Legal Question in Real Estate Law in New York

Re: coop

You could always sell and let the new owner pay the assessment.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: coop

What Mr. Nager said is correct, though it's worth mentioning that there's no guarantee that the maintenance will cover all of the expenses. You need to review the offering plan, which should include the corporation's bylaws.

It makes a difference if you bought from another tenant-shareholder or from the sponsor. It also makes a difference if the assessment was in place (adopted; whether it was being collected is beside the point) before you bought. If so, then the assessment should have been disclosed in the contract.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: coop

You have to check the By-Laws and Rules. In many instances, assessments are based upon reasonable projections, and if this assessment was unanticipated, it appears legal if all requirements for increasing assessments were followed. In many instances major repairs become necessary, not anticipated in projecting annual budgets and assessments. This appears to be what happened. If major replacements are required, with no surplus having been provided for them, most coops allow additional assessments to be levied to cover the costs. The By-Laws and Rules should set forth the procedure to be followed when additional assessments become necessary. Check them first. If the proper procedures have not been followed, you can insist they be followed. However, I am anticipating that the Board knew what they were doing and followed the procedures. Added assessments are not unusual, when unforeseen probelms arise.

Re: coop

"Fighting them" is effectively "fighting yourself." So, be careful what you ask for.

But, you might carefully review all of the financials, to determine if there has been waste.

You might request a reassessment of the costs of maintenance and repair or proposals from other contracters.

You might investigate the Bylaws especially respecting any "fund raising" possibilities, that may help to reduce the burden on tenants; and minutes, from meetings you may not have attended.

Review whether there are any rent/maintenance assistance programs for seniors, the disabled, etc., It may sound strange in a Coop, but a "nice" place stays nice, by maintaining a stable, community and living environ.

Good luck,

Phroska L. McAlister, ESQ