LPTC Sublet and Guest Policies


            LPTC’s subletting rules are based upon a provision in the Proprietary Lease (Paragraph 15, Page 6).  A copy of Paragraph 15 is attached.  (A complete copy of the LPTC Proprietary Lease and other documents such as the LPTC House Rules can be found on LPTC's website (www.44w62.com) under Building Documents.  The user name is "tenant" and the password is "owner".)


            Over the years, various Boards of Directors of LPTC have adopted sublet rules and guidelines, which are consistent with the provisions of the Proprietary Lease, that, among other things, limit the number of years that a shareholder may sublet an apartment.  The general rule is that a sublet of an apartment by a shareholder is permitted for any two years out of any five years although various Boards have allowed extensions to sublet for more than two years when, for example, the market was depressed and the failure to grant an extension would have forced a sale of an apartment during a down market.  In addition, the sublet rules and guidelines adopted by the Board provide for a sublet fee to be paid by the shareholder based upon the maintenance for the apartment.  Currently, the sublet fee is (a) 15% of the monthly maintenance multiplied by the number of months of the sublease for the first year or portion thereof and (b) 22.5% of the monthly maintenance multiplied by the number of months of the sublease for the second year or portion thereof.


            As to the application of the sublet rules, the Board has said that it considers a sublet to exist when a person, other than the shareholder(s) or a permitted family member (as defined in the Proprietary Lease), resides in an apartment in which the shareholder(s) is not residing (i.e. living full time) and consideration is received by the shareholder(s) in conjunction with the person residing in the apartment.  Accordingly, no sublet fee would be payable, and LPTC has never imposed a sublet fee, when (1) a permitted family member (i.e., shareholder and shareholder’s spouse, their children, grandchildren, parents, grandparents and brothers and sisters) resides in an apartment, or (2) a person, who is not a permitted family member, resides in an apartment in which the shareholder is living full-time, whether or not the shareholder receives consideration from the person.  Therefore, a nurse, aide or companion, for example, may reside in an apartment with a shareholder regardless of whether the nurse, aide or companion pays rent or contributes to the cost of groceries, telephone or utility expenses, etc. and LPTC has never imposed a sublet fee in that situation.  However, if a person, who is not a permitted family member, resides in an apartment in which the shareholder is not living full-time and the shareholder receives consideration in connection with the residence then it is a sublet which is subject to prior approval by the Board and the payment of a sublet fee.


            LPTC's guest policy would apply in a situation where a person, who is not a permitted family member, resides in an apartment in which the shareholder is not living full-time and the shareholder does not receive any consideration from the guest.  LPTC allows shareholders to have guests reside in his/her apartment by completing a form that is retained at the front desk.   A shareholder may have a guest in his/her apartment for up to 30 days.  Further, although the strict interpretation of the guest policy in the Proprietary Lease states that the shareholder must be present while the guest is staying in the apartment, historically, LPTC’s Boards have taken a more lenient view and not required the shareholder to be present.  The 30 day limit was designed to prevent the guest policy from being used as a backdoor approach to subletting.


The Board believes that it has developed a very reasonable sublet policy and guest policy for our building and that it has been very reasonable in its interpretation of those policies.  There are some buildings that do not allow any subletting.  There are some Buildings that more strictly interpret the subletting and guest definitions than is done at LPTC. 


            To be absolutely clear, anyone (whether called a guest, a companion, a nurse or an aide) may reside in an apartment with the shareholder present and that situation has never been considered a sublet. 


The sublet rules and guest rules have been in effect for many years and have been enforced uniformly and fairly for everyone.




The following is an excerpt from LPTC’s Proprietary Lease (Paragraph 15, Page 6) relating to Subletting:


            15.  Except as provided in Paragraph 38 of this lease, the Lessee [shareholder] shall not sublet the whole or any part of the apartment or renew or extend any previously authorized sublease, unless consent thereto shall have been duly authorized by a resolution of the Directors, or given in writing by a majority of the Directors or, if the Directors shall have failed or refused to give such consent, then by lessees owning at least 65% of the then issued shares of the Lessor [LPTC].  Consent by lessees as provided for herein shall be evidenced by written consent or by affirmative vote taken at a meeting called for such purpose.  Any consent to subletting may be subject to such conditions as the Directors or lessees, as the case may be, may impose.  There shall be no limitation on the right of Directors or lessees to grant or withhold consent, for any reason not proscribed by law or for no reason, to a subletting.


            Anything contained in this paragraph 15 to the contrary notwithstanding, if the Lessee subscribed to purchase the shares allocated to his apartment on or prior to October 2, 1982, as evidenced by  the copy of his Subscription Agreement annexed to the Lease, he may sublet his apartment (1) for an aggregate period of one year or less, inclusive of renewal terms, without the consent of the Apartment Corporation, but on written notice to the then Managing Agent, and (2) for a period in excess of one year, with the consent of the Lessor, which consent shall not be unreasonably withheld.


            Each sublease shall be in writing and shall require the subtenant to observe and comply with all the terms and conditions of this Lease, except those relating to the payment of maintenance.



The following is an excerpt from LPTC’s Proprietary Lease (Paragraph 14, Page 6) relating to Use of Premises:


14.  The Lessee shall not, without written consent of the Lessor on such conditions as Lessor may prescribe, occupy or use the apartment or permit the same or any part thereof to be occupied or used for any purpose other than as a private dwelling for the Lessee and Lessee's spouse, their children, grandchildren, parents, grandparents, brothers and sisters and domestic employees, and in no event shall more than one married couple occupy the apartment without the written consent of the Lessor.  In addition to the foregoing, the apartment may be occupied from time to time by guests of the Lessee for a period of time not exceeding one month, unless a longer period is approved in writing by the Lessor, but no guests may occupy the apartment unless one or more of the permitted adult residents are then in occupancy or unless consented to in writing by the Lessor.




NYA 482178.1 99980 00900