New York State Consolidated Laws:
Real Property
ARTICLE 9-B
Condominium Act
Section 339-d. Short title.
339-e. Definitions.
339-f. Application of article.
339-g. Status of units.
339-h. Ownership of units.
339-i. Common elements.
339-j. Compliance with by-laws and rules and regulations.
339-k. Certain work prohibited.
339-l. Liens against common elements; liens against units;
liens for labor performed or materials furnished.
339-m. Common profits and expenses.
339-n. Contents of declaration.
339-o. Contents of deeds and leases of units.
339-p. Copy of floor plans to be filed.
339-q. Filing with board.
339-r. Blanket mortgages and other blanket liens affecting a
unit at time of first conveyance.
339-s. Recording.
339-t. Withdrawal from provisions of this article.
339-u. By-laws.
339-v. Contents of by-laws.
339-w. Books of receipts and expenditures; availability for
examination.
339-x. Waiver of use of common elements; abandonment of unit;
conveyance to board of managers.
339-y. Separate taxation.
339-z. Lien for common charges; priority; exoneration of gran-
tor and grantee.
339-aa. Lien for common charges; duration; foreclosure.
339-bb. Insurance.
339-cc. Repair or reconstruction.
339-dd. Actions.
339-ee. Effect of other laws.
339-ff. Mortgage investments on units by state agencies, insur-
ers, banking organizations and fiduciaries; limitation
to first mortgages.
339-gg. Severability.
339-hh. Reservation of power.
339-ii. Construction.
339-jj. Borrowing by board of managers.
Sec. 339-d. Short title. This article shall be known and
may be cited as the "condominium act. "
S 339-e. Definitions. As used in this article, unless the context
otherwise requires:
1. "Building" means a multi-unit building or buildings, or a group of
buildings whether or not attached to each other, comprising a part of
the property.
2. "Common charges" means each unit`s proportionate share of the
common expenses in accordance with its common interest.
3. "Common elements, " unless otherwise provided in the declaration,
means and includes:
(a) The land on which the building is located;
(b) The foundations, columns, girders, beams, supports, main walls,
roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, and
entrances and exits of the building;
(c) The basements, cellars, yards, gardens, recreational or community
facilities, parking areas and storage spaces;
(d) The premises for the lodging or use of janitors and other persons
employed for the operation of the property;
(e) Central and appurtenant installations for services such as power,
light, gas, hot and cold water, heating, refrigeration, air conditioning
and incinerating;
(f) The elevators, escalators, tanks, pumps, motors, fans,
compressors, ducts and in general all apparatus and installations
existing for common use;
(g) Such facilities as may be designated as common elements in the
declaration; and
(h) All other parts of the property necessary or convenient to its
existence, maintenance and safety, or normally in common use.
4. "Common expenses" means and includes:
(a) Expenses of operation of the property, and
(b) All sums designated common expenses by or pursuant to the
provisions of this article, the declaration or the by-laws.
5. "Common interest" means the (i) proportionate, undivided interest
in fee simple absolute, or (ii) proportionate undivided leasehold
interest in the common elements appertaining to each unit, as expressed
in the declaration.
6. "Common profits" means the excess of all receipts of the rents,
profits and revenues from the common elements remaining after the
deduction of the common expenses.
7. "Declaration" means the instrument by which the property is
submitted to the provisions of this article, as hereinafter provided,
and such instrument as from time to time amended, consistent with the
provisions of this article and of the by-laws.
8. "Majority" of unit owners means either (i) more than fifty per
cent in common interest in the aggregate, or (ii) more than fifty per
cent in number of units in the aggregate, or (iii) more than fifty per
cent in the aggregate in both common interest and in number of units, as
may be specified herein or in the declaration or the by-laws with
respect to any matter or matters. Any specified percentage of unit
owners means (i) such percentage in common interest in the aggregate, or
(ii) such percentage in number of units in the aggregate, or (iii) such
percentage in common interest and such percentage in number of units, as
may be specified herein or in the declaration or the by-laws with
respect to any matter or matters, provided, however, that different
percentages in interest and in number of units may be so specified.
9. "Operation of the property" means and includes the administration
and operation of the property and the maintenance, repair and
replacement of, and the making of any additions and improvements to, the
common elements.
10. "Person" means a natural person, corporation, partnership,
association, trustee or other legal entity.
11. "Property" means and includes the land, the building and all
other improvements thereon, (i) owned in fee simple absolute, or (ii) in
the case of a condominium devoted exclusively to non-residential
purposes, held under a lease or sublease, or separate unit leases or
subleases, the unexpired term or terms of which on the date of recording
of the declaration shall not be less than thirty years, or (iii) in the
case of a qualified leasehold condominium, held under a lease or
sublease, or separate unit leases or subleases, the unexpired term or
terms of which on the date of recording of the declaration shall not be
less than fifty years, and all easements, rights and appurtenances
belonging thereto, and all other property, personal or mixed, intended
for use in connection therewith, which have been or are intended to be
submitted to the provisions of this article.
12. "Qualified leasehold condominium" means any leasehold interest in
real property intended to be used for either residential purposes,
commercial purposes, industrial purposes or any combination of such
purposes, together with any fee simple absolute or leasehold interest in
the buildings and all other improvements which have been or at any time
hereafter may be erected upon such real property, which has been or is
intended to be submitted to the provisions of this article, provided
that the battery park city authority or the Roosevelt Island operating
corporation is, on the date of the recording of the declaration, the
holder of the tenant`s interest in such leasehold interest.
13. "Recording officer" and "recording" or "recorded" shall have the
meanings stated in section two hundred ninety of this chapter.
