Coop Board Issues

gardgreg

Good Afternoon,
For all of you who serve on Coop Boards (or those of you facing the issues addressed below), I would like your input on whether you have been dealing with financial issues of late with tenants who are:
1. refinancing
2. selling
and whether banks have been difficult in giving them loans/refinancing or even competitive rates due to the owner occupancy levels within your coops.

in general, can you tell me what your coops set for Owner-Occupancy levels or subletting rules in general?
Thanks,
G

jmd

NEW rules have been set by Fannie Mae and most of the banks are demanding compliance

1. 70% owner occupancy ( yes we are going back to the rules of the 1990's) some banks are not even looking at buildings that arent 90%
( mostly new construction)
2. Fidelity Bond insurance equal to 3 months of the annual maintenance of the entire condo or coop ( not very expensive)
3. Only 75% financing in most areas without paying extra for the other 5%

While the Govt is giving money to the banks to lend money for purchases no one is talking about the rules the banks are getting away with that is making it harder to buy or sell.