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A recent New York condo case has highlighted the potential consequences of board decisions being deemed in bad faith, with board members facing personal liability and potential insurance premium increases.

A Washington Heights co-op faced a $400,000 bill for a deferred maintenance issue due to a single sewer system that combined both the sanitary sewer outflow and storm and runoff water, resulting in flooding in the first-floor apartments.

Condominium boards must be vigilant and proactive in managing their commercial spaces, as they have the right to enforce rules and fines against commercial unit-owners and their tenants, and can potentially evict tenants who do not comply.

The Rutherford co-op in New York City learned the hard way that it's important to handle requests for emotional support animals with care, as they must follow federal disability laws or risk severe financial and legal repercussions.

Local Law 14 requires multifamily buildings with three or more units to adopt a written policy on smoking, and boards must balance the rights of smokers and nonsmokers while enforcing the policy through fines and court actions if necessary.

Boards must carefully consider lien priorities before deciding to foreclose on a unit-owner in serious arrears, as condos are subordinate to both the mortgage and real estate tax liens, and swift action is necessary to recover unpaid charges.

To avoid getting locked into a bad contract, boards must carefully review the contract with an eagle eye, be aware of the scaffold law, and do their homework to ensure they are hiring a quality contractor.

Boards must be proactive in addressing problematic commercial tenants, as the Yellowstone injunction can significantly complicate eviction proceedings and lead to lengthy legal battles.

Boards have a duty to investigate and mediate persistent and disruptive behavior, such as excessive noise or hoarding, in order to ensure the health, safety, and comfort of other residents, and may consider legal action if the issue cannot be resolved.

Co-op boards should review their governing documents to ensure that repair responsibilities are clearly defined, and alteration agreements should be clear to prevent disputes over who is responsible for repairs.