Eviction Notice Coop owner doesn't may maintenance for a year

[JoshyMan]

Jurisdiction

New York

Hi all. I'm writing this on behalf of my sister and am wondering if anyone might know about New York City co-op issues. My sister bought a co-op in NYC and she is on the board. They have a problem in their building that 3 residents are not paying the maintenance. COVID moratoriums protected some rental units but the residents are shareholders and they claimed that they didn't have to pay maintenance during the moratorium period. Now they are very far behind on maintenance and it is really difficult for them to pay what they owe in a lump sum.

They have a co-op lawyer but I am not impressed by what I heard. He told her and the board that can't really do anything and will have to wait until those people want to sell their apartment and then refuse the sale unless the amounts are paid in full. I used to be a co-op owner a lot time ago but never heard something like this before. I'd like to ask it here and would appreciate if some of you can provide some insight into what this attorney might be telling my sister.

 

[adjusterjack]

The way for your sister to find out is to take out her Co-operator's Agreement (contract) and read what it says about the consequences of default.

Anything you learn from strangers on the internet is useless speculation without knowing the terms and conditions of her contract which she is in the best position to learn.

 

[Michael Wechsler]

When shareholders of a co-op fall behind on maintenance payments or don't pay fines imposed on them, there can be challenges faced in enforcement because the process is not the same as eviction of a tenant. With shareholders, a proprietary lease can be defaulted the question of eviction and divesting the owner of their shares may not be straightforward. This can be a long, difficult process and I'm guessing that the attorney might be referring to this latter issue. The co-op will likely not approve a sale being approved with an outstanding balance owed to the co-op being satisfied and paid in full, which would be out of the proceeds. That may be the easiest manner to proceed, which can include any additional amounts imposed as a result of non-payment.