(i) that each purchaser owns his or her unit outright and is entitled to exclusive possession of that unit together with an interest in and right to use the common elements, and exclusive right to use limited common elements, if applicable;

(ii) a description of the differences between space owned exclusively by a unit owner and common elements and limited common elements, where applicable;

(iii) that each unit owner must pay common charges in accordance with the New York Condominium Act, RPL section 330(i) and (m), or applicable State and local law;

(iv) that each unit owner is obligated to comply with the declaration, the bylaws, rules and regulations and any other requirements of the board of managers;

(v) any restrictions on use, resale, leasing or mortgaging; the Department of Law may, in its discretion, require an opinion from counsel for sponsor or independent counsel as to the legality and enforceability of these restrictions;

(vi) the authority of the board of managers to manage the condominium, and the unit owner's right to vote for members of the board of managers;

(vii) that each unit will be separately taxed and may be separately mortgaged;

(viii) a unit owner's responsibility for maintenance and repairs and for casualty and liability insurance as distinguished from the obligations of the board of managers;

(ix) if applicable, that the condominium board does not have the right to approve or disapprove purchasers, that there is no limit on the number of owners who may purchase for investment rather than for personal occupancy and that there may always be a substantial percentage of owners who are non-residents; and

(x) discuss the transitional phase of the conversion process from rental building to condominium. Disclose that because the plan can be declared effective based on sales of 15 percent of the units to tenants or bona fide purchasers for their own occupancy, purchasers may be living in a mixed rental/owner-occupied building for an indeterminate period of time and that owner-occupants may not control the board or operation of the property during such transition or ever, unless the bylaws provide for an owner-occupant majority on the board. Further discuss how the existence of rent regulated, non purchasing, tenants, who have a right to continued occupancy, may affect the speed of the conversion process. Discuss other aspects of living in a mixed rental/owner-occupied building, including different interests of owners and renters and the consequences of sponsor's continuing role in the building;

(i) unit identification;

(ii) rent regulatory status of each unit, and which units are vacant;

(iii) number of bedrooms and bathrooms;

(iv) approximate total area of each unit;

(v) offering price for each class of purchasers;

(vi) percentage of common interest;

(vii) maximum mortgage on each unit (if financing is offered);

(viii) maximum monthly mortgage charge on each unit (if financing is offered);

(ix) projected monthly and annual common charges for the first year of operation;

(x) projected monthly and annual real estate taxes for the first year of operation;

(xi) projected total monthly carrying charges for the first year of operation (this is a total of items [viii], [ix] and [x]); and

(xii) projected annual carrying charges deductible for income tax purposes (if applicable).

(i) For the number of rooms, state the method of calculating the number of rooms or approximate total area in each unit. If rooms are calculated in accordance with an industry standard, refer to the industry standard employed. Indicate which units, if any, have the use of a limited common element.

(ii) For the offering price, explain any differences in prices to classes of purchasers. Prior to the filing of an effectiveness amendment, plans subject to G.B.L., section 352-eee or 352-eeee may not contain different prices for different classes of tenants in occupancy on the filing date. Refer to the portion of the plan that explains price changes.

(iii) For the offering price, refer to the portion of the plan that explains any closing costs that a purchaser may have to pay.

(iv) For the percentage of common interest, disclose the basis for calculating the percentage of common interest including a reference to the method selected pursuant to section 339(i) of the Real Property Law, or applicable State law.

(v) For the projected monthly carrying charges, disclose that if sponsor is not offering or procuring mortgage financing and if the purchaser obtains financing, the purchaser's debt service will be an additional expense. Disclose that projected carrying charges do not include certain costs for which the unit owner is responsible such as (where applicable) repairs to the interior of the unit, separately metered gas, electricity, hot water, heat, air conditioning and cable television service. If unit owners individually pay for heat and hot water costs, or for costs usually included in the common charges, refer to schedule B-1 for individual carrying charges, see paragraph (h)(5) of this section.

(vi) State the aggregate of the monthly rents currently payable from tenants of all occupied units, or a reasonable approximation thereof.

(vii) For the projected real estate taxes, state that after the condominium is divided into individual tax lots, each unit will be taxed as a separate tax lot for real estate tax purposes and the unit owner will not be responsible for the payment of, nor will the unit be subject to, any lien arising from the nonpayment of taxes on other units. Refer to the section of the plan which discusses real estate taxes, see subdivision (z) of this section.

(viii) For the projected income tax deduction, explain that the projected tax deduction (where applicable) may vary in future years due to changes in the interest rate on the unit owner's mortgage (if any) or from changes in the allocation of constant debt service payments to interest and principal, or due to changes in real property taxes resulting from the expiration of real estate tax benefits, or from changes in the assessed value, the tax rate or the method of assessing real property.

