Read More »" /> Refinancing your Mortgage. Randall Pentiuk; Pentiuk, Couvreur & Kobiljak P.C. | National Cooperative Law Center - Part 3

Refinancing Your Mortgage

If the cooperative is organized as a low or moderate income housing facility, HUD will insist upon the cooperative signing a Use Agreement. This will replace the Regulatory Agreement, and require the cooperative to continue to serve the needs of these income groups for the duration of the term of the Regulatory Agreement.

In any event, once the new mortgage has been closed, HUD will provide a release of the Regulatory Agreement. This instrument needs to be recorded in the chain of title with the land title records. Also, the original lender needs to provide a discharge of the mortgage, which is also to be recorded.

There may be a need to amend certain provisions in the cooperative’s articles of incorporation, bylaws and occupancy agreement. A separate article explains in detail the types of changes that are either needed or desirable. We have helped many of our cooperative clients through this procedure, which culminates with a membership vote on these changes.

For more details please feel free to contact an attorney familiar with cooperative housing law.

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