“The primary purpose of the Corporation is to provide residences for shareholders …” (Article I of the By-laws of Nagle Apartments Corp.). To ensure that the Corporation meets its primary obligation to its shareholders, the Board of Directors has formulated, adopted, and will enforce a fair sublet policy that balances the needs of the co-op community with the rights and desires of individual shareholders.
Sublet approval is an extraordinary accommodation provided to the shareholder; it is not a right derived from ownership. Excessive subletting has a detrimental effect on the ability of potential buyers, existing shareholders, and the co-op itself to obtain financing from lending institutions. It also has a negative impact on residents’ quality of life. For these reasons, subletting is generally discouraged.
However, there are circumstances that may justify individual shareholders’ subletting their apartments for a limited period of time. Examples of such circumstances include a sudden temporary transfer overseas or an appointment as a visiting professor. The Board is open to individual needs and considerations and will evaluate requests for permission to sublet on a case-by-case basis.
The co-op’s sublet policy ensures a safe, quiet, and owner-oriented quality of life, while protecting the financial investments and ability to obtain financing of all shareholders.
Subject to the limitations in Paragraph 38 of the Proprietary Lease, which specifies the rights of holders of unsold shares, the Board of Directors has adopted the following regulations to guide the administration of sublets:
1. Right to Sublet. The right to sublet is contingent on a history of current maintenance payments.
2. Length of Sublease. The term of a sublease may not be for a period of less than six (6) months or more than twelve (12) months. No sublease may be renewed without the express prior written consent of the Board of Directors.
3. Maximum Subletting Period. A shareholder may be allowed to sublet his/her apartment for a cumulative maximum of two (2) years out of every six (6)-year period. The six-year period begins on the date the first sublease period starts.
4. Exceptions. Exceptions to Paragraphs 1-3 will be considered on a case-by-case basis. The Board will hear the request and grant an exception by a majority vote of all Board members (5 out of 9 votes in favor).
5. Request for Consent to Sublet. To obtain consent to a sublet or to renew, a shareholder must submit a written, signed request to the Board of Directors, via the transfer agent, at least 60 days in advance of the proposed starting date of the sublease. The request must include reasons for the proposed sublet, details including the proposed term of the sublease, and the shareholder’s residence or location during the term of the sublease. Consent will be granted or denied by a majority vote of the Board of Directors. [For your convenience, a Request for Consent to Sublet Apartment (PDF, 44KB) is available online. Fill it out online, print it, and mail it to the transfer agent.]
6. Sublet Application and Approval. If consent is granted:
6a. the following must be submitted to the Board of Directors via the Managing Agent (see sample application package [PDF, 1.3MB]):
— a completed and signed sublet application,
— a copy of a completed and signed sublease agreement,
— an affidavit signed by the prospective sublessee stating that they have received a copy of the house rules and that they agree to abide by them,
— a check from the prospective sublessee, payable to Nagle Apartments Corp., in the amount of $75 to run a credit check,
— a check from the sublessor (shareholder), payable to Nagle Apartments Corp., in the amount of $75 (the Sublet Application Fee), and
— a check or money order from the sublessor, payable to Nagle Apartments Corp., in the amount of the sublet fee (see Item 7 below); and
6b. the proposed subtenant must be interviewed and approved at the following Board meeting or at a special Board meeting scheduled specifically for that purpose.
7. Sublet Fee. The shareholder will be charged a sublet fee of $15 per share for the first year and $25 per share for the second year. The sublet fee will be prorated for subleases that are shorter than one year in length. The fee is due along with the sublet application upon submission (see Item 6a above).
Note: In addition, the management company will charge a $400 fee to process the sublet application.