Why don't coops just convert to condos in NYC?

[scotty]

I've always wondered about this. If coops really trade at a 10% to 40% discount to condos of the same size and quality, why on earth do coop owners not just vote to convert to condo ownership? I assume it'll take a majority of shareholders to approve a drastic change like this, but aren't the benefits obvious?

I'm not talking about the super exclusive coops on Fifth Avenue some of whom I'm sure only allow all cash buyers that they really like. How about the 50-75% of city apartment inventory that are just regular coops lived in by regular New Yorkers? Why do they agree to continue with this BS form of living?

[Benny]

Great question. I actually have fantasized about buying into a coop, or even a HDFC coop, and somehow convincing everyone to convert the building into a condo. I realize it might be tougher with the HDFC as you'll probably need all sorts of government approvals, but should it theoretically be possible for a coop if all the shareholders agree to convert?

What's the holdup? All existing owners will instantly get a bump in their net worth, and they'll actually own real property!

Do you think it's the coop board members who have more power in a coop structure, and who don't want to let go of power that prevent these conversions from happening?

[lower_nyc]

Great question. I actually have fantasized about buying into a coop, or even a HDFC coop, and somehow convincing everyone to convert the building into a condo. I realize it might be tougher with the HDFC as you'll probably need all sorts of government approvals, but should it theoretically be possible for a coop if all the shareholders agree to convert?

What's the holdup? All existing owners will instantly get a bump in their net worth, and they'll actually own real property!

Do you think it's the coop board members who have more power in a coop structure, and who don't want to let go of power that prevent these conversions from happening?

As much as buyers complain about co-ops onerous rules and policies, I feel that once they become 'insiders' they don't want to give up any of the extraordinary powers which board members possess!