14. "Unit" means a part of the property intended for any type of use or
uses, and with an exit to a public street or highway or to a common
element or elements leading to a public street or highway, and may
include such appurtenances as garage and other parking space, storage
room, balcony, terrace and patio, but in no event may utility facilities
such as those for water or sewerage treatment or power generation appear
as single units.
15. "Unit designation" means the number, letter or combination
thereof or other official designations conforming to the tax lot number,
if any, designating the unit in the declaration and on the floor plans.
16. "Unit owner" means the person or persons owning a unit in fee
simple absolute or, in the case either (i) of a condominium devoted
exclusively to non-residential purposes, or (ii) a qualified leasehold
condominium, owning a unit held under a lease or sublease.
Sec. 339-f. Application of article. 1. This article shall
be applicable only to property the sole owner or all the owners
of which submit the same to the provisions hereof by duly
executing and recording a declaration as hereinafter provided.
2. Such property shall be submitted and subject to the
authority of and review by the county planning agency as set
forth in section two hundred thirty-nine-n of article twelve-B of
the general municipal law, irrespective of and notwithstanding
the distance requirement of the second unnumbered paragraph of
such section, and as though the property were a subdivision plat
subject to such section. This subdivision shall not be
applicable to:
(i) property which has received local planning board
approval prior to December twenty-first, nineteen hundred
seventy-eight; or
(ii) property submitted to the provisions of this article on
which any building or buildings or any portion thereof has been
rented to any tenant or tenants.
Sec. 339-g. Status of units. Each unit, together with its
common interest, shall for all purposes constitute real property.
Sec. 339-h. Ownership of units. Each unit owner shall be
entitled to the exclusive ownership and possession of his unit.
Sec. 339-i. Common elements. 1. Each unit shall have
appurtenant thereto a common interest as expressed in the
declaration. Such interest shall be (i) in the approximate
proportion that the fair value of the unit at the date of the
declaration bears to the then aggregate fair value of all the
units or (ii) in the approximate proportion that the floor area
of the unit at the date of the declaration bears to the then
aggregate floor area of all the units, but such proportion shall
reflect the substantially exclusive advantages enjoyed by one or
more but not all units in a part or parts of the common elements
or (iii) the interest of each of the units shall be in equal
percentages, one for each unit as of the date of filing the
declaration, or in equal percentages within separate
classifications of units as of the date of filing the
declaration, or (iv) upon floor space, subject to the location of
such space and the additional factors of relative value to other
space in the condominium, the uniqueness of the unit, the
availability of common elements for exclusive or shared use, and
the overall dimensions of the particular unit.
2. The common interest appurtenant to each unit as expressed
in the declaration shall have a permanent character and shall not
be altered without the consent of all unit owners affected,
expressed in an amended declaration. However, the declaration
may contain provisions relating to the appropriation, taking or
condemnation by eminent domain by a federal, state or local
government, or instrumentality thereof, including, but not
limited to, reapportionment or other change of the common
interest appurtenant to each unit, or portion thereof, remaining
after a partial appropriation, taking or condemnation. The
common interest shall not be separated from the unit to which it
appertains. Nothing contained in this article shall prohibit the
division of any unit and common interest appurtenant thereto in a
non-residential unit in the manner permitted by the declaration
and bylaws, including changes in the number of rooms; in no case
may such division result in a greater percentage of common
interest for the total of the new units than existed for the
original unit before division. Where authorized by the
declaration and bylaws, an appropriate amendment to the
declaration may be filed by the new unit owners under the same
file number and under procedure set forth in section three
hundred thirty-nine-p hereof, and the local tax authorities shall
provide and certify upon the proposed amendment a conforming tax
lot number upon completion of the new units.
3. The common elements shall remain undivided and no right
shall exist to partition or divide any thereof, except as
otherwise provided in this article. Any provision to the
contrary shall be null and void. Nothing in this subdivision
shall be deemed to prevent ownership of a unit by the entireties,
jointly or in common.
4. Each unit owner may use the common elements in accordance
with the purpose for which they are intended, without hindering
the exercise of or encroaching upon the rights of the other unit
owners, but this subsection shall not be deemed to prevent some
unit or units from enjoying substantially exclusive advantages in
a part or parts of the common elements as expressed in the
declaration or by-laws.
5. The unit owners shall have the irrevocable right, to be
exercised by the board of managers, to have access to each unit
from time to time during reasonable hours to the extent necessary
for the operation of the property, or for making emergency
repairs therein necessary to prevent damage to the common
elements or to another unit or units, and the by-laws may contain
reasonable rules and regulations for the administration of this
provision as the privacy of the units and the protection of them
and their contents from burglary, theft or larceny requires.
Sec. 339-j. Compliance with by-laws and rules and
regulations. Each unit owner shall comply strictly with the
by-laws and with rules, regulations, resolutions and decisions
adopted pursuant thereto. Failure to comply with any of the same
shall be ground for an action to recover sums due, for damages or
injunctive relief or both maintainable by the board of managers
on behalf of the unit owners or, in a proper case, by an
aggrieved unit owner. In any case of flagrant or repeated
violation by a unit owner, he may be required by the board of
managers to give sufficient surety or sureties for his future
compliance with the by-laws, rules, regulations, resolutions and
decisions.
Sec. 339-k. Certain work prohibited. No unit owner shall do
any work which would jeopardize the soundness or safety of the
property, reduce the value thereof or impair any easement or
hereditament, nor may any unit owner add any material structure
or excavate any additional basement or cellar, without in every
such case the consent of all the unit owners affected being first
obtained.
Sec. 339-l. Liens against common elements; liens against
units; liens for labor performed or materials furnished. 1.
