PLEASE do not say this Q has been addressed before - fresh start needed. also I think there is no C of O for the space in question.

There is something called plan of conversion or blue book that provides a description of the building facilites, storage areas or dead space and the spaces with assigned shares. The corporation is the owner of the building. The sponsor only own unsold shares of apartments. If there is any special provision to keep certain areas of the builidng (which I certainly doubt) the plan of conversion and documents contained in it should have the information spelled out. If no such provision exists, the co-op is well to reclaim its space through maangement and ultimately through the co-op counsel if necessary.

Rumors has it... it's not good enough! Finally, some of the enclosed spaces may not be habitable and could not be used as recreation or expansion of a unit for lack of adequate ventilation. So, even if the co-op were to dream a recreation room, it would have to consult the code to ascertain that can be used as such.

AdC

Thank you AdC for your clear response. We have similar situation
Miriam

thanks aDc!
facts: the area in question has severl windows inc two on street level.
in the offering plan it states: " the sponsor is expressely reserving to itself or designee, the right to alter or rehab said basement apartment as well as the right to create one or more basement apts..." then: the sponsor may alter such wtihtout permission from the coop plus , once done, he may be present a letter from a brokerage firm stating how many shares are to be issued for said apt. - it then goes on to say there are unissued shares of the corp. which will then be issued to this space.

Note: something seems not right here.

Conversion plans give certain rights to the sponsor that cannot be taken away by the corporation. In your case, your building has a space that does not have shares nor pays rent, but was retained by the sponsor because the space has value but was never improved, a C of O may be obtained if improved, shares may be assigned without the co-op opposition and sold without the corporation's blessings or being able to voice an objection.

Obviously, the corporation may enter into negotiations with the sponsor so that it may purchase the currently unimporved space for the benefit of its shareholders. If this is your wish, then the co-op should approach the sponsor and work out a deal. Speak with the co-op counsel and let him/her start the ball rolling.

For example: our co-op had commercial space that was retained by the sponsor and later sold to the co-op. Later on, one of the many boards converted the offices to commercial space with assigned shares.

This is why I directed you to consult the bible of the co-op relating to what belongs to the co-op: the conversion plan and its amendments.

AdC

Just to echo in support...
I have a coop where the sponsor retained basement space as commercial and maintains control of this space. (I happen to be the manager for the sponsor in this particular case). But if this is the case, it would be clearly outlined in the offering plan.


AR

Thank you for your posting but Something does not sound right to me. It may well be theat the coop has a good claim on the space in question.

1) The Sponsor has never had shares issued for this space, never paid a cent of mntnce nor taxes for it -

2) PLUS, techinacally there was one other "apt" in the basement (with on old kitchen, etc) and the coop has "leased" this from him for storage for no charge. IE there has been an acknowlegement fromt he sponsor that the first apt was THE apt. The offering plan only mentions he has claim to "one apt" in the basement plus "additional space" (which is incredibly vague.)

any lawyers out there?? BP?

Big Al: I'm not a lawyer but I think you need one on your basement space issue. It sounds rather involved. You need a professional to read your plan carefully and interpret it for you. If your coop doesn't have a lawyer, "retain" one to resolve this. Anyone out there able to give Big Al a referral for a good coop lawyer?

One thing that struck me odd was that you said the sponsor has the right to have a brokerage firm determine how many shares could be assigned to the basement space. As I said, I'm not a lawyer but since when can a brokerage firm do this in and of itself? Big Al, you need a lawyer.

did you read the quote in the posting from the 'offering plan'? It appears, not yet. please get fully informed before you spout an answer out. you have to keep up with BP now!

Mr. Big Al. Apparently you forgot the fact that you posted "the facts"as a rsponse to "my spouting"of the answer. Just look at the day and times and the indentation to understand that!

Finally, I do not compete nor I care to compete. This is a forum to give ideas. In fact, many of the questions may be easily answered by referring people to the basic documents of the co-op, and asking your co-op counsel when in doubt in spite of the money it may charge you. After all, when you are a board member you are not paid, but you are expected to discharge your duty by exercising your fiduciary responsibility, and your ability to act with justice, obsjectively and compationately at times.

This is the last one for you!!!

AdC

I think both of your are right. But they might be some misunderstanding here. However, there is only one "Coop" managing agent. The Sponsor reserves the right to self manage his units or hire a management company to manage them for him. The coop managing agent manages all the cooperatives apartments including the sponsors regarding business of the cooperative. The duties do not usually overlap. This website serves everyone best by staying positive, not everyone is going to have the right answers all the time. I monitor this site daily and for the most part remain silent. As property managing is very dynamic all information offered by most that frequent this site should be well received and feedback should always be constructive. The bottom line is no one comments here should be anyone’s bible in managing their complex, take what information is useful, do your homework, and appreciate offered help regardless if you feel it is not necessarily entirely correct.

Best Regards,

RH