So I came across this article about the Top Dozen Reasons for Co-op Board Rejections in New York City. Anything from bad credit and poor financials, to unacceptable lifestyles and a poor interview with the board, could cause an application to be denied. But don't worry...this isn't NYC.
A Moment of Clarity
Many of the horror stories you've heard about the co-op board approval process in NYC are quite astonishing, but fortunately, would be totally illegal in DC. Co-op boards in the District of Columbia are bound by Federal Fair Housing law, as well as DC law that protects additional classes of people. In fact, District co-op boards are pretty much limited to choosing potential owners based on:
- Financial Resources
- Criminal Background
- Non-compliance with the Rules of the Association
A cooperative can be a great condo-alternative if you're looking for a place to call "home". Because co-ops typically restrict owners from renting their unit to a tenant, you'd have to sell the place when/if you're ready to buy your next crib. Buyers are usually required to use specific lenders for financing, but many co-ops have several lenders to choose from. With lower property taxes, owner-occupants only, and lower closing costs, co-ops make a lot of sense for many folks. Be sure to work with an agent who understands the pros/cons of condos and co-ops. For detailed information, read: Condos vs. Co-ops: What is the difference?