New York Real Estate for Brokers, 5th e

1. New York Real Estate for Brokers, 5th e By Marcia Darvin Spada Cengage Learning Chapter 6.2 Development

2. Chapter 6 Construction and Development Part II: Development Chapter 6.2 Development

3. Chapter 6 Key Terms Amperage Area variance Article 9-A of the Real Property Law Blueprint Building code Building permit Building specifications Certificate of occupancy (CO) Circuit breakers Completion bond Condemnation Cumulative zoning Defect Due diligence Eaves Eminent domain Exclusive-use zoning Flashing Footing Joist Chapter 6.2 Development

4. Chapter 6 Key Terms (continued) Outlots Percolation Pitch Platform construction Police power Property condition disclosure (PCD) Rafters Regulatory taking Sheathing Sill plate Slab-on-grade foundation Special-use permit Spot zoning Steep slope Subdivision Subdivision regulations Use variance Watts Wetlands Zoning ordinance Chapter 6.2 Development

5. Zoning Ordinances Chapter 6.2 Development

6. The Subdivision Chapter 6.2 Development

7. Wetland Regulations Areas on or near a wetland may require a permit of letter of permission Wetlands mapped and regulated by NYS Dept. of Environmental Conservation Chapter 6.2 Development

8. Land Includes: • types of soil • location of wetlands, springs, floodplains • forest areas • rocks, trees, vegetation A major characteristic of land is itsimmobility Chapter 6.2 Development

9. Functions of Planning Boards Chapter 6.2 Development

10. State Environmental Quality Review Act • Due diligence reviews • Environmental Impact statements • The lead agency coordinates the action • Mandates environmental assessments Chapter 6.2 Development

11. Zoning Board of Appeals • Interprets the zoning ordinance • Grants use and area variance • May grant special use permits Chapter 6.2 Development

12. Zoning Actions Chapter 6.2 Development

13. A Purchase Money Mortgage Chapter 6.2 Development

14. Private Land Use Control Chapter 6.2 Development

15. Condos and Coops Condo-titletransferred by deed Coop-title transferred through shares of stock Chapter 6.2 Development

16. Cooperatives • A cooperative corporation usually owns the land, buildings, and property rights and all interests • The title to the property, as shown on the deed, is in the name of the corporation Chapter 6.2 Development

17. What are Shares of Stock? • The shareholders do not own real estate, but a proportionate number of shares of stock in a cooperative corporation • As lessees, the shareholders pay a monthly maintenance fee-the rent Chapter 6.2 Development

18. Cooperative Board Application and Interview Preparation • Real Estate Example: Why? Dr. Leslie is a single woman who is paying cash for a cooperative. She has sizable and safe investments and no debt. The cooperative board refuses her. No reason is given. Chapter 6.2 Development

19. Key Issues to Review in a Co-op Board’s Minutes • Many cooperative reserve funds receive income from the flip tax, a charge levied when units change hands Chapter 6.2 Development

20. CPS1 Phase: Cooperative Policy Statement • Sets out New York Attorney General’s rules • how a developer may test market for a new development before filing the offering plan and before construction is completed • The CPS1 period • lasts 120 days from acceptance of the CPS1 statement by the Attorney General • can be extended by request from the developer for an additional 60 days Chapter 6.2 Development

21. Primary Residency Versus Subletting Issues In the Cooperative • Primary resident • owner of the cooperative unit • Subletting • allows tenant shareholders more flexibility in ownership • board may limit the length of time a tenant shareholder can sublet a unit • If the sponsor owns the shares allocated to the apartment, he may be permitted under bylaws or rules to sublet or rent a unit even though a unit owner cannot Chapter 6.2 Development

22. Documents Needed for the Sale/Purchase of Cooperatives Chapter 6.2 Development

23. Offering Plan Chapter 6.2 Development

24. Offering Plan Amendment :New Development • New building and after 90-day tenant’s exclusive period in a converted building • sponsor can separately negotiate the price of a particular apartment • The developer can sell one apartment for $200,000 and then sell another identical apartment for $175,000 Chapter 6.2 Development

25. Offering Plan Amendment:Building Conversion • NYS law • When a developer files an offering plan with the Attorney General to convert an existing building to a condo or co-op, the tenants have a 90-day exclusive right to buy their apartment • During this period sponsor cannot negotiate separate prices Chapter 6.2 Development

26. Difference Between a Condop, Condominium, and Cooperative Apartment • Acondop is a building that includes condominium and cooperative ownership in the same structure • Real Estate Example: Why it is created? Building owner Sal owns a multi-unit apartment building that includes a store on the street level. Sal records the Declaration of Condominium, dividing the property into two condominium units: Condo A (the commercial unit) and Condo B (the residential unit). Sal continues to own fee title to the commercial condominium unit and collects rent from the store. As fee title owner to Condo B, Sal deeds the residential unit to Big City Co-op Corp. in exchange for the shares of Big City Co-op Corp. Various blocks of shares are allocated to the different apartments. Sal now sells the block of shares allocated to each unit (together with a proprietary lease) to individual purchases. Chapter 6.2 Development

27. Condominiums • A structure of two or more units • Interior space is individually owned • Common elements, are owned by owners of the individual units • To create, the owner/developer of the property signs a condominium declaration • Shareholder’s rights and obligations are in the condominium’s bylaws • Thesponsoris the owner or developer Chapter 6.2 Development

28. A Condo and Coop Closing Compared Chapter 6.2 Development

29. Closing Costs Chapter 6.2 Development