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Tenants in condo building don't pay Common Charges

Started by louismak
about 14 years ago
Posts: 1
Member since: May 2009
Discussion about
Problem: My buidling has bad fincnails because some unit of my building have not and are not paying common charges. My board said they have placed liens on them but is otherwise powerless to make them pay. They said taking them into court or even small claim tribunal involves hiring a lawyer, which our building cannot afford. Those non-paying units are rented out but the board is unable to force the tenants pay common charge before paying rent to the owner. What could our building do?
Response by NYCMatt
about 14 years ago
Posts: 7523
Member since: May 2009

I'm afraid you can't do anything on your own without first hiring a lawyer.

This is another one of the dangerous downsides of going condo rather than co-op; co-op boards have the ability to evict non-payers.

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Response by maly
about 14 years ago
Posts: 1377
Member since: Jan 2009

Could a coop evict without a lawyer involved?

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Response by NYCMatt
about 14 years ago
Posts: 7523
Member since: May 2009

They probably could, but why should they? Most management companies contracted by co-ops have attorneys in-house to handle this sort of thing, and that's what your management fee pays for.

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Response by broadbent
about 14 years ago
Posts: 123
Member since: Sep 2007

@NYCMatt - We (in our coop) hired our own attorney, which we pay for, and were not offered the services of legal council by our management company. But obviously each management company works differently.

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Response by falcogold1
about 14 years ago
Posts: 4159
Member since: Sep 2008

coop boards can change rules. They can prohibit the renting of apartments. They can render these apartments empty. They will need a lawyer. You can't afford one? You can't afford not to have one.
Going to have to raise the cc fees (to hire a lawyer) in order to lower them.

What kind of coop doesn't have strict rules about renting?
Is this a condo?
Might be time to change the locks on the building and only issue keys to those in good finacial standing.

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Response by nba
about 14 years ago
Posts: 89
Member since: Oct 2006

I'm not a lawyer but I am the president of a condo board for whatever that is worth. We had a similar situation and sent a letter to the tenant of the non-paying unit and explained that under General Business Law Section 352-e(2-d) there is a provision which provide that in situations where common charges or other fees are due from an non-occupying unit owner have not been paid in full, the Condominium board of managers may require that all rental payments or a portion due to the unit owner be made by the tenant directly to the Condominium Association. Again, this is not legal advice and may not apply but it worked for me. Good luck.

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Response by huntersburg
about 14 years ago
Posts: 11329
Member since: Nov 2010

>Might be time to change the locks on the building and only issue keys to those in good finacial standing.

Obviously you are not part of the 99%.

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Response by renterjoey
about 14 years ago
Posts: 351
Member since: Oct 2011

nba that's if a condo unit owner is renting. What if the condo unit owner is not renting and just doesn't feel like paying the common charge.

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Response by maly
about 14 years ago
Posts: 1377
Member since: Jan 2009

Have you reached out to the owners of these units? I find it very odd more than one owner would stop paying their dues. Is there a problem with the building/management company?

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Response by kylewest
about 14 years ago
Posts: 4455
Member since: Aug 2007

A coop can also seek to recover legal fees from shareholders against whom the coop must take action. Ah...the pleasures of condo ownership. To listen to some on here, condos are just fantastic and beat coops on all fronts. This thread is one of the many reasons that for me, coop ownership offers many benefits and condo ownership offers no advantages. I live in my unit, do not wish to rent it, have long term ownership plans, do not like transients in the building, like people living here who have "skin in the game," and I like having a board that can reasonably maintain a coooperative living environment.

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Response by Truth
about 14 years ago
Posts: 5641
Member since: Dec 2009

"Must take action" being the key point, kyle.
Because they must get a vote from a majority of shareholders before suing.

As opposed to a condo board.

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Response by Brooks2
about 14 years ago
Posts: 2970
Member since: Aug 2011

nba-

Isn't that in the lease?

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Response by renterjoey
about 14 years ago
Posts: 351
Member since: Oct 2011

. Renter of some condo's are required to sign a lease agreement with landlord and a rider from the condo management. In that rider it sometimes states if condo owner doesn't pay cc the renter will.

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Response by rb345
about 14 years ago
Posts: 1273
Member since: Jun 2009

nba:

1. most coops have a direct collection provision like the GBL section you cite
2. there is no reason a condo HOA cant do the same
3. all it needs to do is to amend its by-laws or controlling documents

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Response by NYCMatt
about 14 years ago
Posts: 7523
Member since: May 2009

"This thread is one of the many reasons that for me, coop ownership offers many benefits and condo ownership offers no advantages. I live in my unit, do not wish to rent it, have long term ownership plans, do not like transients in the building, like people living here who have "skin in the game," and I like having a board that can reasonably maintain a coooperative living environment."

Yep.

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Response by falcogold1
about 14 years ago
Posts: 4159
Member since: Sep 2008

Obviously you are not part of the 99%.

They only time I'm not part of the 99% is if we are talking about fat free.

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Response by huntersburg
about 14 years ago
Posts: 11329
Member since: Nov 2010

Congratulations

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Response by caonima
about 14 years ago
Posts: 815
Member since: Apr 2010

matt, you are wrong

i have been serving on coop boards, and in fact, coop is also powerless to do anything

first, coop needs to pay a lot of money for a lawyer to start, and then endless effort to get involve in small courts. and if tenants play games with the board or get help from some community low-income agencies, they could do this in rounds and rounds

my friend's coop lost tons of money in legal fees trying to evict such a tenant. years later, the tenant is still living happily in the building now

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