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LEGAL/FINANCIAL

HOW LEGAL/FINANCIAL PROBLEMS ARE SOLVED BY NYC CO-OPS AND CONDOS

New Yorkers on the Brink

New York City

On the Brink
Nov. 29, 2016

Most co-op and condo boards are aware of the importance of amassing and managing a healthy reserve fund – a cache of cash that can cover planned capital projects or unexpected repairs. After the recent housing market crash, in fact, mortgage giants Fannie Mae and Freddie Mac began requiring that co-ops and condos keep a reserve fund equal to 10 percent of their annual income from monthly charges.

Most New Yorkers are now unable to meet this standard. In a new study from the the Association for Neighborhood & Housing Development (ANHD), nearly 60 percent of New Yorkers don’t have enough cash on reserve to cover three months of basic expenses, including housing and food, DNAinfo reports

Without enough cash to cover expenses in the event of a disaster or lost job, these New Yorkers are at risk of joining the city’s record population of 60,500 who now spend their nights in homeless shelters.

In the South Bronx neighborhoods of Mott Haven, Hunts Point, Morrisania and Highbridge, according to the ANHD study, at least 75 percent of the residents have virtually no cash reserves.

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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

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