Subsequent to recording the declaration and while the property
remains subject to this article, no lien of any nature shall
thereafter arise or be created against the common elements except
with the unanimous consent of the unit owners. During such
period, liens may arise or be created only against the several
units and their respective common interests.
2. Labor performed on or materials furnished to a unit shall
not be the basis for the filing of a lien pursuant to article two
of the lien law against the unit of any unit owner not expressly
consenting to or requesting the same, except in the case of
emergency repairs. No labor performed on or materials furnished
to the common elements shall be the basis for a lien thereon, but
all common charges received and to be received by the board of
managers, and the right to receive such funds, shall constitute
trust funds for the purpose of paying the cost of such labor or
materials performed or furnished at the express request or with
the consent of the manager, managing agent or board of managers,
and the same shall be expended first for such purpose before
expending any part of the same for any other purpose.
Sec. 339-m. Common profits and expenses. The common profits
of the property shall be distributed among, and the common
expenses shall be charged to, the unit owners according to their
respective common interests, provided however, that expenses of
insurance may be charged as provided in section three hundred
thirty-nine-bb. Notwithstanding any provision of this article,
profits and expenses may be specially allocated and apportioned
by the board of managers in a manner different from common
profits and expenses, to one or more non-residential units where
so authorized by the declaration and bylaws. In the case of
units in any building, residential or non-residential, or a
combination thereof, profits and expenses may be specially
allocated and apportioned based on special or exclusive use or
availability or exclusive control of particular units or common
areas by particular unit owners, if so authorized by the
declaration and bylaws, in a manner different from common profits
and expenses.
S 339-n. Contents of declaration. The declaration shall contain the
following particulars:
1. A statement of intention to submit the property to the provisions
of this article.
2. Description of the land on which the building and improvements are
or are to be located.
3. Description of the building, including the location of the building
by reference to fixed monuments or tax map parcel data, stating the
number of stories, basements and cellars, the number of units and the
principal materials of which it is or is to be constructed.
4. The unit designation of each unit, and a statement of its location,
approximate area, number of rooms in residential areas, and common
element to which it has immediate access, and any other data necessary
for its proper identification.
5. Description of the common elements and a statement of the common
interest of each unit owner.
6. Statement of the uses for which the building and each of the units
are intended.
7. A designation of the secretary of state as agent of the corporation
or board of managers upon whom process against it may be served.
Service of process on the secretary of state as agent of such corpo-
ration or board of managers shall be made personally delivering to and
leaving with him or her or his or her deputy, or with any person author-
ized by the secretary of state to receive such service, at the office of
the department of state in the city of Albany, duplicate copies of such
process together with the statutory fee, which shall be a taxable
disbursement. Service of process on such corporation or board of manag-
ers shall be complete when the secretary of state is so served. The
secretary of state shall promptly send one of such copies by certified
mail, return receipt requested, to such corporation or board of manag-
ers, at the post office address, on file in the department of state,
specified for such purpose. Nothing in this subdivision shall affect the
right to serve process in any other manner permitted by law. The corpo-
ration or board of managers shall also file with the secretary of state
the name and post office address within or without this state to which
the secretary of state shall mail a copy of any process against it
served upon the secretary of state and shall update the filing as neces-
sary.
8. Any further details in connection with the property which the
person or persons executing the declaration may deem desirable to set
forth.
9. The method by which the declaration may be amended, consistent with
the provisions of this article.
S 339-o. Contents of deeds and leases of units. Deeds and leases of units
shall include the following particulars:
1. Description of the land as provided in subsection two of section three
hundred thirty-nine-n and the liber, page and date of recording of the
declaration or solely by naming the city, village or town and the county in
which the unit is located and referring to the liber, page and date of
recording of the declaration.
2. The unit designation of the unit in the declaration and any other data
necessary for its proper identification.
3. Statement of the use for which the unit is intended.
4. The common interest appertaining to the unit.
5. Any further details which the grantor and grantee may deem desirable
to set forth.
Sec. 339-p. Copy of floor plans to be filed. Simultaneously
with the recording of the declaration there shall be filed in the
office of the recording officer a set of the floor plans of the
building showing the layout, locations, and approximate
dimensions of the units, stating the declarants` names, and
bearing the verified statement of a registered architect or
licensed professional engineer certifying that it is an accurate
copy of portions of the plans of the building as filed with and
approved by the municipal or other governmental subdivision
having jurisdiction over the issuance of permits for the
construction of buildings. If such floor plans do not contain
unit designations certified by the appropriate local tax
authorities as conforming to the official tax lot number, there
shall be filed in the office of the recording officer prior to
the first conveyance of a unit a floor plan containing a unit
designation certified by the appropriate local tax authority as
conforming to the official tax lot number. It shall be the duty
of the appropriate local tax authority to provide such number for
each unit upon completion of such unit. If such plans do not
include a verified statement by such architect or engineer that
such plans fully and fairly depict the layout, location, unit
designations and approximate dimensions of any particular unit or
units as built, there shall be recorded prior to each first
conveyance of such particular unit or units an amendment to the
declaration to which shall be attached a verified statement of a
registered architect or licensed professional engineer certifying
that the plans theretofore filed, or being filed simultaneously
with such amendment, fully and fairly depict the layout,
location, unit designations and approximate dimensions of the
particular unit or units as built. Such plans shall be
designated "condominium", assigned a file number and kept on file
by the recording officer. Such plans shall be indexed under the
names of the declarants and in the block index if any. The
record of the declaration shall contain a reference to the file
number of the floor plans of the building affected thereby.
