Archive for November, 2016

Why are co-op share loans scarce?

Saturday, November 5th, 2016

Residents of housing cooperatives know that there are few banks or credit unions willing to make loans to them secured by their shares of stock in the cooperatives, even though such loans are treated as loans on residential real property, just as loans to owners of condominia are.

Why the lack of competition in the market for co-op share loans? One California company in the business offers an explanation, rooted in the rarity of housing co-ops and the risks incurred by lenders in the event of a default.

Berkeley co-op lawsuits end

Wednesday, November 2nd, 2016

On 27 October 2016 Judge George C. Hernandez, Jr., of the Alameda County Superior Court signed an order approving a June 2016 settlement of two lawsuits, originating 4½ years ago, involving the governance of Berkeley senior housing cooperative Berkeley Town House (“BTH”). Plaintiff Jonathan Pool and BTH had jointly submitted the order to the court after the court had considered the arguments for and against approving the settlement.

The court’s order made 27 October 2016 the “Effective Date” of the settlement, starting the clock on various actions that Pool and BTH agreed they would perform in implementing the settlement.

A day before the court’s final approval, BTH kicked its own implementation of the settlement into high year by establishing a committee and a process for a 5-month review of its 34 governing documents, which date back to 1989.

On the same day as Hernandez signed the order, he also ordered the parties in one of the lawsuits to appear in court on 9 February 2017 for a hearing to monitor the parties’ compliance with the settlement.