Provides that a plan may not be declared effective for conversion to cooperative or condominium ownership until written purchase agreements have been executed and delivered for at least twenty-five percent of all dwelling units in the building or group of buildings and written consent has been obtained from the bona fide tenants who were in occupancy of fifty-one percent of the dwelling units in the building or group of buildings or development on the date a letter was issued by the attorney general accepting the plan for filing.
Summary
A05841 would change the rules for declaring certain New York City building conversion plans effective when a property is being converted to cooperative or condominium ownership. Under current law, a non-eviction conversion plan generally becomes effective when written purchase agreements are executed and delivered for at least 51% of the dwelling units by bona fide tenants in occupancy. This bill lowers that purchase-agreement threshold to 25% of units, but adds a new requirement that written consent be obtained from bona fide tenants occupying 51% of the dwelling units as of the date the Attorney General accepted the plan for filing.
The bill also makes a parallel change for another category of conversion plan under General Business Law section 352-eeee, again reducing the purchase-agreement threshold from 51% to 25% while preserving the 51% tenant-consent requirement. It retains existing protections against fraudulent offerings and discriminatory repurchase agreements or inducements, and it takes effect immediately if enacted.
Impact
The bill would amend section 352-eeee of the General Business Law, which governs cooperative and condominium conversions in New York City, by altering the conditions under which a conversion plan may be declared effective. Its practical effect would be to make it easier for sponsors to reach the purchase-agreement threshold needed for a conversion, while still requiring majority tenant consent from occupants of 51% of units. This would affect building owners, sponsors, tenants, and prospective purchasers involved in conversion plans, and could increase the number of conversion plans that move forward under the statute.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text, the measure appears designed to facilitate conversions while preserving a tenant-consent safeguard, suggesting a policy balance between property-owner flexibility and tenant participation. The absence of voting history or hearing discussion makes the overall sentiment difficult to gauge beyond the bill’s apparent intent.
Contention
The main point of contention is likely the lowered purchase-agreement threshold from 51% to 25%, which could be viewed by tenant advocates as reducing the level of tenant buy-in needed for a conversion to proceed. At the same time, the added requirement of written consent from tenants occupying 51% of units may be seen by sponsors or property owners as an important compromise that still protects tenant interests. Any debate would likely center on whether the new consent requirement is sufficient to offset the lower purchase threshold and how the change would affect tenant leverage in conversion negotiations.
Same As
Provides that a plan may not be declared effective for conversion to cooperative or condominium ownership until written purchase agreements have been executed and delivered for at least twenty-five percent of all dwelling units in the building or group of buildings and written consent has been obtained from the bona fide tenants who were in occupancy of fifty-one percent of the dwelling units in the building or group of buildings or development on the date a letter was issued by the attorney general accepting the plan for filing.