Sec. 339-q. Filing with board. True copies of the floor
plans, the declaration, the by-laws and any rules and regulations
shall be kept on file in the office of the board of managers and
shall be available for inspection at convenient hours of weekdays
by persons having an interest.
Sec. 339-r. Blanket mortgages and other blanket liens
affecting a unit at time of first conveyance. At the time of the
first conveyance of each unit, every mortgage and other lien
affecting such unit and any other unit shall be paid and
satisfied of record, or the unit being conveyed and its common
interest shall be released therefrom by partial release duly
recorded.
S 339-s. Recording. 1. The declaration, any amendment or amendments
thereof, and every instrument affecting the property or any unit
included within the meaning of "conveyance" as used in article nine of
this chapter, shall be entitled to be indexed and recorded pursuant to
and with the same effect as provided in said article nine. The recording
officer shall not accept such an instrument constituting a condominium
map unless it has endorsed thereon or attached thereto a certificate of
the county director of real property tax services that the fee author-
ized by section five hundred three of the real property tax law, if any,
has been paid. Neither the declaration nor any amendment thereof shall
be valid unless duly recorded.
2. Each such declaration, and any amendment or amendments thereof
shall be filed with the department of state.
Sec. 339-t. Withdrawal from provisions of this article. If
withdrawal of the property from this article is authorized by at
least eighty per cent in number and in common interest of the
units, or by at least such larger percentage either in number or
in common interest, or in both number and common interest, as may
be specified in the by-laws, then the property shall be subject
to an action for partition by any unit owner or lienor as if
owned in common, in which event the net proceeds of sale shall be
divided among all the unit owners in proportion to their
respective common interests, provided, however, that no payment
shall be made to a unit owner until there has first been paid off
out of his share of such net proceeds all liens on his unit.
Such withdrawal of the property from this article shall not bar
its subsequent submission to the provisions of this article in
accordance with the terms of this article.
Sec. 339-u. By-laws. The operation of the property shall be
governed by by-laws, a true copy of which shall be annexed to the
declaration. No modification of or amendment to the by-laws
shall be valid unless set forth in an amendment to the
declaration and such amendment is duly recorded.
Sec. 339-v. Contents of by-laws. 1. The by-laws shall
provide for at least the following:
(a) The nomination and election of a board of managers, the
number of persons constituting the same, and that the terms of at
least one-third of the members of such board shall expire
annually; the powers and duties of the board; the compensation,
if any, of the members of the board; the method of removal from
office of members of the board; and whether or not the board may
engage the services of a manager or managing agent or both, and
specifying which of the powers and duties granted to the board by
this article or otherwise may be delegated by the board to either
or both of them. Nothing contained herein shall bar the
incorporation of the board of managers under applicable statutes
of this state; such incorporation must be consistent with the
other provisions of this article and the nature of the
condominium purpose.
(b) Method of calling meetings of the unit owners; what
percentage of the unit owners, if other than a majority, shall
constitute a quorum; and what percentage shall, consistent with
the provisions of this act, be necessary to adopt decisions
binding on all unit owners.
(c) Election of a president from among the board of managers
who shall preside over the meetings of such board and of the unit
owners.
(d) Election of a secretary who shall keep a record wherein
actions of such board and of meetings of the unit owners shall be
recorded.
(e) Election of a treasurer who shall keep the financial
records and books of account.
(f) Operation of the property, payment of the common
expenses and determination and collection of the common charges.
(g) The manner of designation and removal of persons
employed for the operation of the property.
(h) Method of adopting and of amending administrative rules
and regulations governing the details of the operation and use of
the common elements.
(i) Such restrictions on and requirements respecting the use
and maintenance of the units and the use of the common elements,
not set forth in the declaration, as are designed to prevent
unreasonable interference with the use of their respective units
and of the common elements by the several unit owners.
(j) The percentage of the unit owners, but not less than
sixty-six and two thirds per cent in number and common interest
except in the case where all units are non-residential, which may
at any time modify or amend the by-laws.
2. The by-laws may also provide for the following:
(a) Provisions governing the alienation, conveyance, sale,
leasing, purchase, ownership and occupancy of units, provided,
however, that the by-laws shall contain no provision restricting
the alienation, conveyance, sale, leasing, purchase, ownership
and occupancy of units because of race, creed, color or national
origin.
(b) Provisions governing the payment, collection and
disbursement of funds, including reserves, to provide for major
and minor maintenance, repairs, additions, improvements,
replacements, working capital, bad debts and unpaid common
expenses, depreciation, obsolescence and similar purposes.
(c) The form by which the board of managers, acting on
behalf of the unit owners, where authorized by this statute or
the declaration, may acquire and hold any unit and lease,
mortgage and convey the same.
(d) Any other provisions, not inconsistent with the
provisions of this article, relating to the operation of the
property.
Sec. 339-w. Books of receipts and expenditures; availability
for examination. The manager or board of managers, as the case
may be, shall keep detailed, accurate records, in chronological
order, of the receipts and expenditures arising from the
operation of the property. Such records and the vouchers
authorizing the payments shall be available for examination by
the unit owners at convenient hours of weekdays. A written
report summarizing such receipts and expenditures shall be
rendered by the board of managers to all unit owners at least
once annually.
Sec. 339-x. Waiver of use of common elements; abandonment of
unit; conveyance to board of managers. No unit owner may exempt
himself from liability for his common charges by waiver of the
use or enjoyment of any of the common elements or by abandonment
of his unit. Subject to such terms and conditions as may be
specified in the by-laws, any unit owner may, by conveying his
unit and his common interest to the board of managers on behalf
of all other unit owners, exempt himself from common charges
thereafter accruing.
