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I have rented two rent-controlled apartments in NYC for 40 years. We broke through the wall back then, with the landlord's knowledge, and made one big apartment.
20 years ago a new landlord converted the building to coop. We didn't buy in.
Now the landlord wants to sell our apartments as coop property. Is that permissible? How does that affect us?
I always thought that the landlord could not "convert" a rent-controlled unit until the renter either leaves or dies. I had a friend's grandma in that situation where she was the only renter left in the coop and the landlord would be very unresponsive on a lot of things in the hope that she'd move.
I have rented two rent-controlled apartments in NYC for 40 years. We broke through the wall back then, with the landlord's knowledge, and made one big apartment.
20 years ago a new landlord converted the building to coop. We didn't buy in.
Now the landlord wants to sell our apartments as coop property. Is that permissible? How does that affect us?
This happens quite often. They will give you the option to buy your property. If you decline, you will have to vacate the property when your lease ends.
the entire building converts to co-op , in a non eviction plan the unsold apartments that have rent stabilized tenants mearly are owned by the sponser and the tenants remain rent stabilized and life goes on just as before. once they move out or agree to have their leases bought out the apartment is no longer stabilized .. we owned and still own co-ops with rent stabilized tenants.
It depends on the exact terms of the offering plan for your building.Since the conversion took place 20 years ago and you are still there it was obviously a non-eviction plan.Sometimes the sponsor holds the apartment until the tenant( You) either moves or dies and then renovates and sells at whatever the market rate is at the time.I believe however that the sponsor has the right to sell the apartment at any time to an outsider whether you are still there or not.
In such cases the price is less than the market rate because the apartment is sold with a controlled/stabilized tenant in place.The buyer is purchasing the unit at a reduced price as an investment and you get to stay as a tenant of the new owner who may try to get you out or who may just wait . These deals are usually done according to actuarial tables because they predict how long you are likely to live or remain in the apartment and discount the value accordingly.
Hasn't the sponsor offered to buy you out? Usually they try to buy the tenant out before selling to an outsider at a reduced price but maybe they have come to the conclusion that you are a hopeless case and are ready to dump it.I think it is perfectly legal for them to do so.... I have even seen ads for coops with tenants in place and they are usually for half the market price or even less.A lot depends on your age and when you are likely to die...... and also whether your rent(whatever it is) covers or more than covers the maintenance charge on the unit.
It is not a bad deal at all for an investor to purchase a coop at a drastically reduced rate if there is an actual income after the maintenance is paid and the tenant is likely to kick the bucket in a relatively short period of time. If you have already been there for 40 years the actuarial tables are probably saying that you will be leaving soon.
I think there are even investment companies and individuals who specialize in buying occupied coop apartments.
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