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Maintenance & assessment payments & best Board practices during COVID-19Mar 20, 2020

How would a possible rent moratorium, considered by Mayor DeBlasio, affect coops? We're a 40-unit, self-managed Brooklyn coop. Would Boards be asked to stop collecting maintenance and assessment as NYC institutes economic relief efforts in the COVID-19 crisis? What does Habitat advise coop boards around best practices with share holders facing financial hardship as more and more New Yorkers are out of work due to social distancing? Should we stop charging late fees now for late maintenance payments, in light of Gov Cuomo's moratorium on evictions? Does his NYS grace period for loan modification apply also to our coop's underlying mortgage (which we're due to refinance end 2020)?

Join the Conversation Comments (2)
Maintenance/assessment payments - Marty Mar 20, 2020

I'm not an attorney, but I would advise you to speak to your attorney before doing anything. I'm guessing that rent moratoriums probably don't apply to co-ops because we're corporations and technically not landlords (at least I don't think we are).

In past hardship situations, we've always tried to work with s/h as much as possible to help them through their rough financial patches.

Since you have a possible refinance, it would be wise to speak to the bank and get their thoughts on the matter. This is new for them, too.

But, only speak to the bank after you've spoken to your attorney.

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Maintenance & assessment payments & best Board practices during COVID-19 - Steven424 Mar 21, 2020

Besides completely agreeing with Marty, let's step back for a moment regarding rent moratoriums. Suppose every unit owner stopped paying monthly maintenance for any reason. Who'll be screwed? *You* will! :-) Besides being a form of tenant, you're also a part-owner of the business. If you suddenly cut off all your income, how will your bills get paid? How will your staff be paid? How will you pay your mortgage? And ghod forbid, how will you meet your Real Estate tax obligations???

I'm trying to be light-hearted here, but think about it. When a shareholder brings up a maintenance moratorium, what you're actually doing is taking careful aim at your foot and pulling the trigger. It will be a painful experience.

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