New Building Financials? Need Advice

Ridiculous or not, banks are asking the same questions now for mortgages.

That's not ridiculous. I would check with HDC.

I agree with your sentiment. I'm just wondering if this raises a red flag or not. Or is it safe to assume that since this company has worked with HDC and HPD for nearly 20 years that I should not worry?

After reading many horror stories, my concerns are that:

1) The sponsor will rent out the 25% of the building units which they can not sell. And they'll do this indefinitely. AnD they'll act against the interest of the coop by appointing people to the board who will do what they want. Sounds like HPD and HDC can replace people and appoint whoever they want on the board if they deem necessary, so I do like that.

or

2) The sponsor just can't pay all of the maintenance on their 25% and they are unable to sell or rent. They end up going into bankruptcy or defaulting on their loans. The sponsor is an LLC specifically created for this building. I don't really know what kind of recourse the coop has if they can not pay all of the maintenance

i think you can look up some of this info on ACRIS

Given that you're just dealing with the selling agent, I would be suspicious of his reactions but not necessarily the building, per se. Do your diligence, and keep checking out the competition. Be wary, though, if you turn up anything suspicious.

"The agent balked, telling me that no one has EVER asked for that before"

I'll bet the AG did. Have you actually looked at the Offering Plan?

Yes, I actually did read all 200+ pages of the Offering Plan it as well as amendments. Thanks for making totally unwarranted assumptions about me.

So yo read the "Identity of Parties" and "Sponsor's Statment of Financial condition"?

Identity of Parties states who the sponsors are and who they've sponsored in the past. I'm aware of who the individual sponsors are.

There is no section entitled "Sponsor's Statment of Financial condition"

These passages are relevant though. I just don't know if they're standard in contracts:

"No bond or other security has been furnished to secure the performance of the Sponsor's obligations set forth herein. The ability of Sponsor to perform its obligations will depend upon its financial condition, when and if it is called upon to perform. No warranty is made that Sponsor will be financially able to perform any or all of such obligations."

"The Sponsor has agreed that if any such Individuals Produced By The Sponsor fail to fulfill his
obligations under his Proprietary Lease, including his obligation to pay all rent (maintenance charges)
thereunder, the Sponsor will become liable for such obligations. The Apartment Corporation also will
have a lien upon the shares to secure the performance of all obligations of the Sponsor and of Individuals Produced By The Sponsor under the Proprietary Lease."

"The Sponsor represents that it has financial resources adequate to enable it to meet its obligations with respect to such Unsold Shares and with respect to the Individuals Produced By The Sponsor, but this Plan contains no financial data supporting this representation. Since no bond or security has been furnished by the Sponsor, the Sponsor's ability to perform said obligations will depend solely upon its financial condition if and when called upon to perform."

"The Sponsor has the right to liquidate and distribute its assets after the Closing Date, provided that it does not hold any Unsold Shares, but the members of the Sponsor will remain liable for the satisfaction of liabilities of the Sponsor to the Apartment Corporation pursuant to the Plan."