Page 15 - NY Cooperator June 2019

COOPERATOR.COM THE COOPERATOR —JUNE 2019 15 TANE WATERMAN & WURTZEL, P.C. CO-OP/CONDO ATTORNEYS There When You Need Us Principals: DavidA.Tane•Stewart E.Wurtzel •AndrewD.Stern •LeonardM.Khandros Associates: •MosheC.Bobker •Jacob R.Fleitman •Ruta Behrend•Adam Lazaros Of Counsel: Marcie Waterman Murray Provide legal counsel to Cooperatives, Condominiums and Individuals Represent our clients’ interests in all litigation in Federal, State and City Courts Transfer Agent Services Landlord – Tenant Purchase, Refinance and Lease Transactions Residential and Commercial Sales Corporate and Business Law 120 Broadway • Suite 948 • New York, NY 10271-0040 Phone: (212) 766-4000 • Email: Swurtzel@tww.nyc www.tww.nyc percent of the purchase price. In terms of li- quidity, annual income is a deciding factor. see an applicant’s long-term employment with Applicants have usually applied for a mort- gage as well. In virtually all cases, they would of many different gigs. He also stresses that have already passed muster with a financial the board calls up all references in order to institution before they get to the board” — a establish a level of comfort with a potential clear indication that they can pass muster neighbor. Levi notes that during his time on with the board, at least as far as the money the board, “we have not turned down any ap- component is concerned. “Before you go forward with an offer, you should qualify the buyer,” says Lubin. “If they are financing the purchase, you want to see granted to a co-op board certainly does not their mortgage pre-approval. They should equal a license to discriminate. According to also fill out a financial statement form, which Deborah Koplovitz, an attorney with the New is available from the Real Estate Board of New York City law firm Anderson Kill: “Fifty years York. You look at their debt-to-income ratio ago, the Fair Housing Act was passed in the – that’s the main measure most co-op boards wake of the assassination of the Rev. Martin use to determine if a purchaser qualifies. Gen- erally, you don’t want anyone with a debt-to- income ratio over 25 percent. If a person has was also the hardest to pass, as our country been approved by a bank for a mortgage, that has a history of government-mandated seg- will pretty much satisfy a board, since a bank regation at the federal, state and local levels. wouldn’t approve the buyer’s credit if they Southern Democrats opposed the legislation. weren’t qualified.” De Leon concurs, adding: “A board may be satisfied with a bank’s screening pro- cess, though some high-end buildings may have more stringent re- quirements. In luxury buildings, net worth is a bigger factor. Great financials are a posi- tive factor in gaining approval, as are great references. Alterna- tively, bad credit, a bad or erratic employment history, or outright not qualifying according to the co-op’s rules may lead to a rejection of the well.” application.” A Case in Point Ray Levi is a member of the board at a 56- unit co-op located in Washington Heights. deciding the fate of a purchase application on “We have an application package that in- cludes credit and income information, and of individuals who are not protected under letters of recommendation from both friends the various anti-discrimination measures in and co-workers,” he explains. “But it’s mostly place? As it turns out, the answer is yes – at financial information. We want to see that least as of this writing, and in certain very spe- the monthly carrying costs are reasonable cific circumstances. enough for the buyer that they can make the payments.” His board doesn’t look deeply into been to jail, or is a celebrity,” says De Leon, a purchaser’s cash holding in banks or other “a board may reject them.” This exception is financial institutions, or the purchaser’s ra- tio of income-to-monthly payments. But the ment Law. “In making a decision,” she ex- board does look at outstanding debt overall. plains, “the board of directors, acting on an “We want to try to remain affordable,” Levi informed basis and in good faith, may reject adds. Sizable outstanding debt is an issue for an applicant for these reasons, as the action is his board, as is professional stability. If an ap- plicant’s employment history seems unstable, the board is concerned about it. It prefers to the same employer, rather than a patchwork plicants.” Discrimination It goes without saying that the discretion Luther King, Jr. It was the most important piece of legislation from the civil rights era. It People didn’t want to live together, which is absurd. The pur- pose of the law has been to promote in- tegration in housing – and that’s not just limited to race. In 1988, it was extended to include people with disabilities, for instance. New York City has the strongest laws in the nation, so if you’re in compli- ance with New York City’s laws, you’re in compliance with fed- eral and state laws as Any discussion of board approval (or disapproval) inevitably begs such questions as: What leeway does a co-op board have in non-financial grounds? Are there any groups “If an applicant is a felon, has a record, has based on the execution of the Business Judg- taken in the best interest of the community.” “Every building has a finance requirement. Some buildings are all- cash, while others permit financing, which can range anywhere from 50 percent to 80 percent of the purchase price.” — Jennilee De Leon 60 Cutter Mill Road, Suite 303 Great Neck, NY 11021 Phone: (516) 466-3100 www.MajesticPropertyMGT.com Specializing in: • Quality Management Services • In-House Expertise in Cooperative/Condo: › Budgeting/Financial Planning, Taxes, Insurance • Cooperative/Condo Sales • “24/7” Emergency Answering Service • General Contracting and Supervision of Capital Improvement Projects M ajestic PROPERTY MANAGEMENT CORP. A Leader in Propetrty Management for 30 Years continued on page 17