Recently, among the Bronx condo transactions I reviewed, there were cases where banks delayed loan approvals due to the financial status of the building's HOA, even when there were no issues with personal credit. The Bronx condo market varies significantly by area, even within the same borough, making such occurrences not uncommon.

Condo listings in the Bronx are smaller in market size compared to Brooklyn or Queens, with most concentrated around new buildings near Yankee Stadium or along the Bronx River. However, the largest share of actual transactions occurs in Riverdale, where, according to brickunderground.com, condo prices range from $650,000 to $1.5 million, while co-ops are priced between $250,000 and $750,000.

In New York City, condo maintenance fees, also known as common charges, are often calculated on a per square foot basis. According to data from cityrealty.com, Manhattan's fees have risen to over $3 per square foot, while Brooklyn and Queens typically remain between $1 and $2 per square foot. It is difficult to find separate data for the Bronx, so it may be useful to reference the levels in neighboring Brooklyn and Queens.

Among the cases I reviewed, newer buildings often had higher common charges. This is due to the increased maintenance staff and insurance costs associated with amenities like elevators, doormen, and fitness centers. Conversely, older buildings converted to condos may have lower fees but often lack sufficient reserves.

When banks assess loans, they do not only consider personal credit. According to fanniemae.com's condo project guidelines, they also review the HOA's delinquency rate, reserve fund ratio, ongoing lawsuits, and the proportion of commercial space. If these criteria are not met, the property may be classified as non-warrantable, leading to loan denial or significantly increased deposits.

It is also important to note that New York State does not have laws mandating minimum reserves for condos and co-ops. However, there are regulations requiring a reserve fund of about 3% of the sales price for converted condominiums in New York City, so it is worth checking this for properties converted from older rental buildings.

If reserves are insufficient and roof or plumbing replacements become necessary, special assessments may be suddenly levied, which can negatively impact loan assessments. Before signing a contract, it may be prudent to request recent financial statements and meeting minutes to check for discussions about special assessments.

Even within the Bronx, conditions differ between Riverdale and areas near Yankee Stadium. Riverdale has a high proportion of co-ops and older buildings, resulting in lower maintenance fees, but there are also buildings nearing the time for major repairs. In contrast, new condos near Yankee Stadium tend to have higher fees but may have recently started accumulating reserves in line with current standards. For investors looking at rental income, these differences can directly affect vacancy rates and management burdens.

New condos around the Bronx River are still seeing occupancy, so their financial records may be relatively short. In such cases, comparing the initial budget submitted by the developer with actual expenditures may provide a more realistic verification method than a reserve study.

Riverdale is also a neighborhood that Korean families often consider due to its school district and relatively spacious homes. While school district ratings can be referenced through GreatSchools or Niche, boundaries change frequently, so it is advisable to verify the assigned school for the specific address before purchasing.

• HOA financial statements and delinquency rates
• Whether the building has a history of conversion from co-op or rental to condo
• Recent history of special assessments and meeting minutes
• Ongoing or planned lawsuits

Remember that loan assessment results can vary based on the age of the building and its conversion history, allowing you to prepare necessary documents from the start of the contract process. This article is not investment or legal advice, and it is recommended to consult a real estate professional before finalizing any contracts.