(i) Commercial income. Briefly describe any contracts or leases that will provide income to the condominium. State whether the condominium is required to provide heat, water, electricity, gas or insurance, and describe any other specific additional costs under the contract or lease. State the name and business address of each contractor or lessee, the annual income, and the expiration date of the contract or lease. If applicable, state whether the sponsor may rent vacant nonresidential space or extend the term of existing leases. State whether the rent to be collected could be less than the rent set forth in schedule B for the space. Sponsor must amend the plan if any new lease or extension of any existing lease is for a term in excess of two years.

(ii) Labor costs. State the number of full- and part-time existing staff, the number of full- and part-time staff projected for the condominium in schedule B, and whether the staff will be union members. If the budget reflects a reduction in the existing staff, disclose what effect this will have on the existing level of services. Disclose whether such reduction is lawful. The labor budget must include benefits required by Federal, State or local law or required by contract such as workers' compensation, disability insurance, welfare and pension contributions by employers, unemployment insurance and payroll taxes. Specify the wages and the cost of each applicable benefit. The budget must reflect current wage rates and reasonably anticipated increases or increases mandated by contract. If applicable, state the expiration dates of all union contracts. If there is nonunion labor in the building, discuss whether their wages meet State minimum wage laws.

(iii) Heating, cooling and hot water costs. State the type and quantity of energy projected to be used during the year and the projected cost per gallon or other pricing unit inclusive of sales tax for all energy costs for providing heat, air conditioning and hot water for the building. State the basis for projecting the quantity of energy to be used. Unless it would be misleading for a particular building, base the projected quantity of energy on the average quantity of energy purchased for the prior three years. State the quantity of energy purchased in each of the three prior years, the average cost per gallon or other pricing unit and the total cost per year. The Department of Law may, from time to time, issue pricing guidelines to reflect minimum fuel costs.

(iv) Utilities (electricity and gas). State the basis for the projected consumption and projected unit cost for utilities. Unit cost should be based on the current tariff plus a reasonably anticipated increase which should be set forth, e.g., estimate based on current tariffs plus 10 percent increase. Unless it would be misleading for a particular building, base the projected quantity of the utilities on the average quantity of the utilities purchased for the prior three years.

(v) Water charges and sewer rents. State the present rents and charges and base the projection on reasonably anticipated increases for the first year of condominium operation. If the water charges or sewer rents are metered charges, state the consumption for the prior three years. If water and/or sewer charges will be separately billed by local authorities or utility companies to individual unit owners, the estimated individual annual charges should be stated in a separate column in schedule A or (if appropriate) schedule B-1.

(vi) Repairs, maintenance and supplies. Itemize the material components of the expense for repairs and maintenance, such as interior repairs, roofing, exterior repairs (including walls, foundations, windows, doors and locks), heating system (fuel burner, boiler, pipes, radiators), plumbing, electrical work, exterminating, grounds maintenance (snow removal, gardening and landscaping, where applicable), janitor supplies, painting of common areas, and such building services and maintenance items not included under service contracts or other expenses. If the total budgeted amount is less than 80 percent of the maintenance expense indicated in the prior two years of certified financial statements, disclose and explain the reason for the projected decrease in expenses.

(vii) Service contracts. State the name of the contractor, the service, the annual cost and the expiration date of the contract. Highlight as a special risk any contract with an expiration date more than five years after the anticipated closing date unless it is customary in the area to enter into a long-term contract for the service rendered (e.g., cable TV contract).

(viii) Insurance. The budget for insurance must provide, and the condominium must have at closing, fire and casualty insurance under an agreed amount replacement cost policy or under a policy including at least an 80 percent coinsurance provision so that the insured shall not be a coinsurer. Discuss the adequacy of the insurance to replace the building in the event of total loss and to avoid being a coinsurer in the event of partial loss. Disclose the items covered, the coverage amount limits, the deductibles and the exposures insured against.

(ix) Management contract. State the basis for the projected management fee. The projected cost must include any costs required by the terms of the management agreement, such as bonding. If the cost of a manager or the management contract is greater or substantially less than the prevailing cost for similar services, state the prevailing cost which would be charged for these services. If no manager or management contract is provided for in the budget, highlight as a special risk and state the services that unit owners will have to provide.

(x) Legal fees and audit fees. If the budgeted amount for legal fees is less than $5,000, the footnote must indicate the extent to which legal services are budgeted. Audit fees must be based on and refer to a fee quotation from a certified public accountant for preparing the yearly financial statements for the condominium.

