§ 352-eeee. Conversions to cooperative or condominium ownership in the
city of New York. 1. As used in this section, the following words and
terms shall have the following meanings:

(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
development 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 article
two, eight or eleven of the private housing finance law.

(b) "Non-eviction plan". A plan which may not be declared effective
until written purchase agreements have been executed and delivered for
at least fifty-one percent of all dwelling units in the building or
group of buildings or development by bona fide tenants who were in
occupancy on the date a letter was issued by the attorney general
accepting the plan for filing; provided, however, that for a building
containing five or fewer units, and where the sponsor of the offering
plan offers the unit that they or their immediate family member has
occupied for at least two years, the plan may not be effective until
written purchase agreements have been executed and delivered for at
least fifteen percent of all dwelling units in the building subscribed
for by bona fide tenants in occupancy or bona fide purchasers who
represent that they intend that they or one or more members of their
immediate family occupy the dwelling unit when it becomes vacant. 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 inducements.

(c) "Eviction plan". A plan which, submitted prior to the effective
date of the chapter of the laws of two thousand nineteen that amended
this section, pursuant to the provisions of this section, can result in
the eviction of a non-purchasing tenant by reason of the tenant failing
to purchase pursuant thereto, and which may not be declared effective
until at least fifty-one percent of the bona fide tenants in occupancy
of all dwelling units in the building or group of buildings or
development on the date the offering statement or prospectus was
accepted for filing by the attorney general (excluding, for the purposes
of determining the number of bona fide tenants in occupancy on such
date, eligible senior citizens and eligible disabled persons) shall have
executed and delivered written agreements to purchase under the plan
pursuant to an offering made in good faith without fraud and with no
discriminatory repurchase agreements or other discriminatory
inducements.

(d) "Purchaser under the plan". A person who owns the shares allocated
to a dwelling unit or who owns such dwelling unit itself.

(e) "Non-purchasing tenant". A person who has not purchased under the
plan and who is a tenant entitled to possession at the time the plan is
declared effective or a person to whom a dwelling unit is rented
subsequent to the effective date. A person who sublets a dwelling unit
from a purchaser under the plan shall not be deemed a non-purchasing
tenant.

(f) "Eligible senior citizens". Non-purchasing tenants who are
sixty-two years of age or older on the date the plan is submitted to the
department of law or on the date the attorney general has accepted the
plan for filing, and the spouses of any such tenants on such date, and
who have elected, within sixty days of the date the plan is submitted to
the department of law or on the date the attorney general has accepted
the 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.

(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 plan is submitted to the department of law or
on the date the attorney general has accepted the plan for filing, and
the spouses of any such tenants on such date, and who have elected,
within sixty days of the date the plan is submitted to the department of
law or on the date the attorney general has accepted the 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 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 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
or the shares allocated thereto on the terms then offered to tenants in
occupancy.

2. 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 pursuant to
a plan unless:

(a) The plan provides that it will be deemed abandoned, 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
offering statement or prospectus 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.

(b) The plan provides either that it is an eviction plan or that it is
a non-eviction plan.

(c) The plan provides, if it is a non-eviction plan, as follows:

(i) (1) Subject to the provisions of clause two of this subparagraph,
the plan may not be declared effective until written purchase agreements
have been executed and delivered for at least fifty-one percent of all
dwelling units in the building or group of buildings or development
subscribed for by bona fide tenants in occupancy on the date a letter
was issued by the attorney general accepting the plan for filing for
which purchase agreement shall be executed and delivered pursuant to an
offering made without discriminatory repurchase agreements or other
discriminatory inducements.

(2) For buildings containing five or fewer units, the plan may not be
declared effective until written purchase agreements have been executed
and delivered for at least fifteen percent of all dwelling units in the
building subscribed for by bona fide tenants in occupancy or bona fide
purchasers who represent that they intend that they or one or more
members of their immediate family occupy the dwelling unit when it
becomes vacant, provided that the sponsor of the offering plan offers
the unit that they or their immediate family member have occupied for at
least two years. As to tenants who were in occupancy on the date a
letter was issued by the attorney general accepting the plan filing, the
purchase agreement shall be executed and delivered pursuant to an
offering made without discriminatory repurchase agreements or other
discriminatory inducements.

