The March 22nd edition of the TA’s “Focus on Conversion” column in Town & Village answered two questions about pricing that are on many tenants minds:
Question: Will height, view and location affect the price of my apartment?
Answer: The purchase price for each apartment will be based on a variety of factors, including the cost of acquiring the property, the resolution of the Roberts litigation, an evaluation of the overall property and each individual unit, and the unit’s particular permanent characteristics.
The permanent “or comparable” characteristics of the unit include the square footage and layout. Other permanent characteristics such as the floor height, the views, the access of green space, the location of the unit, etc., will result in small variations in price. (One TA member, an original tenant, recalls paying an additional $10 per month for the river view of her Peter Cooper apartment in 1947, so even in those halcyon days of double digit rents, location was a factor.)
Question: Will my tenure as a tenant in ST PCV affect the purchase price for my apartment?
Answer: Many tenants have inquired whether a long tenure will result in a lower price per square foot. It is not possible for prices to be discounted based on the tenure of the tenant because New York State law requires all tenant-purchasers living in the property during a conversion to be treated equally.
Pricing must be determined by the “permanent” characteristics of the units and not based on the rent the tenants currently pay, understanding that rent is a factor of tenure. Thus, the Attorney General of New York — who must approve any conversion from rental units to ownership — will not approve any plan that includes financial “discounts” based on tenure.