Is the path to an NYC condo renovation different from a co-op?

Do you remember Tabitha?

She's the mom of two boys, renting a two-bedroom apartment in Chelsea. She's lived there since before The Red Cat closed. In fact, it was a favorite date-night spot for her and her husband, back when he was still just her boyfriend.

But now, he's been her husband for eight years, and they have two boys. The Red Cat is no more, and neither is Tabitha's willingness to share a single bathroom, where she's constantly cleaning, wiping, plunging, and replacing empty rolls of toilet paper.

Enough!

The family is moving to the Lower East Side—hooray—and planning to renovate when they do. They have an accepted offer on a unit at Seward Park Cooperative, but they're also looking at condominiums. Since they're planning a renovation, newer buildings like One Manhattan Square or 66 Clinton won't fit the bill—the cost of those renovations is already built into the purchase price. Instead, they're looking at condominiums that need a little TLC.

Let's think about this for a moment: What's the difference, and how do the respective renovation paths compare?

First, a quick distinction between a cooperative and a condominium. In the case of a co-op, the purchaser buys shares in the corporation that owns the building and receives a proprietary lease for a particular apartment. In the case of a condominium, the purchaser buys the actual apartment as a separate piece of real property.

For Tabitha and her family, this means that, in a co-op, they need the corporation's consent to renovate under the proprietary lease and alteration agreement. In a condominium, they would own the apartment itself, along with an interest in the building's common elements. The condominium's board would manage the property's affairs and protect those common elements. Its approval authority comes from the declaration, bylaws, house rules, and any applicable alteration agreement.

In short, both types of buildings have measures in place to protect the property and its occupants, but the way they operate and govern renovations can differ markedly.

The same applies to the renovation process.

Parallel paths to renovation...or not?

With regard to approval from the Department of Buildings (DOB), co-op and condominium renovations generally follow the same public path.

If Tabitha's renovation requires plans and permits, she still needs a New York-licensed architect or engineer to prepare and submit the filing. The project may still require a Tenant Protection Plan because other apartments in the building are occupied. Her contractor still needs the appropriate work permits before beginning. Plumbing, electrical, and other trade work may also require their own filings or permits.

For the sake of clarity, DOB is not deciding whether Tabitha has permission from her building. It is deciding whether her proposed work complies with New York City's construction rules.

Here's how the process typically works in a condominium:

Following closing, the purchasers sign the condominium's alteration agreement, including the renovation plans and scope of work
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The managing agent and, where required, the condominium's reviewing architect or engineer review the plans
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The Board of Managers approves the renovation concept, provided the proposal complies with the condominium's governing documents and building requirements
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Tabitha's architect files the project with DOB
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DOB reviews and approves the job filings
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The contractor and any required licensed trade professionals obtain the necessary work permits
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Issued permits, insurance certificates, contractor documents, deposits, and other required materials are submitted to the managing agent
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The condominium gives final approval under the alteration agreement and authorizes construction to begin
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Tabitha gives the required advance notice to management, neighbors, and DOB, where applicable
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Work begins

Basically the same as a co-op, right?

Where a condo can feel different

In Tabitha's case, yes—the process and formalities are quite similar. But that has more to do with the scope of work than with the ownership structure itself. This project is a thorough—or "gut"—renovation, not a cosmetic touch-up.

As a co-op shareholder, Tabitha and her family would be requesting consent from the corporation that owns the building. As condominium owners, they would own the apartment itself, subject to the condominium's governing documents and the Board's authority over the building's common elements and operations.

Some condominium documents give owners greater freedom to make nonstructural, non-exterior changes within their own units. Others are every bit as detailed and demanding as a co-op's alteration rules.

Either way, if something goes wrong, the owner, contractor, and their insurers may be responsible for correcting damage and covering related costs. The co-op or condominium board may also have the right, under its governing documents, to stop unauthorized work, require repairs or restoration, draw on a deposit, or pursue reimbursement.

For Tabitha, the lesson is clear: Hire the right team, secure the right permits, follow the approved plans, and keep the building informed. (Her first great move? Planning the renovation with Budgetizer and interviewing recommended service providers through NYC Service Pro.)

This concludes the More For LES Renovation Series.

• ‍Click here to read Part 1: Yay, we bought an apartment! When can we start our renovation?‍
• Click here to read Part 2: Should we hire an architect before closing on a co-op?

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