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
S04910 would change the rules for declaring a non-eviction conversion plan effective in New York City for conversions of certain residential property to cooperative or condominium ownership. Under current law, such a 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 units as of the date the Attorney General accepted the plan for filing.
The bill also preserves a special rule for smaller buildings with five or fewer units where the sponsor or an immediate family member has occupied a unit for at least two years. In those cases, the plan may become effective with purchase agreements for at least 15% of units, subject to the existing occupancy and good-faith offering requirements. The measure states that it takes effect immediately.
Impact
The bill would amend section 352-eeee of the General Business Law, which governs cooperative and condominium conversion plans in New York City, by replacing the existing 51% purchase-agreement threshold with a 25% threshold and adding a separate 51% tenant-consent requirement. This would alter when a conversion plan can be declared effective and would affect sponsors, tenants, and purchasers involved in residential building conversions. It would also continue to regulate the process through the Attorney General filing framework and the existing prohibitions on discriminatory repurchase agreements or inducements.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears procedural and policy-driven rather than overtly partisan. The bill seems designed to make conversion plans easier to advance by lowering the purchase-agreement threshold, while still retaining a tenant-consent safeguard. Because no transcripts or vote history are provided, there is no documented public support or opposition in the supplied record.
Contention
The main point of contention is likely the balance between facilitating property conversions and protecting tenants from unwanted or premature conversion pressure. Supporters would likely favor the lower 25% purchase threshold as a way to make cooperative or condominium conversions more feasible, especially where tenant interest is limited. Opponents, particularly tenant advocates, may object that reducing the purchase threshold could weaken tenant protections and make it easier for sponsors to move forward with conversions, even though the bill adds a 51% consent requirement from tenants in occupancy.
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.