Dennis Greenstein Quoted in The New York Times

The Real Estate Q&A column on April 30, 2006 included a question from an owner of a co-operative apartment who asked if there was any recourse to objecting to a notice of a large assessment asking "If there is no cap or time limitation for assessments in the proprietary lease, what would stop the directors from imposing another one next year? Just how much control do I have as a shareholder?" '

"Every co-op establishes an annual budget to cover the costs of operating the building for the coming year," said Dennis Greenstein, a Manhattan co-op lawyer. Typically, a board will attempt to cover a shortfall by increasing maintenance charges, decreasing expenses or some combination of both, he said. Occasionally, that may not be sufficient, particularly if there are sharp increases in costs or unexpected repairs. In such a case, the board may decide to impose an assessment to be paid within a specific period. "Under most proprietary leases, there is generally no cap or limit on the authority of the board to enact assessments," Mr. Greenstein said. He added that since shareholders are required by the proprietary lease to pay maintenance and assessments, failure to do so could result in termination of the lease. Mr. Greenstein noted that while the only real control shareholders have over the board is to express their discontent at the next election, they can ask the board or the building's accountant whether any additional assessments are contemplated.'