Question: I am the owner of a four-unit rental building in Manhattan that I would like to convert to a condo. I heard the law recently changed and it might be easier for me to do so. Can I file an offering plan now to convert my building to a condominium under the loosened rules?

Answer: Yes, it is true that on Dec. 16, 2022, Gov. Kathy Hochul signed into law an amendment to the Martin Act that lowered the percentage of purchase agreements needed to convert an occupied building in New York City with five units or less to cooperative or condominium status. See 2022 Laws of New York, Chapter 696, amending Gen. Bus. Law Section 352-eeee. Brooklyn legislators Sen. Andrew Gounardes and Assemblyman Simcha Eichenstein sponsored this legislation, which will become effective March 16. While the change is welcome news for many in the real estate industry, a close reading of the law and its purpose is necessary to understand its full applicability to small building owners. Therefore, let’s look at the legislative justification for the change and the text of the new law itself.

Legislative Justification for the Amendment