If you’re thinking about buying a co-op, you’ve probably heard about maintenance fees and assessments. The monthly maintenance fee you pay covers expenses the co-op incurs running and maintaining the building. This fee can cover, among other things, utilities, staff salaries, managing agent costs, insurance, planned capital improvements like a new lobby or painting the hallways, and property taxes. Property taxes are included in your fees because the building receives the property tax bill and divides it among the shareholders. The monthly fees you pay are proportional to the number of shares in the co-op you own, which is usually proportional to the size of your unit.
Assessment fees differ from the maintenance fee. Assessment fees are temporary and are used to fund a repair or capital improvement project such as replacing a boiler or windows, elevator repair, façade repair, or adding a new amenity such as a gym or common room. As with your monthly maintenance fee, the assessment you will pay is generally proportional to the number of shares you own.
James H. Cook, Esq. can help you navigate the complexities of co-op maintenance fees and assessments and protect your interests. Call (646) 844-0425 for a free consultation.
James H. Cook, Attorney at Law 