Heard the term “condop” while touring Long Island City and wondered what it actually means? You are not alone. In NYC, people use the word in a few different ways, which can make your search feel confusing. In this guide, you will learn what a condop is, how it works in LIC, what it means for financing, taxes, subletting, and resale, plus the key documents to review before you make an offer. Let’s dive in.
What a condop is
A condop is a hybrid structure that mixes condominium and cooperative elements in one building. In the most common NYC setup:
- The building is a condominium with multiple condo units.
- One of those condo units is the entire residential portion, and that unit is owned by a cooperative corporation.
- You buy co-op shares and receive a proprietary lease for your apartment inside the co-op’s residential condo unit.
In simpler terms, the commercial spaces, such as retail, office or parking, are usually separate condo units. The residential part is owned by a co-op corporation that issues shares to residents.
Market shorthand vs. legal reality
In listings, “condop” sometimes means different things. It can describe the true hybrid structure above. It can also describe a co-op that has condo-like policies on subletting or financing. Because usage varies, you should verify the legal structure by reviewing the condo declaration, co-op by-laws and proprietary lease rather than relying on the label.
Why this structure exists
Sponsors have used condops to keep commercial units separate from residential governance and finances. The setup can also reflect tax, financing, or regulatory goals. The result is a building where the residential co-op and the commercial condo units operate side by side with separate rules and budgets.
Condop vs. condo vs. co-op
Here is what you actually receive in a condop and how it is governed:
- Ownership form: You typically buy co-op shares and a proprietary lease, not a deed to an individual apartment as you would in a condo.
- Governance: A co-op board oversees resident matters and enforces the proprietary lease and house rules. The overall condo association handles common elements and the commercial units. The condo declaration and co-op documents work together.
- Key documents: Review the condo declaration and by-laws, the co-op proprietary lease and by-laws, the offering plan and resale package, commercial leases, and any underlying mortgages on the co-op or condo common elements.
Because there are two layers, you will want to understand how taxes, common charges, insurance, and reserves are allocated between the condo and the co-op.
How condops show up in LIC
Long Island City has seen a surge of condominium construction and conversions. Condops are less common than full condos in LIC, but they do appear in mixed-use or conversion projects. Market interest can depend heavily on the building’s sublet policy and investor rules, since many LIC buyers value flexibility. If a listing says “condop,” confirm whether it is a true condop or simply a co-op with more flexible policies.
Financing a condop in LIC
Financing tends to follow co-op norms:
- Many lenders treat a condop apartment like a co-op share loan, not a deeded condo mortgage.
- Underwriting can be tighter than for condos. Expect higher down payment requirements or stricter debt-to-income and reserve standards in some cases.
- Some lenders are not familiar with condops. Work with NYC lenders or mortgage brokers who have experience with condops and co-op share loans, and if possible, with your specific building.
Get pre-approved early so you understand your options and timeline before you submit an offer.
Taxes and monthly charges
Monthly charges in a condop are usually called maintenance, similar to a co-op. That maintenance often covers:
- The co-op’s allocated real estate taxes and operating costs for the residential condo unit.
- The co-op’s share of condominium common charges if applicable.
Commercial condo units have their own taxes and expenses. If a commercial tenant’s rent changes or a tenant defaults, the impact can flow through the condominium budget and may indirectly affect residents depending on the building’s setup.
Subletting, investors, and approvals
Plan for co-op style approvals and policies:
- Board approval: Buyers typically submit financials, interview, and receive board consent, which can add time and documentation to the closing.
- Subletting and investor rules: Buildings vary. Some are more flexible, others have co-op-like limits. The proprietary lease and by-laws control the rules.
If you need a flexible living or leasing plan, confirm these policies early.
Resale value and liquidity
Condops often trade at a discount to full condominiums because financing is more limited and some buyers avoid co-op share structures. Liquidity can be lower than for condos, and investor or foreign-buyer financing may be constrained. In LIC, where many buildings are full condos, a condop’s resale prospects will depend on board policies, the building’s finances, and how well buyers understand the structure.
Due diligence checklist
Request these items early so you can spot benefits and risks:
- Legal structure: Condominium declaration and by-laws, and the co-op’s certificate of incorporation, by-laws, shareholder agreement, and proprietary lease.
- Financials: The last 2 to 3 years of audited financials for both the condo and the co-op, current budgets, reserve levels, and any recent or pending assessments.
- Offering plan and amendments, if it is a conversion or newer building.
- Board policies: Subletting, investor or foreign buyer restrictions, house rules, and any flip tax.
- Commercial leases: Copies and a summary rent roll for commercial condo units.
- Underlying mortgages: Any mortgage on the co-op entity or condo common elements, including key terms.
- Litigation: Any pending lawsuits involving the building or major contractors.
Questions to ask your team:
- How will your interest be recorded, shares and a proprietary lease or a deed?
- Which lenders actively finance this building type in NYC, and what down payment is typical?
- How are taxes, common charges, and expenses split between commercial and residential segments?
- What does the sublet policy allow, and for how long?
- Are there unusual transfer or approval clauses that affect resale or financing?
Common red flags
- Documents that conflict or leave key items unclear, such as who pays for certain capital items.
- Heavy reliance on short-term commercial leases that could change cash flow.
- Low reserve levels for either the co-op or the condo association.
- Extra-restrictive board practices that are not reflected in written policies.
Who a condop can fit
A condop can work well if you value a co-op style community, are comfortable with board approvals, and want potential value relative to nearby condos. It can also appeal if you plan to occupy the home rather than rent it frequently, depending on the building’s sublet policy. If you need maximum financing flexibility or the broadest buyer pool at resale, a full condo may be a better match.
Work with a local, technical advisor
Because a condop blends two sets of rules and finances, a clear-eyed review of documents and building systems is essential. As a developer-broker, our team pairs transaction guidance with construction fluency, so you understand both the paperwork and the physical asset. If you are weighing a condop in Long Island City or comparing it to a condo or co-op nearby, we can help you evaluate the legal structure, board policies, financing options, and resale outlook.
Ready to sanity-check a specific LIC building or map your next steps? Connect with Mark O’Brien Real Estate. Book an appointment and get a clear plan.
FAQs
What does “condop” mean in LIC listings?
- In LIC, “condop” can mean a true hybrid where a co-op owns the residential condo unit, or it can mean a co-op with condo-like policies. Verify the legal documents to be sure.
How is financing different for a condop in LIC?
- Lenders often treat condops like co-ops, so you may see higher down payments and stricter underwriting than condos. Work with NYC lenders who know condops.
Do condops in LIC allow subletting like condos?
- Sometimes, but it depends on the proprietary lease and by-laws. Some condops are flexible, while others follow traditional co-op limits. Confirm the policy in writing.
Who approves my purchase in a condop?
- Expect a co-op style board approval process with financial disclosures and an interview. Closings can take longer than condo transactions.
How do taxes and monthly charges work in a condop?
- Shareholders pay maintenance that typically covers the co-op’s allocated real estate taxes and expenses, plus any condo common charges owed by the residential unit.
Are condops harder to resell than condos in LIC?
- Often yes, since financing can be more limited and some buyers prefer deeded condos. The building’s rules and financials will also affect marketability.
