Maintenance vs common charges
Maintenance is the monthly payment co-op shareholders make to the corporation; common charges are the monthly payment condo unit owners make to the condominium. Both fund building operations, but maintenance includes the unit's share of the underlying mortgage and real estate taxes — common charges do not.
Frequently asked questions
Is any portion of maintenance or common charges tax-deductible?
For co-ops, the shareholder's allocated share of the underlying mortgage interest and real estate taxes (reported on the annual Form 1098-style letter) is itemizable. For condos, neither common charges nor RE taxes flow through the building — the unit owner deducts their own mortgage interest and the property taxes they pay separately. No portion of operating common charges is deductible.
Who sets the increase rate?
The board, as part of the annual budget approval, with notice per the bylaws (typically 30–60 days). Unit-owner or shareholder vote is generally not required for routine increases, only for major actions like refinancing the underlying mortgage or amending the budget structure.
Why did our maintenance jump 15% in one year?
Usually one of four reasons: a major insurance renewal (especially post-Surfside and post-FISP cycle), a reserve study recommending higher contributions, an underlying mortgage refinance at higher rates, or absorbing a deferred increase that should have been spread across prior years. The board should publish a budget walk explaining the components.
Can a board refuse to disclose the breakdown?
Shareholders/unit owners have statutory rights to inspect financial records under BCL §624 (co-ops) and the Condo Act. Boards routinely share annual budgets, audited financials, and tax-deductibility letters. Refusing reasonable inspection requests is both a legal exposure and a governance red flag.