(xi) Other expenses. Include expenses such as employer association dues (if applicable), building telephone or switchboard expenses, applicable license fees, registration and municipal permits, provision for income taxes and any other taxes payable by the condominium (if so indicated in the tax opinion), and miscellaneous expenses, including interest, not provided for in other lines.

(xii) Contingency fund. State that the contingency fund (if any) is intended to provide for any unanticipated expenses or unanticipated increases in the projected expenses. Distinguish between the contingency fund and a reserve for capital expenditures.

(i) state that the examination was made in accordance with generally accepted auditing standards and included such tests of the accounting records and other auditing procedures as the accountant considered necessary in the circumstances;

(ii) state that, in the accountant's opinion, the statement of income and expenses presents fairly the income and expenses of the building for the periods specified in conformity with generally accepted accounting principles; and

(iii) be signed by a duly authorized signatory or by the firm.

(i) an eligible senior citizen is a nonpurchasing tenant who is 62 years of age or older on the date the plan is declared effective and the spouse of any such tenant on such date;

(ii) G.B.L., section 352-eee does not require that a tenant file an election form in order to qualify as an eligible senior citizen. However, it is advised and requested that a tenant who believes he or she is or will become an eligible senior citizen within 12 months from the date the plan is filed, complete the election form SH-5 promulgated by the Department of Law and included in the plan. This senior citizen election form may be completed, signed, notarized and returned to the sponsor;

(i) is 62 years of age or older on the date that the plan is filed with the Department of Law (filing date); and

(ii) has elected not to purchase his or her apartment within 60 days from the presentation date by completing the senior citizen election form in the plan, signing the form and having the signature notarized, and personally delivering it to the named sponsor or selling agent at a location specified in the plan or by mailing it by certified or registered mail, return receipt requested to the named sponsor or selling agent at the location specified in the plan. In the event that the plan becomes subject to G.B.L., section 352-e(2-a) after the plan was accepted for filing, (a) the plan must be amended immediately after the statute becomes applicable to such offering, and (b) such election may be made within 60 days of presentation of such amendment;

(i) has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which is demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which is expected to be permanent, and which prevents the disabled person from engaging in any substantial gainful employment on the date the Department of Law accepted the plan for filing; and

(ii) has elected not to purchase his or her apartment within 60 days from the presentation date by completing the disabled person election form in the plan, signing the form and having the signature notarized, and personally delivering it to the named sponsor or selling agent at a location specified in the plan or by mailing it by certified or registered mail, return receipt requested to the named sponsor or selling agent at the location specified in the plan; and

(iii) if the disability first occurs after acceptance of the plan for filing, then such election may be made within 60 days following the onset of such disability unless during the period subsequent to 60 days following the presentation of the plan for filing but prior to such election, the offeror accepts a written agreement to purchase the apartment from a bona fide purchaser. In the event that the plan becomes subject to G.B.L., section 352-e(2-a) after the plans was accepted for filing, (a) the plan must be amended immediately after the statute becomes applicable to such offering, and (b) such election may be made within 60 days of presentation of such amendment.

(i) No eviction proceedings will be commenced at any time against either eligible senior citizens or eligible disabled persons, except for nonpayment of rent, illegal use or occupancy of the apartment, refusal of reasonable access to the owner or a similar breach of obligations to the landlord.

(ii) Eligible senior citizens and eligible disabled persons who reside in apartments subject to government regulation as to rentals and continued occupancy shall continue to be subject thereto.

(iii) The rentals of eligible senior citizens and eligible disabled persons who reside in dwelling units not subject to government regulation as to rentals and continued occupancy and eligible senior citizens and eligible disabled persons who reside in dwelling units with respect to which government regulation as to rentals and continued occupancy is eliminated or becomes inapplicable after the plan has been accepted for filing by the Department of Law shall not be subject to unconscionable increases beyond ordinary rentals for comparable apartments during the period of their occupancy. Complaints concerning such increases may be referred to the New York State Department of Law, Real Estate Finance Bureau, 28 Liberty Street, New York, NY 10005.

(iv) The rights granted under the plan and rent regulatory laws to eligible senior citizens and eligible disabled persons may not be abrogated or reduced, regardless of any expiration of or amendment to G.B.L., section 352-e(2-a), 352-eee or 352-eeee.

(v) Each owner of a unit occupied by an eligible senior citizen or eligible disabled person shall be bound by the provisions of the G.B.L. and the terms of the plan. The bylaws of the condominium must require that such purchase is subject to all the rights of the eligible senior citizen or eligible disabled person occupying the apartment and that the purchaser, his successors and assigns shall continue to be bound as long as such occupancy continues.

