Manhattan condos collect common charges and co-ops collect maintenance under NY RPL 9-B and BCL Article 4; non-payment leads to liens or share foreclosure.
Condominium unit owners pay common charges calculated on percentage interest as set in the declaration, governed by NY Real Property Law Article 9-B. Unpaid common charges become a lien on the unit under RPL 339-z and the condominium can foreclose similar to a mortgage foreclosure. Cooperative shareholders pay maintenance (monthly charges that include the building underlying mortgage, real estate taxes, staff, utilities, and reserves) based on shares allocated to each apartment. Non-payment allows the co-op to terminate the proprietary lease and sell the shares, typically much faster than condo foreclosure. Special assessments for capital improvements are authorized by building bylaws and usually require board approval; some major assessments may require shareholder or unit owner vote. Reserve fund requirements derive from bylaws and board fiduciary duty under BCL Article 4.
Contact your local code enforcement office for specific penalty information.
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