  AS  A  UNIT
 SUBJECT  TO  THE  REQUIREMENTS OF SECTION SEVEN HUNDRED NINETY-NINE-O OF
 THIS ARTICLE, UNLESS DHCR DETERMINES A VALID  EXEMPTION  OR  ALTERNATIVE
 STANDARD  SHOULD  APPLY  FOR  SUCH UNIT ASSISTED BY DHCR OR OTHER PUBLIC
 SUBSIDY PROGRAM WHICH IS SUBJECT  TO  SEPARATE  PERMANENT  AFFORDABILITY
 REQUIREMENTS; AND
   (C) AT MINIMUM, MAKE THE RESTRICTED RESALE PRICE OF THE RENTAL HOUSING
 ACCOMMODATION,  OR  OWNERSHIP  INTERESTS  IN THE RENTAL HOUSING ACCOMMO-
 DATION, AVAILABLE ONLY TO HOUSEHOLDS WITH INCOME AT OR BELOW THE AVERAGE
 AMIS OF THE INITIAL TOPA BUYERS AS OF THE INITIAL PURCHASE DATE  OF  THE
 RENTAL HOUSING ACCOMMODATION, AS VERIFIED AND RECORDED BY DHCR AS OF THE
 INITIAL PURCHASE DATE AND NOT TO EXCEED ONE HUNDRED PERCENT OF AMI.
   5.  PERMANENT  AFFORDABILITY  STANDARDS  FOR QUALIFIED PURCHASERS. FOR
 QUALIFIED PURCHASERS PURCHASING THE RENTAL HOUSING ACCOMMODATION, PERMA-
 NENT AFFORDABILITY STANDARDS CREATED BY DHCR SHALL:
   (A) RESTRICT THE RESALE PRICE OF THE RENTAL HOUSING ACCOMMODATION,  OR
 SEPARATE  OWNERSHIP  INTERESTS  IN  THE RENTAL HOUSING ACCOMMODATION, BY
 LIMITING THE ANNUAL APPRECIATION OF THE RENTAL HOUSING ACCOMMODATION, OR
 SEPARATE OWNERSHIP INTEREST, TO A PERCENTAGE INCREASE AS AGREED UPON  BY
 DHCR OR THE REGULATING MUNICIPAL HOUSING AGENCY, NOT TO EXCEED AN ANNUAL
 INTEREST RATE OF THREE PERCENT SIMPLE;
   (B) ENSURE THAT A UNIT IN WHICH A TENANT DETERMINES TO REMAIN A RENTER
 FOLLOWING  A  PURCHASE  UNDER THIS ARTICLE SHALL BE MAINTAINED AS A UNIT
 SUBJECT TO THE REQUIREMENTS OF SECTION SEVEN  HUNDRED  NINETY-NINE-O  OF
 THIS  ARTICLE,  UNLESS  DHCR DETERMINES A VALID EXEMPTION OR ALTERNATIVE
 STANDARD SHOULD APPLY FOR SUCH UNIT ASSISTED BY  DHCR  OR  OTHER  PUBLIC
 SUBSIDY  PROGRAM  WHICH  IS  SUBJECT TO SEPARATE PERMANENT AFFORDABILITY
 REQUIREMENT; AND
   (C) PRIORITIZE MAKING VACANT OR VACATED UNITS IN  THE  RENTAL  HOUSING
 ACCOMMODATION AVAILABLE TO HOUSEHOLDS WITH INCOMES AT OR BELOW THE AVER-
 AGE  MEDIAN INCOME BY ZIP CODE AT THE TIME OF PURCHASE BUT NOT TO EXCEED
 EIGHTY PERCENT OF AMI.
   6. MECHANISM. PERMANENT AFFORDABILITY RESTRICTIONS  SHALL  MATERIALIZE
 AS AT LEAST ONE OF THE FOLLOWING:
 S. 401                             14
 
   (A)  A  RESTRICTIVE  COVENANT PLACED ON THE RECORDED TITLE DEED TO THE
 RENTAL HOUSING ACCOMMODATION THAT RUNS WITH THE LAND AND IS  ENFORCEABLE
 BY DHCR AGAINST THE TOPA BUYER AND ITS SUCCESSORS, AND OTHER AFFORDABIL-
 ITY  RESTRICTIONS IN LAND LEASES OR OTHER RECORDED DOCUMENTS NOT SPECIF-
 ICALLY  LISTED IN THIS SUBDIVISION, SO LONG AS DHCR DETERMINES THAT SUCH
 RESTRICTIONS ARE ENFORCEABLE  AND  LIKELY  TO  BE  ENFORCED  SUCH  AS  A
 RECORDED  MORTGAGE  PROMISSORY  NOTE  AND/OR  REGULATORY AGREEMENTS WITH
 LOCAL HOUSING AGENCIES WHERE GOVERNMENT SUBSIDIES ARE INVOLVED; AND
   (B) A COMMUNITY LAND TRUST LEASE, WHICH IS A NINETY-NINE-YEAR  RENEWA-
 BLE LAND LEASE WITH AFFORDABILITY AND OWNER-OCCUPANCY RESTRICTIONS.
