Question: I am a sponsor of a new construction condominium in Brooklyn. My first year of operation was to start on March 1, but was delayed due to the pandemic. Is there any relief available to me that I should know about?
Answer: As of the date of this article, there is some limited relief afforded to sponsors under certain executive orders signed by Gov. Andrew Cuomo. On April 16, Cuomo signed Executive Order 202.18, which provides the following relief to condominium sponsors:
- The 15-month statutory deadline to convert rental properties to cooperative or condominium status is tolled. It should be noted that this tolling only applies to conversion plans in New York City under General Business Law Section 352-eeee;
- The requirement to update the budget for the first year of operation for certain offering plans, including new construction condominium plans, if the first unit closing does not take place within the first six months of the first year of operation is tolled. Sponsors will be required to update the budgets within 30 days from the expiration of the executive order instead, and so long as the budget amount doesn’t increase by 25% or more, no right of rescission will be afforded to purchasers; and
- The requirement to have a unit closing within the first year of operation if the first closing does not happen within the first year of operation for new construction condominiums is tolled. Sponsors will be required to update the first year of operation within 30 days from the expiration of the executive order, and will not be required to offer rescission due to any delay in having the first closing within the first year of operation.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]