ARREARS AND SUBLETS, P.2

 

"We worked with him on that," Mack recalls. "He presented a very nice candidate, and, of course, all the responsibility stays with the shareholder." Although the owner had initially requested a six-month lease, which the board okayed, that was later extended to a full year. "So far, so good — we're getting maintenance, plus a substantial amount of the arrears every month," says Mack. "In another six to eight months we'll be right back up to speed [on maintenance payments] with that shareholder."

Whiting says boards should always consider the big picture in deciding on its stance. "During hard economic times, boards should allow sublets in cases of hardship or job relocation," she notes. "In these times, boards are going to be more flexible and should be."

She cites a couple of cases. In one, a man became infirm and had to move. Although he immediately put the apartment on the market, months later it was still unsold. Another couple in the same building got a divorce. She was the one with the money — and moved out — and he was the one with a job with Legal Aid. He couldn't afford to maintain the apartment, so he put it up for sale. But it's been on the market a long time.

Your goal is not to bankrupt the owner

or ruin his equity with the lender.

"In both cases," Whiting says, "the owner has been reasonably trying to sell the place." Sublets in such situations make sense, she says, since your goal is not to bankrupt the owner — or ruin his equity with the lender, whom you can always call in — but to get your monthly maintenance covered.

"It's a terrible time," observes Mack. "A lot of people [have been fired]. We have been pretty lenient with all that. We feel that a creative solution is better than a dramatic one. Give it as much time as you can. After all, it could happen to you."

 

 

Adapted from Habitat October 2009. For the complete article and more, join our Archive >>