Q. “Since I can remember, my co-op has applied every increase in maintenance, shares, etc. based on whether a unit is one bedroom or two bedrooms. Currently, the treasurer wants to change that rule based on the size of the apartment. If it has always been applied per shares, the treasurer is now going to apply a different method because he wants to. Is this attitude legal since he is, according to him, the treasurer?”

             —Clarification on Share Rules

A. “The power of the board to impose maintenance charges comes from the cooperative proprietary lease and sometimes from the cooperative bylaws,” says David Berkey partner at New York Law firm, Gallet Dreyer & Berkey, LLP. “Both documents should be reviewed to see if the Board may impose maintenance charges based on anything other than the proportionate share ownership interest of each shareholder in the total number of the cooperative’s outstanding shares.

 “The most common form of proprietary lease provides: 1. (a) The rent (sometimes called maintenance) payable by the Lessee for year, or portion of a year, during the term shall equal that proportion of the Lessor's cash requirements for such year, or portion of a year, which the number of shares of Lessor allocated to the apartment bears to the total number of shares of the Lessor issued and outstanding on the date of the determination of such cash requirements. Such maintenance shall be payable in equal monthly installments in advance on the first day of each month, unless the Board of Directors of the Lessor (hereinafter called the Directors) at the time of its determination of the cash requirements shall otherwise direct. The Lessee shall also pay such additional rent as may be provided for herein when due. 

“There are rare instances when a particular shareholder causes extraordinary expenses to be incurred by a cooperative, and in those instances those extra expenses may be charged to that shareholder. An example would be special insurance charges incurred due to a particular shareholder’s use of the apartment. It is not common for expenses to be charged based upon the number of bedrooms in an apartment. However, if the cooperative’s documents permit such an allocation of expense, then it may be proper.”