(i) The exclusive period. State:

(ii) any protected period of occupancy before a tenant may be evicted;

(iii) any period of time during which a tenant has the right to purchase on the terms obtained by an outside purchaser;

(iv) any provisions of notice to the tenants or posting of the percentage of tenants who have purchased units, or percentage of units for which sponsor has accepted purchase agreements;

(v) any protection against rent increases for nonpurchasing tenants. State that complaints of unconscionable rent increases proscribed by law may be referred to the New York State Department of Law, Real Estate Finance Bureau, 28 Liberty Street, New York, NY 10005;

(vi) the provision to nonpurchasing tenants of all services and facilities required by law on a nondiscriminatory basis. Refer to the services described in the Obligations of Owners of Dwelling Units Occupied by Nonpurchasing Tenants section of the plan;

(vii) any requirement that tenants or their representatives be allowed to inspect the building or buildings;

(viii) any protection against interruption or discontinuance of services or harassment of tenants;

(ix) the extent to which applicable law (such as G.B.L., section 352-e[2-a], 352-eee or 352-eeee) protects nonpurchasing tenants against termination or abridgement of rights acknowledged or granted in the plan in the event of expiration of or amendment to such law; and

(x) whether nonpurchasing tenants will be subject to rent increases as a result of capital improvements made by the sponsor, the board of managers or unit owners. If the plan or any amendments disclose capital improvements made or to be made by sponsor, discuss the projected cost of such improvements, the amount by which the reserve fund will be reduced to pay for such improvement, or the amount of the prospective rent pass along to each nonpurchasing tenant and the procedure which must be followed for each tenant before the rent increase may be collected. Refer to reserve fund section.

(i) any obligation to register the unit with the Division of Housing and Community Renewal, and whether the dwelling unit is subject to rent control, rent stabilization, the Emergency Tenant Protection Act or any other type of rent regulation. State whether the dwelling unit would be subject to any form of rent regulation after the unit is vacated by the original nonpurchasing tenant;

(ii) the obligation to pay the amount due as common charges, special assessments and real estate taxes for the unit even if the amount is more than the rent received from the nonpurchasing tenant;

(iii) the obligation to provide to the nonpurchasing tenant all services required by law to the extent applicable, including the obligation to make all repairs to the unit which are not the responsibility of the board of managers of the condominium. These services may include, but are not limited to, painting, interior decoration, repairs to interior plumbing and wiring and replacement of fixtures and of appliances, doors, hardware and windows. While the sponsor is in control of the board of managers, the sponsor must guarantee that these services will be provided if required by applicable law;

(iv) all litigation costs, fees, and any dues related to the tenancy, are the sole responsibility of the purchaser;

(v) the obligation to give renewal leases and riders as required by law and that the tenants may be evicted only on grounds permitted by law; and

(vi) all leases may be inspected by potential purchasers, and should be inspected to ascertain the purchaser's obligations;

(i) Statutory requirement. The sponsor shall comply with the escrow and trust fund requirements of GBL sections 352-e(2-b) and 352-h and these regulations, and all funds paid by purchasers shall be handled in accordance with these statutes and regulations.

(ii) Mandatory escrow agreement. All deposits, down payments, or advances made by purchasers prior to closing of each individual transaction shall be held pursuant to a written agreement entered into between the sponsor, the purchaser, and the escrow agent. Said provisions may be included in a separate escrow agreement or in the purchase agreement, and are referred to in this paragraph as the “escrow agreement.” The plan must set forth the material terms of the escrow agreement. The sponsor shall specify the exhibit in Part II of the plan that contains the escrow agreement. If a separate escrow agreement is used, a copy of the full agreement must be contained as a separate exhibit to the plan in Part II. Disclose, without limitation, any indemnity by the sponsor in favor of the escrow agent, provision for discharge of the escrow agent's obligations by the sponsor upon payment of the deposit and interest in accordance with these regulations, any right of the escrow agent to represent the sponsor in any lawsuit, any compensation by the sponsor to the depository bank, any provision for payments by the sponsor under an indemnity in favor of the escrow agent and whether the sponsor will compensate the escrow agent for acting as such. The plan and escrow agreement must include language conforming to subparagraphs (vi)-(viii) of this paragraph. However, the failure to include such language in the plan or escrow agreement shall not excuse the sponsor and the escrow agent from compliance with said subparagraphs.

(iii) Payments. All funds received from purchasers whether in the form of checks, drafts, money orders, wire transfers, or other instruments which identify the payor, shall be made payable to or endorsed by the purchaser to the order of the attorney or law firm as escrow agent.

