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New York Real Estate for Brokers, 5th e. By Marcia Darvin Spada Cengage Learning. Chapter 6. Construction and Development Part II: Development. Chapter 6 Key Terms. Amperage Area variance Article 9-A of the Real Property Law Blueprint Building code Building permit

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new york real estate for brokers 5th e

New York Real Estate for Brokers, 5th e

By Marcia Darvin Spada

Cengage Learning

Chapter 6.2 Development

chapter 6

Chapter 6

Construction and Development

Part II: Development

Chapter 6.2 Development

chapter 6 key terms
Chapter 6 Key Terms


Area variance

Article 9-A of the Real Property Law


Building code

Building permit

Building specifications

Certificate of occupancy (CO)

Circuit breakers

Completion bond


Cumulative zoning


Due diligence


Eminent domain

Exclusive-use zoning




Chapter 6.2 Development

chapter 6 key terms continued
Chapter 6 Key Terms (continued)




Platform construction

Police power

Property condition disclosure (PCD)


Regulatory taking


Sill plate

Slab-on-grade foundation

Special-use permit

Spot zoning

Steep slope


Subdivision regulations

Use variance



Zoning ordinance

Chapter 6.2 Development

zoning ordinances
Zoning Ordinances

Chapter 6.2 Development

the subdivision
The Subdivision

Chapter 6.2 Development

wetland regulations
Wetland Regulations

Areas on or near a wetland may require a permit of letter of


Wetlands mapped and regulated by NYS Dept. of Environmental Conservation

Chapter 6.2 Development



  • types of soil
  • location of wetlands, springs, floodplains
  • forest areas
  • rocks, trees, vegetation

A major characteristic of land is itsimmobility

Chapter 6.2 Development

functions of planning boards
Functions of Planning Boards

Chapter 6.2 Development

state environmental quality review act
State Environmental Quality Review Act
  • Due diligence reviews
  • Environmental Impact statements
  • The lead agency coordinates the action
  • Mandates environmental assessments

Chapter 6.2 Development

zoning board of appeals
Zoning Board of Appeals
  • Interprets the zoning ordinance
  • Grants use and area variance
  • May grant special use permits

Chapter 6.2 Development

zoning actions
Zoning Actions

Chapter 6.2 Development

a purchase money mortgage
A Purchase Money Mortgage

Chapter 6.2 Development

private land use control
Private Land Use Control

Chapter 6.2 Development

condos and coops
Condos and Coops

Condo-titletransferred by deed

Coop-title transferred through shares

of stock

Chapter 6.2 Development

  • 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

what are shares of stock
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

cooperative board application and interview preparation
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

key issues to review in a co op board s minutes
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

cps1 phase cooperative policy statement
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

primary residency versus subletting issues in the cooperative
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

offering plan
Offering Plan

Chapter 6.2 Development

offering plan amendment new development
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

offering plan amendment building conversion
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

difference between a condop condominium and cooperative apartment
Difference Between a Condop, Condominium, and Cooperative Apartment
  • Acondop is

a building that


condominium and



in the same


  • 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

  • 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

a condo and coop closing compared
A Condo and Coop Closing Compared

Chapter 6.2 Development

closing costs
Closing Costs

Chapter 6.2 Development