When multifamily buildings are converted into cooperatives, tenants in occupation will have the right to purchase their apartments before they are put on the market, often at a desirable rate. Occasionally, tenants who initially decline this offer may later change their minds; in such instances, can their original right to purchase be recovered?
In short, if your initial right to purchase has expired, then you cannot reclaim it. However, there is still good news: assuming your lease is still rent-stabilized, there is a great chance you can still buy your apartment at a considerable discount. This discount would not be of-right, but rather would reflect the economic value of an apartment that has a rent-stabilized tenant in possession (you). As a matter of law, rent stabilized tenants cannot be evicted as long as they continue to their rent; therefore, if your apartment was sold, your tenancy would come along with it. Third-party purchasers could not make personal use of the apartment, and investors would inherit a tenant paying below market rent. Simply stated: your occupied apartment has a considerable lower market value than a similar, vacant apartment. For a purchasing tenant, however, there is no economic difference.
The specifics of your discount are heavily affected by a number of factors, including how low your rent is as compared to the market rate, if you are rent-controlled, what your age is, etc. If your rent is lower than the sponsor’s carrying costs for the apartment, for example, then that would be a particularly valuable factor. Assuming, however, that the numbers tend to work in your favor, you could be looking at a discount of 20% to 40%.
If you’re interested in making such a purchase, it would be wise to first hire an attorney to review the offering plan, financials, and other paperwork before contacting the building’s sponsor to negotiate.