(a) Definitions. For the purposes of this section, the following definitions apply unless context clearly indicates otherwise.
(1) Fair market value means:
(i) A bona fide offer by a prospective incoming tenant to purchase improvements made or purchased by an outgoing Tenant qualified for protection under Art. 7-C is presumed to represent the fair market value of the improvements.
(iii) If no such offer is made or available, the value shall be established by agreement of the parties or pursuant to an Application to the Loft Board, which shall determine the value in accordance with the criteria and procedures set forth in this rule.
(2) Improvements means the fixtures, alterations and development of an IMD unit which were made or purchased by a residential Tenant who is qualified for protection under Art. 7-C.
(i) Fixtures are appendages permanently fixed or attached to real property, including, but not limited to, the following: kitchen installations, such as stoves, sinks, counters, and built-in cabinets; bathroom installations, such as sinks, toilets, bathtubs, and showers; other installations, such as partitions, ceilings, windows, and floors, including tiling; built-in shelves; plumbing and utility risers; electrical work; heating units; and hot water heaters.
(ii) Alterations and development include, but are not limited to the following: demolition work, such as debris removal; repair, other than normal recurring maintenance; renovation of ceiling, walls, windows, and floors; design, including professional fees paid to architects and designers in connection with the improvements; labor; equipment rental; and such removable personal property as is reasonable to establish residential use, such as a refrigerator and dishwasher.
Improvements do not include other removable household furnishings, such as rugs, tables, and chairs. A sale of improvements does not constitute a sale of rights pursuant to MDL § 286(12).
(3) Unit, as referred to in this section, means:
(i) A Residential Unit in an IMD Building, as defined by MDL § 281 and these rules, which is registered with the Loft Board or granted coverage by the Loft Board or a court of competent jurisdiction; or
(ii) For the purposes of sales of improvements governed by this section only, a unit formerly registered as an IMD unit, but which has subsequently been legalized and removed from the Loft Board's jurisdiction.
(b) Applicability. This section applies to sales which occur on or after March 23, 1985, except that the definition of the term "fair market value," provided in subdivision (a) of this section, applies only to sales of improvements where a Disclosure Form has been filed with the Loft Board on or after February 16, 1996.
(1) Right to sell. The residential Occupant of an IMD unit which is qualified for protection under Art. 7-C may sell the improvements of the unit to the Owner, Landlord or Responsible Party or to a prospective incoming tenant, either before or after such unit has been legalized and registered with DHCR, subject to the procedures established in these rules. This right to sell may be exercised only once for each IMD unit. The improvements must be offered to the Owner or Responsible Party for an amount equal to their fair market value, as defined in 29 RCNY § 2-07(a) above, before their sale to a prospective incoming tenant.
(2) Sales not subject, or partially subject, to these rules.
(i) Registration or a finding of coverage. This section does not apply to units which have never been registered with the Loft Board, unless the unit was granted coverage pursuant to a Loft Board order or court of competent jurisdiction. Any sale of improvements which occurred before registration of the unit with the Loft Board or before a finding of coverage by the Loft Board or a court of competent jurisdiction does not constitute a sale pursuant to MDL § 286(6), and is not covered by this section. This section does not apply to units which the Loft Board or the Executive Director have found are not covered by Art. 7-C pursuant to 29 RCNY §§ 2-05 and 2-08, or which a court of competent jurisdiction has found do not qualify for Art. 7-C coverage.
(ii) Sales between co-tenants. This section does not apply to sales of improvements between co-tenants of an IMD unit, where at least one (1) of the co-tenants will remain in occupancy after the sale and is a residential Occupant qualified for the protection of Art. 7-C.
(iii) Compensation to Prime Lessee or Sublessor. Compensation to a Prime Lessee or Sublessor by a residential Occupant does not constitute a sale of improvements pursuant to MDL § 286(6), and is governed by 29 RCNY § 2-09(c) in matters regarding the Prime Lessee's or Sublessor's right to compensation for costs incurred in developing a Residential Unit. After compensation has been made by the residential Occupant to the Prime Lessee or Sublessor, the residential Occupant has the right to sell the improvements in the unit pursuant to MDL § 286(6) and this section.
(c) Procedure for sales of improvements to prospective incoming tenant.
(1) An outgoing Tenant in an IMD unit proposing to sell improvements to a prospective incoming tenant must send the Loft Board approved Disclosure Form to the Owner or Responsible Party and prospective incoming tenant in accordance with the following procedures at least thirty (30) days in advance of the date of closing of the proposed sale.