(ii) No eviction proceedings will be commenced at any time against
non-purchasing tenants for failure to purchase or 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
premises, refusal of reasonable access to the owner or a similar breach
by the non-purchasing tenant of his obligations to the owner of the
dwelling unit or the shares allocated thereto; and provided further that
an owner of a unit or of the shares allocated thereto may not commence
an action to recover possession of a dwelling unit from a non-purchasing
tenant on the grounds that he seeks the dwelling unit for the use and
occupancy of himself or his family.

(iii) No eviction proceedings will be commenced, except as hereinafter
provided, 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 plan
has been accepted for filing shall not be subject to unconscionable
increases beyond ordinary rentals for comparable apartments during the
period of their occupancy considering, in determining comparability,
such factors as building services, level of maintenance and operating
expenses; provided that such proceedings may be commenced against such
tenants for non-payment of rent, illegal use or occupancy of the
premises, refusal of reasonable access to the owner or a similar breach
by the tenant of his obligations to the owner of the dwelling unit or
the shares allocated thereto.

(iv) 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.

(v) The rights granted under the plan to eligible senior citizens and
eligible disabled persons may not be abrogated or reduced
notwithstanding any expiration of, or amendment to, this section.

(vi) Any offeror who disputes the election by a person to be an
eligible senior citizen or an eligible disabled person must 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
eligibility. The attorney general shall, within thirty days thereafter,
issue his 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 must be commenced within thirty
days after such determination by the attorney general becomes final.

(vii) 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
cooperative or condominium ownership shall continue to be subject
thereto.

(viii) The rentals of non-purchasing tenants who reside in dwelling
units not subject to government regulation as to rentals and continued
occupancy and non-purchasing tenants who reside in dwelling units with
respect to which government regulation as to rentals and continued
occupancy is eliminated or becomes inapplicable after the plan has been
accepted for filing by the attorney general shall not be subject to
unconscionable increases beyond ordinary rentals for comparable
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.

(ix) The plan may not be amended at any time to provide that it shall
be an eviction plan.

(x) The rights granted under the plan to purchasers under the plan and
to non-purchasing tenants may not be abrogated or reduced
notwithstanding any expiration of, or amendment to, this section.

(xi) After the issuance of the letter from the attorney general
stating that the offering statement or prospectus required in
subdivision one of section three hundred fifty-two-e of this article 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 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
plan, (1) 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 offering statement or prospectus was accepted for filing
by the attorney general who have executed and delivered written
agreements to purchase under the plan as of the date of such statement,
and (2) before noon on the day such statement is filed post a copy of
such statement in a prominent place accessible to all tenants in each
building covered by the plan.

(xii) The tenants in occupancy on the date the attorney general
accepts the plan for filing shall have the exclusive right to purchase
their dwelling units or the shares allocated thereto for ninety days
after the plan is accepted for filing by the attorney general, during
which time a tenant's dwelling unit shall not be shown to a third party
unless he or she has, in writing, waived his or her right to purchase;
subsequent to the expiration of such ninety day period, a tenant in
occupancy of a dwelling unit who has not purchased shall be given the
exclusive right for an additional period of six months from said
expiration date to purchase said dwelling unit or the shares allocated
thereto on the same terms and conditions as are contained in an executed
contract to purchase said dwelling unit or shares entered into by a bona
fide purchaser, 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
contract to said tenant.

(d) The plan provides, if it is an eviction plan, as follows:

(i) The plan may not be declared effective unless at least fifty-one
percent of the bona fide tenants in occupancy of all dwelling units in
the building or group of buildings or development on the date the
offering statement or prospectus was accepted for filing by the attorney
general (excluding, for the purposes of determining the number of bona
fide tenants in occupancy on such date, eligible senior citizens and
eligible disabled persons) shall have executed and delivered written
agreements to purchase under the plan pursuant to an offering made in
good faith without fraud and with no discriminatory repurchase
agreements or other discriminatory inducements.

(ii) No eviction proceedings will be commenced against a
non-purchasing tenant for failure to purchase or any other reason
applicable to expiration of tenancy until the later to occur of (1) the
date which is the expiration date provided in such non-purchasing
tenant's lease or rental agreement, and (2) the date which is three
years after the date on which the plan is declared effective.
Non-purchasing tenants who reside in dwelling units subject to
government regulation as to rentals and continued occupancy prior to
conversion shall continue to be subject thereto during the period of
occupancy provided in this paragraph. Thereafter, if a tenant has not
purchased, he may be removed by the owner of the dwelling unit or the
shares allocated to such dwelling unit.

