Co-op Maintenance by Share?
My 16-unit co-op is discussing whether to have maintenance fees divided by shares. Right now, all units are paying basically the same monthly fees (give or take $50), even though some owners have about twice as many shares. This has been going on for many years, so any change would be a significant shake-up. What…
My 16-unit co-op is discussing whether to have maintenance fees divided by shares.
Right now, all units are paying basically the same monthly fees (give or take $50), even though some owners have about twice as many shares. This has been going on for many years, so any change would be a significant shake-up.
What are the arguments for paying fees by share? What are the arguments for keeping it the same? I want to make sure we’re considering all the sides.
Thanks!
Thank you, everybody. @the_why, I just checked the proprietary lease and it turns out we were supposed to be charging per-share all along. I’ll bring it to our next meeting…
You’ll never get it changed, so don’t waste your time, unless the situation is at odds with the governing documents.
Most Co-ops set fees based on several factors. First and foremost is the number of shares. Next is the floor. In an elevator building, the higher floors pay more, in a walk-up it could be the same or even less the further up you have to shlep. People with balconies and outdoor space also pay more. But the base is the number of shares.
I am aware of buildings where large apartments pay as much as small apartments. I advise you strongly to run away from these buildings. It usually means there is an entrenched “oligarchy” with large apartments who have agreed among each other to let the newer people in the little units do the heavy lifting. This is appalling and unethical, do not have anything to do with such a building.
The proprietary lease specifies the method of calculating maintenance payments (“rent”). Except in special cases, it is always based on share allocation. Those with fewer shares may have the right to recover overpayments made in the past if maintenance was required to be on a per share basis.
in my building, each shareholder has a single vote, but maintenance is paid per room (building is mix of 3 and 4 room apartments). we are a coop that has never actually issued stock, since the coop was created before the cooperative housing laws of the 60s. technically, we are a membership organization, and as such every member has one vote.
Thanks for the advice. I hadn’t thought about the “more shares = more votes” angle. Not sure that’ll be enough to convince the people with more shares to pay more, but we’ll see.
On a practical level, are people who pay more into the system also getting more benefit out of the system? Our maintenance goes to pay our heat, electricity, general maintenance, and our live-in super.
Thanks again!
In HDFCs or shared equity or limited equity Coops where everyone has the same mount of shares it is done by zoning room or by square ft. But voting still stays the same one household one vote.
These are not market rate coops and work slightly differently. Yet i believe everyone here has been correct. it should be broken down by share. And yes the more maintenance you pay the more shares you have the more votes you have. Its how it works in My co-op
I’ve never heard of it being anything but share-based.
Fees and voting by share.