   7.  REQUIRED  RECORDINGS  AND  FILINGS.  (A)  ALL COVENANTS CREATED IN
 ACCORDANCE WITH SECTION SEVEN  HUNDRED  NINETY-NINE-O  OF  THIS  ARTICLE
 SHALL  BE  RECORDED BEFORE OR SIMULTANEOUSLY WITH THE CLOSE OF ESCROW IN
 THE OFFICE OF THE COUNTY RECORDER WHERE THE RENTAL HOUSING ACCOMMODATION
 IS LOCATED AND SHALL CONTAIN A LEGAL DESCRIPTION OF THE  RENTAL  HOUSING
 ACCOMMODATION, INDEXED TO THE NAME OF THE TOPA BUYER AS GRANTEE.
   (B)  EACH  TOPA  BUYER  OF  THE  RENTAL HOUSING ACCOMMODATION SHALL BE
 REQUIRED TO FILE A DOCUMENT ANNUALLY WITH DHCR IN WHICH THE  TOPA  BUYER
 AFFIRMATIVELY  STATES  THE  RENTS  AND  SHARE PRICE FOR EACH UNIT IN THE
 RENTAL HOUSING ACCOMMODATION. DHCR MAY ENGAGE A  THIRD-PARTY  MONITORING
 AGENT  TO  MONITOR  THE COMPLIANCE OF THIS SUBDIVISION, PURSUANT TO DHCR
 REGULATIONS.
   § 799-Q. INCENTIVES. 1. ACCESS TO BUYERS. DHCR SHALL ENDEAVOR TO MAIN-
 TAIN AND PUBLICIZE THE LIST OF QUALIFIED PURCHASERS IN A MANNER THAT, TO
 THE MAXIMUM EXTENT FEASIBLE, PROMOTES THE  EXISTENCE  OF  THE  QUALIFIED
 PURCHASERS  AS A READILY ACCESSIBLE POOL OF POTENTIAL BUYERS FOR COVERED
 PROPERTIES. DHCR SHALL, TO THE  MAXIMUM  EXTENT  PERMITTED  BY  LAW  AND
 OTHERWISE  FEASIBLE,  PUBLICIZE  THE  EXISTENCE OF THIS LIST IN A MANNER
 INTENDED TO FACILITATE VOLUNTARY SALES  TO  QUALIFIED  PURCHASERS  IN  A
 MANNER  THAT  AVOIDS  OR  MINIMIZES  THE NEED FOR A BROKER, OTHER SEARCH
 COSTS, OR OTHER TRANSACTIONS.
   2. PARTIAL TRANSFER TAX EXEMPTION. THE TAX RATE SHALL  BE  REDUCED  IN
 ACCORDANCE WITH SECTION FOURTEEN HUNDRED TWO OF THE TAX LAW WITH RESPECT
 TO  ANY  DEED, INSTRUMENT, OR WRITING THAT AFFECTS A TRANSFER UNDER THIS
 ARTICLE.
   3. POTENTIAL  FEDERAL  TAX  BENEFITS.  ANY  QUALIFIED  PURCHASER  THAT
 PURCHASES  A  RENTAL  HOUSING  ACCOMMODATION  UNDER  THE  RIGHT OF FIRST
 REFUSAL SET FORTH IN SECTION SEVEN HUNDRED NINETY-NINE-D OF THIS ARTICLE
 SHALL, TO THE MAXIMUM EXTENT PERMITTED BY LAW AND OTHERWISE FEASIBLE, BE
 OBLIGED TO WORK WITH THE OWNER IN GOOD FAITH TO FACILITATE  AN  EXCHANGE
 OF  REAL  PROPERTY  OF  THE  KIND DESCRIBED IN 26 U.S.C. § 1031, FOR THE
 PURPOSE OF FACILITATING THE OWNER'S REALIZATION OF ANY FEDERAL TAX BENE-
 FITS AVAILABLE UNDER THAT SECTION OF THE INTERNAL REVENUE CODE.
   4. INFORMATION TO OWNERS. DHCR  SHALL  PRODUCE  AN  INFORMATION  SHEET
 DESCRIBING  THE  BENEFITS OF AN OWNER'S DECISION TO ACCEPT A TENANTS' OR
 QUALIFIED PURCHASER'S OFFER OF PURCHASE  MADE  IN  CONNECTION  WITH  THE
 RIGHT  OF  FIRST  REFUSAL  ESTABLISHED IN THIS ARTICLE.  DHCR SHALL MAKE
 THIS INFORMATION SHEET ACCESSIBLE TO OWNERS AND BUYERS BY PUBLICATION ON
 DHCR'S WEBSITE.
