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Apartment buildings line Park Avenue and Fifth Avenue on the Upper East Side of Manhattan, NY, Tuesday, February 25, 2014. Photograph: Victor J. Blue Apartment buildings in New York City. (Photo: Victor J. Blue/Bloomberg)

The process of converting a rental building in New York City to a condominium or co-op is a complicated one, involving many elaborate statutes. Local Law 70 of 1982, now Title 26, Chapter 8 of the New York City Administrative Code, colloquially known as the “Reserve Fund Law,” is one of them. The Reserve Fund Law requires sponsors seeking to convert a New York City building with residential units to condominium or co-op ownership to establish a reserve fund in order to provide the building with adequate funding to make capital repairs, replacements, and improvements to the building for the health, safety, and welfare of the residents (the Reserve Fund). But, the Reserve Fund Law is a byzantine and hyper-technical law that has rarely been interpreted by the courts. Recently, in Bd. of Managers of 150 E 72nd Street v. Vitruvius Estates (Vitruvius), the court examined the particulars of calculating the Total Price under the Reserve Fund Law. 173 A.D.3d 589 (1st Dept. 2019), aff’d on different grounds, 2018 N.Y. Slip Op. 31213[U], 10-11 (Sup. Ct., NY Cty. 2018).

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