New York Law Eases Restrictions for Owners of Small Buildings to Convert to Co-ops or Condos

By Yehudit Garmaise

New York tenants who live in smaller buildings may have an easier time buying their homes, thanks to a new law that eases previous restrictions on their sales.

While a previous law required owners of smaller buildings to sell 51% of the building’s units before they could be converted, now the state will provide permits for condo or co-op conversion when only 15% of the building’s tenants or owners first provide their written permission.

“The previous law posed too many restrictions on apartment dwellers and owners of three-to-five family buildings,” said Assemblyman Eichenstein, who sponsored the bill with state Sen. Andrew Gounardes. “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 addition, tenants who live in smaller buildings comprised of three-to-five families will now have the option to buy and sell their apartments.

Eichenstein hopes the law not only “will encourage home ownership for tenants who could not otherwise afford to purchase their apartments,” but “will have a positive effect on the real estate market for both landlords and tenants.”

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