Sponsor Controlled Building

Depends on the proprietary lease and the offering plan as to what rights the sponsor has. The scenario you posed is a little far fetched because even if they could take out a mortgage the couldnt personally keep the money.

Sponsor control is usually more of an issue because the interest of the individual owners is not aligned with those of the sponsor. Sponsor units are usually occupied by rent stabilized or controlled tenants whose monthly rent does not equal the coop or condo fees the sponsor must pay as owner.

Sponsor generally wants to keep expenses as low as possible. Projects like lobby renovations aesthetic improvements would be something they probably wont vote for.

Thanks junkie. I saw a couple of apts in a building control by the sponsor. The agent told me there is no underlying mortgage for the building and is not a land lease. Yet, the monthly maint for a 1 bed around 700 sq ft is $1,450 a month and only 30% deductible. It has a doorman but nothing fancy. So I am confused as to why the maintenance is so high.

The sponsor with ownership of so many units is on the Board, in a Condo.

New owners are often surrounded by the Sponsor's units, and are at his mercy.

A Sponsor who does illegal renovations without permits, using his contractors;will do things in those apartments that will leave the surrounding owners without a remedy other than a lawsuit.

And the Sponsor can engage any owner he wants to force to sell and flee the building, in a systematic campaign of harrassment. With the help of the Condo board of managers, the managing agent, the super and the staff. Including bringing a lawsuit, completely without merit; against an owner. Economic warfare.

Now -- THAT is getting screwed by the Sponsor.