Newsletter articles that go back to 2003
An Excerpt from
101 Ways to Improve Your Cooperative
A Law Primer
By: Randall A. Pentiuk, Esq.
CHAPTER ELEVEN: PRESERVING THE CORPORATION
This section looks ahead to the future viability of the Cooperative and the measures that today’s Board can take to ensure that your corporation enjoys a bright and long future.
82. Be aware that there are forces that are hungry to get their hands on your property to transform the Cooperative into other forms of housing, most notably condominiums. If the Board and membership are truly committed to remaining a cooperative form of housing or, in the case of affordable housing cooperative, there are steps to take that will thwart efforts to convert the Cooperative. The Cooperative Attorney should provide guidance in this area, which includes amending the governing documents to require a very high vote to alter the form of your Cooperative, and recording a deed restriction in the chain of title that limits the opportunity to convert.
83. Keep the Cooperative competitive with surrounding housing. After the HUD mortgage is paid off, the Board has an opportunity to seek refinancing in order to freshen up and improve the appearance of the property by doing a community-wide renovation of such items as doors, windows, cabinets, and other fixtures. Since you will not be paying the HUD mortgage, that frees up funds that can now be used to pay a new loan. The Management Agent, in conjunction with the Cooperative Attorney, works with lenders to arrange for that financing and then assist the Board in securing a qualified contractor to perform the work.. .More > . . . . .
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