S 339-y. Separate taxation. 1. (a) With respect to all property
submitted to the provisions of this article other than property which is
the subject of a qualified leasehold condominium, each unit and its
common interest, not including any personal property, shall be deemed to
be a parcel and shall be subject to separate assessment and taxation by
each assessing unit, school district, special district, county or other
taxing unit, for all types of taxes authorized by law including but not
limited to special ad valorem levies and special assessments, except
that the foregoing shall not apply to a unit held under lease or
sublease unless the declaration requires the unit owner to pay all taxes
attributable to his unit. Neither the building, the property nor any of
the common elements shall be deemed to be a parcel.
(b) In no event shall the aggregate of the assessment of the units
plus their common interests exceed the total valuation of the property
were the property assessed as a parcel.
(c) For the purposes of this and the next succeeding section the terms
"assessing unit", "assessment", "parcel", "special ad valorem levy",
"special assessment", "special district", "taxation" and "taxes" shall
have the meanings specified in section one hundred two of the real prop-
erty tax law.
(d) The provisions of paragraph (b) of this subdivision shall not
apply to such real property classified within:
(i) on and after January first, nineteen hundred eighty-six, class one
of section one thousand eight hundred two of the real property tax law;
or
(ii) on and after January first, nineteen hundred eighty-four, the
homestead class of an approved assessing unit which has adopted the
provisions of section one thousand nine hundred three of the real prop-
erty tax law, or the homestead class of the portion outside an approved
assessing unit of an eligible split school district which has adopted
the provisions of section nineteen hundred three-a of the real property
tax law; provided, however, that, in an approved assessing unit which
adopted the provisions of section one thousand nine hundred three of the
real property tax law prior to the effective date of this subdivision,
paragraph (b) of this subdivision shall apply to all such real property
(i) which is classified within the homestead class pursuant to paragraph
one of subdivision (e) of section one thousand nine hundred one of the
real property tax law and (ii) which, regardless of classification, was
on the assessment roll prior to the effective date of this subdivision
unless the governing body of such approved assessing unit provides by
local law adopted after a public hearing, prior to the taxable status
date of such assessing unit next occurring after December thirty-first,
nineteen hundred eighty-three, that such paragraph (b) shall not apply
to such real property to which this clause applies. Provided further,
however, real property subject to the provisions of this subparagraph
shall be assessed pursuant to subdivision two of section five hundred
eighty-one of the real property tax law.
(e) On the first assessment roll with a taxable status date on or
after the effective date of a declaration filed with the recording offi-
cer and on every assessment roll thereafter, the assessor shall enter
each unit as a parcel, as provided in paragraph (a) of this subdivision,
based upon the condition and ownership of each such unit on the appro-
priate valuation and taxable status dates. Units owned by a developer
may be entered as a single parcel with a parcel description correspond-
ing to the entire development, including the land under such develop-
ment, and excluding those units appearing separately. Upon the first
assessment roll where each unit is separately assessed, only an individ-
ual unit and its common interest shall constitute a parcel.
(f) The provisions of paragraph (b) of this subdivision shall not
apply to a converted condominium unit in a municipal corporation other
than a special assessing unit, which has adopted, prior to the taxable
status date of the assessment roll upon which its taxes will be levied,
a local law or, for a school district, a resolution providing that the
provisions of paragraph (b) of this subdivision shall not apply to a
converted condominium unit within that municipal corporation. A
converted condominium unit for purposes of this paragraph shall mean a
dwelling unit held in condominium form of ownership that has previously
been on an assessment roll as a dwelling unit in other than condominium
form of ownership, and has not been previously subject to the provisions
of paragraph (b) of this subdivision.
2. With respect only to qualified leasehold condominiums:
(a) Each unit, its common interest, not including any personal proper-
ty, and the proportionate undivided part of the real property which is
the subject of a qualified leasehold condominium and is allocated to
such unit (as expressed in the declaration), shall be deemed to be a
parcel, shall be subject to separate assessment to the unit owner and
shall be subject to taxation by each assessing unit, school district,
special district, county or other taxing unit for all types of taxes
authorized by law including, but not limited to, special ad valorem
levies and special assessments. Neither the real property which is the
subject of a qualified leasehold condominium, the building, the property
nor any of the common elements shall be deemed to be a parcel. In no
event shall the aggregate of the assessment of the units plus their
common interests plus their proportionate undivided parts (as expressed
in the declaration) of said real property exceed the total valuation of
the property and said real property assessed as a single parcel owned in
fee. No provision of this paragraph shall be deemed to subject to taxa-
tion any parcel or part thereof which, pursuant to applicable law, is
either exempt from taxation or with respect to which no taxes are paya-
ble.
(b) For the purposes of section five hundred two of the real property
tax law, both the unit owner and the owner of the real property which is
the subject of a qualified leasehold condominium shall be deemed to be
the owner of the parcel in which such unit is included; provided, howev-
er, that for the purposes of section nine hundred twenty-six of the real
property tax law, only the unit owner shall be deemed the owner of the
parcel in which such unit is included and only the unit owner shall be
personally liable for the payment of any taxes assessed against such
parcel. Only the fee owner of the land which is the subject of a quali-
fied leasehold condominium, however, shall be deemed to be the owner of
the parcel in which a unit is included for the purposes of determining
whether such parcel is subject to or exempt from taxation or whether no
taxes are payable with respect thereto.
(c) The taxes assessed against each unit, its common interest and the
proportionate undivided part of the real property which is the subject
of a qualified leasehold condominium allocated to such unit (as
expressed in the declaration), shall constitute a lien solely on that
unit, its common interest and the proportionate undivided part of said
real property allocated to such unit (as expressed in the declaration),
and such taxes shall not constitute a lien on any other unit or the
common interest of any other unit or the proportionate undivided part of
said real property allocated to any other unit (as expressed in the
declaration).