(iv) The escrow agent. The escrow agent must be an attorney or firm of attorneys admitted to practice in the State of New York or an attorney admitted in a foreign jurisdiction who submits to the jurisdiction of the State of New York for any cause of action arising out of the escrow provisions set forth in the escrow agreement. The authorized signatories on the escrow account must be attorneys admitted to practice in the State of New York or admitted in a foreign jurisdiction who submit to the jurisdiction of the State of New York for any cause of action arising out of the escrow provisions set forth in the escrow agreement. Neither the escrow agent nor any authorized signatory on any account may be the sponsor, the selling agent, the managing agent, or a principal thereof. However, a law firm that has a member who is a principal may be the escrow agent provided that members of the firm who are signatories on the account are not themselves principal. Only an attorney or a member of a firm acting as escrow agent shall be a signatory on any account and only such attorney shall be authorized to release funds. The name, address and telephone number of the escrow agent and of each attorney who is a signatory must be stated in the plan.

(v) The account(s). All deposits, down payments, or advances made by purchasers prior to closing of each individual transaction, whether received before or after the date of consummation of the plan, must be placed within five business days after the escrow agreement is signed by all necessary parties in an attorney's segregated special escrow account or accounts in a bank or banks doing business in the State of New York which account(s) is/are covered by Federal Deposit Insurance Corporation (the “FDIC”). Sponsor shall state the applicable FDIC insurance limits, whether and to what extent the deposits, down payments, or advances are insured, and whether sponsor may utilize more than one segregated special escrow account for each deposit, down payment, or advance. Include as a special risk that deposits in excess of said limits will not be federally insured. An attorney shall open and maintain any such account in his or her own name, or in the name of a firm of attorneys of which he or she is a member, or in the name of the attorney or firm of attorneys by whom he or she is employed, separate from such attorney's personal accounts or from any accounts in which assets belonging to the firm are deposited, and separate from any accounts maintained in the capacity of executor, guardian, trustee or receiver. A master escrow account with a subaccount for each purchaser is acceptable. The name of any account, the bank, and the bank address must be stated in the plan. The word “escrow” must be included as part of the name of any account. Funds from this account may be released only by signature of the attorney(s) who is/are named as an authorized signatory or signatories. Neither the sponsor nor any principal of the sponsor may be an authorized signatory on any account. Funds must be placed in an interest-bearing account or accounts, with all interest credited to the purchaser, unless the sponsor elects to place the funds in a separate Interest-On-Lawyer's-Account (“IOLA”) for each plan pursuant to Judiciary Law section 497. The plan shall indicate whether the interest rate to be earned will be the prevailing rate for such accounts. State the current prevailing rate and when interest will begin to accrue. No fees of any kind may be deducted from any account principal or any interest earned thereon. Sponsor shall bear any administrative cost for maintenance of any account.

(vi) Notification to purchaser. Within 10 business days after the escrow agreement is signed by all necessary parties, the escrow agent shall notify the purchaser that such funds have been deposited in the bank indicated in the offering plan, and provide any account number, and the initial interest rate. If the purchaser does not receive notice of such deposit within 15 business days after tender of the deposit, he or she may cancel the purchase and rescind within 90 days after tender of the deposit. Complaints concerning the failure to honor such cancellation requests may be referred to the New York State Department of Law, 28 Liberty Street, New York, NY 10005. Rescission may not be afforded where proof satisfactory to the Attorney General is submitted establishing that the escrowed funds were timely deposited in accordance with these regulations and requisite notice was timely mailed to the purchaser.

(vii) Escrow revisions. Before funds are transferred to any new escrow account, or if the escrow agent is replaced, the plan must be amended to provide the same full disclosure with respect to any new account, the escrow agent and the escrow agreement as was originally provided. A bond, letter of credit or other security may not be substituted for any escrow account, unless a special exemption under exceptional circumstances is first requested by the sponsor and is granted by the Attorney General, following the procedures of section 20.3(o)(4) of this Title. In such event, and only after the Department of Law grants such exemption in writing, the provisions of section 20.3(o)(5), (6) and (7) of this Title are applicable.

(viii) Release of funds. The escrow agreement and the plan must set forth the requirements and procedures for the release of the escrowed funds. These shall include:

(ix) Disputes.

(x) Exhibits to plan. Copies of the forms provided by the bank for opening the escrow account and the form of escrow agreement if separate from the purchase agreement, must be included as Exhibit B-22 of the submission.

(xi) Records on file. The escrow agent shall maintain all records concerning any escrow account for seven years after release of the funds. Upon the dissolution of any law firm which was the escrow agent, the former partners or members of the firm shall make appropriate arrangements for the maintenance of these records by one of them or by the successor firm and shall notify the Department of Law of such transfer.

(xii) Review and audit. The Department of Law may perform random reviews and audits of any records involving escrow accounts to determine compliance with statute and regulation.