   § 799-R. ENFORCEMENT. 1. POWERS AND DUTIES  OF  DHCR.  DHCR  SHALL  BE
 AUTHORIZED  TO TAKE ALL APPROPRIATE ACTION, INCLUDING BUT NOT LIMITED TO
 THE ACTIONS SPECIFIED IN SECTION SEVEN  HUNDRED  NINETY-NINE-A  OF  THIS
 ARTICLE, TO IMPLEMENT AND ENFORCE THIS ARTICLE.
   2.  IMPLEMENTATION.  (A)  DHCR  SHALL PROMULGATE RULES AND REGULATIONS
 CONSISTENT WITH THIS ARTICLE.
 S. 401                             15
 
   (B) DHCR SHALL ADOPT REGULATIONS TO IMPLEMENT A PETITION  AND  HEARING
 PROCEDURE FOR ADMINISTERING THE ENFORCEMENT OF THIS ARTICLE.
   (C)  DHCR  SHALL  ESTABLISH  AND  MAKE AVAILABLE STANDARD DOCUMENTS TO
 ASSIST OWNERS, TENANTS, TENANT ORGANIZATIONS, AND  QUALIFIED  PURCHASERS
 IN  COMPLYING  WITH  THE  REQUIREMENTS OF THIS ARTICLE THROUGH AN ONLINE
 PORTAL, PROVIDED THAT USE OF SUCH DOCUMENTS DOES NOT NECESSARILY  ESTAB-
 LISH COMPLIANCE.
   (D)  OWNER CERTIFICATION AND DISCLOSURES. EVERY OWNER OF A RESIDENTIAL
 PROPERTY IN THE STATE SHALL, WITHIN FIFTEEN DAYS OF  THE  SALE  OF  SUCH
 RESIDENTIAL PROPERTY, SUBMIT TO DHCR A SIGNED DECLARATION, UNDER PENALTY
 OF  PERJURY,  AFFIRMING  THAT  THE  SALE  OF  SUCH  RESIDENTIAL PROPERTY
 COMPLIED WITH THE REQUIREMENTS OF THIS ARTICLE. SUCH  DECLARATION  SHALL
 INCLUDE THE ADDRESS OF THE RELEVANT RESIDENTIAL PROPERTY AND THE NAME OF
 EACH  NEW  OWNER OF THE RENTAL HOUSING ACCOMMODATION. DHCR SHALL PUBLISH
 ALL SUCH ADDRESSES  ON  ITS  WEBSITE.  FAILURE  TO  FILE  A  DECLARATION
 REQUIRED  BY  THIS  PARAGRAPH  SHALL  RESULT IN THE PENALTY DESCRIBED IN
 SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION.
   3. ENFORCEMENT. (A) CIVIL ACTION. ANY PARTY MAY  SEEK  ENFORCEMENT  OF
 ANY  RIGHT  OR PROVISION UNDER THIS ARTICLE THROUGH A CIVIL ACTION FILED
 WITH A COURT OF COMPETENT JURISDICTION AND, UPON  PREVAILING,  SHALL  BE
 ENTITLED TO REMEDIES, INCLUDING THOSE DESCRIBED IN PARAGRAPH (B) OF THIS
 SUBDIVISION.
   (B) PENALTIES AND REMEDIES.
   (I)  CIVIL PENALTIES. AN OWNER WHO WILLFULLY OR KNOWINGLY VIOLATES ANY
 PROVISION OF THIS ARTICLE SHALL BE SUBJECT TO A CUMULATIVE CIVIL PENALTY
 IMPOSED BY DHCR IN THE AMOUNT OF UP TO ONE THOUSAND DOLLARS PER DAY, PER
 TENANT-OCCUPIED UNIT IN A RENTAL HOUSING  ACCOMMODATION,  FOR  EACH  DAY
 FROM THE DATE THE VIOLATION BEGAN UNTIL THE REQUIREMENTS OF THIS ARTICLE
 ARE SATISFIED, PAYABLE TO THE NEW YORK HOUSING TRUST FUND.
