Co-op Status
Hello, Two related questions. We are a 4 unit brownstone co-op that had 4 individual owner occupied apartments until one owner bought the floor below from another owner. A staircase within the apartments, linking the 2, was created and the entry door in the hallway of the newly acquired apt was sealed without a trace….
Hello,
Two related questions.
We are a 4 unit brownstone co-op that had 4 individual owner occupied apartments until one owner bought the floor below from another owner. A staircase within the apartments, linking the 2, was created and the entry door in the hallway of the newly acquired apt was sealed without a trace. All access to the duplex is through 1 apt door now.
The questions are:
– In the eyes of the City Dept of Housing would we now be considered a 3 vs 4 unit co-op even though the owner occupant of both units has 2 separate loans and separate share certificates for each unit?
– Is notification to the Dept of Housing of the described ‘modification’ required?
These questions concern the terms of our co-op Prospectus, mainly (we think) if an owner wants to sell their apt are we now a 3 or 4 unit co-op?
Any knowledgeable input to this quandary would be greatly appreciated.
Many thanks!
The shareholder who combined the apartments needs to legalize the construction. The work must be filed with the DoB. Unless things have changed recently, the DoB allows for combination of units without changing the building’s C of O, but required means of egress must be maintained and one of the unit’s kitchens would have to be removed.
As far as the co-op documents, I’m not sure what your best legal steps are, perhaps an amendment to the offering plan. You should consult an attorney.
There were no building department permits/inspections etc.
The co-op bylaws and proprietary lease were amended so that the duplex has only 1 vote and the other 2 units have 1 vote each – so, no one party has a majority say – each has equal power.
However, the original question remains about 3 units vs 4 – any experience with this matter?
Why would you allow this?
No permts or inspections.
As you have questioned, the By-Laws and Proprietary Lease were amended to cover the majority shareholder issue. The owner of the 2 units has only 1 vote as do the other 2 shareholders – so, we are all on equal footing.
However, the original question of whether we’re a 3 or 4 unit co-op remains.
Did the other co-op shareholders agree to these modifications? Did they get buildings department permits/inspections etc.? Do the combined units comprise more than 50% of the shares in the co-op? Personally, I think you may have made the two smaller apartments essentially unmarketable. Very few people want to buy in a building where one party has a majority of the say, and you may also find it difficult to finance such a co-op shareholding. I think that one needs to be particularly attentive to these matters in a co-op. It would have been prudent to have amended the co-op bylaws and proprietary lease to ensure that the minority shareholders can veto decisions my the majority if the owner of the combined units is a majority shareholder.
The C of O has not been changed – no action has been taken to notify any agency/dept of modification described.
Did they change the C of O?