(d) At such time as the real property which is the subject of a quali-
fied leasehold condominium is submitted to the provisions of this arti-
cle, the assessing unit shall make provision so that the real property
which (i) is not the subject of a qualified leasehold condominium and
(ii) immediately prior to such submission was included in a parcel in
which there also was included all or any part of the real property which
is (immediately subsequent to such submission) the subject of a quali-
fied leasehold condominium, is established as a single parcel on the
assessment roll and tax map of such assessing unit, separate and apart
from any real property which is the subject of a qualified leasehold
condominium.
3. All provisions of a declaration relating to a unit, its common
interest and the proportionate undivided part of the real property which
is the subject of a qualified leasehold condominium allocated to such
unit (as expressed in the declaration), which has been sold for taxes
shall survive and shall be enforceable after the issuance of a tax deed
for such unit to the same extent that such provisions would be enforcea-
ble against a voluntary grantee of such unit immediately prior to the
delivery of such tax deed.
4. The board of managers may act as an agent of each unit owner who
has given his written authorization to seek administrative and judicial
review of an assessment made in accordance with subdivision one of this
section, pursuant to title one-A of article five and title one of arti-
cle seven of the real property tax law. The board of managers may retain
legal counsel on behalf of all unit owners for which it is acting as
agent and to charge all such unit owners a pro rata share of expenses,
disbursements and legal fees for which charges the board of managers
shall have a lien pursuant to section three hundred thirty-nine-z.
5. Notwithstanding the provisions of any general, special or local law
to the contrary, in a city having a population of one million or more,
the board of managers shall be authorized to act as the sole agent on
behalf of all unit owners, without authorization of each unit owner, for
the limited purpose of determining whether or not to waive prospectively
the benefit of real property tax abatement and exemption for the proper-
ty in order to qualify for a partial abatement of real property taxes
pursuant to section four hundred sixty-seven-a of the real property tax
law.
S 339-z. Lien for common charges; priority; exoneration of grantor and
grantee. The board of managers, on behalf of the unit owners, shall have
a lien on each unit for the unpaid common charges thereof, together with
interest thereon, prior to all other liens except only (i) liens for
taxes on the unit in favor of any assessing unit, school district,
special district, county or other taxing unit, (ii) all sums unpaid on a
first mortgage of record, and (iii) all sums unpaid on a subordinate
mortgage of record held by the New York job development authority, the
New York state urban development corporation, the New York city housing
development corporation, or in a city having a population of one million
or more, the department of housing, preservation and development. Upon
the sale or conveyance of a unit, such unpaid common charges shall be
paid out of the sale proceeds or by the grantee. Any grantor or grantee
of a unit shall be entitled to a statement from the manager or board of
managers, setting forth the amount of the unpaid common charges accrued
against the unit, and neither such grantor nor grantee shall be liable
for, nor shall the unit conveyed be subject to a lien for, any unpaid
common charges against such unit accrued prior to such conveyance in
excess of the amount therein set forth. Notwithstanding the above, the
declaration of an exclusive non-residential condominium may provide that
the lien for common charges will be superior to any mortgage liens of
record.
S 339-aa. Lien for common charges; duration; foreclosure. The lien
provided for in the immediately preceding section shall be effective from
and after the filing in the office of the recording officer in which the
declaration is filed a verified notice of lien stating the name (if any)
and address of the property, the liber and page of record of the
declaration, the name of the record owner of the unit, the unit
designation, the amount and purpose for which due, and the date when due;
and shall continue in effect until all sums secured thereby, with the
interest thereon, shall have been fully paid or until expiration six years
from the date of filing, whichever occurs sooner. In the event that unpaid
common charges are due, any member of the board of managers may file a
notice of lien as described herein if no notice of lien has been filed
within sixty days after the unpaid charges are due. Upon such payment the
unit owner shall be entitled to an instrument duly executed and
acknowledged certifying to the fact of payment. Such lien may be foreclosed
by suit authorized by and brought in the name of the board of managers,
acting on behalf of the unit owners, in like manner as a mortgage of real
property, without the necessity, however, of naming as a party defendant
any person solely by reason of his owning a common interest with respect to
the property. In any such foreclosure the unit owner shall be required to
pay a reasonable rental for the unit for any period prior to sale pursuant
to judgment of foreclosure and sale, if so provided in the by-laws, and the
plaintiff in such foreclosure shall be entitled to the appointment of a
receiver to collect the same. The board of managers, acting on behalf of
the unit owners, shall have power, unless prohibited by the by-laws, to bid
in the unit at foreclosure sale, and to acquire and hold, lease, mortgage
and convey the same. Suit to recover a money judgment for unpaid common
charges shall be maintainable without foreclosing or waiving the lien
securing the same, and foreclosure shall be maintainable notwithstanding
the pendency of suit to recover a money judgment.
Notwithstanding any other provision of this article, if a municipal
corporation acquires title to a unit as a result of tax enforcement
proceedings, such municipal corporation shall not be liable for and shall
not be subject to suit for recovery of the common charges applicable to
such unit during the period while title to such unit is held by the
municipal corporation or for the payment of any rental for the unit under
the provisions of this section, except to the extent of any rent arising
from such unit received by such municipal corporation during such period.
Except as herein specifically provided, nothing contained herein shall
affect or impair or release the unit from the lien for such common charges
or impair or diminish the rights of the manager or the board of managers on
behalf of the unit owners under this section and section three hundred
thirty-nine-z.
