Section 26-701
§ 26-701 Application. The provisions of this chapter shall apply to
conversions from rental to cooperative or condominium status of a
building or a group of buildings or a development for which a plan must
be filed with the state department of law pursuant to section three
hundred fifty-two-eeee of the general business law.
Section 26-702
§ 26-702 Definitions. As used in this chapter the following words
shall mean:
a. "Building" any building, group of buildings or development.
b. "Total price" (1) with respect to cooperative conversions, the
number of all shares in the offering multiplied by the last price per
share which was offered to tenants in occupancy prior to the effective
date of the plan regardless of number of sales made; (2) with respect to
condominium conversions, the sum of the cost of all units in the
offering at the last price which was offered to tenants in occupancy
prior to the effective date of the plan regardless of number of sales
made.
c. "Capital replacement" a building-wide replacement of a major
component of any of the following systems:
(1) elevator;
(2) heating, ventilation and air conditioning;
(3) plumbing;
(4) wiring;
(5) window;
or, a major structural replacement to the building; provided, however,
that replacements made to cure code violations of record shall not be
included.
d. "Offeror" the offeror, his or her nominees, assignees and
successors in interest.
Section 26-703
§ 26-703 Establishment of reserve fund. a. Within thirty days after
the closing of a conversion pursuant to an offering plan the offeror
shall establish and transfer to the cooperative corporation or
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 of such buildings. Such reserve fund
shall be exclusive of any other funds required to be reserved under the
plan or applicable law or regulation of the state 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 also shall be
exclusive of any working capital fund and shall not be subject to
reduction for closing apportionments.
b. Such fund shall be established in an amount equal to either (i)
three per cent of the total price or, (ii) (A) three per cent of the
actual sales price of all cooperative shares or condominium units sold
by the offeror at the time the plan is declared effective, provided,
however, that if such amount is less than one per cent of the total
price, then the fund shall be established as a minimum of one per cent
of the total price; plus (B) supplemental contributions to be made by
the offeror at a rate of three per cent of the actual sales price of
cooperative shares or condominium units for each unit or its allocable
shares held by the offeror and sold to bona fide purchasers subsequent
to the effective date of the plan and within five years of the closing
of the conversion pursuant to such plan notwithstanding that the total
amount contributed may exceed three per cent of the total price; and
provided, further, that if five years from thirty days after the closing
of the conversion pursuant to such plan the total contributions by the
offeror to the fund are less than three per cent of the total price the
offeror shall pay the difference between the amount contributed and
three per cent of the total price. Supplemental contributions shall be
made within thirty days of each sale.
c. 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 he or she
has begun after the plan is submitted for filing to the state department
of law and before the plan is declared effective; provided, however,
that any such replacements must be set forth in the 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 per cent of the total price.
d. Any building, construction of which was completed within three
years prior to the closing of a conversion pursuant to an offering plan,
shall be exempt from the requirements of this section.
Section 26-704
§ 26-704 Report on status of reserve fund. The cooperative corporation
or condominium board of managers shall report to shareholders and unit
owners on a semi-annual basis with respect to all deposits into and
withdrawals from the reserve fund mandated by section 26-703 of this
chapter.
Section 26-705
§ 26-705 Posting of violations. The offeror, not later than the
thirtieth day following the acceptance of a plan for filing by the state
department of law pursuant to section three hundred fifty-two-eeee of
the general business law and until the closing of the conversion
pursuant to such plan, shall post and maintain in a prominent place,
accessible to all tenants in each building covered by the plan, a
listing of all violations of record against such buildings as determined
by the department of buildings and the department of housing
preservation and development. All newly issued violations shall be
posted within forty-eight hours of their issuance and maintained as
described above. 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.
Section 26-706
§ 26-706 Report on condition of premises. Where, pursuant to law or
regulation of the state attorney general, an offeror is required to file
a report with the state department of law describing the condition of
the physical aspects of the premises to be converted and the surrounding
neighborhood, a copy of such report shall be submitted simultaneously to
the commissioner of buildings.
Section 26-707
§ 26-707 No waiver of rights. Any provision purporting to waive the
provisions of this chapter in any contract to purchase or agreement
between an offeror and the cooperative corporation or the condominium
board of managers pursuant to a conversion plan shall be void as against
public policy.
Section 26-708
§ 26-708 Criminal and civil penalties; enforcement. a. Except as
otherwise provided in subdivision b of this section, any person who
knowingly violates or assists in the violation of any section of this
chapter shall be guilty of a misdemeanor and upon conviction thereof
shall be punished by a fine of not less than one hundred nor more than
one thousand dollars. Except as otherwise provided in subdivision b of
this section, any person who violates or assists in the violation of any
section of this chapter 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 sections; provided, however, that
such civil penalty shall not exceed one thousand dollars per unit.
b. Any person who knowingly violates or assists in the violation of
section 26-703 of this chapter shall be guilty of a misdemeanor and upon
conviction thereof shall be punished by a fine not more than two times
the amount required to be reserved by section 26-703 of this chapter
which was not so reserved. Any person who violates or assists in the
violation of section 26-703 of this chapter shall also be subject to a
civil penalty of one thousand dollars per day for each day that the
reserve fund required by section 26-703 of this chapter is not
established; provided, however, that such civil penalty shall not exceed
the amount required to be reserved pursuant to section 26-703 of this
chapter.
c. In addition, any other action or proceeding in any court of
competent jurisdiction that may be appropriate or necessary for the
enforcement of the provisions of this chapter may be brought in the name
of the city, including actions to secure permanent injunctions enjoining
any acts or practices which constitute a violation of any provision of
this chapter, mandating compliance with the provisions of this chapter
or for such other relief as may be appropriate. In any such action or
proceeding the city 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 chapter, mandating compliance with the
provisions of this chapter, 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 forthwith to make any or all of the orders above specified,
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 granting or issuing of such order, or by reason
thereof.
d. Nothing contained in this section shall impair any rights, remedies
or causes of action accrued or accruing to purchasers of cooperative
shares or condominium units.
e. The department of housing preservation and development is empowered
to enforce the provisions of this chapter.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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