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Currently, I live in Concord Village, located in Cadman Plaza (a couple blocks from Downtown Brooklyn, Brooklyn Heights, and Dumbo) and parallel/adjacent to the Brooklyn Bridge.
As a fairly new shareholder, it would be greatly appreciated if anyone can please provide some insight as to (possibly) why the maintenance fee may be increasing so rapidly. Certainly, before purchasing the co-op, I did inquire about the maintenance fee increase percentages and I was advised the increase is typically 3-5% annually. And this is reasonable.
However, this is not the reality. Within the span of 3 years, my maintenance has increased (nearly 30%, collectively). I've yet to see and experience the value of these increases.
Board has advised the driving force is the increasing property taxes, and perhaps it's partially true. Regardless, seems very sketchy & sus. In Concord Village, there are 7 complexes with over 1,000+ units, collectively (comprised of studios, 1 bds, & 2 bds). Imagine when all the maintenance fees are accumulated.
And to add, Concord village owns an adjacent parking space, which, indeed, generates some revenue as there are start up companies nearby (e.g Etsy), the Supreme Court, USPS, Charter School, etc. They separately charge shareholders for parking, storage, gym, etc. So there are other sources of revenue generating options.
Maintenance does include a reserved fund (instead of a separate assessment), which have yet to be put into use in the common areas. Still looks outdated from the 80s/90s, with water stains on the ceilings & floral wall-papers, peeling at the edges/corners.
I understand high maintenance can be driven by land-lease, but that is not an issue at Concord Village.
On a legal standpoint, I understand the Board can increase the maintenance fees as they please. But are there any NYC laws/bills that would protect the shareholders? Although maintenance fees within the same building may differ, do all shareholders receive the same increased rate? Any feedback would be appreciated.
Lastly, if there are any shareholders who are selling your unit (with a high maintenance fee), how are you or how would you maneuver this topic if/when you come across potential buyers, requesting to see the last 5 years of maintenance fees?
Thank you sincerely for taking the time to read this! Any feedback and insight would be helpful and sincerely appreciated.
NYC property tax bills are available on the public portal: https://a836-pts-access.nyc.gov/care/forms/htmlframe.aspx?mode=content/home.htm.
Concord Village's BBL is 3 (Borough), 86 (Block), 11 (Lot).
The November 2020 quarterly tax payment was $926,173.00 and the November 2022 quarterly tax payment was $1,293,372.22. This is a an almost 40% increase.
Co-ops and condos have been lobbying for a separate tax class as we are currently in the tax class with market rate rental buildings.
How can one add to the lobbying effort
Larry - for starters try accessing the Counsel of NYC Coops & Condos website. https://www.cnyc.com/ CNYCC is one of the largest Co-op and Condo advocacy groups in NYC and can probably point you in the best direction
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All s/h receive the same percentage maintenance increase. Since different apartments have different amounts of shares, not everyone will pay the same dollar amount for their maintenance increase. So, if the Board votes a 5% increase, everyone's maintenance will increase by 5%.
The Board is elected to represent the s/h and run the co-op. This includes the right to raise maintenance if they think that's the right financial decision. The Board has strict ethical and fIduciary responsibilities that is supposed to keep them in check. If enough s/h disagree with the way the Board runs things, then other s/h have a right to voice their opinion about the way things are run. They also have the right to run for the Board and get involved in running the co-op.
You're right that real estate taxes have skyrocketed, but so has the price of everything in the past few years due to inflation. Everything costs more, including the prices charged by your plumber, electrician, contractor, etc. Co-ops are also navigating the climate change/carbon emission laws enacted by NYC. That may very well also increase expenses to the co-op.
It's possible that the co-op had some large expenses (roof, elevator) they incurred before you moved in, so they may still be paying those off.
It's important for all s/h, especially new s/h like yourself to look at the big financial picture and not just what's happened in the past year or two. I always felt that you need to look at a 10 year period to review the co-op's expenses and revenues to get a more complete picture of the co-op's financial situation.
As far as potential new buyers requesting to see the last 5 years of maintenance fees, it's important that they also see the last 5 years of financials - to give them a complete and accurate picture of the co-op's finances. There may have been boiler and heating upgrades that the co-op made. These might have cost lots of money now, but will pay off in the long run.
Remember that the Board is responsible for making short term and long term decisions on behalf of the s/h in the co-op. You can also ask Board members why they raised the maintenance fees? Communication is very important, so don't be afraid to ask the Board directly if you have any questions. It's always better to ask the Board than to listen to fellow s/h, who may not have all of the information that the Board has.
Good luck.
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