Sec. 339-bb. Insurance. The board of managers shall, if required by
the declaration, the by-laws or by a majority of the unit owners, insure
the building against loss or damage by fire and such other hazards as
shall be required, and shall give written notice of such insurance and
of any change therein or termination thereof to each unit owner. In the
case of a qualified leasehold condominium, such insurance shall be
required in any event, and shall be in an amount equal to full
replacement cost of the building. The policy or policies of such
insurance shall be updated annualy to maintain such insurance in such
amount. Nothing herein shall prejudice the right of each unit owner to
insure his own unit for his own benefit. The premiums for such
insurance on the building shall be deemed common expenses, provided,
however, that in charging the same to the unit owners consideration may
be given to the higher premium rates on some units than on others.
Sec. 339-cc. Repair or reconstruction. 1. Except as hereinafter
provided, damage to or destruction of the building shall be promptly
repaired and reconstructed by the board of managers, using the proceeds
of insurance, if any, on the building for that purpose, and any
deficiency shall constitute common expenses; provided, however, that if
three-fourths or more of the building is destroyed or substantially
damaged and seventy-five per cent or more of the unit owners do not duly
and promptly resolve to proceed with repair or restoration, then and in
that event the property or so much thereof as shall remain, shall be
subject to an action for partition at the suit of any unit owner or
lienor as if owned in common, in which event the net proceeds of sale,
together with the net proceeds of insurance policies, if any, shall be
considered as one fund and shall be divided among all the unit owners in
proportion to their respective common interests, provided, however, that
no payment shall be made to a unit owner until there has first been paid
off out of his share of such fund all liens on his unit.
2. Notwithstanding the provisions of subdivision one hereof, in the
case of a qualified leasehold condominium, any damage to or destruction
of the building shall be promptly repaired and reconstructed by the
board of managers, and the proceeds of the insurance policy or policies
required for qualified leasehold condominiums pursuant to the provisions
of section three hundred thirty-nine-bb of this chapter shall first be
applied to such repair and reconstruction.
Sec. 339-dd. Actions. Actions may be brought or proceedings
instituted by the board of managers in its discretion, on behalf
of two or more of the unit owners, as their respective interests
may appear, with respect to any cause of action relating to the
common elements or more than one unit. Service of process on the
unit owners in any action relating to the common elements or more
than one unit may be made on the person designated in the
declaration to receive service of process.
S 339-ee. Effect of other laws. 1. All units of a property which shall
be submitted to the provisions of this article shall be deemed to be
cooperative interests in realty within the meaning of section three
hundred fifty-two-e of the general business law. Article nine-A of this
chapter shall not apply to the property or any unit. Article eleven of
the tax law shall not apply to declarations or any lien for common
charges provided for in this article. Any provision of the multiple
dwelling law, the multiple residence law, or any state building
construction code as to multiple residences pursuant to the provisions
of article eighteen of the executive law, requiring registration by the
owner or other person having control of a multiple dwelling shall be
deemed satisfied in the case of a property submitted to the provisions
of this article by registration of the board of managers, such
registration to include the name of each unit owner and the designation
of his or her unit; each unit owner shall be deemed the person in
control of the unit owned by him or her, and the board of managers shall
be deemed the person in control of the common elements, for purposes of
enforcement of any such law or code, provided, however, that all other
provisions of the multiple dwelling law or multiple residence law,
otherwise applicable, shall be in full force and effect, and provided
further that in a city with a population of one million or more persons
registration required by a housing maintenance code of such city shall
be deemed satisfied in the case of a property submitted to the
provisions of this article by registration of the board of managers
which need not include the name of each unit owner and the designation
of his or her unit.
2. In the event the proceeds of a construction mortgage were applied
to construction of a unit of a condominium submitted to the provisions
of this article, or in the event that a unit submitted to the provisions
of this act was subject to a blanket mortgage whose proceeds were
applied exclusively to payment of the construction mortgage or to
capital expenditures or expenses for the development or operation of the
condominium, or to purchase of land or buildings for the condominium
provided that such purchase was no more than two years prior to the
recording of the declaration of condominium, and a mortgage recording
tax was duly paid on such construction or blanket mortgage in accordance
with article eleven of the tax law, then, as each unit is first
conveyed, there shall be allowed a credit against the mortgage recording
taxes (except the special additional mortgage recording tax imposed by
subdivision one-a of section two hundred fifty-three of the tax law)
that would otherwise be payable on a purchase money mortgage, said
credit to be in the amount resulting from the product of the purchaser`s
pro rata percentage of interest in the common elements and the mortgage
tax already paid on the construction or blanket mortgage. No credit
shall be allowed under this subdivision (a) on account of the special
additional mortgage recording tax imposed by subdivision one-a of
section two hundred fifty-three of the tax law or (b) where the first
condominium unit is sold more than two years after the construction or
blanket mortgage was recorded.
3. Unless specifically exempted by a provision of this article, all
property subject to the provisions of this article shall continue to be
subject to all laws, rules and resolutions adopted by any county, city,
town or village for the health, safety and welfare of its inhabitants or
for regulation of the use of real property. Every county, city, town and
village shall continue to have all enforcement powers created by such
laws, rules or resolutions or the enabling acts of such laws, rules and
resolutions and may exercise those enforcement powers against any
violation involving property subject to the provisions of this article.
4. Any estimate of tax liability required by any rule adopted pursuant
to this article shall not be binding upon any municipality or public
official and any document containing such an estimate shall contain a
notice to that effect.
S 339-ff. Mortgage investments on units by state agencies, insurers,
banking organizations and fiduciaries; limitation to first mortgages.
