financing rules in coops

[jipp]

What is the name of your state (only U.S. law)? NY

hi,

I am a shareholder in a coop that based on a supposed bank (financing) requirement only allows 25% rentals (we are 16 apartments so 4 rentals max.) We are 5 people trying to rent, which means 1 will not be allowed and will have to sell in a depressed economy... meaning at a loss.

This is a difficult moment and primarily I want to understand if this requirement really exists.

where does this requirement - max 25% building rentals for financing purposes - come from? does it really exist? is it written somewhere?

 

[Zigner]

Duplicate Post: https://forum.freeadvice.com/condos-co-ops-106/co-op-sublet-rules-571781.html

 

[jipp]

hi Zigner,

this is not a duplicate. I posted a question on decision making process in coop boards;
this is a post about banks - what do they ask for when you request financing or refinancing of a coop apartment? sorry, i may not have been clear

 

[HomeGuru]

hi Zigner,

this is not a duplicate. I posted a question on decision making process in coop boards;
this is a post about banks - what do they ask for when you request financing or refinancing of a coop apartment? sorry, i may not have been clear

**A: that is not a legal question but a financing question. Ask a lender that finances that type of property.