   (II)  LEGAL  REMEDIES.  REMEDIES  IN  CIVIL  ACTION BROUGHT UNDER THIS
 SECTION SHALL INCLUDE THE FOLLOWING, WHICH MAY BE IMPOSED CUMULATIVELY:
   (A) DAMAGES IN AN AMOUNT SUFFICIENT TO REMEDY THE HARM TO  THE  PLAIN-
 TIFF;
   (B)  IN  THE  EVENT THAT AN OWNER SELLS A RENTAL HOUSING ACCOMMODATION
 WITHOUT COMPLYING WITH THE REQUIREMENTS OF  THIS  ARTICLE,  AND  IF  THE
 OWNER'S  VIOLATION  OF  THIS  ARTICLE  WAS KNOWING OR WILLFUL, MANDATORY
 CIVIL PENALTIES IN AN AMOUNT PROPORTIONAL  TO  THE  CULPABILITY  OF  THE
 OWNER  AND THE VALUE OF THE RENTAL HOUSING ACCOMMODATION. THERE SHALL BE
 A REBUTTABLE PRESUMPTION THAT THIS AMOUNT IS EQUAL TO TEN PERCENT OF THE
 SALE PRICE OF THE RENTAL HOUSING ACCOMMODATION FOR A WILLFUL OR  KNOWING
 VIOLATION OF THIS ARTICLE, TWENTY PERCENT OF THE SALE PRICE FOR A SECOND
 WILLFUL  OR  KNOWING VIOLATION, AND THIRTY PERCENT OF THE SALE PRICE FOR
 EACH SUBSEQUENT WILLFUL OR KNOWING VIOLATION. CIVIL  PENALTIES  ASSESSED
 UNDER  THIS  PARAGRAPH  SHALL  BE  PAYABLE TO THE NEW YORK HOUSING TRUST
 FUND; AND
   (C) REASONABLE ATTORNEYS' FEES.
   (III) EQUITABLE REMEDIES. IN ADDITION TO ANY OTHER REMEDY OR  ENFORCE-
 MENT MEASURE THAT A TENANT, TENANT ORGANIZATION, QUALIFIED PURCHASER, OR
 DHCR  MAY  SEEK  UNDER THIS SECTION, ANY COURT OF COMPETENT JURISDICTION
 MAY ENJOIN ANY SALE OR OTHER ACTION OF AN OWNER THAT WOULD  BE  MADE  IN
 VIOLATION OF THIS ARTICLE.
   §  799-S. STATUTORY CONSTRUCTION. THE PURPOSE OF THIS ARTICLE SHALL BE
 TO PREVENT THE DISPLACEMENT OF LOWER-INCOME TENANTS IN NEW YORK  AND  TO
 PRESERVE  AFFORDABLE  HOUSING BY PROVIDING AN OPPORTUNITY FOR TENANTS TO
 OWN OR REMAIN RENTERS IN THE  PROPERTIES  IN  WHICH  TENANTS  RESIDE  AS
 PROVIDED  IN  THIS  ARTICLE. IF A COURT FINDS AMBIGUITY AND THERE IS ANY
 S. 401                             16

 REASONABLE INTERPRETATION OF THIS ARTICLE THAT FAVORS THE RIGHTS OF  THE
 TENANT,  THEN  THE  COURT  SHALL  RESOLVE  AMBIGUITY  TOWARD  THE END OF
 STRENGTHENING THE LEGAL RIGHTS OF THE TENANT OR TENANT  ORGANIZATION  TO
 THE MAXIMUM EXTENT PERMISSIBLE UNDER LAW.
   §  799-T. ADMINISTRATION AND REPORTS. 1. DHCR SHALL REPORT ANNUALLY ON
 THE STATUS OF THE TENANT OPPORTUNITY TO  PURCHASE  ACT  PROGRAM  TO  THE
 LEGISLATURE  OR  TO  SUCH  LEGISLATIVE  COMMITTEE AS THE LEGISLATURE MAY
 DESIGNATE. SUCH REPORTS SHALL INCLUDE, BUT SHALL NOT BE LIMITED  TO  THE
 FOLLOWING:
   (A)  STATISTICS  ON  THE  NUMBER AND TYPES OF SALES OF TENANT OCCUPIED
 PROPERTIES;
   (B) STATISTICS ON THE NUMBER OF TENANTS AND QUALIFIED PURCHASERS  THAT
 INVOKE ACTION UNDER THIS ARTICLE;
   (C) NUMBER AND TYPES OF UNITS COVERED BY THIS ARTICLE; AND
   (D) ANY OTHER INFORMATION THE LEGISLATURE OR LEGISLATIVE COMMITTEE MAY
 REQUEST.
   2.  DHCR  SHALL MAKE AVAILABLE TRANSLATION SERVICES IN LANGUAGES OTHER
 THAN ENGLISH, WHERE REQUESTED IN ADVANCE BY A TENANT,  TENANT  ORGANIZA-
 TION,  QUALIFIED PURCHASER, OWNER, OR MEMBER OF THE PUBLIC AS IT RELATES
 TO TOPA, TO INTERPRET AND TRANSLATE DOCUMENTS AND PROCEDURES AS NEEDED.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved  in  the  controversy  in  which  such
 judgement  shall  have  been  rendered.  It is hereby declared to be the
 intent of th legislature that this act would have been enacted  even  if
 such invalid provisions had not been included herein.
   § 4. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.