A friend is in the process of applying for FHEPS program, which as I understand will completely cover her rent as it is only $875 and she lives alone with 2 children.
She will also be getting Cash Assistance.
She lives in 128 Unit Building. Last December every one in the building got an offering plan book of conversion which aims to convert the building to a condo.
Cover page of the book states:
THIS IS A NON EVICTION PLAN. NO NON-PURCHASING TENANT WILL BE EVICTED BY REASON OF CONVERSION TO CONDOMINIUM OWNERSHIP.
BECAUSE SPONSOR IS RETAINING THE UNCONDITIONAL RIGHT TO RENT RATHER THAN SELL RESIDENTIAL UNITS, THIS PLAN MAY NOT RESULT IN THE CREATION OF A CONDOMINIUM IN WHICH THE MAJORITY OF THE RESIDENTIAL UNITS ARE OWNED BY OWNER OCCUPANTS OR INVESTORS UNRELATED TO SPONSOR. PURCHASERS FOR THEIR OWN OCCUPANCY MAY NEVER GAIN CONTROL OF THE BOARD UNDER THE TERMSOF THIS PLAN, (SEE SPECIAL RISK SECTION OF THIS PLAN.)
There were 27 empty apartments at the time this offering plan was made. All of these apartments have undergone complete gutting out and extensive renovations. The last 10 are being worked on now.
As I understand, in lieu of the recent law changes it would be extraordinarily difficult for the condo conversion to happen as they need to get 51% of the existing tenants to buy the units, right?
The prices listed in the offering book, are simply astronomical. Every apartment listed has an inside price (only for the tenant, if he were to buy) and outside price (if a person who is not living in the apartment would buy), which is exactly 15% higher.
My friend's large 2 bedroom 1 bath apartment has an inside price of $744,000
She thinks that the price is this high because there is a new building boom going on all around her building and new condos are being sold for this price. Yet her building is really old and doesn't even have a sprinkler system.
She and other tenants were told that the management, who is also the sponsor will most likely be offering to buy people out. Does this scenario still look likely in lieu of the recent law changes?
At least 10 vacant apartments began to be gutted more than a month after the new law changed, and she thinks if the LL thought that it cannot convert it wouldn't have started. Is this line of thinking correct?
Now for the most important question, will the fact that she will be getting FHEPS, affect the LL buyout of her particular apartment? Will the city agency have to be involved as well?
Will she have to pay back for the months that city paid for her?
Thanks