(i) The outgoing Tenant must notify the Owner or Responsible Party of his or her intent to move and to sell the improvements, and the identity of the prospective incoming tenant, providing the following information to the Owner or Responsible Party:
(A) A list and description of the improvements included in the proposed sale which were made or purchased by the outgoing Tenant with accompanying proof of payment;
(B) A written copy of the offer, verified by the prospective incoming tenant, to purchase the improvements, which includes all terms and conditions of the offer;
(C) Identification of the prospective incoming tenant by name, current business and home addresses and any other address and telephone numbers elected for purposes of delivery of notices and communications;
(D) An affidavit by the outgoing Tenant that he or she made or purchased the improvements offered for sale; or an affidavit that he or she is authorized to sell the improvements on behalf of any other parties having ownership interest in such improvements, accompanied by appropriate evidence of such authorization;
(E) An affidavit by the prospective incoming tenant that he or she has received and reviewed the Disclosure Form; and
(F) Three (3) reasonable dates and times within ten (10) days after service of the Disclosure Form upon the Owner or Responsible Party, when the Owner or Responsible Party could inspect the improvements.
(ii) The Disclosure Form must also include the following advisories to the prospective incoming tenant:
(A) The improvements included in the sale are limited to those items listed and described by the outgoing Tenant;
(B) The prospective incoming tenant is purchasing absolute title to the use and enjoyment for the duration of the prospective tenancy of all other property deemed improvements pursuant to these rules. The Owner or Responsible Party is responsible for maintenance of improvements deemed fixtures pursuant to these rules; however, the Owner or Responsible Party has the right to alter or remove the improvements pursuant to code compliance requirements, subject to the terms of this section;
(C) The right to sell improvements may be exercised only once for the unit and an incoming tenant cannot re-sell such improvements to the Owner or Responsible Party or a prospective incoming tenant pursuant to MDL § 286(6);
(D) Upon completion of the sale of improvements by the prospective incoming tenant pursuant to MDL § 286(6), the prospective incoming tenant assumes the rights and obligations of the outgoing Tenant as an Occupant qualified for protection under Art. 7-C;
(E) The amount of the rent and a statement as to the types of further increases which may be applicable to the IMD unit pursuant to the terms of the Loft Board's rules or Rent Guidelines Board's orders;
(F) If the Building has not been issued a final residential certificate of occupancy for the IMD unit at the time of the offer to purchase, the unit remains subject to the requirements of Art. 7-C and the Loft Board's rules requiring that such units be brought into compliance;
(G) MDL § 286(5) provides that the costs of legalization as determined by the Loft Board are passed through to the Tenants and may result in rent adjustments owed by the Tenant above the base rent, amortized over a ten (10) or fifteen (15) year period;
(H) The offer is subject to the Owner's or Responsible Party's right:
(a) To purchase the improvements for an amount equal to their fair market value;
(b) To challenge the offer as provided in 29 RCNY § 2-07(g) below; and
(c) To withhold consent to the prospective tenant, provided that consent may not be unreasonably withheld;
(I) If an Owner or Responsible Party purchases the improvements, the Owner or Responsible Party will not be entitled to the opportunity for decontrol of rent regulation or market rentals, as provided in 29 RCNY § 2-07(d)(4)(ii) below, if the Owner or Responsible Party is found to have harassed Tenants, pursuant to 29 RCNY § 2-02, unless the Harassment finding has been terminated pursuant to 29 RCNY § 2-02.
(2) The completed Disclosure Form with original signatures must be filed with the Loft Board, together with proof of service. Following receipt, the Loft Board staff will determine whether a sale for the Residential Unit in question has been previously filed with the Loft Board's office. If a sale was previously filed, the parties will be notified of the prior sale and the proposed sale will not be given any effect under MDL § 286(6).
(d) Owner's or Responsible Party's response to offer and prospective incoming tenant.
(1) Procedures for Owner's or Responsible Party's response.
(i) Within ten (10) days of service of the Disclosure Form, the Owner or Responsible Party may request any reasonable additional information from the outgoing and prospective incoming tenants that will enable the Owner or Responsible Party to decide whether to purchase the improvements, and to determine the suitability of the prospective incoming tenant.
(A) No request by the Owner or Responsible Party for additional information from the outgoing Tenant may be unduly burdensome, and requests for additional information must be relevant to the criteria set forth in 29 RCNY § 2-07(g) below.
