[HISTORY: Adopted by the City Council of the City of Yonkers 4-12-1988 by G.O. No. 5-1988. Amendments noted where applicable.]
Editor's Note: Section 2 of this ordinance, as amended 5-24-1988 by G.O. No. 7-1988, provided that "this ordinance shall take effect as of June 15, 1988, and shall apply to all plans not yet accepted for filing by the State Department of Law pursuant to § 352-eee of the General Business Law as of that date."
The provisions of this chapter shall apply to conversions from rental to cooperative or condominium status of a building or a group of buildings or a development for which a plan must be filed with the State Department of Law pursuant to § 352-eee of the General Business Law.
As used in this chapter, the following words shall have the following meanings:
- Any building, group of buildings or development.
- CAPITAL REPLACEMENT
- A building-wide replacement of a major component of any of the following systems: elevator; heating, ventilation and air conditioning; plumbing; wiring; or window; or a major structural replacement to the building; provided, however, that replacements made to cure code violations of record shall not be included.
- The offeror, his or her nominees, assignees and successors in interest.
- A. With respect to cooperative conversions, the number of all shares in the offering multiplied by the last price per share which was offered to tenants in occupancy prior to the effective date of the plan, regardless of the number of sales made.
- B. With respect to condominium conversions, the sum of the cost of all units in the offering at the last price which was offered to tenants in occupancy prior to the effective date of the plan, regardless of the number of sales made.
Within 30 days after the closing of a conversion pursuant to an offering plan, the offeror shall establish and transfer to the cooperative corporation or condominium board of managers a reserve fund to be used exclusively for making capital repairs, replacements and improvements necessary for the health and safety of the residents of such buildings. Such reserve fund shall be exclusive of any other funds required to be reserved under the plan or applicable law or regulation of the State Attorney General, except a fund for capital repairs, replacements and improvements substantially similar in purpose to and in an amount not less than the reserve fund mandated by this section. Such reserve fund also shall be exclusive of any working capital fund and shall not be subject to reduction for closing apportionments.
Such fund shall be established in an amount equal to either 5% of the total price or 5% of the actual sales price of all cooperative shares or condominium units sold by the offeror at the time the plan is declared effective; provided, however, that if such amount is less than 1% of the total price, then the fund shall be established as a minimum of 1% of the total price, plus supplemental contributions to be made by the offeror at a rate of 5% of the actual sales price of cooperative shares or condominium units for each unit or its allocable shares held by the offeror and sold to bona fide purchasers subsequent to the effective date of the plan and within five years of the closing of the conversion pursuant to such plan, notwithstanding that the total amount contributed may exceed 5% of the total price; and provided, further, that if five years from 30 days after the closing of the conversion pursuant to such plan, the total contributions by the offeror to the fund are less than 5% of the total price, the offeror shall pay the difference between the amount contributed and 5% of the total price. Supplemental contributions shall be made within 30 days of each sale.
The contributions required pursuant to this section may be made earlier or in an amount greater than so provided. An offeror may claim and receive credit against the mandatory initial contribution to the reserve fund for the actual cost of capital replacements which he or she has begun after the plan is submitted for filing to the State Department of Law and before the plan is declared effective; provided, however, that any such replacements must be set forth in the plan, together with their actual or estimated costs, and further provided that such credit shall not exceed the lesser of the actual cost of the capital replacements or 1% of the total price.
Any building, the construction of which was completed within three years prior to the closing of a conversion pursuant to an offering plan, shall be exempt from the requirements of this section.
The cooperative corporation or condominium board of managers shall report to shareholders and unit owners on a semiannual basis with respect to all deposits into and withdrawals from the reserve fund mandated by § 121-3 of this chapter.
The offeror, not later than the 30th day following the acceptance of a plan for filing by the State Department of Law pursuant to § 352-eee of the General Business Law and until the closing of the conversion pursuant to such plan, shall post and maintain in a prominent place, accessible to all tenants in each building covered by the plan, a listing of all violations of record against such building as determined by the Bureau of Housing and Buildings. All newly issued violations shall be posted within 48 hours of their issuance and maintained as described above. The offeror may satisfy the requirements of this section by designating an agent on the premises with whom such listing shall be made available for inspection by the tenants.
Where, pursuant to law or regulation of the State Attorney General, an offeror is required to file a report with the State Department of Law describing the condition of the physical aspects of the premises to be converted and the surrounding neighborhood, a copy of such report shall be submitted simultaneously to the Director of the Bureau of Housing and Buildings.
Any provision purporting to waive the provisions of this chapter in any contract to purchase or agreement between an offeror and the cooperative corporation or the condominium board of managers pursuant to a conversion plan shall be void as against public policy.