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New York State
REAL PROPERTY LAW (RPL)
Laws 1909, Chap. 52


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 grantor 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, insurers, banking
                              organizations and fiduciaries;
                              limitation to first mortgages.
                    339-gg.   Severability.
                    339-hh.   Reservation of power.
                    339-ii.   Construction.

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Sec. 339-d.    Short title.

This article shall be known and may be cited as the "condominium
act."


Sec. 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.

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-l.    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.


Sec. 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, 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.   The name of a person to receive service of process in the
     cases hereinafter provided, together with the residence or
     place of business of such person, which shall be within the
     city, town or village and the county in which the building
     is located.

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.


Sec. 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.


Sec. 339-s.    Recording.

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 authorized 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.


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.


Sec. 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 property 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 property 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.

2.   With respect only to qualified leasehold condominiums:

     (a)  Each unit, its common interest, not including any
          personal property, 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 taxation any parcel or part thereof which,
          pursuant to applicable law, is either exempt from
          taxation or with respect to which no taxes are payable.

     (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, however, 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 qualified
          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 qualified leasehold condominium is submitted to
          the provisions of this article, 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 qualified 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 enforceable 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 article 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.


Sec. 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,
and (ii) all sums unpaid on a first mortgage of record or on a
subordinate mortgage of record held by the New York job
development authority or held by the New York state urban
development corporation. 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.


Sec. 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 annually 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.


Sec. 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.


Sec. 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 insurance 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 indebtedness 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, notwithstanding 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, subdivision six-a of section
     two hundred thirty-five, subdivision four-a of section three
     hundred eighty and subdivision ten of section four hundred
     fifty-four 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 mortgages 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.


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.


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