Welcome news for owners of small rental building (five units or less): Gov. Kathy Hochul signed a new law making the path to converting small rental buildings to condominiums or co-ops much easier.
One of the changes enacted under the Housing Stability and Tenant Protection Act (HSTPA) of 2019, was that in order for a condo or co-op conversation to be deemed effective by the Attorney General’s office, at least 51% of the building’s occupants had to commit to purchasing their units. This resulted in a cooling effect of condo and co-op conversions, while stymieing renters who would have otherwise been in a position to purchase a home, had their building undergone a conversion.
The new law (A8809/S8564) now reduces this number to the pre-HSTPA number of only 15%.
This represents a major victory for both residents and owners of such small rental buildings who now have a viable means to purchasing their homes, particularly during the current times where the housing stock in NYC is at an all-time low.
“The previous law posed too many restrictions on apartment dwellers and owners of three-to-five family buildings,” Assemblyman Simcha Eichenstein, who sponsored the bill with state Sen. Andrew Gounardes, tells HABITAT Magazine. “As a result, it became extremely difficult for such buildings to convert to a condominium and for individual apartments to be bought and sold. In my district and elsewhere, this new legislation will create new opportunities for hard-working New Yorkers to buy or sell their homes more easily. It’s a win-win for everyone involved.”
Hopefully, this new law is a harbinger of things to come in 2023, as lawmakers actively work towards providing their constituents with both affordable and feasible methods towards becoming homeowners.
Source: HABITAT Magazine