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I bought into a co-op in September that appeared to have good financials. The day I closed there was an oil spill in the basement (I know, great luck). Turns out those are expensive to remediate and insurance is refusing to cover anything. It will cost us about $150k, more than twice the amount in our reserve fund. We are a 6 unit co-op so this is costing us each about $25k each. We are maxed out on loans (we currently have three with our local credit union unrelated to the spill) and our only option is to both pay an assessment of about $7,500 each this month + raise our maintenance 20% monthly ($200 each) to secure a high interest commercial loan. The other members of the co-op are not particularly well-off and/or good with money, so this is a lot of money for them and honestly I’m not completely sure half of them can even pay it.

I was speaking with a fellow shareholder today and she mentioned that a shareholder who does not have a mortgage could take out a loan on behalf of the co-op. It felt like she obviously meant me (I bought all cash and have great credit and no other loans and she knows this because she just looked at all my finances, social security and life history in August to approve me lol). This felt a little weird. I do have the full amount in cash it would cost to remediate the spill in cash (but that’s all my money), and technically could lend it to co-op but to be honest that feels like a lot right off the bat (I am currently renovating my unit and haven’t even moved in yet). I don’t want any bad feelings towards anyone if they default (which feels perhaps likely at this point given we already have 3 other loans).

What are some other options here? I’m trying to do the right thing by my co-op while still protecting myself and this has already cost me a lot. Also if anyone has recommendations for affordable oil spill remediation please LMK lol