On August 5, 2020, Governor Andrew Cuomo issued Executive Order 202.55 in response to the COVID-19 pandemic. Of interest to sponsors of condominiums and cooperatives, the Executive Order tolls several important deadlines:

New Construction and Vacant Building Condominium and Cooperative Offering Plans:

Sponsors are currently required to close title to at least 1 unit within 12 months of the offering plan’s projected first year of operation, or must offer all purchasers the right to rescind their contracts. That 12-month period has been extended for a period equal to the number of days from April 16, 2020 to and including September 4, 2020, plus 120 days. This is particularly good news for projects that have experienced construction delays, whether due to COVID-19 or otherwise. Within 45 days after the Executive Order expires, or as otherwise determined by the NYS Attorney General (“AG”), the sponsor must submit an amendment to the offering plan which updates the first year of condominium operation and the projected date of the first unit closing.

Mortgage Recording Tax Credit:

In order for a condominium sponsor to qualify for mortgage recording tax credit, existing law provides:

(a) With respect to “blanket mortgages” used for the purchase of land or buildings for the
condominium, such purchase cannot have occurred more than two years prior to the recording
of the declaration of condominium; and

(b) The first unit closing must occur not more than 2 years after the recording date of either a
blanket mortgage or a construction loan.

Both of the aforementioned two-year periods have been extended for the period equal to the number of days from August 5, 2020 to and including September 4, 2020, plus 120 days.

Cooperative and Condominium Conversions in New York City and in certain parts of Rockland, Westchester and Nassau Counties:

• The existing 15 month period to declare an offering plan effective, which begins on the filing date of an offering plan with the AG, has been extended for a period equal to the number of days from April 16, 2020 to and including September 4, 2020, plus 120 days.

• The existing time periods in which eligible senior citizens and eligible disabled persons may elect to be deemed “non-purchasing” tenants have been extended for the period equal to the number of days from August 5, 2020 to and including September 4, 2020, plus 120 days.

• The existing 90-day period after an offering plan has been filed, often referred to as the exclusive purchase period, has been extended for the period equal to the number of days from August 5, 2020 to and including September 4, 2020, plus 120 days.

If you have any questions about the applicability of the Executive Order to your current or future condominium or cooperative projects, please contact:

Alvin Schein aschein@seidenschein.com

Adam A. Levenson alevenson@seidenschein.com

Jane Rosenberg jrosenberg@seidenschein.com