Latest / BSPE Legal Marketing Podcast / What Is a Condo Assessment in New York City? - Peter Zinkovetsky

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What Is a Condo Assessment in New York City? - Peter Zinkovetsky · BSPE Legal Marketing Podcast

• 0:00
  SPEAKER_00: What is a condo assessment in New York City?
• 0:02
  SPEAKER_00: If you are buying a Manhattan condominium and suddenly hear the words special assessment, understanding exactly what that means could save you thousands of dollars before you ever sign at closing.
• 0:12
  SPEAKER_00: A condo assessment, often called a special assessment, is a separate charge imposed on unit owners beyond their regular common charges.
• 0:19
  SPEAKER_00: To fund a specific building expense, the operating budget does not cover.
• 0:23
  SPEAKER_00: A condo board may impose one to fund a major repair, a capital project, an emergency expense, a budget shortfall, or any other cost authorized by the building's governing documents.
• 0:34
  SPEAKER_00: The assessment may be collected in a single lump sum payment, or spread across monthly installments that can extend over months or even years for large projects like elevator modernization or facade restoration.
• 0:45
  SPEAKER_00: Common charges, by contrast, are recurring payments that fund the condominium's regular budgeted obligations, including staff salaries, insurance, utilities, routine maintenance, and reserve contributions.
• 0:57
  SPEAKER_00: Once properly adopted by the board, a special assessment becomes part of the owner's common charge obligation.
• 1:03
  SPEAKER_00: And failing to pay it carries real legal and financial consequences.
• 1:07
  SPEAKER_00: Capital improvements and deferred maintenance are among the most frequent reasons a board calls for a special assessment, covering work like roof replacements, boiler overhauls, plumbing upgrades, and elevator modernizations that available reserves cannot fully fund.
• 1:20
  SPEAKER_00: Emergency situations, storm damage, burst pipes, fires, or other structural incidents can also generate costs that insurance proceeds and existing reserves together still leave partially uncovered.
• 1:32
  SPEAKER_00: Not every assessment signals a crisis, because some fund discretionary upgrades like lobby renovations, fitness center improvements, or rooftop common area redesigns intended to enhance the building's market appeal.
• 1:44
  SPEAKER_00: For Manhattan buildings taller than six stories, the facade inspection safety program, known as FISP or Local Law 11, can trigger significant assessment obligations when required facade repairs exceed the building's available reserves.
• 1:58
  SPEAKER_00: FISP inspectors classify a building's exterior walls as safe, safe with a repair and maintenance program, or unsafe, and an unsafe classification demands immediate public protection measures and repair within strict Department of Buildings deadlines.
• 2:12
  SPEAKER_00: A prospective buyer should carefully consider where a building sits in its five-year FISP cycle.
• 2:17
  SPEAKER_00: Because a condition that was previously classified as needing maintenance can become an unsafe designation at the next inspection if left uncorrected.
• 2:24
  SPEAKER_00: Every unit's share of a special assessment is tied to its percentage of common interest.
• 2:29
  SPEAKER_00: A figure fixed in the condominium declaration that can be based on fair value, floor area, equal percentages, or other stated factors.
• 2:37
  SPEAKER_00: A savvy buyer's attorney will review building financial statements, board minutes, managing agent disclosures, reserve studies, and FISP records to reveal pending assessments or deeper funding concerns before a contract is signed.
• 2:49
  SPEAKER_00: Peter Zinkovetsky, the founding attorney at Avenue Law Firm, advises buyers on New York condominium transactions and the thorough due diligence that can meaningfully shape both contract negotiations and closing decisions.
• 3:01
  SPEAKER_00: Call Avenue Law Firm at 212 729 4090.
• 3:07
  SPEAKER_00: Located at 505 Park Avenue 1201, New York, New York 10022, United States, to schedule your free consultation and protect your investment before you close.