Q In our co-op association, we have new owners who have not registered their new certificates.

Some have owned for a period as long as four years. Others have purchased as corporations and all it seems have children or parents living in the apartments while the registered owners live elsewhere. Are the people occupying said apartments renters or roommates? Some are listed as members of the corporation. My question is as follows: are corporations allowed to own a certificate in a co-op? The problem, as I interpret this, is that any member listed as being a part of the corporation could possibly move into the apartment without the approval of the board.

My next question is this: the co-op where I live has three separate buildings—one is older and has required an inordinate amount of repairs ($130,000) more than the other two newer buildings. The board is now claiming that they do not have enough money to repair washers and dryers in the two newer buildings. What is the board’s responsibility towards the shareholders in the newer buildings?

—Taking Ownership

A “The individual(s) who purchase(s) the shares and lease is(are) the tenant-shareholder(s) of the apartment,” says attorney David L. Berkey, a partner with the law firm of Gallet Dreyer & Berkey, LLP in Manhattan. “The proprietary lease will state in its “use clause” the categories of persons who are permitted to occupy the apartment, which usually include the tenant-shareholder(s) and members of the tenant-shareholder(s) immediate family.

“It is important to read the lease carefully to determine (i) who may occupy the apartment, (ii) whether all such occupants are required to use the apartment together with the tenant-shareholder, and (iii) whether the permitted occupants must be in the apartment contemporaneously with the tenant-shareholder at all times. Family members and other permitted occupants who do not pay rent to the tenant-shareholders for the privilege of occupying the apartment are not renters or subtenants. They usually are a part of the tenant-shareholder(s) family.

“Roommates are those other than members of the tenant-shareholder’s immediate family who live in an apartment together with the named tenant-shareholder in accordance with the “roommate law,” Real Property Law Section 235-f. That law permits the occupancy of a rental apartment (such as a cooperative) by an occupant and the minor children of such occupant, in addition to the tenant-shareholder. Per your question regarding tenants being listed as members of the corporation:

“Problem is—as I interpret this, that any member listed as being a part of the corporation could possibly move into the apartment without the approval of the board. Many cooperatives allow apartments (cooperative shares and leases) to be owned by trusts, limited liability companies and corporations, usually as an accommodation to their tenant-shareholders for estate planning purposes. In such cases, the tenant-shareholder usually enters into a separate agreement with the cooperative, in addition to the proprietary lease, which restricts occupancy of the apartment to named individuals. Such agreements give the board the power to approve any additional occupants and to review proposed transfers of ownership as if the tenant-shareholder was an individual.

“And to address your third and final question:

“The board is empowered to make all business decisions for the cooperative, including when and what type of repairs are to be made, unless the condition that must be repaired is one affecting life, health or safety, and then the board may be compelled by city agencies to make such repairs. If a board’s decision affects a group of tenant-shareholders adversely, they may try to convince the board to treat all tenant-shareholders the same. There is a line of cases which says that a board should treat shareholders equally, but a decision concerning non-essential repairs is not likely to fall within the ambit of those cases.”