If these rules are not complicated enough, matters are even trickier in certain condominiums.
Fannie Mae and Freddie Mac have certain rules for condominiums, such as limiting the total number of units that may be rented and still have the property qualify for Fannie Mae and Freddie Mac financing.
Certain residential areas and condominium complexes are almost entirely Japanese-owned.
For instance, certain neighborhoods have more condominiums for sale than co-ops.
A -- "Though it may sound odd, residential buildings on land leased from the city can convert to condominium ownership under certain circumstances," said Andrew P. Brucker, a Manhattan co-op and condominium lawyer.
"What the court is saying is that under appropriate circumstances, a board of managers of a condominium can license certain portions of the common elements to individual unit owners," he said, explaining that the ruling would clearly not apply in situations where the granting of a license would interfere with another unit owner's right to use a common area.
If land prices and condominium sales reach a certain point, then developers may begin pursuing condominium developments rather than rental projects.
"The rule provides that a certain ratio of units within a condominium must be occupied by their owners," Mr. Sherman said, adding that this was mainly because "investor-owned units tend to result in higher rates of foreclosure".
While lending for multifamily rental buildings, with its steady income flow, has been popular for the last 12 to 18 months, a growing number of lenders are now looking at condominium projects, hotel developments and certain office and retail buildings.
The condominium and cooperative statutes provides for certain procedures to be followed, in order for the special meeting to be valid.
