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July 30, 2009
5-Unit C of O?
While looking for a brownstone/limestone to purchase, I've come across some where the "c of o" is for 5 or more units. Some of these units are SRO units.
If I buy a brownstone, I would want to divide it into two or three units. I would live in one of these units.
What issues should I be aware of regarding the c of o? Is difficult to get a mortgage when the c of o is for 5 units?
Is it difficult to change a c of o?
Thanks!
Comments
C of O changes for old houses are difficult because EVERYTHING has to be to code for the inspector to grant the new C or O.
Large scale renovations done with permits and inspections often take a year or more, and that's assuming you have a good contractor overseeing the work. . .
Posted by: IronBalls at July 30, 2009 8:37 AM
One neighbor of mine took years to get a new c of o. Things may have changed but I think it's a long-haul project involving not just the contractor but a really savvy expediter.
Posted by: Arkady at July 30, 2009 9:25 AM
SROs are their own animal and a drawn-out and complicated undertaking. You need to be clear about the building's history before addressing the change of CO. HPD's SRO Compliance Unit can be reached at 212-863-8515. SRO building owners who want to undertake alterations need a Certificate of No Harassment from HPD.
More information available through HPD's Housing Litigation Division:
212-863-8266, or through Citywide Inspection Unit:
http://www.nyc.gov/html/hpd/html/tenants/sro-compliance-unit.shtml
Posted by: vinca at July 30, 2009 10:11 AM
Note that getting a mortgage for a building when you are planning to change the CofO can also be a hassle, I'm told many banks right now just will not deal with it. Assuming you can afford it, you can get the loan for the building as it is set up now and change it as the work is being done, but you won't get the increased FHA limits based on the later CofO.
I've seen so many SRO horror stories that I am damn scared of them.
Posted by: mixicon at July 30, 2009 11:05 AM
Thanks, everyone, for your help.
If you'd care to summarize some of the SRO horror stories that you've seen, Mixicon, I'd be interested in hearing about them.
Posted by: brownlime at July 30, 2009 12:24 PM
You will need commercial financing for 5 units or over, which implies a minimum of 25% down.
Posted by: babs at July 30, 2009 3:18 PM
Grrr, I posted, but it looks like it got lost. Quick summary, tenants rights tend to be greater than landlords rights in terms of SROs and it only requires a 21 day period to become an official tenant in an SRO, so it's just painful, I've even heard of instances of people trespassing in a boarded up building ended up being considered tenants and requiring buyouts for the CoNH.
Posted by: mixicon at July 30, 2009 4:38 PM
Thanks for the info, Mixicon!
Posted by: brownlime at July 31, 2009 1:46 PM
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