Leni Cummins is quoted in a Law360 article regarding changes to blue-sky law in New York’s 2026 budget that allow some mixed-income rental buildings to be converted to condominiums. Landlords can now more easily convert certain rental buildings to condominiums, which command relatively high sale prices, as long as they permanently keep the income-limited units rent-stable. However, between the limited number of buildings that qualify and the regulatory process for those that do, it’s not as lucrative as it seems. “Developers are getting thrown a bone, albeit not as juicy as they’d like,” said Leni, who noted the allocation of expenses between the affordable component and the market-rate condominiums. The limitation of affordable rental units’ exposure to the building’s common charges would need to be disclosed, as well as how to “cover any shortfall in the revenue from rent to cover the costs of operation of the income-restricted rental units.”

Leni explained that the units not earmarked as affordable have had to make up the difference. “When purchasers are looking to buy condos, they need to be really sure they understand Schedule A and B that set forth the expenses and budget, because there may be a situation where they are subsidizing common expenses for affordable units," Leni continued. "That should be baked into the prices."

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