§ 352-ee. Conversion of non-residential property to residential
cooperative or condominium ownership. 1. The attorney general shall
refuse to issue a letter stating that the offering statement or
prospectus required in subdivision one of section three hundred
fifty-two-e of this article has been filed whenever it appears that the
offering statement or prospectus offers for sale residential cooperative
apartments or condominium units located in a city of over one million in
population pursuant to a plan for the alteration or conversion of the
building to residential use under cooperative or condominium ownership,
other than a plan relating to a building already in compliance with
section three hundred one of the multiple dwelling law, unless the
offering statement or prospectus contains the following:

(i) a statement that a copy of plans for such alteration or
conversion, approved in accordance with section three hundred of the
multiple dwelling law, has been submitted to the attorney general prior
to the issuance by the attorney general of a letter stating that the
offering statement or prospectus has been filed;

(ii) a report prepared by an architect or engineer licensed by the
state which sets forth such alterations to the public portions and
common areas of the building and such alterations to individual spaces
or dwelling units as may be necessary to obtain a permanent certificate
of occupancy for permanent residential use of the premises;

(iii) a statement, satisfactory to the attorney general, that it is
the obligation of the sponsor to complete all alterations and
improvements to the public portions and common areas of the building in
compliance with such approved plans within the time specified in the
plan;

(iv) a statement, satisfactory to the attorney general, that it is the
obligation of the sponsor to complete all alterations and improvements
to individual spaces or dwelling units in compliance with such approved
plans within the time specified in the plan or, if the sponsor does not
undertake such obligation, that it is the obligation of the individual
owners of shares in the cooperative corporation or of condominium units,
under the supervision of the cooperative corporation or, in the case of
a condominium, under the supervision of the board of managers, to
complete such alterations and improvements within the time specified in
the plan; and

(v) a statement that a permanent certificate of occupancy is required
for permanent residential use of the premises, that a temporary
certificate of occupancy may only be renewed for a total period of two
years from the date of its original issuance and that, if the temporary
certificate of occupancy shall have expired prior to obtaining a
permanent certificate of occupancy, residential occupancy of the
premises will be in violation of the multiple dwelling law, subjecting
the occupants and the cooperative corporation and its board of directors
or, in the case of a condominium, the unit owners and board of managers,
to penalties under the multiple dwelling law including eviction of
residential occupants.

2. "Residential use" shall mean, for the purposes of this section,
space to be used for either living or joint living-work and shall be
presumed if the offering statement or prospectus sets forth items which
relate to residential use of the space, including but not limited to,
income tax benefits under section two hundred sixteen of the internal
revenue code, real property tax benefits available to residential
property or alterations required for the issuance of a permanent
certificate of occupancy for permanent residential use of the premises.