(B) If the Loft Board finds that the Owner's or Responsible Party's request for additional information is unduly burdensome, it may reject the Owner's or Responsible Party's request on Application by the outgoing Tenant.
(ii) In the Owner's or Responsible Party's response to the Disclosure Form, the Owner or Responsible Party must affirm that the subject unit is currently registered with the Loft Board or DHCR, or any successor agency and was registered at the time of service of the Disclosure Form and that he or she either owns the premises or is authorized to act on behalf of the Owner or Responsible Party in this matter.
(iii) Within twenty (20) days after service of the Disclosure Form, or delivery of the additional information reasonably requested by the Owner or Responsible Party, whichever is later, the Owner or Responsible Party must notify the outgoing and prospective incoming tenants of the Owner's or Responsible Party's:
(B) Consent to the prospective incoming tenant and consent to the sale of improvements to the prospective incoming tenant; or
(C) Acceptance and commitment to purchase the improvements at the offered price.
(iv) If the Owner's or Responsible Party's challenge is based on the unsuitability of the prospective tenant, the Owner or Responsible Party may only initiate an action based on that ground in a court of competent jurisdiction. If an action is brought pursuant to this subparagraph, the Owner or Responsible Party must inform the Loft Board in writing within twenty (20) days after service of the Disclosure Form or delivery of the additional information requested, if any.
(2) Owner's or Responsible Party's rejection of the offer.
(i) If the Owner, Landlord or Responsible Party rejects the outgoing Tenant's offer to purchase the improvements, the Owner, Landlord or Responsible Party must elaborate on the grounds for the rejection by filing a challenge Application in accordance with the procedures provided in subdivision (g), except as provided in 29 RCNY § 2-07(d)(1)(iv). If the rejection is based on the claim that the offer exceeds the fair market value of the improvements, the rejection must include the Owner's or Responsible Party's fair market valuation of the improvements and the Owner's or Responsible Party's commitment to purchase if the fair market value is determined to be no greater than such valuation. If the rejection is based on the claim that the Owner or Responsible Party made or purchased the improvements, the rejection must indicate which improvements the Owner or Responsible Party alleges to have made or purchased and include proof.
(ii) Failure of the Owner or Responsible Party to file with the Loft Board a complete Application, including payment of a fee of $800.00 to cover the full cost of an appraiser selected by the Board, with copies to the outgoing Tenant and prospective tenants, within the time provided in 29 RCNY § 2-07(d)(1)(iii) above, shall be deemed an acceptance of the proposed sale. However, if the Owner's or Responsible Party's challenge is on the ground of the unsuitability of the prospective tenant, the Owner or Responsible Party may only initiate an action based on that ground in a court of competent jurisdiction and must inform the Loft Board in writing within the time period in 29 RCNY § 2-07(d)(1)(iv).
(3) Owner's or Responsible Party's acceptance of sale and prospective tenant.
(i) The Owner or Responsible Party may send a notice of approval of the proposed sale to the prospective incoming tenant, and acceptance of the prospective incoming tenant.
(ii) An Owner's or Responsible Party's failure to: 1) send a complete notice of approval, as described in (i) above or 2) file a challenge Application with the Loft Board within the time period provided in 29 RCNY § 2-07(d)(1)(iii) above, or by another deadline agreed upon in writing by the Owner or Responsible Party and outgoing Tenant, is deemed an acceptance of the proposed sale from the outgoing Tenant to the incoming tenant and acceptance of the prospective incoming tenant, except as provided in 29 RCNY § 2-07(d)(1)(iv).
(iii) In the case of (i) or (ii) above, the proposed incoming tenant assumes the rights and obligations of the outgoing Tenant as an Occupant qualified for protection under Art. 7-C, upon the execution of the sale provisions and compliance with the other provisions of these rules. The prospective incoming tenant is permitted to commence residency, despite the lack of a residential certificate of occupancy covering the unit. He or she must pay the rent previously charged to the outgoing Tenant, including any applicable pass-throughs or increases permissible under Art. 7-C or the Loft Board's rules and orders, including but not limited to:
(B) Any increases pursuant to the Rent Guidelines Board's orders, if applicable.
(4) Owner's or Responsible Party's purchase of improvements.
(i) If the Owner or Responsible Party elects to purchase the improvements in an IMD unit in accordance with the terms of the prospective incoming tenant's offer, the Owner or Responsible Party must notify the outgoing Tenant and the prospective incoming tenant of the Owner's or Responsible Party's acceptance in accordance with 29 RCNY § 2-07(d)(1)(iii), and must meet the terms of the offer within thirty (30) days of service of Owner's or Responsible Party's acceptance upon the outgoing Tenant. If the Owner or Responsible Party fails to meet the terms of the offer within the thirty (30) day period, the Owner or Responsible Party is deemed to have waived the right to purchase the improvements at an amount equal to their fair market value.
