A recent decision from the New York Supreme Court, Appellate Division, First Department, underscores the importance of meticulously adhering to your condominium’s governing documents when assessing fees for capital improvements and repairs.

In the case of Board of Managers of the 100 W. 93 Condominium v. 660 Columbus Retail Owner, the condominium board attempted to recover allegedly unpaid assessments from commercial unit owners. These assessments were for capital improvements to the building’s roof and façade. However, the commercial unit owners argued that the board had not followed the proper calculation method for these assessments, as outlined in the condominium’s declaration and by-laws.

The court agreed with the commercial unit owners, affirming the lower court’s dismissal of the board’s case. The court’s decision hinged on the specific language in the condominium’s governing documents, which included a formula for calculating common charges and assessments for repairs and maintenance.

Key Implications for Condominium Boards and Property Managers

This case highlights several crucial points for those involved in the management of condominiums in New York:

• Governing Documents are Paramount: The court’s decision was based on the specific language in the condominium’s declaration and by-laws. This emphasizes the importance of these documents being clear,comprehensive, and up-to-date.
• Proper Calculation of Fees: Boards must meticulously adhere to the formulas and procedures outlined in their governing documents when calculating common charges and assessments. Failure to do so can lead to disputes and potential legal action.
• Clarity on Repairs, Maintenance, and Capital Improvements: The case also underscored the importance of clearly defining what constitutes repairs, maintenance, and capital improvements in your condominium’s governing documents. This clarity can help prevent disagreements about how costs should be allocated.

The complexities of condominium law can be challenging to navigate. If your board is facing a dispute over fees or assessments, it is crucial to seek guidance from an experienced attorney specializing in real estate and condominium law. An attorney can help you interpret your governing documents, ensure compliance with legal requirements, and effectively resolve disputes.

Here is the decision.