(xiii) Waiver void. Any provision of any contract or agreement, whether oral or in writing, by which a purchaser purports to waive or indemnify any obligation of the escrow agent holding trust funds is absolutely void. The provisions of this section of the regulations shall prevail over any conflicting or inconsistent provision in the offering plan or in a purchase agreement.

(xiv) Trust obligation of sponsor. Nothing herein contained shall diminish or impair the sponsor's statutory obligation to each purchaser or subscriber pursuant to GBL section 352-h to hold in trust all deposits, advances or payments made in connection with the offer until consummation of the transaction with such purchaser or subscriber. Consummation of the plan does not relieve sponsor of its obligations pursuant to GBL section 352-h. Funds from any escrow account remain the property of the purchaser until consummation of the transaction. Such funds shall not be part of the estate of the sponsor or the escrow agent upon any bankruptcy, incapacity or death.

(xv) Transition. All funds required to be held pursuant to GBL sections 352-e(2-b) and 352-h on the effective date of this section shall be transferred into escrow accounts in compliance with this regulation within 60 days thereafter.

(i) at sponsor's option nontenant purchasers will be afforded:

(ii) tenants are afforded not fewer than three business days to review the offering plan and all filed amendments prior to executing a purchase agreement unless fewer than three business days remain in the statutory time period to declare the plan effective.

(i) a purchase agreement shall be signed by the tenant and the full downpayment paid by the tenant to the sponsor; and

(ii) the assignee shall provide an affidavit stating that the assignee was not procured by sponsor, the selling agent, or the managing agent, and that the assignee intends that he or she or a specified member of his or her immediate family will personally occupy the dwelling unit. The form assignee affidavit shall appear in Part II of the plan.

(i) signed by purchasers who have been granted a right of rescission that has not yet expired or been waived; or

(ii) assigned or transferred without compliance with subdivision (r) of this section; or

(iii) if the purchaser was not afforded the protections required by paragraph (q)(8) of this section; or

(iv) with any purchaser who is the sponsor, the selling agent, or the managing agent or is a principal of the sponsor, the selling agent or the managing agent or is related to the sponsor, the selling agent or the managing agent or to any principal of the sponsor or the selling agent or the managing agent by blood, marriage or adoption or as a business associate, an employee, a shareholder or a limited partner; except that such a purchaser other than the sponsor or a principal of the sponsor may be included to the extent permissible under section 23.5(e)(6)(viii)(c) or (e)(6)(ix)(b)(2) of this Part, as applicable. Identify by apartment number those units that will and those units that will not be counted toward declaring the plan effective.

(i) for a noneviction plan, state that the plan may not be declared effective until written purchase agreements have been executed and delivered for at least 15 percent of all dwelling units in the building or group of buildings or development by bona fide tenants in occupancy or bona fide purchasers who represent that they intend that they or a specified member of their immediate family occupy the dwelling unit when it becomes vacant. As to tenants who were in occupancy on the date the plan was accepted for filing, the purchase agreement shall be executed and delivered pursuant to an offering made without fraud and discriminatory repurchase agreements or other discriminatory inducements.

(ii) for an eviction plan, state that the plan may not be declared effective unless at least 51 percent of the bona fide tenants in occupancy of all dwelling units in the building or group of buildings on the date the offering statement or prospectus was accepted for filing shall have executed and delivered written agreements to purchase under the plan pursuant to an offering made in good faith without fraud and discriminatory repurchase agreements or other discriminatory inducements;

(iii) state that the plan will be deemed abandoned, void and of no effect if it does not become effective within 15 months from the date of issuance of the letter by the Department of Law indicating that the plan has been accepted for filing; and, in the event of such abandonment, no new plan for conversion of such building or group of buildings or development shall be submitted to the Department of Law for at least 12 months after such abandonment. Such 15-month limit shall not be extended, even if a plan is amended from an eviction plan to a noneviction plan.

(i) for a noneviction plan, state that the plan may not be declared effective unless at least 15 percent of those bona fide tenants in occupancy of all dwelling units in the building or group of buildings or development on the date the plan is declared effective have executed and delivered written agreements to purchase under the plan. In computing the percentage necessary for effectiveness, the sponsor may include purchase agreements executed by bona fide purchasers of vacant units who intend to occupy such units and who have signed interim leases and are paying rent. As to tenants who were in occupancy on the date a letter was issued by the Attorney General accepting the plan for filing, the purchase agreement shall be executed and delivered pursuant to an offering made in good faith without fraud and discriminatory repurchase agreements or other discriminatory inducements. In establishing a base for computing the required percentage necessary for effectiveness, all dwelling units in the building, group of buildings or development shall be included in the base;

(ii) for an eviction plan, state that the plan may not be declared effective unless written agreements to purchase under the plan pursuant to an offering made in good faith without fraud and with no discriminatory repurchase agreements or other discriminatory inducements have been executed and delivered by:

(iii) state that the plan will be deemed abandoned if it does not become effective within 12 months from the date of issuance of the letter from the Department of Law indicating that the plan has been accepted for filing. In the event of abandonment, no new plan for the conversion of the building may be submitted to the Department of Law for at least 15 months after the abandonment. Such 12-month limit shall not be extended, even if the plan is amended from an eviction plan to a noneviction plan.

