Co-op charges could come as rude shock

David Kuperberg

With the annual co-op board meeting season just around the corner for many New York City residents, property managers across the five boroughs say co-op unit owners might be surprised by the outcome of these conferences, which determine how much to raise maintenance costs, according to the New York Times. Despite the financial hits that the real estate market has taken in recent years, many buildings will see their maintenance charges increase by 5 percent or more, due to continually climbing building assessments and real estate taxes. Part of the problem, according to David Kuperberg, chief executive of Cooper Square Realty, is the so-called “phasing out” of building assessments. “A lot of people don’t realize that assessments are phased in over five years,” Kuperberg said. “We’re getting increases in 2010 from valuations that were done in 2006 at the height of the market.” [NYT]