(a) The following persons: (1) public officers, bodies of the state,
municipalities, and municipal subdivisions, (2) persons doing an insur-
ance business (as defined by section one thousand one hundred one of the
insurance law), (3) banking organizations (as defined by section two of
the banking law), and (4) executors, administrators, trustees, guardians
and other fiduciaries, are authorized to invest in bonds, notes and
evidences of indebtedness which are secured by first mortgages or deeds
of trust upon units and the appurtenant common interests, wherever such
persons may invest, and subject to all of the rules and limitations
applicable to such investment, in bonds, notes and evidences of indebt-
edness which are secured by first mortgages or deeds of trust upon real
estate. Where the applicable limitations are dependent upon the type of
use of the real estate, only the type of use of the particular unit or
units which constitute the security for such investment shall be taken
into consideration for the purpose of such limitations. The existence of
any prior lien for taxes, assessments or other similar charges not yet
delinquent shall be disregarded in determining whether a mortgage or
deed of trust is a first mortgage or deed of trust.
(b) No person enumerated in subdivision (a) of this section may invest
in bonds, notes or evidences of indebtedness secured by mortgages or
deeds of trust upon units and the appurtenant common interests, which
are other than first mortgages or deeds of trust thereupon, notwith-
standing any other provision of law (including section three hundred
thirty-nine-g of this chapter).
(c) Notwithstanding subdivisions (a) and (b), banking organizations
are authorized, subject to the rules and limitations applicable thereto
contained in subdivision four-a of section one hundred three, subdivi-
sion six-a of section two hundred thirty-five, subdivision four-a of
section three hundred eighty and subdivision eight of section four
hundred fifty-six of the banking law, and the New York job development
authority is authorized to invest in bonds, notes and evidences of
indebtedness which are secured by mortgages other than first mortgages
upon units and the appurtenant common interests, provided such mortgages
are in compliance with title eight of article eight of the public
authorities law.
(d) Notwithstanding subdivisions (a) and (b) of this section, the New
York state urban development corporation is authorized to invest in
bonds, notes and evidences of indebtedness which are secured by mort-
gages other than first mortgages upon units and the appurtenant common
interests, provided that (i) such units are owned or are to be acquired
by a corporation as defined in subparagraph five of paragraph (a) of
section one hundred two of the not-for-profit corporation law and are to
be used for commercial purposes, and such corporation has executed a
loan authorization agreement with the New York state urban development
corporation on or before June thirtieth, nineteen hundred eighty-eight
or (ii) such units are developed as a part of a project of the New York
state urban development corporation that received specific authorization
in chapter eight hundred thirty-nine of the laws of nineteen hundred
eighty-seven; and further provided that such investments and subordinate
mortgages are in compliance with chapter one hundred seventy-four of the
laws of nineteen hundred sixty-eight, as subsequently amended.
(e) Notwithstanding subdivisions (a) and (b) of this section, the New
York city housing development corporation and a city having a population
of one million or more are authorized to invest in bonds, notes, and
evidences of indebtedness which are secured by mortgages other than
first mortgages upon dwelling units and the appurtenant common interests
provided that such investment is made in connection with a project
undertaken pursuant to the private housing finance law or the general
municipal law.
Sec. 339-gg. Severability. If any provision of this article
or any section, sentence, clause, phrase or word, or the
application thereof in any circumstance is held invalid, the
validity of the remainder of the article and of the application
of any such provision, section, sentence, clause, phrase or word
in any other circumstances shall not be affected thereby.
Sec. 339-hh. Reservation of power. The legislature reserves
the right to alter, amend, suspend or repeal in whole or in part
this article. Any such change in this article shall be effective
notwithstanding any provisions of any declaration or by-laws.
Sec. 339-ii. Construction. This article shall be liberally
construed to effect the purposes thereof.
S 339-jj. Borrowing by board of managers. 1. To the extent authorized
by the declaration or the by-laws, the board of managers, on behalf of
the unit owners, may incur debt. In addition, subject to any limitations
set forth in the declaration or the by-laws, the board of managers, on
behalf of the unit owners, may incur debt for any of the purposes
enumerated in paragraph (b) of subdivision two of section three hundred
thirty-nine-v of this article, provided that (a) such debt is incurred
no earlier than the fifth anniversary of the first conveyance of a unit
and (b) the incurrence of such debt shall require the consent of a
majority in common interest of the unit owners.
2. In connection with a debt incurred by it, the board of managers, on
behalf of the unit owners, may (a) assign the rights in and to receive
future income and common charges, (b) create a security interest in,
assign, pledge, mortgage or otherwise encumber funds or other real or
personal property that it holds, (c) agree that, to the extent of any
amounts due under any of the provisions of the agreements under which
the debt was incurred and subject to the provisions of subdivision two
of section three hundred thirty-nine-1 of this article, all common
charges received and to be received by it, and the right to receive such
funds, shall constitute trust funds for the purpose of paying such debt
and the same shall be expended for such purpose before expending any
part of the same for any other purpose, and (d) agree that at the lend-
er`s direction it will increase common charges to the extent necessary
to pay any amount when due under any of the provisions of the agreements
under which the debt was incurred. The preceding sentence shall not be
construed to authorize the board of managers to create a lien on the
common elements. Any such assignment may provide that, in the event of a
default, the lender shall have the right of the board of managers to
file liens in the lender`s name on units for unpaid common charges
pursuant to sections three hundred thirty-nine-z and three hundred thir-
ty-nine-aa of this article and the right to foreclose such liens pursu-
ant to section three hundred thirty-nine-aa of this article.
3. Nothing in this section shall impair rights under any loan or other
agreement existing prior to the effective date of this section or limit
any right or power that a board of managers would otherwise have.