(ii) Upon completion of the purchase of improvements by the Owner or Responsible Party, an IMD unit subject to rent regulation solely by reason of Art. 7-C of the MDL, and not receiving any benefits of real estate tax exemption or tax abatement, will be exempted from the provisions of Art. 7-C requiring rent regulation,
(A) if such Building had fewer than six (6) Residential Units: (a) on June 21, 1982 for a unit covered under MDL § 281(1); (b) on July 27, 1987 for a unit solely covered under MDL § 281(4); or (c) on June 21, 2010 for a unit covered by MDL § 281(5); or (d) on June 25, 2019 for a unit covered by MDL 281(6) that became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019; or
(B) if the unit was purchased by the Owner or Responsible Party pursuant to these rules before July 27, 1987 and the Building had fewer than six (6) Residential Units on June 21, 1982, but six (6) or more Residential Units on July 27, 1987.
(iii) Upon completion of the purchase by the Owner or Responsible Party, any unit subject to rent regulation solely by reason of Art. 7-C of the MDL, and not receiving any benefits of real estate tax exemption or tax abatement, will be subject to subsequent rent regulation after being rented at market value, if such Building had six (6) or more Residential Units on: (a) June 21, 1982 for a unit covered under MDL § 281(1); (b) July 27, 1987 for a unit solely covered under MDL § 281(4); (c) June 21, 2010 for a unit covered by MDL § 281(5); or (d) June 25, 2019 for a unit covered by MDL § 281(6) that became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019.
(iv) The exemption from rent regulation is not available in a Building when any sale of improvements takes place on or after the date of a finding of Harassment, and before the Harassment order is terminated by the Loft Board in accordance with 29 RCNY § 2-02(d)(2).
(e) Reserved.
(f) Notice between parties: form and time requirements.
(1) All notices, requests, responses and stipulations served by Owners or Responsible Parties and Tenants pursuant to this section must be in writing, with a copy delivered or mailed to the Loft Board, accompanied by proof of service. Service by the parties will be either (1) by personal delivery or (2) by certified or registered mail, return receipt requested, with an additional copy sent by regular mail.
(2) Unless otherwise agreed in writing by the parties, with notice to the Loft Board, these communications must be sent to the outgoing Tenant and to the prospective incoming tenant at the respective addresses specified on the Disclosure Form; and to the Owner or Responsible Party at the address indicated on the latest IMD registration form filed with the Loft Board immediately before the filing of the Disclosure Form.
(3) If service was made personally, a verified statement of the person who effected service, setting forth the time, place and other details of service will constitute proof of service. If service was performed by mail, copies of the United States Post Office stamped return receipt and verified statement of mailing will constitute proof of service.
(4) The deadlines provided in this section are triggered by the effective date of service. Service is deemed effective upon personal delivery or five (5) days following service by mail.
(5) Communications by the Loft Board pursuant to this section will be sent by regular mail to the addresses indicated in paragraph (2) above.
(g) Applications challenging proposed sale of improvements.
(1) Procedures.
(i) An Owner or Responsible Party of an IMD unit seeking to contest the proposed sale of improvements must apply to the Loft Board for a determination within twenty (20) days of service upon the Owner or Responsible Party of the Disclosure Form, or within such additional period as provided pursuant to 29 RCNY § 2-07(d) above, and must pay the mandated filing fee of $800. Before the Owner or Responsible Party files a challenge Application under this subdivision, the Owner's or Responsible Party's registration with the Loft Board, including payment of applicable registration fees, must be current, or before filing a challenge Application with respect to improvements in a unit that was formerly subject to Art. 7-C, the Owner's or Responsible Party's registration with DHCR or any successor agency must be current. The Owner or Responsible Party must also state that he or she is the Owner or Responsible Party of the premises or is authorized to act on behalf of the Owner in this matter.
(ii) Filing of an Application challenging the sale of improvements to a prospective incoming tenant which is found by the Loft Board to be frivolous may constitute Harassment, pursuant to 29 RCNY § 2-02, with the consequences provided in 29 RCNY § 2-07(d)(4). An objection to the sale may be found to be frivolous on grounds including, but not limited to, the following: that it was filed without a good faith intention to purchase the improvements at fair market value or that the Owner's or Responsible Party's valuation of the improvements has no reasonable relationship to the fair market value, as determined by the Loft Board.
