2023 New York Laws › GBS - General Business › Article 23-A - Fraudulent Practices in Respect to Stocks, Bonds and Other Securities › 352-EE - Conversion of Non-Residential Property to Residential Cooperative or Condominium Ownership.

§  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.