What Paperwork Is Needed When You Combine Two Co-op Units?

Feb. 11, 2015 — Here's a story that highlights why it's important for shareholders and boards alike stay on top of paperwork. A shareholder in an East Midtown co-op owns two contiguous units that he combined into one. He tells Ronda Kaysen in the latest "Ask Real Estate" column in The New York Times that the city has not asked him to change the certificate of occupancy, nor has he requested to have it changed. "I pay two maintenance and utility bills. Should I request a certificate of occupancy update from the city? What are the pros and cons of doing so?" Kaysen explains that making the change is "not a matter of choice. It is dictated by the city’s building code and depends on how the apartments were combined." Co-ops tend to not approve renovations that require changing the certificate of occupancy, but to be safe, Kaysen recommends having the architect or engineer confirm whether the renovated apartment is in compliance with the law "and if that requires changing the certificate of occupancy." Even if the certificate of occupancy doesn't need to be updated, you may still need a letter of completion from the Department of Buildings (DOB). You don't want to find yourself in a position where you need to produce the appropriate paperwork and don't have it. Kaysen adds that the managing agent can combine the two stock certificates and leases into one to simplify the maintenance and utility bills.