(i) consent to the formation of a condominium and acknowledge that its lien will be limited to unsold condominium units;

(ii) subordinate the lien of its mortgage to the declaration of condominium; or

(iii) release its lien on the condominium unit being conveyed.

(i) For all items to be apportioned, set forth the basis for apportionment.

(ii) Provide a numerical example of all closing costs for a typical unit.

(i) State that each unit owner has the right to sell or lease his or her unit and describe the restrictions on such right including notification to the board of managers. State whether such restrictions apply to the sponsor, its designees, or the owners of the commercial units. State whether the terms of the lease, including the rent, will be subject to State or local law. If there are any restrictions, the Department of Law may, in its discretion, require an opinion from sponsor's counsel as to the enforceability and legality of these restrictions.

(ii) If the board of managers has a right of first refusal with respect to the sale or lease of a unit or other option to acquire a unit:

(i) Discuss the procedures to establish common charges and assessments and to divide the charges and assessments among unit owners.

(ii) Discuss the right of the board of managers to accumulate reserves for capital expenditures or otherwise and the restrictions imposed on such rights.

(iii) Discuss how and when the liability of unit owners for common charges and assessments can be terminated.

(iv) State that under the provisions of section 339-z of the Real Property Law, the board of managers on behalf of the unit owners will have a lien on each unit for unpaid common charges assessed by the board of managers and discuss the consequences of such a lien.

(v) State that the board of managers has a lien on each unit for the replenishment of the fund to be maintained pursuant to paragraph (o)(4) of this section and discuss the consequences of such a lien.

(i) Describe the obligation to repair and maintain units, limited common elements and common elements and the allocation of responsibility among the unit owners and the board of managers.

(ii) Describe any improvements, maintenance or provision of furnishings required of unit owners such as painting facades or carpeting of units.

(iii) Describe the responsibility for repairs or replacements required as the result of the negligence or abuse of a unit owner.

(iv) State the requirement, and any conditions, for unit owners to grant access to the board of managers and its designees to inspect, remove violations, make general repairs, cure defaults by the unit owner and for other purposes permitted by the bylaws.

(i) Describe the rights and obligations of the unit owners and the board of managers with respect to additions, alterations and improvements.

(ii) Describe the work that unit owners can do without the consent of the board of managers, what work requires consent, and the requirements which apply if a unit owner does his or her own work, at his or her own expense such as filing plans and obtaining insurance.

(iii) Describe any requirements in the bylaws regarding aesthetic controls or architectural restrictions for any additions, alterations or improvements to individual units and/or limited common elements.

(i) Describe the insurance coverage provided by the board of managers for the benefit of each unit owner and a unit owner's right to obtain supplemental or additional insurance.

(ii) Indicate any coverage that is not provided by the board of managers and disclose what additional or supplemental coverage is generally available. Refer to schedule B for the details of insurance coverage.

(iii) State the conditions under which the insurance proceeds will be given to the board of managers or to an insurance trustee and how the proceeds will be allocated.

(i) any limitation on pets;

(ii) any aesthetic controls;

(iii) any limitations on business or professional use, stating whether such limitations are more restrictive than those applicable to the sponsor;

(iv) any restrictions on occupancy of units owned by corporations, partnerships or fiduciaries;

(v) any restrictions on illegal or offensive uses;

(vi) any limitations on guest privileges;

(vii) limitations on utilization of common elements and parking facilities; and

(viii) limitations contained in the certificate of occupancy and zoning regulations.

(i) Note any anticipated delay in obtaining separate assessments by the appropriate tax assessor's office.

(ii) If the units have not been separately assessed for real estate tax purposes prior to the closing of title to the first unit, describe the procedure by which unit owners will make payments towards real estate taxes to the board of managers.

(i) Highlight as a special risk if the plan states that the unit owners may or will receive tax benefits and the sponsor does not anticipate obtaining the benefits before the closing of the first unit or if the termination of tax benefits will result in the termination of the rent regulatory status of units which are not sold.

(ii) If the tax benefits are not in place at the time the proposed offering plan is first submitted to the Department of Law, describe the effect on the projected total monthly carrying charges with and without tax benefits. If full tax benefits may be available for only part of the first year of operation, schedule A may reflect either:

(iii) Sponsor applying for benefits must request an opinion letter from the New York City Department of Housing Preservation and Development (HPD). Such opinion letter must be obtained before the plan is declared effective.