(iii) No eviction proceedings will be commenced, except as hereinafter
provided, 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 plan
has been accepted for filing shall not be subject to unconscionable
increases beyond ordinary rentals for comparable apartments during the
period of their occupancy considering, in determining comparability,
such factors as building services, level of maintenance and operating
expenses; provided that such proceedings may be commenced against such
tenants for non-payment of rent, illegal use or occupancy of the
premises, refusal of reasonable access to the owner or a similar breach
by the tenant of his obligations to the owner of the dwelling unit or
the shares allocated thereto.

(iv) 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.

(v) The rights granted under the plan to eligible senior citizens and
eligible disabled persons may not be abrogated or reduced
notwithstanding any expiration of, or amendment to, this section.

(vi) Any offeror who disputes the election by a person to be an
eligible senior citizen or an eligible disabled person must 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
eligibility. The attorney general shall, within thirty days thereafter,
issue his 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 must be commenced within thirty
days after such determination by the attorney general becomes final.

(vii) After the issuance of the letter from the attorney general
stating that the offering statement or prospectus required in
subdivision one of section three hundred fifty-two-e of this article 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 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
plan, (1) 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 offering statement or prospectus was accepted for filing
by the attorney general who have executed and delivered written
agreements to purchase under the plan as of the date of such statement,
and (2) before noon on the day such statement is filed post a copy of
such statement in a prominent place accessible to all tenants in each
building covered by the plan.

(viii) If the plan is amended before it is declared effective to
provide that it shall be a non-eviction plan, any person who has agreed
to purchase under the plan prior to such amendment shall have a period
of thirty days after receiving written notice of such amendment to
revoke his agreement to purchase under the plan.

(ix) The tenants in occupancy on the date the attorney general accepts
the plan for filing shall have the exclusive right to purchase their
dwelling units or the shares allocated thereto for ninety days after the
plan is accepted for filing by the attorney general, during which time a
tenant's dwelling unit shall not be shown to a third party unless he
has, in writing, waived his 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 period of six months from said expiration date to
purchase said dwelling unit or the shares allocated thereto on the same
terms and conditions as are contained in an executed contract to
purchase said dwelling unit or shares entered into by a bona fide
purchaser, 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 contract to
said tenant.

(e) The attorney general finds that an excessive number of long-term
vacancies did not exist on the date that the offering statement or
prospectus was first submitted to the department of law. "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. "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 offering statement or prospectus was first submitted to the
department of law.

(f) The attorney general finds that, following the submission of the
offering statement or prospectus to the department of law, each tenant
in the building or group of buildings or development was provided with a
written notice stating that such offering statement or prospectus has
been submitted to the department of law for filing. Such notice shall be
accompanied by a copy of the offering statement or prospectus and a
statement that the statements submitted pursuant to subparagraph (xi) of
paragraph (c) of this subdivision, whichever is applicable, will be
available for inspection and copying at the office of the department of
law where the submission was made and at the office of the offeror or a
selling agent of the offeror. Such notice shall also be accompanied by a
statement that tenants or their representatives may physically inspect
the premises at any time subsequent to the submission of the plan to the
department of law, during normal business hours, upon written request
made by them to the offeror, provided such representatives are
registered architects or professional engineers licensed to practice in
the state of New York. Such notice shall be sent to each tenant in
occupancy on the date the plan is first submitted to the department of
law.

3. 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
facilities 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 to the board of directors or board of managers, at which time
the cooperative corporation or the condominium association shall assume
responsibility for the provision of all services and facilities required
by law on a non-discriminatory basis.

4. It shall be unlawful for any person to engage in any course of
conduct, including, but not limited to, interruption or discontinuance
of essential services, which substantially interferes with or disturbs
the comfort, repose, peace or quiet of any tenant in his use or
occupancy of his dwelling unit or the facilities related thereto. The
attorney general may apply to a court of competent jurisdiction for an
order restraining such conduct and, if he deems it appropriate, an order
restraining the owner from selling the shares allocated to the dwelling
unit or the dwelling unit itself or from proceeding with the plan of
conversion; provided that nothing contained herein shall be deemed to
preclude the tenant from applying on his own behalf for similar relief.

5. 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
regulation shall be inconsistent with the provisions of this section,
the provisions of this section shall control.

6. 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.

7. The attorney general is hereby authorized and empowered to adopt,
promulgate, amend and rescind suitable rules and regulations to carry
out the provisions of this section, including issuing waivers of the
requirements of this section to the extent the requirements would not
carry out the intent of this section or the Martin Act.

8. The provisions of this section shall only be applicable in the city
of New York.