(iii) The Owner or Responsible Party must serve the outgoing Tenant and prospective incoming tenants with a copy of the Owner's or Responsible Party's challenge Application, and file within five (5) days of service 2 copies of the Application at the Loft Board and proof of service as described in 29 RCNY § 1-21.
(iv) The outgoing and prospective incoming tenants will have seven (7) days from when service of the Application is deemed complete to file with the Loft Board an answer to the challenge Application. Two copies of the answer must be filed with the Loft Board. One copy of the answer must be served on the Owner or Responsible Party and the other Affected Parties, if any, before filing the answer with the Loft Board. Proof of service must be filed with the Loft Board in accordance with 29 RCNY § 1-21(c).
(v) The outgoing Tenant's answer must include three (3) available dates and times during regular Business Hours within ten (10) days of the date of filing of the answer with the Loft Board during which the improvements will be available to be inspected by a Loft Board-appointed appraiser in accordance with subparagraph (vi).
(vi) The appraiser shall be appointed by the Loft Board, must be suitably qualified in valuing improvements and must be a Registered Architect, a Professional Engineer or a New York State Certified General Real Estate Appraiser.
(vii) The Board shall also notify the Owner or Responsible Party, outgoing Tenant and prospective incoming tenant of an inspection date at one of the times designated by the outgoing Tenant, or at another time fixed by the Board if none of the proposed dates is mutually convenient. Following the inspection, a copy of the appraiser's findings will be mailed to the three parties. A conference or hearing date must be scheduled no fewer than eight (8) days nor more than fifteen (15) days from the mailing of the notice of conference or hearing or, if applicable, the filing of the appraiser's report. There may be no more than one (1) adjournment per party, limited to seven (7) days, for good cause shown. Except as provided in these rules, the requirements of the Loft Board's rules regarding Applications apply.
(viii) If a challenge Application results in an order by the Loft Board determining that the offer constitutes fair market value, the Owner or Responsible Party may exercise the right to purchase improvements at that price. If the Loft Board determines that the offer does not constitute fair market value, in accordance with 29 RCNY § 2-07(g)(2), the Owner or Responsible Party may exercise the right to purchase the improvements at the price determined to constitute fair market value. The Owner or Responsible Party must notify the outgoing Tenant within ten (10) days of service of the Loft Board's order determining fair market value of the Owner's or Responsible Party's intent to purchase at such price less half the cost of the appraisal and must consummate the purchase within ten (10) days of the Owner's or Responsible Party's notice to the outgoing Tenant, except that where the fair market value determination is less than the price offered by the outgoing Tenant, the outgoing Tenant may decline to sell the improvements. The Loft Board's order determining fair market value constitutes the price at which the outgoing Tenant must first offer to sell the previously offered improvements to the Owner or Responsible Party for a period of two (2) years from the date of the Loft Board order.
(ix) If the Owner or Responsible Party elects not to purchase the improvements at the Loft Board-determined fair market value, the outgoing Tenant may sell to the prospective incoming tenant, without challenge by the Owner or Responsible Party to the fair market value of the offer. The Owner's or Responsible Party's failure to consummate a purchase, following notice of intent to purchase, within the period prescribed above, is deemed an election not to purchase.
(2) Grounds for challenge. An Owner or Responsible Party may challenge a proposed sale of improvements on the following grounds:
(i) The offer is not a bona fide, arms-length offer which discloses to the Owner or Responsible Party all its terms and conditions.
(ii) Some or all of the improvements offered for sale were made or purchased by the Owner or Responsible Party, not the outgoing Tenant. Proof of ownership or payment is required.
(iii) The offer exceeds fair market value as determined in accordance with the following standards:
(A) A bona fide offer to purchase improvements made or purchased by the outgoing Tenant is presumed to represent fair market value.
(B) The presumption may be rebutted if the Owner or Responsible Party establishes that:
(a) For such improvements as were purchased by the outgoing Tenant, the offer exceeds the amount paid for the improvements minus depreciation for wear and tear and age; or
(b) For such improvements as were made by the outgoing Tenant, the offer exceeds the replacement cost of the improvements minus depreciation for wear and tear and age.
