Herrick is active in all areas of condominium and cooperative law, particularly those requiring more sophisticated representation, including complex transactions, litigation and investigations by governmental agencies. Whether we’re working with developers on mixed-use projects, counseling established lenders or those new to the New York market, or assisting cooperative boards, managing agents and tenant shareholders, Herrick understands all sides of these multifaceted transactions, and is able consolidate all the work under one roof creating a true one-stop-shop for all of our clients’ needs in this area of law.
Condominium and Cooperative Development
We regularly help real estate developers navigate the many complicated requirements for ongoing public offerings of new construction and conversion projects in and outside New York State. Outside of public offerings, we often structure complex transactions, including the creation of condominiums to separate different uses and ownership interests in individual buildings, sale-condo back transactions, and transactions involving blocks of unsold shares and units. Additionally, Herrick has assisted many not-for-profits in New York City, including hospitals, schools and charitable organizations, with eligible exemptions on their real estate taxes through leasehold condominiums.
We represent lenders nationally in assessing loans for potential and pending condominium projects, and regularly advise lenders on problematic issues once a loan is made. Additionally, the team has extensive experience with affordable housing, not-for-profit organizations and related general transactional work having been involved extensively in secured and unsecured financing transactions from both lender’s and borrower’s perspective. We also have an active practice litigating construction defect cases, and representing developers who are subject to investigations by the New York Attorney General’s office.
Condominium and Cooperative Counsel
The Herrick condominium and cooperative team currently serves as general counsel to the boards of directors and managers of numerous cooperatives, condominiums and homeowners associations throughout the New York metropolitan area. Clients range from multi-building luxury complexes to small brownstones and include buildings converted from rental premises as well as new construction projects.
Imbedded in the practice is a desire to work together with the boards and managers to create community and a harmonious living environment. The condominium and cooperative team brings more than 40 years of general counsel experience to Herrick and works to creatively assist boards run their businesses efficiently and well, with the understanding that these particular business forms also include people’s homes.
Individual cooperatives and condominiums turn to our team when dealing with transactional issues such as development rights sales, refinancings, restructurings and entire property sales, as well as concerns such as NYC’s Façade Safety and Inspection Program and zoning issues. We also advise clients on compliance with various federal, state and city governmental regulations affecting New York City’s housing providers.
When necessary, the team calls upon their experienced litigation colleagues to find solutions when challenges persist. We work with clients in complex sponsor defect and sponsor arrears litigation, shareholder controversies, commercial and residential nonpayment actions, vendor claims, board election disputes, summary eviction proceedings, brokerage disputes, “Yellowstone” injunctions, foreclosure actions and creditor representation in bankruptcy proceedings. The team frequently appears in both state and federal court to advocate for favorable solutions for our clients.
Areas of Focus
- Day-to-day corporate counseling
- Preparing offering plans
- Representation in workouts with sponsors and banks
- Negotiation and preparation of leases and capital improvement contracts, and managing agent contracts
- Representation on refinancing of underlying building mortgages and condominium loans
- Modification of bylaws, declaration, and house rules
- Zoning and land use
- Oversight of construction and renovation projects
- Landlord/tenant litigation
- Bulk sales and bulk inventory loans
- Structuring of leasehold condominiums
- Collection of arrears
- Dealings with the Attorney General’s office
- Assistance with board election issues
- Performance as a transfer agent
- Sales and other transactions related to condominium and cooperative units
- Employment matters