Some advice Please..Debating on Purchasing a Co-Op with current financial troubles due to a previously corrupt board.
Its Large community (abt. 955 units) In A decent neighborhood, heat & hot water included in the low common charges (currently $550 a month) However, the Cooperative is currently trying to recover from an extremely corrupt board, where over 4 million (possibly more) has been stolen. A major investigation is currently in process, a management company has been appointed by the court (unsure if this is permanent) sadly the community is currently struggling with the need to replace a very old heating system. The city stepped in giving them a small loan to get the hot water & heat up and running. (Many Residents have been without these basic necessities for over 2 years now. ) I’ve heard talk that many are still without them~ what was installed were meant to only be a temporary fix, until the Co-op saves enough money to have the work permanently done. I live in an area where housing is hard to come by, yet many of these units have been sitting on the market for months. I’m disabled, soon to be divorced & single mom of 3 teenagers. My income is limited. I’m afraid that the common charges may increase substantially. Also afraid that maybe the corruption runs deeper than the board.
I’d like to add, I grew up in the complex from 1982-1999. It was a lovely place back then. The board members were honorable people ~ mostly elderly veterans with morals. Very sad that decent people are hard to come by these days.
Affordable housing like this is a rarity in my location. I’ve just been keeping my eye on the community in Facebook groups. Speculations have been made that the city may have purposely destroyed the cooperatives financials in order to have investors come in and turn them into more luxury living.. (gentrifying the neighborhood) which seems to be happening in other parts of the city. we are close to New York. Average Rents and home prices have tripled in just 2 years.
I have just enough money to purchase a unit. Bring in enough to cover up to $650 in common charges.. but worry that cost may increase much more.
Has anyone been in a similar situation with a cooperative? If so what was the outcome?