(C) If any of the improvements offered for sale are out of compliance with the New York City Building Code or other applicable laws or regulations, the noncompliance may not be considered when calculating the amount paid for or the replacement costs of the improvements, for improvements made or purchased before (a) March 23, 1985, or (b) September 11, 2013, for a unit covered under Art. 7-C pursuant to MDL § 281(5), or March 31, 2023 for a unit covered under Art. 7-C pursuant to MDL § 281(6).
(iv) On any other basis authorized under Art. 7-C.
(v) If a basis of a challenge is the unsuitability of the prospective incoming tenant, the Owner or Responsible Party may only initiate an action based on that ground in a court of competent jurisdiction; such challenge will not be entertained by the Loft Board.
(3) Affected Parties. Affected Parties, in an Application challenging an offer to purchase improvements, are limited to the Owner or Responsible Party and the outgoing Tenant, except that a prospective incoming tenant is an Affected Party in cases involving an Owner's or Responsible Party's challenge to the prospective incoming tenant's offer to purchase improvements.
(h) Deadline Extensions on consent and change of address. Deadlines set in this rule may be modified, Applications may be withdrawn, and disputes may be resolved, by written agreement of the parties, subject to Loft Board written approval. Parties may change their address upon service of written notice to the Loft Board and the other Affected Parties, as defined in 29 RCNY § 2-07(g)(3) above. Notice is effective upon personal delivery or five (5) days following service by mail.
(i) Tenant's right to fair market value of improvements in cases of hardship exemptions, vacate orders and Owner occupancy.
(1) In the event that:
(i) The failure of an Owner or Responsible Party to comply with the legalization deadlines mandated by MDL § 284(1) results in a municipal vacate order pursuant to MDL § 284(1)(xi);
(ii) The Loft Board grants a hardship exemption pursuant to MDL § 285(2); or
(iii) The Owner or Responsible Party successfully obtains the right to occupy former IMD units under the provisions of the Rent Stabilization Law and the Rent Stabilization Code §§ 2524.4(a) and 2525.6, an Occupant qualified for Art. 7-C protections may apply to the Loft Board for a determination of fair market value of improvements and reasonable moving expenses.
(2) As further provided in MDL § 284(1)(xi), any vacate order pursuant to 29 RCNY § 2-07(i)(1)(i) above, is to be deemed an order to correct the non-compliant conditions, subject to the provisions of Art. 7-C, and the Occupant has the right to reoccupy the unit when the condition has been corrected and is entitled to all applicable protections of Art. 7-C.
(3) The Loft Board shall determine the fair market value in accordance with this section except that the Tenant shall be the applicant, Affected Parties shall be limited to the Owner or Responsible Party and Tenant, and the Tenant shall offer proof of reasonable moving expenses as well as both parties offering proof as to the value of the improvements.
(4) Upon a finding by the Loft Board of the fair market value of the improvements and of reasonable moving expenses, the Owner or Responsible Party will be required to pay such amounts to the Tenant plus an amount equal to the Application filing fee.
(j) Effect of sale: filling the sale record with the Loft Board.
(1) Except as provided in paragraph (2) below, within thirty (30) days of the sale of improvements to the Owner or Responsible Party, pursuant to MDL § 286(6), the Owner or Responsible Party must file a Loft Board-approved Sale Record, which provides the following information: address of IMD and location of unit; name and telephone number of incoming tenant; description of improvements conveyed; purchase price; and rent. Failure by the Owner or Responsible Party to file the required Sale Record within thirty (30) days of the sale of improvements may subject the Owner or Responsible Party to a civil penalty, as determined by the Loft Board in accordance with 29 RCNY § 2-11.1.
(2) If a prospective incoming tenant purchases the improvements in the IMD unit, no further filing is required. Unless the Loft Board is otherwise informed, receipt by the Loft Board of a Disclosure Form is presumed to be notice that a sale to the prospective incoming tenant identified has taken place within sixty (60) days following receipt of such Disclosure Form, or sixty (60) days following the last deadline modification approved by the Loft Board.
If no sale has occurred, the outgoing Tenant must inform the Loft Board within sixty (60) days following the filing of the Disclosure Form, or sixty (60) days from the last deadline. If the outgoing Tenant fails to advise the Loft Board within the prescribed sixty (60) days that no sale has taken place, such Tenant may refute the presumption by: 1) filing a letter withdrawing the previously filed Disclosure Form, or 2) filing another Disclosure Form, with a new proposed sale along with an affidavit by the outgoing Tenant stating that the prior proposed sale did not occur, that the Tenant has remained in occupancy of the unit and that no sale of improvements in the unit has occurred.
(Amended City Record 3/1/2023, eff. 3/31/2023)