New York's Cooperative and Condominium Community

Habitat Magazine Insider Guide




Revenue-Raising in Inwood, Using the "Permanent Assessment" Model

NaBors Apartments, Inwood, Manhattan

31-37 Nagle Avenue, NaBors Apartments, Inwood, Manhattan
31-37 Nagle Avenue
May 7, 2014

The first year it was 2.5 percent of the monthly maintenance and it rises incrementally each December. This year, it's at 7 percent, and may eventually reach 10 percent of maintenance.

"What is the alternative?" asks board president Stephen Vernon. "The alternative is to say, 'Dear shareholder, please provide $2,000 in the next two months.'"

How has it been received? Pretty well, reports Vernon. The board got far more complaints when it raised monthly maintenance this year — the first time it had done so in three years.

The seemingly permanent assessment is not set in stone, because the board votes on it each year.

For buyers and sellers, there might be potential tax benefits: If the assessment is earmarked for a specific capital project, it can reduce the capital gains tax when an owner sells her apartment. Of course, this depends on a profit being made, but in today's hot real estate market that prospect seems likely.


Adapted from "Home of the Permanent Assessment" by Ronda Kaysen (Habitat, May 2014).

For more, see our Site Map or join our Archive >>

Photo courtesy Nabors Apartments

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?