In a typical co-operative apartment building, occupants do not own the individual units; rather they “own” an undifferentiated share in the entire building and then “rent” back a specific unit from the co-operative corporation. Similarly, in a typical condominium building, owners of individual units jointly own the common areas of the building. For purposes of the pre-renovation education requirements, who are the “owners” in such situations?
Answer: EPA recognizes that co-operative apartments (“co-ops”) and condominiums (“condos”) can be structured in a variety of ways. For example, in the case of co-ops, a corporation (sometimes referred to as a “co-op association”) is often established and owns all the units and common areas comprising the co-op; in such circumstances, individual unit “shareholders” own shares in the corporation and also own occupancy rights or lease a unit from the corporation. In the case of many condos, individuals hold title to their individual units, and all condo unit owners jointly own the common areas (with a condo association established to represent the interests of all the unit owners).
For purposes of the pre-renovation education requirements, the following general principles will be applied:
(a) If title to a building is held by a corporation which leases back dwelling units to individual corporation shareholders, as in typical co-op apartment buildings, the corporation/association will generally be considered to be the “owner” of the entire building, and individual resident shareholders, or persons who rent from individual shareholders, will generally be considered to be tenants.
(b) In buildings where individuals hold title to specific dwelling units and jointly hold title to common areas of the building, as in typical condo buildings, the individual owners each will be considered to be the owners of his/her individual units, and the association (or its equivalent body composed of, or representing, the group of owners) will be considered the owner of the common areas of the building.
See the table below for more specific guidance on meeting the pre-renovation education requirements as they relate to various renovation scenarios in co-ops and condos.
COMPLIANCE WITH RRP PRE-RENOVATION EDUCATION REQUIREMENTS FOR COOPERATIVE APARTMENTS AND CONDOMINIUMS
RENOVATION LOCATION | RULE REQUIREMENT | COMPLIANCE FOR CO-OPS | COMPLIANCE FOR CONDOS |
Renovations inside Individual Unit |
1. Deliver Pamphlet to Owner §745.84(a)(1) 2. Deliver Pamphlet to Adult Occupant (Tenant) §745.84(a)(2) |
1. Deliver Pamphlet to Co-op Corp./Assoc. or Property Manager 2. Deliver Pamphlet to Resident Co-op Share holder or Adult Occupant |
1. Deliver Pamphlet to Condo Unit Owner (Or Agent of Owner) 2. If Condo is Leased, Deliver Pamphlet to Adult Occupant |
Renovations in a Common Area |
1. Deliver Pamphlet to Owner §745.84(b)(1) 2. Deliver Notice to Each Unit §745.84(b)(2) |
1. Deliver Pamphlet to Co-op Corp./Assoc. or Property Manager 2. Deliver Notice to Each Unit |
1. Deliver Pamphlet to Condo Association or Property Manager 2. Deliver Notice to Each Unit |
Notice of renovation activities in common areas can also be provided by posting signs. Signs must be posted while the renovation is ongoing and they must describe the general nature and locations of the renovation and the anticipated completion date. These signs must be posted in areas where they are likely to be seen by the occupants of all of the affected units. The signs must be accompanied by a posted copy of the pamphlet or information on how interested occupants can review a copy of the pamphlet or obtain a copy from the renovation firm at no cost to occupants.
Question Number: 23002-32362
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