New York Attorney General’s Office Makes Changes to Condominium Conversion ProcessJuly 2017 – Real Estate Update
The complicated and lengthy process of converting a rental apartment building to a condominium in New York has become even more complicated. The Attorney General’s office has begun to review the rent history of rent regulated apartments in the building prior to accepting an offering plan for filing so that the sales process may commence. This additional evaluation may involve the review of leases, lease amendments, DHCR records, rent rolls and other materials, much of which may be required to be submitted to the Attorney General’s office in order to show that the rents being collected fulfill legal requirements.
Unfortunately, some converters do not become aware of this new step initially, but learn of it months after an offering plan has been submitted for review, after receiving comments on their submission from the Attorney General’s office. At that time it may be necessary to assemble and evaluate all the material requested before responding to the request. As a result, the filing of an offering plan could take significantly longer than anticipated. Converters would be well-advised to anticipate this new step and assemble materials in order to submit them as soon as they can.
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© 2017 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.