Sublet Policies

The Proprietary Lease provides that the Shareholders of 350 Bleecker Street Apartment Corp. (the "Co-op") may not sublease their apartments unless they have received consent from the Board of Directors. From time to time, the Board has adopted policies in regard to subletting for various reasons including, most recently, the fact that refinancing the Co-op's underlying mortgage, and financing the purchase of an apartment, may be adversely affected by the fact that the Co-op has too many subleases outstanding.

In light of the foregoing, the Board has recently adopted certain changes in its Sublet Policy, and the new Sublet Policy set forth below is effective immediately.

  1. This Sublet Policy is intended to supplement the provisions of the Co-op's governing documents, including any rules or regulations promulgated by the Board and each Shareholder's Proprietary Lease. The Sublet Policy may be modified by the Board from time to time on notice to the Shareholders.
  2. Any request to sublet shall be in writing and require the completion of the Co-op's application for sublet, on the Co-op's standard form, which shall be submitted to the Co-op's managing agent. All supporting documentation and checks in payment of any requisite fees shall be delivered at the time of application submittal.
  3. Any request to renew an existing sublet shall be in writing and accompanied by an executed copy of the sublease renewal or new sublease, which shall be submitted to the Co-op's managing agent. Such request with a subtenant that has been previously approved by the Board may require the completion of the Co-op's application for sublet in whole or in part, as determined by the Board in its sole discretion.
  4. The sublet fees relating to any sublet shall be subject to review and modification by the Board from time to time. Any Shareholder who has already been granted the right to sublet his or her apartment for two (2) years in any five-year period and who submits a further application to sublet (or renewal) during such five-year period shall be subject to a sublet fee that is 50% higher than the customary sublet fee; and consent, if granted, shall be for only one additional year.
  5. A full month's sublet fee will be charged to the Shareholder regardless of the number of days a sublet tenant occupies the Shareholder’s apartment during the final month of the lease term.
  6. The Co-op's managing agent shall submit each completed sublet application (or renewal) to the Board for the Board's review and approval. All prospective subtenants shall be required to submit to a Board interview, unless waived by the Board. Consistent with the provisions of the Co-op's governing documents, including any rules or regulations promulgated by the Board and each Shareholder's Proprietary Lease, the Board shall have the sole discretion whether to schedule a subtenant interview, whether to approve or deny a sublet application (or renewal), and whether to impose any condition(s) relating to any sublet application (or renewal), as part of the granting of its consent. Any approval or denial of a sublet application (or renewal) by the Board shall be communicated to the Co-op's managing agent, who shall in turn advise the applicant. If the Board denies a sublet application (or renewal), neither the Co-op's managing agent nor the Board shall be required to state the reason(s) therefor.
  7. Shareholders are advised that no sublet application (or renewal) will be considered if:
    1. with respect to an application to sublet, the same shall not have been submitted at least fourteen (14) calendar days prior to the Board's regularly scheduled monthly meetings;
    2. with respect to a renewal, the same shall not have been submitted at least sixty (60) calendar days prior to the expiration of the sublet term;
    3. the sublet term is for a period other than twelve (12) months;
    4. the Shareholder (and/or, with respect to a renewal, the subtenant) is in breach of any of the provisions in the Proprietary Lease or any the Co-op's governing documents (including any rules or regulations promulgated by the Board), or shall have been in breach of any of the provisions in the Proprietary Lease or any the Co-op's governing documents (including any rules or regulations promulgated by the Board) during the prior 12-month period;
    5. the Shareholder shall have owned his or her apartment for less than two (2) years; and
    6. the Shareholder shall have sublet his or her apartment on one or more occasions for more than three (3) years in any five-year period.

The Board has the right to waive any of the foregoing in its sole discretion.