N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1727-5.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1727-5.2 - Termination by tenant

(a) Rental developments.

(1) Tenants intending to vacate prior to expiration of lease term should be required to give at least one month's advance notice of such intent in writing.

(2) Liability for rent under a lease usually extends until expiration date of lease or until apartment is relet.

(3) Possession of apartments abandoned by tenants may be recovered by the housing company through applicable legal proceedings.

(b) Cooperatives. The procedure to be employed for termination of a cooperator's tenancy is set forth below.

(1) Cooperator offers, in writing, the stock for sale to the corporation or its designee, pursuant to the provisions of the company bylaws and occupancy agreement.

(2) This offer, which shall remain open for 90 days, shall constitute the mutual company becoming an agent for the sale of the stock. A nominal fee may be charged by the mutual company, subject to division approval, for acting in the capacity of the agent for the stockholder.

(3) Acceptance of the offer by the mutual company shall be indicated in writing which will then closely inspect the apartment to determine damage beyond normal usage; any costs involved for restoration, or unpaid charges are deducted from the equity due the cooperator.

(4) The mutual company shall enter transfer of stock on its books and arrangements shall be made for surrender of apartment.

(5) Cooperator thereafter surrenders possession of apartment at agreed time.

(6) If no waiting list exists and if the mutual company cannot arrange for stock sale within 90 days, the mutual company must advise the cooperator that the shares may be sold on the open market, to any person acceptable to the mutual company, subject to income provisions for admission, and approval of the division.

(7) The cooperator shall continue to be responsible for all carrying charges and utility charges of said apartment for 90 days from the date the apartment was surrendered in accordance with this section or until the carrying charges and utility charges are assumed by a new cooperator, whichever is earliest. Such charges may be deducted from the sums paid by the cooperator for shares in the company.

(c) Resale of cooperator's apartment.

(1) All mutual companies are required to permit a retiring cooperator to sell shares at a price not to exceed the consideration he actually paid for such shares plus, where not already included in the consideration so paid by the retiring cooperator:

(i) any capital assessments and voluntary capital contributions, as approved by the division, and actually paid by the retiring cooperator to the corporation; and

(ii) a proportionate share of the actual aggregate amortization paid on all existing and prior mortgages on the housing project, in the reduction of the total outstanding principal indebtedness on the project, as determined by the board of directors of the corporation.

(2) The resale price shall not involve any funds of the mutual company, which will only act as an agent between the seller and the buyer. No payment shall be made to the retiring cooperator until the buyer's payment has been received and collected. Any obligation of the retiring cooperator to the mutual company should be resolved before payment is released.

(3) The eligible applicants on the waiting list shall be canvassed in accordance with the procedures outlined in Subpart 1727-1 of this Part or, if such a canvass proves unproductive, the shares may be offered to a purchaser acceptable to the company and the division.

(4) A mutual company may never pay a retiring cooperator an amount in excess of par value for shares it may purchase in its own name.

(5) A mutual company may assess a purchasing cooperator a reasonable administrative charge for the preparation and processing of purchase documents, to be established by the board of directors of the mutual company, subject to the written approval of the division.

N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1727-5.2