sponsor coop questions

[axxel]

What is the name of your state (only U.S. law)? NY

We looked at a 1 br coop and asked property mngt if they would allow 4 people (2 adults, 2 kids) in it. We planned on converting the dining room into a bedroom and putting the kids in there in bunk bed. The mngr spoke to coop board and was told no, it was too many people.

This week we find a sponsor unit in the same exact bldg. It's also 1br. Were wondering if we put offer in and sponsor accepts, since no board approval is needed, and say we end up getting it and moving in. Does coop board have any recourse to kick us out at that point?

I've already read the house rules and bylaws for it and it does not address the allowed number of occupants per unit.

I do know it meets NYC code as far as sqft per occupant.

Assuming that upon signing contracts and lease offering, that nothing in it prohibits us from having 4 people in it, are we going to be safe buying it?

 

[You Are Guilty]

What is the name of your state (only U.S. law)? NY

We looked at a 1 br coop and asked property mngt if they would allow 4 people (2 adults, 2 kids) in it. We planned on converting the dining room into a bedroom and putting the kids in there in bunk bed. The mngr spoke to coop board and was told no, it was too many people.

This week we find a sponsor unit in the same exact bldg. It's also 1br. Were wondering if we put offer in and sponsor accepts, since no board approval is needed, and say we end up getting it and moving in. Does coop board have any recourse to kick us out at that point?

I've already read the house rules and bylaws for it and it does not address the allowed number of occupants per unit.

I do know it meets NYC code as far as sqft per occupant.

Assuming that upon signing contracts and lease offering, that nothing in it prohibits us from having 4 people in it, are we going to be safe buying it?

The sponsor sale only gets you past the board interview/approval stage. Once you own the shares, you are a shareholder like everyone else in the building (in fact, it is illegal under NY law to treat shareholders differently based on who they purchased their shares from).

As a practical matter, what that means is that any renovations beyond the typical "small stuff" that doesn't require board-approval (painting, maybe refinishing your floors, etc. Read the House Rules!) will require Board approval and likely an Alteration Agreement. Since the Board does not have to consent to you making the changes you want, especially if any are going to be structural (e.g. messing with walls or electric), you are really going to be taking a big risk.

On the flip side, the sponsor is in a much better position to make whatever renovations they want. Perhaps you can see if the sponsor will make the alterations you want and you add the cost of same to the purchase price. Or less likely, if you can get the Board to agree to the modifications you want, in writing, as part of the sale, then you will at least have a viable basis to sue them if they subsequently try to stop you from doing the work.

Obviously there are significant pitfalls to attempting either of these and you really should be speaking to your attorney about your concerns.

Beyond that, finding a different building might be the path of least resistance.

Good luck.

 

[STEPHAN]

What about construction permits?

 

[You Are Guilty]

Yes, NYC has those too.