Erica F. Buckley
Question: I understand the Martin Act was amended, and now you need 51 percent to declare an offering plan effective in a rental-to-cooperative or -condominium conversion. Can you explain how to reach the 51 percent? Also, doesn’t this effectively end conversions?
Answer: Yes, it is true that the Housing Stability and Tenant Protection Act (the Act) included amendments to the Martin Act, with one of the most-controversial changes being the threshold for declaring an offering plan effective. 2019 N.Y. Laws, Ch. 36, Part N. Unfortunately, I am not able to answer this question with any level of certainty because the Department of Law has not yet promulgated regulations on the 51 percent requirement. However, I can discuss the changes and provide an example of what declaring an offering plan effective would look like under a strict interpretation of the new law, with the caveat that it is purely hypothetical without regulations in place.
