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Perspectives

What Can Boards Do When “Temporary” Coop Residents Overstay Their Welcome?

Most cooperative proprietary leases prohibit the occupancy of apartments by non-shareholders, or close family members of shareholders, unless the shareholder is also in residence.  This raises the question how a Board of Directors should address a situation in which an individual initially occupies an apartment as a temporary guest, but prolongs his or her stay indefinitely without seeking or obtaining the board’s approval.  Options that might be available to a board, depending on the specific circumstances, could range from demanding that the unauthorized occupant leave, culminating in seeking to terminate the proprietary lease if this does not occur, or requiring that the occupant’s name be added to the proprietary lease or that the shareholder and the occupant sign an occupancy agreement.

Ganfer Shore Leeds & Zauderer LLP partner William D. McCracken recently published a column on this issue in Habitat magazine.  If you would like a copy, please feel free to request one from Bill or from your contact at the firm.