Does a Blocked View Lead to Lower Maintenance?
Nov. 27, 2017 — As new construction continues to boom, shareholders seek relief. Tough.
It’s a given that a view increases the value of a New York apartment. It’s also a given that with the current construction frenzy showing now signs of abating, more and more views are being blotted out by hulking new office and condo towers. A co-op shareholder with East River views is about to lose those views, compliments of a 20-story building rising next door. The apartment’s value is sure to decline. Is the shareholder entitled to a reduction in monthly charges?
The simple answer is No, according to the Ask Real Estate column in the New York Times. Monthly maintenance and common charges cover residents’ shared costs, such as the building’s property taxes, fuel, and labor. Unless those costs fall, maintenance will not change.
Furthermore, monthly maintenance is determined by how many shares of the corporation are allocated to an apartment. That allocation was determined when the co-op was established – and it won’t change, even if a river view is replaced by a view of a cinderblock wall. “Shares are allocated to each apartment and they’re set,” says attorney Dennis Greenstein, a partner at Seyfarth Shaw.
If a building’s costs were to drop, maintenance could fall for all shareholders. But that is not necessarily going to happen if the costs of fuel, labor and taxes continue to rise. Consider property taxes. The city values co-ops as if they were rentals. An assessor compares your building to similar rental buildings to figure out its value. If the assessor finds that, say, rents have gone up in the area, but the total potential rent roll has increased, the building’s taxes could rise (even if some apartments have lost a view), says tax attorney Paul J. Korngold of the law firm Tuchman, Korngold, Weiss, Liebman & Gelles.
There’s a consolation for that shareholder who is losing the East River views. Property values tend to rise in New York, particularly in Manhattan. So when the shareholder sells the apartment, it might be worth more than it is now, even without that view of the water.