Q. What is SBT’s Sublet Policy?
A. New shareholders are prohibited from subleasing their units for the first two (2) years of their ownership. As per Southbridge Towers proprietary lease section 5.2, after the two (2) year period following the Shareholder may sublet the Apartment for no more than two (2) years out of any five (5) year period with a two (2) year gap period in between sublets. Shareholders are NOT permitted to sublet for less than one year (1) and not more than two (2). Shareholders who own more than one unit are not permitted to sublet.
Parents and children of shareholders can sublet indefinitely without paying monthly sublet fees, however, they must complete the initial sublet packet and be approved for residency.
Q. Are there any Additional Fee’s Associated with Subletting?
A. YES – There is a monthly fee for subletting, which is 100% of the basic monthly maintenance charge of your unit for the first (1) year, and 200% for the second (2) year.
Example Year 1: Monthly Maintenance: $600.00 x 100% = Monthly Sublet Fee of $600.00
Total Monthly Maintenance Including Sublet Fee = $1,200.00
Example Year 2: Monthly Maintenance: $600.00 x 200% = Monthly Sublet Fee of $1,200.00
Total Monthly Maintenance Including Sublet Fee = $1,800.00
Q. What exactly is a Flip Tax? (or Transfer Fee)
A. The flip tax is a fee paid by the seller on a housing co-op transaction typically in New York City. It is not a tax, and not deductible as a property tax. It is a transfer fee payable upon the sale of an apartment to the co-op.
Flip taxes are considered a method to help raise money for a co-op’s overhead expenses without raising the maintenance fees or assessing a flat charge to all residences. Charging the fee to those who are leaving the building seems to be the most politically feasible.
Q. What’s the Deal with the SBT Flip Tax? (or Transfer Fee)
A. The Tenant-shareholder shall pay to the Apartment Corporation a Transfer Fee (or Flip Tax) in an amount equal to twenty eight percent (28%) of the gross sales proceeds in the event of a sale or twenty eight percent (28%) of the fair market value of the Apartment as determined by an appraisal made by an independent MAI appraiser selected by the Board of Directors, in the event of a gift transfer in connection with the first transfer or sale of the shares of stock allocated and Proprietary Lease appurtenant to a particular Apartment in the building (each an “Initial Sale”) and equal to two and one half percent (2.5%) of the gross sales proceeds in the event of a sale or two and one half percent (2.5%) of the fair market value of the Apartment as determined by an appraisal made by an independent MAI appraiser selected by the Board of Directors, in the event of a gift transfer in connection with sales or transfers other than the first sale or gift transfer of the shares of stock allocated and Proprietary Lease appurtenant to a particular Apartment (each a “Subsequent Sale”).
Initial Sales (first sale only) – 28%
Subsequent Sales (all sales after the first sale) – 2.5%
The 28% Transfer Fee ONLY applies to the original owner selling the apartment for the first time.
Q. Is there Laundry in the Building?
A. YES – Southbridge provides laundry facilities in each of SBT’s 9 residential buildings. The machines are installed and maintained by Hercules Corp and utilize a smart card to operate. Laundry cards are available at the Management Office and in the card machine in each laundry room. You may add money to the card via the refill machines or visit http://hercnet.com to activate a smart card account and refill electronically. Residents are NOT permitted to install washer/dryers within their individual units.
Q. What About Renovations?
A. The Board and Management are committed to improving the property and will work to assist you in upgrading and renovating your apartment. It is required that Management review and approve all documents before any work can start and will conduct ongoing inspections of the work during the renovation process. This is to protect the integrity and stability of the building’s infrastructure and exterior, as well as the safety and security of you and your neighbors.
All contractors doing any type of work in your apartment must be insured and name you, Southbridge Towers, Inc and PRC Management as additionally insured. Shareholders are required to submit to the Management Office a signed Alteration Agreement, Contractor’s Scope of Work (proposal) and certificate of insurance along with a refundable security deposit against damages to the co-op before work is begun.
Q. Does Southbridge Towers Allow Pets?
A. YES – Southbridge Towers understands your pet is a member of your family, and we welcome service animals and well-socialized pets into our community. It is important for all residents and visitors of Southbridge Towers to feel secure in our facilities and on our grounds. Therefore, residents are responsible for familiarizing themselves with following dog-friendly policies and registering all dogs that reside at Southbridge Towers.
Q. Can You Own More Than 1 Apartment at SBT?
A. SBT 2nd Apartment Policy: “WHEREAS, at the time of the cooperative’s reconstitution in September 2015 there were concerns that investors would purchase apartments at Southbridge and undermine the cooperative’s stability and sense of community; and WHEREAS, the board at that time implemented a policy that did not allow for the ownership of more than one apartment unless it was contiguous and joined within a set period of time; and WHEREAS, there are numerous cases of family members wishing to purchase apartments for use by grandparents, parents and children and the perceived threat of investor purchases has not materialized.
IT IS HEREBY RESOLVED that effective January 1, 2021 shareholders at Southbridge shall be allowed to own in their own name or jointly with other family members, defined as the term family member shall mean either (a) the Shareholder’s Spouse or (b) one additional adult, and (i) the Shareholder’s children, grandchildren, stepchildren by marriage, parents, grandparents, brothers and sisters, a maximum of two apartments within the cooperative.
Any shareholder who owns more than one apartment will be prohibited from subletting either apartment for any period for so long as the shareholder owns more than one apartment.
Q. Can You Combine Apartments?
A. YES – It was determined that if an apartment is to be combined the Certificate of Occupancy does not need to be updated, rather, the shareholder will be required to file for an “Alt II” which will legally join the units. The combined unit will be entitled to one vote only. In the event that a current tenant purchases and combines another unit, a future sale of both units will create a condition where the required 28% flip tax will be paid based on a proration of the share count of the original unit that has not yet been sold. The remaining prorated portion will be required to pay the 2.5% flip tax only.
Alteration Packages – Purchasers will be required to hire their own engineer to determine if an apartment can be combined with another unit. After the documents are created, the building’s engineer will review and approve or deny the request. The purchaser will be responsible for those expenses.
Q. Can Shareholders Rent Out the Community Room?
A. YES – Southbridge helps promote a sense of community by offering two spacious rooms where activities, classes and meetings are scheduled. For private events, Southbridge welcomes residents to rent the larger room, which accommodates up to 150 people. Contact the Management Office for details. Due to Covid; the community room is currently closed and community activities are cancelled until further notice.
Q. Is there a Discount for the Parking Garage?
A. YES – Seaport Parking (Quik Park/Icon) offers a deeply discounted parking rate of $99/month to a maximum of 661 resident car owners. Currently, there is a waiting list for this special rate.
In the interim, you may take advantage of the reduced rate of $350/month, which is lower than the standard monthly rate. To be eligible for either discounted rate your driver’s license and registration must be issued to your SBT address. Benefits of renting a monthly space at Seaport Parking include 50% discount parking rates at other Quik Park/Icon Parking garages. Further, there is an administrative fee of $25 per month charged by the cooperative for each car parked in the garage.
Q. Does Each Building Have Storage Lockers?
A. YES – Residents may rent a storage locker located in each building for $50/month. Currently there is a waiting list for a locker rental.
Michael A. Roché
Length x Width
Broker of Record
Office: (212) 227-8281 | Mobile: (917) 392-3534