Bronx Coop maintenance increases ? (rental, insurance, condo)

[Will3020]

Does anybody know how often can coop board increase the maintenance in a unit ? What % can the board go up and get away with it? Any help would be appreciated....

If you happen to live in a coop I would like to hear from you too...

[Moderate Guy]

Originally Posted by Will3020

Does anybody know how often can coop board increase the maintenance in a unit ? What % can the board go up and get away with it? Any help would be appreciated....

If you happen to live in a coop I would like to hear from you too...

Your bylaws might provide a clue, but generally, a board can increase maintenace for any current or projected budget shortfall. So many factors impact this - blanket mortgage on building, salaries to building staff, insurance, taxes, general repairs. They can even levty special assessments for one time items.

[Will3020]

But can it increase annually..? I worry about this because then it's almost like rental. I currently live in a rental and although I'm looking into buying dont want to buy and then be faced with continual increases to maintenance fees. It's crazy ! I heard that if the building is financially sound there aren't increases for a number of years. I'm looking into this particular unit in the Bronx and from what they listing/sellers agent reported, she said that the actual maintenance increased 15% effective October 1st 08' even though she initially told me and me agent that the building was financially sound? She later told me that the seller didn't disclose this to her until her daughter told her about it. Anyway, the fact remains that it was increased by 15 % due to remains to roof, etc (funny I thought this building had enough reserves) I can manage to pay the maintenance however would be quite worried if it continues to jump 15 %. At this point, I am at an impasse. What do you think ?

[Moderate Guy]

Originally Posted by Will3020

But can it increase annually..? I worry about this because then it's almost like rental. I currently live in a rental and although I'm looking into buying dont want to buy and then be faced with continual increases to maintenance fees. It's crazy ! I heard that if the building is financially sound there aren't increases for a number of years. I'm looking into this particular unit in the Bronx and from what they listing/sellers agent reported, she said that the actual maintenance increased 15% effective October 1st 08' even though she initially told me and me agent that the building was financially sound? She later told me that the seller didn't disclose this to her until her daughter told her about it. Anyway, the fact remains that it was increased by 15 % due to remains to roof, etc (funny I thought this building had enough reserves) I can manage to pay the maintenance however would be quite worried if it continues to jump 15 %. At this point, I am at an impasse. What do you think ?

Buying any home is a major undertaking. And in a co-op or condo there are additional variables not found in a traditional single family home. Maintenance/common charges/special assessments are the jargon that you have to get used to. Now, you don't want to accidentally hear from the daughter of the seller about increases, etc. I'd say you need more info from the seller, the seller's agent, your agent, board members, the prospectus, bylaws, etc. And if you do proceed further, an attorney to look over valuable documents is a must.

Remember that just as they'll be vetting you, you need to vet them before jumping aboard and being hit with unexpected increases and assessments.

Be forewarned, though that even the best run copoperative can face unanticipated shortfalls. Pay special attention not only to the current budget but to the reserves which the coop has for future contingencies.

Good luck.

[Will3020]

thanks Miles. I will 1000% have an attorney reviewed buildings financials as required. And, if need be, I guess I can pull out of the deal.

[Viralmd]

I concur with Miles' conclusions. In addition, look at the assessments that have been made in the building. This is something your attorney's office should be doing for you after you've gone to contract.

Usually the board has a free hand in maintenance increases, because many expenses are unpredictable: changes in union salaries for building employees, major repairs, etc.

[bmclasky]

I live in Brooklyn and they just increased the maintenace fee by 10 percent and doubled the air conditioner fee. We had a brief Coop meeting where they said they wouldn't increase the fee right away and March the increase will be set. Is there any way that I can audit or examine why the increase is set?

[Moderate Guy]

Originally Posted by bmclasky

I live in Brooklyn and they just increased the maintenace fee by 10 percent and doubled the air conditioner fee. We had a brief Coop meeting where they said they wouldn't increase the fee right away and March the increase will be set. Is there any way that I can audit or examine why the increase is set?

As a shareholder, you should have access to the corporation's books.

[bmclasky]

Hi, I would like to know if a radiator leaks in a coop in brooklyn and causes damage to the wall after waiting for them to fix it, who repairs the wall?

[Moderate Guy]

Originally Posted by bmclasky

Hi, I would like to know if a radiator leaks in a coop in brooklyn and causes damage to the wall after waiting for them to fix it, who repairs the wall?

Check out the buiding's blanket insurance coverage in addition to any that you individually have.