For many cooperatives and condominiums, non-compliance with city regulations becomes costly long before the board realizes the impact. Penalties are only one part of the picture. The broader financial consequences often reach far beyond a single missed filing.
Many city agencies have increased fines for late or incomplete filings. Elevator inspections, gas reports, boiler filings, and energy reporting all carry penalties that begin immediately and, in some cases, accrue monthly. Buildings with outstanding façade items classified as unsafe face even higher costs until issues are fully corrected.
Insurance carriers also review compliance history when setting premiums. A pattern of violations can lead to increased rates or stricter policy requirements. Lenders take a similar approach during refinancing. Open violations, unresolved work, or gaps in documentation may delay loan approvals or affect borrowing capacity.
Non-compliance can create higher repair costs as well. When a required inspection forces emergency work that could have been addressed earlier, boards often face premium pricing and fewer contractor options. Planning ahead is far more cost effective than reacting under pressure.
Buyers and their attorneys commonly review public building records. A building with a history of unresolved violations or deferred maintenance may experience reputational impact. This can influence marketability and, over time, property values.
A strong compliance strategy not only prevents fines. It protects the building’s financial stability and supports long range planning. With more than 35 years serving co ops and condos, our team is prepared to help boards stay organized, navigate agency requirements, and reduce unnecessary financial risk.
Cooperative and Condominium CPA Firm
Czarnowski & Beer is New York’s top accounting firm representing cooperatives and condominiums. Learn more about our Cooperative and Condominium services.
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