How do I dispute an HOA assessment or fine in New York?

New York is unusual in that it lacks a comprehensive HOA statute. Condos are governed by Real Property Law art. 9-B, co-ops by the Business Corporation Law, and traditional HOAs almost entirely by the recorded declaration and contract law.

1. Governing Statute

Condominiums: N.Y. Real Prop. Law §§ 339-d through 339-kk (Condominium Act, 1964).

Cooperatives: N.Y. Bus. Corp. Law (corporate operation) and Real Prop. Law § 235 (warranty of habitability).

Homeowners' associations: no general statute — governed by the recorded Declaration of Covenants, Conditions, Easements and Restrictions plus Not-for-Profit Corporation Law if incorporated as an NFP.

New offering plans and amendments are regulated by the Attorney General under the Martin Act (Gen. Bus. Law art. 23-A) and 13 NYCRR Part 20.

2. CC&Rs and Bylaws

Recorded declarations run with the land as covenants. The condo bylaws and the offering plan supplement art. 9-B. Co-op proprietary leases govern shareholder rights.

3. Common Disputes

Alterations and Alteration Agreements, sublet/rental restrictions, pet policies (note Pet Law NYC Admin. Code § 27-2009.1 — 90-day waiver), assessment increases, late fees (must be reasonable under common law liquidated-damages doctrine), and board approval of sales/transfers.

4. Internal Dispute Resolution

Art. 9-B does not impose a statutory hearing requirement, but most bylaws and condo declarations require notice and opportunity to be heard. Co-op boards rely on the business judgment rule — courts will not second-guess a bona fide board decision absent bad faith, self-dealing, or discrimination (Levandusky, 75 N.Y.2d 530).

5. Alternative Dispute Resolution

ADR is not mandatory by statute. The Attorney General's Real Estate Finance Bureau handles complaints about offering plans. Many declarations include arbitration clauses; CPLR Article 75 governs.

6. Lien & Foreclosure

Condo common-charge liens may be filed under § 339-z and foreclosed judicially in the same manner as mortgages (§ 339-aa). The first mortgagee is generally prior in interest unless the declaration provides a super-lien (a few new developments adopt the UCIOA 6-month rule, but it is not statutory). Co-op boards may terminate a proprietary lease after notice and cure for nonpayment of maintenance (Bus. Corp. Law § 501).

7. Open Meeting & Record Inspection

Condo unit owners may inspect financial books and records under § 339-w. Co-op shareholders have inspection rights under Bus. Corp. Law § 624 (annual financials, shareholder list).

8. Statutory Caps

Solar (Energy Law § 7-205 — protected installation right), satellite dishes (federal OTARD), service animals and emotional support animals (NY Human Rights Law § 296.18 + federal FHA), and rent/sublet rules cannot violate the Roommate Law (Real Prop. Law § 235-f).

9. Lawsuit Remedies

Article 78 special proceeding to challenge board actions (CPLR § 7801), declaratory judgment (CPLR § 3001), breach of fiduciary duty derivative actions, and injunctions. Attorney's fees are awarded only if authorized by the governing documents or statute.

This is legal information, not legal advice.