(iv) Sponsor must represent that it will keep all records required by HPD and will make them available to HPD whenever requested to do so.

(v) Sponsor must disclose that HPD routinely conducts audits, the result of which can be either the reduction or revocation of benefits if proper documentation is not provided.

(vi) Sponsor must state:

(vii) Set forth in schedule form the progressive decrease in tax benefits during the benefits period.

(viii) If by reason of the termination of real estate tax benefits, tenants will no longer be subject to rent regulation, refer to the Rights of Existing Tenants section of the offering plan.

(i) the name and address of the managing agent;

(ii) the term of the management agreement and the agent's right (if any) to cancel the agreement;

(iii) all fees and other compensation for services;

(iv) the major duties and services to be performed by the managing agent including whether bookkeeping, payroll and collection of common charges are provided;

(v) the obligation (if any) of the board of managers of the condominium to reimburse the agent for expenses incurred or to indemnify the agent against liability for acts properly performed by it pursuant to the agreement;

(vi) whether the management agreement is assignable by the agent and what restrictions are imposed on assignability;

(vii) the right of the board of managers to cancel the agreement for cause.

(i) State the date and term of each lease, the space leased, the identity of the lessee and sublessee(s), if any, the rent and any additional rent payable thereunder, and the present and permitted use for the space.

(ii) State whether the present and future rent payable by the lessee is sufficient to cover the expenses fairly attributable to the leased space.

(iii) Highlight as a special risk if: (a) any lease has a term exceeding 10 years; (b) if the lease generates or is expected to generate less income than the pro rata share of expenses attributable to the leased space now or in the future; or (c) if the ratio of income generated by the lease to the share of expenses fairly attributable to the leased space may decline in the future. Describe the potential burden to the condominium of these risks. Disclose the basis for projecting the share of expenses attributable to the leased space, and estimate the income and expenses for the lease term.

(iv) Explain the board of managers' rights and obligations under the lease with regard to making ordinary or structural repairs, rebuilding after a casualty, retaining insurance or condemnation proceeds, limiting uses to those compatible with the residential character of the building, and barring offensive uses. State whether consent of the board of managers is required before the lessee can assign or sublet space, change the current uses, alter the structure, or perform work that may result in mechanics' liens.

(v) When the lessee or sublessee is the sponsor, the selling agent or the managing agent; or is a principal of the sponsor, the selling agent or the managing agent, or is related to the sponsor, the selling agent, the managing agent; or any principal of the sponsor, the selling agent or the managing agent, by blood, marriage or adoption or as a business associate, an employee, a shareholder or a limited partner; the following provisions shall apply:

(i) the date that the sponsor acquired or will acquire an ownership interest;

(ii) the purchase price of the ownership interest (and when the purchase price is payable if not yet paid), the amount of any purchase money mortgage(s) on the property and the amount of any mortgage(s) that the sponsor assumed or took subject to;

(iii) the approximate cost of capital expenditures undertaken or to be undertaken by sponsor;

(iv) the costs associated with acquisition and ownership of the property, including financing costs; and

(v) the aggregate amount for costs incurred in connection with the conversion such as sales commissions, attorneys' and engineers' fees, printing, advertising, government filing fees and transfer taxes.

(i) Disclose that the building(s) undergoing conversion cannot be expanded or may be limited.

(ii) Disclose the maximum amount of space or the maximum number of stories that may be added to adjoining properties from the sale of air rights from this property. State that additional space or stories may be added from the transfer of air rights from other properties.

(i) a comprehensive narrative description of the additional space to be built in compliance with section 20.7 of this Title and section 23.7(aa) of this Part;

(ii) approved building plans and specifications must be obtained prior to acceptance for filing;

(iii) schedule A, prices of units, must include all information required by section 20.3(h) of this Title and subdivision (g) of this section for the new, as well as for the existing, units if the new units will be part of the condominium; and

(iv) schedule B, budget for first year of condominium operation, must reflect expenses associated with the operation of the space to be newly constructed, including footnotes and supporting documentation required by section 20.3(i) of this Title. If construction will not be completed before the end of the first year of operation of the condominium, the budget may reflect the condominium as it was originally for the first year of operation but sponsor must also prepare a budget showing income and expense when construction is completed. In no event will the foregoing relieve the sponsor from its obligation of paying common charges in compliance with law.

(i) the hours when construction will occur;

(ii) security to be furnished during the construction period;

(iii) handling of construction debris;

(iv) insurance and liability during the construction period; and

(v) access to the building.