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Penalty FeesMay 09, 2010


Two directors on our Board would like to make a rule about when residents can move furniture and impose fees if it's done without getting prior permission.

However, my understanding is that fees can be imposed only if the proprietary lease allows for it. Is that so? Or is it co-op by co-op?

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Fees - Steve-Inwood May 10, 2010


We are amending our Lease to include fees for service, fees for usage and fines. This is even though we have been charging for electric sub-metering for quite a few years. It was after an arrears case in Court that we saw we had a risk (we eventually received the owed funds). I would say that you can do anything you want but if your Lease is not allow for it, if it is challenged in Court, you are at risk of paying it back.

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Penalty Fees - North Riverdale May 10, 2010


Thank you Steve.

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Fees - Anonymous #1 May 11, 2010


A co-op can impose fees for moving in/out, also penalties. Leases generally ahere to House Rules, most Offering Plans have House Rules in them and they can be expanded upon. Once expanded upon and legitimized by your attorney, House Rules stand.

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Fees - Board Prez May 11, 2010


Steve is correct. You cannot legally impose fines that are not authorized by your proprietary lease. Without that authorization, if fines are challenged in a court you are likely to lose.

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Recommend staying away from the word "fine". - RN May 11, 2010


In our co-op, we do not have fines.

We do have fees, e.g.: late charge fee, move in/out fee, elevator use damage fee (refunded), application processing fee.

But we do not have fines.

We do use the term "quiet enjoyment" in defining rules as to what can be done and when. Here is a brief recap:
1. Move in and move out = 9 to 5, Monday to Friday
2. Deliveries in and removals out = 9 to 5, Monday to Friday, large and bulky deliveries.
3. Deliveries in and removals out = 9 to 1 PM Saturday, small parcels, one piece of furniture, etc.
4. Banging on walls, = 9 to 5, Monday to Friday, hanging pictures, mounting shelves
5. Work in the apartment = 9 to 5, Monday to Friday, with no work on the eve of religious holidays, Christmas, Yom Kippur, etc.
6. Contractor in the apartment = 9 to 5, Monday to Friday, with no work on the eve of religious holidays or religious holidays, Christmas, Yom Kippur, etc.

If one violates the rules, the first two "violations; cause the generation of a warning letter. Beyond the second occurrence, the shareholders receive a letter indicating that they are in violation of the proprietary lease. In turn, the lease could be terminated for any subsequent violations.

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Penalty Fines - North Riverdale May 12, 2010


RN, That's very sage advise that you provided -- I appreciate all of your time and attention typing it up. I'll going to print it up for the other directors. I also like your caution not to use the word "fines" but "fees" in its place.

What exceptional blogging this is!

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