Most cooperative and condominium apartment owners pay their monthly fees and assessments in full and on time. However, some of our clients have recently reported an uptick in arrearages. There are both similarities and differences that address collecting arrears for cooperatives and condominiums. First, the similarities. Allowing habitual or significant arrearages to accrue poses at least three potential problems for all buildings. Arrearages impose cash-flow difficulties that, if not addressed promptly, place a financial burden on both regularly paying owners, who must shoulder the deficit, and on building managers who must juggle it. They can create a downward spiral, acrimony… Read more
Tag: nonpayment
Unit Owner Monetary Defaults
The current state of the national and local economy will likely lead to increased nonpayment of monthly charges by owners of cooperative and condominium apartments. The loss of income can affect the financial stability of a cooperative or condominium and, at least in the short run, the costs of unpaid maintenance or common charges must be borne by other owners. Therefore, it is important that boards have and enforce a clear policy as to payment arrears. The procedures and effectiveness of legal remedies for nonpayment differ substantially as between cooperatives and condominiums. Cooperative apartment owners are tenants for collection purposes,… Read more