when are maintenance fees set in a co-op?

It is typically changed on an annual basis (but certainly fees should not go up every year). However, the Board may assign an assessment whenever it needs to raise extra cash. When you are evaluating a coop, read the past few years of board notes and financials ... then you will see the pattern of raises and also if there are any big capital improvemet projects (elevators, roofs, renovating the lobby or hallways) that need to be done. This will show you the POTENTIAL for raises down the road ... if the maintance is low and the lobby looks like crap/the elevator is about to fall apart, then you should assume that those expenses will have to be addressed in the coming years. Then review the reserve fund - if its well-funded, then the building should be able to pay for a capital improvement. If its light, then expect maint raises.

Thanks for your reply; sorry it took me a while to get it. It helped a lot. I'm in an old converted apartment to co-op building and the fees seems to go up about $75 a year. The fees come out to about $2/sq. foot a month which I think is too high. Thanks again.

If the board is jacking it up every year, not just for increased taxes/fuel/salaries, they may be trying to build up the reserve fund. If you can't tell from the financial statements, give the treasurer a call and find out what the strategy is. Unusually-high maintenance is very often due to an unusually-big mortgage dating back to the conversion, and the deductible will reflect that.

What would define a "well-funded" reserve fund for an average size building? Say, 130 units mostly 1BR and studios built in late 1950s early 1960s?

Our coop maintenance fees have gone up annually since I first bid on my apartment, now to the tune of 21 percent in three years +. The board claims tax/salaries/fuel/water/sewer. If that is the case, should not all NYC properties have risen at the same rate? Board says that to get rid of overnight doorman would compromise property attractiveness. I argue mtce fees over $2000 for small two bedroom apt compromises attractiveness. Who is righter?

szn--how are your building's financials? Do they have a decent reserve fund? How's their underlying mortgage?

In my experience the maintenance is set to increase on January 1 of each year and should increase each year to cover increased in (tax, labor, fuel, repairs.) In most situations a reserve fund should be used for capital expenses and not be subsidizing maintenance in order to lower the monthly payment.

not always on jan1---some buildings do it on a fiscal year rather than calendar year. would urge caution about attempting to define correct reserve fund. everyone has a different opinion -- would suggest making up your own mind. problem is that without knowing a lot about prior major repairs, impossible to forecast need for money in the future.

p.s. reserve fund will be shown clearly in the financial statements.

I am only aware of my building where its done in January. Fiscal year is the same thing. Regarding reserves, I would be very wary of a building that is using reserves to subsidize maintenance since the maintenance number is not the true cost of operating the building. When those reserves are gone, maintenance will increase at a higher then normal rate to catch up with the actual annual cost of operating the building. If a building has rental property and will always have positive cash flow from that property, then that is a different story, however, if the reserve is from the underlying mortgage or an assessment, then it fiscally irresponsible to be using those funds to subsidize maintenance.