HSTPA Amendment is Good for Co-ops (but, is it good for ALL co-ops?)
On December 22, 2021, Governor Hochul signed into law (Real Property (RPP) CHAPTER 50, ARTICLE 7) an amendment which exempts cooperatives from many of the onerous provisions of the Housing Stability and Tenant Protection Act (HSTPA) of 2019. Under the HSTPA, late fees imposed by landlords, including co-ops, were limited to $50 or 5% of the monthly rent, whichever was lower.
The new law allows a cooperative (with the exception of Mitchell-Lamas and HDFCs which are still subject to the 5% or $50 limitation) to impose “a fee of up to 8% of the monthly maintenance fee for the late payment of the monthly maintenance fee if the proprietary lease or occupancy agreement provides for such fee.”
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