The M Condominium in Brooklyn needed to raise funds to repair and restore several storm damaged building systems. The Board did not want to impose special assessments on the unit owners. In order to raise the money necessary to do the capital repairs, the special assessments would be too high and would impose unfair financial burdens on the unit owners.
When I represent a client who is purchasing a co-op or condo apartment, it is important to look into the finances of the Co-operative or Condominium. A co-op or condo owner does not just own their own apartment. The owner owns a part of the cooperative or the condominium. The financial health of the cooperative or condominium has a direct effect on the apartment owner. Whether the building's mortgage is due to be re-financed or a real estate tax abatement is about to expire are factors that would have an effect on the common charges or maintenance the owner is obligated to pay.