"We represent a 350-unit building in which the sponsor still holds a substantial number of unsold units," he said.

And while the sponsor holds only one seat on the board, it is the sponsor's management company that manages the day-to-day affairs of the building.

Lenders stopped - and have not resumed - lending to buyers in buildings where sponsors held more than 50 percent of the shares.

In many cases, lenders say they will not finance a co-op if a sponsor holds as few as 30 percent of the shares.

"If the sponsor holds too many unsold shares," he said, "banks will be hesitant to lend in the building."

In many conversions, for example, the sponsor can hold as much as 65 percent of the shares.

Further, if the sponsor no longer holds a voting majority in the co-op corporation, he may insist he can do nothing anyway.

The sponsors paid the fee and held the event, later filing a federal lawsuit after the City Council refused to change the policy.

The sponsor can also hold receptions in the space as well as conduct workshops and business presentations.

In 1995, the sponsors held an auction, selling some units for prices under $60 a share.