New York, NY HOA Rules: Assessment & Dues (2026)

New York City Administrative Code § 26-703 governs the one mandatory "assessment" tied to a co-op or condominium's creation: the initial capital reserve fund. Within thirty days after the closing of a conversion under an offering plan, the offeror (the sponsor) must establish and transfer a reserve fund to the cooperative corporation or condominium board of managers. The fund is earmarked exclusively for capital repairs, replacements and improvements needed for residents' health and safety, and it is kept separate from any working capital fund or other attorney-general-mandated reserve.

The minimum amount is 3% of the total offering price, or, where units were being sold as the plan turned effective, 3% of actual sales revenue subject to a 1%-of-total-price floor, plus ongoing 3% supplemental contributions on units the sponsor sells within five years of closing. If those supplemental payments still fall short of 3% of the total price by the five-year mark, the sponsor must pay the difference. Section 26-703(c) lets the offeror get credit against the initial contribution for capital replacements already begun before the plan was declared effective, capped at the lesser of actual cost or 1% of total price.

Section 26-703(d) exempts any building completed within three years before the conversion closing, since a near-new building has little deferred capital need. Because the obligation runs against the sponsor rather than unit owners, boards should confirm at closing that the reserve was actually funded before relying on it to defer their own maintenance assessments.