Q&A: Bilked by Bulk Billing

Q&A: Bilked by Bulk Billing

Q. The bylaws of [my co-op] currently charge utility costs—water, sewer, heat/AC, and electricity—to our shareholders on the basis of the number of shares each unit is assigned. The shares apportioned are variable depending on unit size, location, etc.

A year or so ago we negotiated a building-wide cable and internet deal with a provider that is based on the number of units in the building, 240. When individual units are charged, it is on the basis of shares, which results in the per-unit cost varying widely. The board considered proposing a change to the bylaws to permit charges such as these to be done simply on a per-unit basis versus a share basis. As you can imagine, those that were paying less were opposed; those paying more were for.

My question is: Is there a standard practice in NY for charges such as internet and/or cable? Clearly when the original bylaws were developed 50-plus years ago, the internet and cable did not exist.

                    —Looking for an Even Split

A. “It is not uncommon for co-ops and condominiums to have a ‘split’ billing system for services like cable TV and internet,” says Aaron Shmulewitz, partner at Belkin Burden Goldman, LLP in New York City. “Many buildings enter into a ‘bulk billing agreement’ with a provider, in which the building pays a flat monthly bulk amount for basic service with a minimum number of apartments guaranteed, with premium services billed to each apartment owner separately, depending on the level of premium service (s)he desires. In doing so: (1) the flat monthly bulk amount is included in the building’s operating expenses, which are spread among the apartment owners on a per share basis (or common interest percentage basis in condos), so that larger apartments will generally pay more than smaller ones, and (2), each apartment owner pays for his/her own premium service separately, directly to the service provider.”

Related Articles

CO2 emission reduction concept in hand with environmental icons, global warming, sustainable development, connectivity and renewable energy green business background.

Simple Ways Co-ops, Condos, & HOAs Can Help the Environment

Small Investment, Big Impact

3D illustration. Energy efficiency class. Energy saving. As the energy saving class of household appliances increases, the money savings displayed by Euro coins increases.

Carbon Reduction Programs

Reducing Your Building's Emissions without Additional Cost

kitchen dishwasher being repaired

Q&A: Illegal Dishwasher

Q&A: Illegal Dishwasher

2023 NY Spring Expo Seminar: Going Solar - Cost Savings, Economic Incentives, & Making Greener Energy Work for Your Building

2023 NY Spring Expo Seminar: Going Solar - Cost Savings, Economic Incentives, & Making Greener Energy Work for Your Building

Sponsored by: Best Energy Power

Q&A: Bilked by Bulk Billing

Q&A: Bilked by Bulk Billing

Q&A: Bilked by Bulk Billing

Q&A: Water Temperature Problem

Q&A: Water Temperature Problem

Q&A: Water Temperature Problem