Technically, a "condop" is a building that has a a residential coop section and a condominium section that is usually commercial: for example, a large residential building with shops, stores, and a public garage at the street level. However, this term has been borrowed and very popularly used today to indicate a coop "with condo rules." Condos generally have few or no restrictions or Board approval on subletting the units. A coop that allows unlimited subletting may be referred to as a "condop."
condop n. 1. A cooperative incorporated within a condominium building. 2. A cooperative that is run with little or no oversight from a board, much like a condominium.[Blend of condo and co-op.]
Condominiums do not have the same tax problems, so in some cases in which there are several commercial tenants in the building, the solution is to form a ''condop'' — a cooperative within a condominium. All the residential tenants in the cooperative make up one unit of the condominium and the commercial tenants are the other condominium owners.
—Diane Henry, "Talking co-op offices," The New York Times, December 12, 1982
24 August 1984, New York Times, "'Condop': A New East Side Conversion" by Kirk Johnson, pg. B7:
The "condop." It sounds rather like a new type of self-service laundry. But real estate developers and lawyers say it may become an increasingly common word in the lexicon of apartment ownership terms.
Condops, or condominium/cooperatives, feature a combination of co-op and condominium characteristics, and are usually formed when a landlord divides a mixed-use commercial and residential building into several large condominiums, then subdivides one condominium into a residential cooperative.
22 June 1986, New York Times, "Q and A" by Shawn G. Kennedy, "Considering a 'Condop,'" pg. R9:
According to David Fishlow, a spokesman for the Attorney General's office, the agency has been seeing an increasing number of plans in which the residential and commercial components are separate. One reason these plans, which are often referred to as "condops," are becoming more popular is because retaining control of the commercial or professional space in a building is sometimes more profitable for the sponsor than selling the entire project as a single entity.
20 February 1987, New York Times, "A New Lure By Builders: The Condop" by Anthony DePalma, pg. A21:
Another approach is to offer apartments called condops -- a hybrid form of ownership that, the sponsors assert, combines the best features of both condominiums and cooperatives.