On December 22, 2021, Governor Kathy Hochul signed into law amendments to the 2019 Housing Stability Tenant Protection Act, which previously imposed a number of restrictions on the operations of cooperative apartment corporations. The amendments are effective immediately.
The amendments are detailed to in an earlier post: A BILL NOT YET SIGNED - CO-OPS AND THE 2019 ACT
As noted by one counsel, cooperative boards may, subject to the terms of the cooperative proprietary lease:
"1. Condition their approval of purchase applications upon the posting of a maintenance escrow;
2.Charge application, processing and search fees as determined in the board’s discretion;
3.Impose late fees in an amount up to (but not to exceed) 8% of a delinquent shareholder’s monthly maintenance charge;
4.Seek to collect late fees, legal fees and other expenses related to shareholder defaults in any non-payment action the apartment corporation may bring;
5.Send delinquency notices by any method consistent with the terms of the cooperative proprietary lease; and
6.Seek the reimbursement of legal fees in connection with obtaining a default judgment against delinquent shareholders. "
