Your rental building's going condo. Now what?

BY LEIGH KAMPING-CARDER on April 25, 2014

We don’t envy the tenants of 22 River Terrace, a 342-unit apartment tower in Battery Park City. The new owner plans to take it condo, and is relying on an unusual clause in the tenants’ leases to kick them out with a mere 90 days notice. 

Fortunately for the rest of us, such clauses are extraordinarily rare. Most of the time, when a building goes condo, renters are given the option to remain as tenants or purchase their apartment at an insider price, which is typically at least 5 to 10 percent lower than what they'd pay on the open market, says real estate attorney and buyout expert Steven Wagner of Wagner Berkow. 

Here's how the process usually plays out--and how not to get played if it happens to you.

Size up the plans

Before a developer can convert a building and start selling condos, they must get their "offering plan"—which describes the development plans in mind-numbing detail—approved by the New York Attorney General’s office. 

As a tenant, the first you'll see of this is the "red herring," a preliminary plan that earned its name because the words on the cover are bright red. (Yes, that’s what passes for a joke in bureaucratic circles.)

The attorney general's office has to wait four months before reviewing the red herring, which gives tenants time to  evaluate the specifics of the plan and negotiate a better deal. While it's legal for a developer to craft a plan that involves evicting the tenants, those kinds of projects are virtually non-existent these days, Wagner says. 

After that, the attorney general and the developer spend up to two months ironing out any issues in the red herring. Once the agency accepts it for filing—which is different from the final approval for the development—the document is called a “black book.” (And yes, it does have black letters on the cover.) At that point, the developer can start selling the condos, including to existing tenants.

Lawyer up

Typically, tenants hire an attorney to do the negotiating with the developer. They’ll also hire an engineer or architect to inspect the building and uncover any issues that aren’t disclosed in the red herring.

Full article on Brick Underground

Crown Heights Tenants Plan March on Landlords in Bid to Prevent Rent Hikes

By Rachel Holliday Smith on June 5, 2014 5:03pm @rachelholliday

CROWN HEIGHTS — Residents are planning a march this weekend to demand a halt to soaring rent hikes — and put their landlords on notice that they expect better treatment.

Members of the Crown Heights Tenants Union will march this Saturday through the neighborhood “to show how Crown Heights is becoming unaffordable,” starting at Washington Avenue and Eastern Parkway at noon and ending at Brower Park, according to the group’s website.

The Crown Heights Tenants Union formed last fall to organize as many renters in the area as possible, said Cea Weaver, 24, a Crown Heights resident and organizer with CHTU. She said the group now has roughly 30 tenant associations on board with the union’s list of demands, which they will deliver to their landlords during the march.

Among the demands include urging landlords to be more responsive to tenants' requests for repairs. They also want landlords to automatically renew leases unless otherwise notified by tenants, as well as the right for tenants to obtain a rent history to inspect whether the rent amounts have been improperly increased at any time in the past, according to the document.

But the larger goal of the rally, Weaver said, is to make their demands heard beyond Crown Heights in the runup to June 23, the date set for the Rent Guidelines Board to vote on rent increases for rent-regulated apartments for the next five years.

“We are really hoping to building momentum for that citywide issue, [while] at the same time, letting the landlord know we’re here, we want to work with you, these are the things we want you to do to work with us,” Weaver said.

Members of the 85 Eastern Parkway Tenants Association in Prospect Heights will lend their support at the march to say “enough is enough,” said Isabelle Broyer, 47, a worker at the United Nations and a member of the association. After her landlord submitted plans to double the size of her apartment building without alerting tenants, she attended one of CHTU’s monthly membership meetings.

“They really have an agenda,” she said. “It’s not just for complaining about the situation. They’re really trying to do something about it.”

Full articles here (Dnainfo, June 5, 2014)