Co-op Board vs Sponsor Owned Units

> We know the sponsor has to sell his units after a period of time or the sponsor loses their co-op voting rights.

No. The sponsor can always vote her shares, but after however many years can't control the board by electing a majority of her own candidates.

> But can the co-op board impose restrictions on who the sponsor can rent to and what must be in their leases?

No. Some offering plans and proprietary leases say the sponsor's prospective tenant needs to be approved only by the managing agent, "which approval cannot be unreasonably withheld." In effect the sponsor very rarely re-rents after the non-buying tenant vacates. They almost always sell.

Sponsor rights and behavior vary building by building (for example, NWT, I'm working in a building downtown where the sponsor is selling off larger units as they come up, but re-renting smaller ones.)

You have to read the offering plan for the former (most managing agents will sell you an offering plan for about $200, and if you're a prospective buyer with an accepted offer, the seller will supply your lawyer with one for free).

ali r.
DG Neary Realty

All plans approved by the Attorney General in the 1980's and probably since then
require a Sponsor to surrender control of a coop board no later than five years
after the Coop takes title to its building, regardless of what percentage of units
the Sponsot still owns.