Island House is privatized.
Over 50% of the building’s apartments are purchasing their units. Some 54% of shares are represented, giving the residents stakeholder control of the building’s board of directors.
The announcement was made Saturday night (March 28) by Graham Cannon, head of the Island House Tenants Association.
“I am delighted to be able to announce that we have a majority of shares contracted for sale!” Cannon wrote in a message to tenants. “As of this morning, there are 200 PA’s [purchase agreements] submitted. That represents 50.1% of the 399 units and, more importantly – 54% of the shares.”
Cannon continued, “We have an insider controlled board -- holding four of the seven seats for the next few years until the sponsor, under the law, must scale down his engagement. Elections will be held as soon as there are enough closings to reach 51 percent of the shares – most likely sometime over the summer. Something all of us will have to get used to – a coop board is a corporation with very clear and substantive legal and fiduciary responsibilities including overseeing the management and expenditures of the building and making key financial decisions – and the reality that we will now be working with the sponsor on a day-to-day basis to the benefit of all of Island House’s residents. It will be an interesting and exciting learning and engagement process.
“Thank you everyone for getting us here – making the dream of affordable housing security controlled by us a reality – and to working together on the exciting challenges and opportunities ahead!”