Most cooperative and condominium apartment owners pay their
monthly fees and assessments in full and on time. However, some of
our clients have recently reported an uptick in arrearages. There
are both similarities and differences in addressing arrearages in
cooperatives and condominiums.
First, the similarities.
Allowing habitual or significant arrearages to accrue poses at
least three potential problems for all buildings. Arrearages impose
cash-flow difficulties that, if not addressed promptly, place a
financial burden on both regularly paying owners, who must shoulder
the deficit, and on building managers who must juggle it. They can
create a downward spiral, acrimony and bad habits within the
building as owners become aware that their neighbors are not making
timely payments. And, in extreme cases, arrearages may give a
building a bad profile or reputation with respect to financing or
apartment sales.
