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My co-op just increased our maintenance 41% and added on a 30 month capital assessment payments of 52.56 per owner shares included with the new monthly maintenance increase.
Join the Conversation Comments (1)We were told that the building was 200,000.00 in debt.
You should ask the Board for a complete breakdown of the $200K debt. It's your right as a shareholder.
In addition, you should have received a copy of the annual financial report. Ask the Board to show you specifically what areas were most responsible for the debt. Then ask the Board what steps are being taken to prevent this type of debt from happening again in the future
It's possible that the co-op has had several large expenses in the past year or so. Like having to upgrade the co-op's heating equipment in order to comply with Local Law 97 (Climate Change Bill). Maybe the elevator and/or the roof has needed expensive repairs?
When's the last time you had a maintenance increase? Some co-ops put off making any repairs to avoid expenses. But, then all of a sudden, many repairs at once are needed.
There are many possibilities in play. Ask the Board for all of this information and you should get a clearer picture of what's happening.
How many units are in your co-op? If there are relatively few units, then all s/h must foot a greater portion of the debt repayment than if there are several hundred units in the co-op.
Has the Board held Annual Meetings and given out yearly financial statements? Your questions are valid ones to ask at the Annual Meeting and, as I said earlier, to the Board right now.
You have a right, as a shareholder in a corporation, to know how every dollar is being spent.
Good luck.
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Suzie,
Did the Board fully explain to the s/h why there was a need for both a maintenance increase and an assessment? They should have.
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