55-479 - Public offering statement; cooperatives subject to development rights.
§ 55-479. Public offering statement; cooperatives subject to developmentrights.
If the declaration provides that a cooperative is subject to any developmentrights, the public offering statement must disclose, in addition to theinformation required by § 55-478:
1. The maximum number of units and the maximum number of units per acre thatmay be created;
2. A statement of how many or what percentage of the units which may becreated will be restricted exclusively to residential use, or a statementthat no representations are made regarding use restrictions;
3. If any of the units that may be built within real estate subject todevelopment rights are not to be restricted exclusively to residential use, astatement, with respect to each portion of that real estate, of the maximumpercentage of the real estate areas and the maximum percentage of the floorareas of all units that may be created therein, that are not restrictedexclusively to residential use;
4. A brief narrative description of any development rights reserved by adeclarant and of any conditions relating to or limitations upon the exerciseof development rights;
5. A statement of the maximum extent to which each cooperative interest'sallocated interests may be changed by the exercise of any development rightdescribed in paragraph 4;
6. A statement of the extent to which any buildings or other improvementsthat may be erected pursuant to any development right in any part of thecooperative will be compatible with existing buildings and improvements inthe cooperative in terms of architectural style, quality of construction andsize, or a statement that no assurances are made in those regards;
7. General descriptions of all other improvements that may be made, andlimited common elements that may be created within any part of thecooperative pursuant to any development right reserved by the declarant, or astatement that no assurances are made in that regard;
8. A statement of any limitations as to the locations of any building orother improvement that may be made within any part of the cooperativepursuant to any development right reserved by the declarant, or a statementthat no assurances are made in that regard;
9. A statement that any limited common elements created pursuant to anydevelopment right reserved by the declarant will be of the same general typesand sizes as the limited common elements within other parts of thecooperative, or a statement of the types and sizes planned, or a statementthat no assurances are made in that regard;
10. A statement that the proportion of limited common elements to unitscreated pursuant to any development right reserved by the declarant will beapproximately equal to the proportion existing within other parts of thecooperative, or a statement of any other assurances in that regard, or astatement that no assurances are made in that regard;
11. A statement that all restrictions in the declaration affecting use andoccupancy of units and alienation of cooperative interests will apply to anyunits and cooperative interests created pursuant to any development rightreserved by the declarant, a statement of any differentiations that may bemade as to those units and cooperative interests, or a statement that noassurances are made in that regard;
12. A specified or maximum amount, if any, of acquisition, development orconstruction debt, inclusive of principal and any accrued interest, loan feesand other similar charges, assumed or to be assumed by the association foreach phase of the development and whether there will be a security interestencumbering the cooperative to secure repayment. If no such amount can bespecified, a statement that no amount may be assumed unless approved bypersons entitled to cast at least 80 percent of the votes in the association,including a simple majority of the votes allocated to cooperative interestsnot owned by a declarant, or any larger percentage the declaration specifies;and
13. A statement of the extent to which any assurances made pursuant to thissection apply or do not apply in the event that any development right is notexercised by the declarant.
(1982, c. 277; 2004, c. 242.)