Rent Stabilized Tenants in Coop

The owner of those apartments (sponsor) IS paying maintenance on all of the RS apartment. The building is not affected by who owns the apts.

there may not be a sponsor...that means that the apartments are rent stablized without a owner and they are not contributing to the monthly maintenance.

one of my neighbors explained to me that in his old coop, just 12-15 units, there were 4-5 units that were rent stabilized paying less than maintenance. the owner of those units, not the sponsor anymore, was not paying the maintenance. due to this coop being so small and the units not paying being so high percentage wise, the other 8-10 units have to pay the bills. the coop can sue the owner and may win those apartments after a few years and become owners. only then, will they be able to collect the rent and apply it to the budget.

In a normal size co-op, all RS apartments are owned. In my building, just 3 left (out of 72 apts.) One was sold the other week with RS tenant living there.

"there may not be a sponsor...that means that the apartments are rent stablized without a owner and they are not contributing to the monthly maintenance."

No Sponsor: This can only be the case in a "self converted" building. The number of those is minuscule.

"one of my neighbors explained to me that in his old coop, just 12-15 units, there were 4-5 units that were rent stabilized paying less than maintenance. the owner of those units, not the sponsor anymore, was not paying the maintenance. due to this coop being so small and the units not paying being so high percentage wise, the other 8-10 units have to pay the bills. the coop can sue the owner and may win those apartments after a few years and become owners. only then, will they be able to collect the rent and apply it to the budget"

Whether the Sponsor or someone who took over for the Sponsor, the responsibility to pay maintenance remains. They don't need to sue anybody to get the units: all they need to do is a simple non-judicial foreclosure for non-payment of maintenance. It happened non all too infrequently in the 90's. The Coop can either keep the units and pay the bills (and then there will be a HUGE windfall for the Coop over the years because as units become vacant it will be able to sell them at market and keep all the proceeds - hundreds of thousands of dollars each time) or sell the units to a new investor who will then become responsible for the payment of the full maintenance.

Over the years I've been asked the question "How much of the building is Coop?" a thousand times. The answer is always "It's ALL Coop". There has always been a large lack of understanding about what happens during the conversion process and what the responsibility of the various parties are.

WindsorCourt, there's nothing in ACRIS to indicate how many of a co-op's shares are owned by the sponsor, by a holder of unsold shares, by the co-op itself, etc. In my building the yearly financials do indicate that. Viz, percent owned by the sponsor, and a note about an apt the co-op owns and rents out.