Co-Op Advice Please

There is really nothing you can do. The board said no. One of the main disadvantages of living in a co-op versus a condo is you have less freedom. Did they say you can't sublet AT ALL or did they say no because the perspective tenant is unqualified?

The former. They just wrote a letter back saying that the request had been denied.

Didn't you know you could not sublet when you first purchased shares?

Of course. Ordinarily I would sell (I had the apartment on the market for 6 months in 2008) , but as we know selling in this climate will be very difficult. Has anyone ever "negotiated" their way around these sublet clauses?

If there is a "hardship" exception to the clause, you can explore that. But if the clause is iron-clad, then your only real option is to change the clause. Perhaps others in the building are in your position. In this economy, with people losing jobs and bonuses gone, there may be a groundswell of support for a limited sublease policy--e.g., one year on demand with qualified renter up to 20% of units; two-years if there is sufficient owner occupancy at the time in the building and no 'wait list' for first time requests to sublet. You'd have to use the by-laws and house rules to guide how the policy is altered. A board might rather consider sublets than see owners go into default. The more dire your situation, the more they may be willing to accommodate something. But if it is just that you want to move but can't unless you rent, there may be much more resistance. Remember why boards don't like to sublet: introducing people into building with no stake in its upkeep and sense of community; banks won't lend to coops with under 80% owner-occupancy; difficult to resolve tenant problems with absenteee owners. In any pitch you make, remember this is the mindset of the audience and you'll have to figure out a way to address these concerns.

Great answer from kylewest. I would just add that a "hardship" claim will likely be held to a very high standard of proof. In other words, the Board will likely scrutinize you as heavily as a new buyer, if not more so, and your neighbors will know everything about your situation.