§ 3-06 Resale of Cooperative Shares.
RCNY § 3-06
(a)Procedures.
(1)A shareholder desiring to sell his or her shares in a mutual housing company shall notify the housing company in writing no later than 90 days in advance of his or her intention to sell his or her shares to the housing company or its designee, pursuant to the provisions of the housing company by-laws and occupancy agreement.
(2)The shareholder shall transfer his or her shares to the housing company and shall thereafter surrender possession of the apartment at the agreed upon time pursuant to arrangements made with the housing company. After the shareholder has surrendered possession of the apartment, the housing company will inspect the apartment to determine necessary repairs. Any surcharge or any other fees and charges owing to the housing company shall be deducted from the equity due the cooperator.
(3)The housing company shall enter the transfer of shares on its books.
(4)The shareholder shall be responsible for carrying charges and submetered electrical charges for up to 90 days after surrendering possession of the apartment or until the housing company transfers the shares to the new owner, whichever occurs earlier.
(5)(i) If a tenant / cooperator seeks to withdraw his or her offer of sale of shares, and no commitment has been made to a purchaser, the housing company at its option, may permit the tenant / cooperator to withdraw his or her offer, and may charge the tenant / cooperator a reasonable fee for this service.
(ii)If, within an 18 month period, shares for the same apartment are re-offered for sale after a previous withdrawal pursuant to subparagraph (i) of this paragraph, the tenant / cooperator must post security for administrative costs in the amount of two months' carrying charges. If the shares for the apartment are sold, the security shall be refunded. If the shares for the apartment are withdrawn again, the security shall be forfeited.
(6)The occupancy agreement for each mutual housing company shall set forth the obligations of each shareholder with respect to the condition of the unit at the time that such shareholder vacates the unit.
(7)In the case of National Housing Act of 1937, as amended, § 223(f) refinanced mutual housing companies, where the appliances were included as security for the insured mortgage, the outgoing shareholder shall be required to leave behind the appliances which were in place at the time of refinancing or to replace them with appliances of equal size and amenities. In the case of non-refinanced mutual housing companies, a board of directors may adopt a uniform policy whereby either the incoming or outgoing cooperator shall be responsible for providing a stove and refrigerator for his or her apartment. A board may adopt a policy which apportions the cost of appliances between the incoming and outgoing shareholders as follows: As appliances require replacement, the cooperator in residence would be required to purchase the new appliance(s). A life-expectancy schedule would be established for each type of appliance and the appliance would be depreciated over that pre-determined time period. If the cooperator in residence vacated the apartment any time during the depreciation period, he or she would be reimbursed for the remainder of the period by the incoming cooperator. If the depreciation period were over when the cooperator vacated, the incoming cooperator would be obligated to purchase new appliances and the process would commence again. The depreciated appliances would become the property of the housing company. Any policy adopted must be applied uniformly to all apartments.
(8)The mutual housing company shall follow the chronological order of its waiting list in the sale of shares. In the event a mutual housing company has substantially depleted its waiting list, the mutual housing company shall seek potential applicants. A mutual housing company and its managing agent shall only open a closed waiting list in accordance with the requirements of 28 RCNY § 3-02.
(b)Resale price of shares.
(c)Joint ownership of cooperative shares. With respect to any person who became a co-owner of shares before December 25, 2014, such co-ownership of shares does not guarantee the right to succession to ah apartment in a mutual housing company development, and any such co-owner must qualify for succession under 28 RCNY § 3-02(p). On or after December 25, 2014, no housing company shall permit any person other than a family member who has been approved for succession in accordance with 28 RCNY § 3-02(p) to become an owner of the shares and a signatory on the occupancy agreement. Notwithstanding the foregoing, upon the request of a shareholder, and with HPD's prior approval, a housing company may permit spouses to become co-owners of shares and co-signatories of the applicable occupancy agreements if they meet the following requirements, as established pursuant to satisfactory evidence: (a) such spouse either was an initial occupant of the applicable dwelling unit with such shareholder or was included in at least two of the income affidavits filed by such shareholder during the time period immediately preceding such shareholder's request to add the spouse as co-owner of shares and a co-signatory of such occupancy agreement; (b) such spouse has occupied the applicable dwelling unit as his or her primary residence for at least two consecutive years and continues to occupy such dwelling unit as his or her primary residence at the time of such request; and (c) such spouse and the shareholder intend in good faith to remain joint occupants of the applicable dwelling unit. Any spouse that becomes a co-owner of shares and a co-signer of the applicable occupancy agreement pursuant to these requirements also shall be considered a shareholder of record for such dwelling unit.
(d)Bequeathing of apartments. In no event may the right of occupancy in a Mitchell-Lama mutual housing company development be bequeathed to another. Upon the death of the tenant / cooperator, the shares must be returned to the mutual housing company which will arrange for a sale pursuant to subdivision (a) of this section. Notwithstanding the foregoing, eligible members of the tenant / cooperator's immediate family in occupancy may acquire such shares if they meet the requirements of 28 RCNY § 3-02(p).
(e)Prohibition against ownership of more than one dwelling unit. Notwithstanding anything to the contrary contained herein, spouses and domestic partners shall be prohibited from purchasing and/or owning cooperative shares in more than one dwelling unit in any Mitchell-Lama mutual housing company development. (Amended City Record 7/13/2016, eff. 8/12/2016; amended City Record 6/20/2023, eff. 7/20/2023)
