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Limited income co-ops accounted for nearly half of co-op delinquent tax payments: report

Residents “view themselves as tenants rather than as apartment owners," lawyer says

Low-income co-op at 501 West 143rd Street in Hamilton Heights
Low-income co-op at 501 West 143rd Street in Hamilton Heights

Nearly one-third of New York City’s low-income co-op buildings are struggling to pay their tax bills — just one sign of their poor overall financial health.

The city has 1,000 low-income co-ops and more than 4,800 co-op buildings overall. But despite making up about a fifth of the total, low-income co-ops account for nearly half of all delinquent tax bills from co-ops, according to the Wall Street Journal.

Housing experts say that management in the buildings is too hands-off, and many buildings have failed to raise their maintenance fees sufficiently to upkeep the buildings and pay bills.

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“They view themselves as tenants rather than as apartment owners,” said Steven Wagner, a co-op and condo lawyer. “They are not used to the responsibility of managing a building or running what can be a multi-million-dollar business.”

Some buildings, such as the 38-unit property at 401 West 143rd Street, are facing foreclosure by the city, in which case they would be turned over to a nonprofit and converted to rentals.

The 1,000 co-ops that still exist today were created beginning in 1981 from abandoned buildings seized by the city, as a way to encourage homeownership among the poor.

“Most of the co-ops are well-functioning, affordable housing resource for their shareholders, and they have stabilized thousands of lives,” said Christopher Allred, an assistant city housing commissioner for asset management. [WSJ] — Tess Hofmann