Excellent article that explains the problems of co-ops with flood damage. Big surprises to building boards and residents (and banks) after Hurricane Sandy.

Link???

NY Times limits # of free articles non-subscriber viewers can see per month.

http://www.nytimes.com/2013/05/02/nyregion/fema-policy-keeps-co-ops-from-disaster-aid.html?hp

It is interesting. Living in a co-op and having it flood is really going to fall onto the residents to make it whole as they are not eligible for individual dwelling policies (they don't own the unit) nor is the building eligible for a RCBAP.

It is a tough situation. They do buy a unit, but really the right to use the unit. Banks provide financing on these purchases regularly.

At great credit risk peril apparently, which they may not have previously recognized.

It's like the bank down here on the coast in which I had to point out to the president that their uninsured flood exposure on their commercial portfolio almost exceeded their current capital.

Yes, apparently at great credit risk due to flood! Ownership of coops are bought and sold, so that part is not a problem. The hard part was always getting approved by the coop board. Now the hard part is weather related disaster.