N.Y. General Business Law § 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.