A person looking to buy a condo in Brooklyn once requested advice, worried about special assessments. This concern arose after hearing that a neighboring building had been hit with a special assessment costing several thousand dollars. So, why do special assessments occur?

The Brooklyn condo market has seen a significant increase in new luxury buildings in recent years. According to defalcorealty.com, the median price of luxury listings in Brooklyn rose to $3.1 million by the fourth quarter of 2025, with many buildings featuring doormen, fitness centers, and rooftop terraces.

What about maintenance fees? In New York City, condo common charges are often calculated on a per-square-foot basis. According to cityrealty.com, typical rates in Brooklyn range from $1 to $2 per square foot, while buildings with doormen can see charges rise to between $1 and $1.40. In some cases, buildings with fewer amenities may have fees drop below $0.70.

When are special assessments levied? If there isn't enough reserve funding for major repairs like roofs, exteriors, or elevators, the shortfall is billed to each unit. According to cooperatornews.com, accounting experts often recommend handling these costs as special assessments rather than increasing monthly maintenance fees, as raising fees can be difficult to reverse and can be a burden when selling.

How does New York State law regulate this? Unfortunately, there is no law in New York State that mandates condos and co-ops to maintain a minimum reserve fund. The only requirement for converted condominiums in New York City is a reserve fund of about 3% of the purchase price. Bills S7600 and A8945, introduced in 2025, aim to mandate a 30-year capital reserve plan, but they have not yet passed into law.

What should buyers check? Requesting the last three years of financial statements, reserve fund balances, and recent board meeting minutes to see if special assessments were discussed is a good first step. Even new buildings can significantly raise initial low maintenance fees within a few years, so it's wise not to rely solely on the initial budget presented by the developer.

In older buildings with doormen, like those in Brooklyn Heights or Park Slope, it's common for maintenance fees to exceed $1 per square foot, while in less amenity-rich walk-up buildings in Bushwick or Bed-Stuy, fees tend to be lower. For investors looking for rental income, a building with lower fees may seem advantageous at first, but if the reserve fund is also low, it could lead to a burden of special assessments in the long run.

Some new buildings may require hiring a certain number of unionized management staff as a condition of tax abatement programs, which can lead to structurally higher maintenance fees. When viewing properties, it's helpful to ask why the fees are set at their current levels.

Mortgage lenders also review this aspect. If a property does not meet fanniemae.com standards, it may be classified as a non-warrantable condo, leading to loan denials or increased down payments.

Brooklyn has several neighborhoods that Korean families consistently seek out due to school districts and accessibility. While school ratings can be checked on GreatSchools or Niche, boundaries change frequently, so it's advisable to verify the assigned school for a specific address before purchasing.

• Last three years of financial statements and reserve fund balances
• Recent board meeting minutes and any discussions of special assessments
• Comparison of the developer's initial budget and actual expenditures
• Percentage of delinquent units and any lawsuits

Special assessments can feel like they come out of nowhere, but there are often signals left in the paperwork. This article is not investment or legal advice, and it's recommended to consult a real estate professional before finalizing any contracts.