BILL NUMBER: S401
SPONSOR: MYRIE
 
TITLE OF BILL:
An act to amend the real property actions and proceedings law, in
relation to establishing the tenant opportunity to purchase act
 
SUMMARY OF PROVISIONS:
Section 1 provides the title of the bill.
Section 2 amends the Real Property Actions and Proceedings Law by adding
article 7-E: Tenant Opportunity to Purchase Act. The contents of this
Act include:
Section 799. defines the following terms: "AMI", "Appraised value",
"Bona fide offer of sale", "CPI", "Community land trust", "Governing
document", "DHCR", "Highest and best use", "Matter of right", "Owner",
"Permanent affordability", "Purchase contract", "Qualified purchaser",
"Rent", "Rental agreement", "Rental housing accommodation", "rental
unit", "Sale", "Supportive partner", "Tenant", "Tenant Organization",
"Third-party purchaser", "TOPA buyer", and "Under threat of eminent
domain".
799-a. authorizes the Division of Housing and Community Renewal (DHCR)
and their designees to implement the powers listed in this article.
799-b. states that the TOPA shall apply to all rental housing accommo-
dations with three or more rental units.
799-c. provides an outline for exemptions to residential properties
799-d. outlines the right of first refusal for a tenant.
799-e. outlines what actions by tenants and tenant organizations need to
be approved in terms of decision-making.
799-f. outlines the criteria to be considered a qualified purchaser.
799-g. outlines the criteria of a supportive partner.
799-h. allows tenants and tenant organizations to assign rights to a
qualified purchaser of their choice
799-i. allows tenants to waive their rights before certain periods.
799-j. states that owners must comply with regulations under the DHCR,
regarding notices.
799-k. outlines that the right of a third-party purchaser to buy a
rental housing accommodation shall be conditional upon the exercise of
the tenant, tenant organization, and qualified purchaser rights under
this article.
799-I. outlines the rights, timeline, selection, cost, validity, and
appraisal procedure.
799-m. states that the owner and any tenant, tenant organization, or
qualified purchaser shall bargain in good faith regarding any sale.
799-n. prohibits a tenant, tenant organization, or qualified purchaser
from selling their rights. 799-o. prohibits eviction by the TOPA buyer
in the rental housing accommodation
799-p. states that a rental housing accommodation purchased by a TOPA
buyer is subject to permanent affordability restrictions. Outlines the
terms, affordability, standards, restrictions, requirements, and priori-
ties.
799-q. establishes and publishes a list of qualified purchasers under
the DHCR. Granting tax exemption, and benefits to certain purchasers.
799-r. grants the DHCR the ability to take all appropriate action to
enforce rules and regulations. DHCR must also establish and make avail-
able standard documents to assist those in complying with requirements.
Owners must submit a signed declaration within 15 days of sale to DHCR,
any owner who willingly violates regulations is subject to civil penal-
ty.
799-s. prevents displacement of lower-income tenants and preserves
affordability by providing tenants the opportunity to own or remain
renters in the properties in which tenants reside as provided in this
article.
799-t. states that the DHCR must create reports annually on the status
of TOPA to the legislature. Reports will include but are not limited to
statistics on the number and types of sales, number of tenants and qual-
ified purchasers, types of units, and any other information the legisla-
ture requests.
Section 3 provides the severability clause. Section 4 provides the
effective date.
 
JUSTIFICATION:
Providing tenants an opportunity to purchase the buildings in which they
reside will stabilize New York's inflated housing market at feasible
prices. More affordable housing is needed to offset the negative effects
of gentrification, such as rampant homelessness. This bill does not
only benefit purchasers but also ensures sellers are adequately compen-
sated for their investments.
 
LEGISLATIVE HISTORY:
S221A of 2023-24: Reported and committed to Judiciary
S3157 of 2021-22: Referred to Housing, Construction and Community Devel-
opment
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the one-hundred-eightieth day after it
becomes law. Effective immediately, the addition, amendment, and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.