New York, NY HOA Rules: Board Procedures (2026)

Administrative Code § 26-704 is a narrow but binding board-procedure rule aimed at buildings that converted from rental to cooperative or condominium status. Once the offeror's mandatory reserve fund exists under § 26-703, the cooperative corporation or the condominium board of managers must report to shareholders and unit owners on a semi-annual basis, covering all deposits into and all withdrawals from that fund. The requirement applies regardless of building size and does not specify a particular format, but it ties directly to the transparency purpose of the reserve statute: the fund exists exclusively for capital repairs, replacements and improvements necessary for residents' health and safety, so owners are entitled to see, twice yearly, whether the board is drawing it down for that purpose or letting it sit idle.

The reporting duty runs from the point the reserve is established, thirty days after the conversion plan's closing, and continues for as long as the fund exists; the statute does not sunset the obligation after a fixed number of years. Boards that also handle capital-replacement credits under § 26-703(c), where the offeror got credit against its initial contribution for pre-effective-date work, should reflect those adjustments in the same semi-annual accounting so owners can reconcile the fund's stated balance against what was actually contributed at closing.