Effective February 1, 2026
The Board has approved a maintenance adjustment effective February 1, 2026. Below is a complete breakdown of the new fee structure.
| Fee Category | New Rate | Notes |
|---|---|---|
| General Maintenance | +9.64% | Added to what you pay now |
| Air Conditioner (1st unit) | $250/year | Per apartment |
| Air Conditioner (2nd+ units) | $200/year | Each additional AC |
| Cable TV | $95/month | If subscribed |
| Storage (1st bin) | $35/month | Per apartment |
| Storage (2nd+ bins) | $45/month | Each additional bin |
| Bike Storage | $10/month | Per bike |
| Garage Parking | $140/month | Per space |
Based on projected 2026 expenses, the building initially faced a 14.80% maintenance increase to achieve a balanced budget. The Board worked to reduce this burden on shareholders.
Key expense drivers for 2026:
The chart below shows how we've had to catch up since 2020, compared against NYC Metro Area inflation (CPI data from Bureau of Labor Statistics):
Inflation data source: Bureau of Labor Statistics, NYC Metro Area CPI
This increase is driven by costs outside our control that are affecting all NYC co-ops and condos. Four major cost categories have seen significant increases:
NYC co-op and condo buildings are facing a severe insurance crisis. Premiums have skyrocketed across the city.
Sources: Habitat Magazine, CNYC Testimony (2025)
Driving factors:
Water, electricity, and heating costs keep rising year after year.
Source: NYC Rent Guidelines Board Price Index of Operating Costs (2025)
NYC groups buildings into tax classes. Co-ops like ours are in Class 2, which has higher tax rates than single-family homes. Property taxes continue to be a major expense.
Source: NYC RGB Price Index (2025)
| Year | Property Taxes Paid |
|---|---|
| 2022 | $XXXXX |
| 2023 | $XXXXX |
| 2024 | $XXXXX |
| 2025 | $XXXXX |
| 2026 | $XXXXX |
Class 2 tax rates (the category for co-ops) remain at 15-year highs, with no relief expected from state lawmakers.
Building staff wages and benefits continue to rise, driven by union contracts and labor market conditions.
Source: NYC RGB Price Index (2025)
| Year | Labor Costs |
|---|---|
| 2022 | $XXXXX |
| 2023 | $XXXXX |
| 2024 | $XXXXX |
| 2025 | $XXXXX |
| 2026 | $XXXXX |
Southridge 4 is not alone—these cost pressures are affecting buildings across New York City.
Independent government agencies, industry organizations, and news outlets all document the same reality: operating costs for NYC co-ops are rising sharply.
The Rent Guidelines Board is the city agency that tracks building operating costs. Their official Price Index of Operating Costs (PIOC) documents consistent increases across all categories:
| Cost Category | Annual Change |
|---|---|
| Insurance | +18.7% |
| Fuel | +10.3% |
| Utilities | +8.2% |
| Administrative Costs | +5.1% |
| Maintenance | +4.3% |
| Real Estate Taxes | +3.9% |
| Labor Costs | +3.7% |
Source: NYC RGB Price Index of Operating Costs (2025)
CNYC is an advocacy group representing co-ops across the city. They submitted testimony documenting the insurance crisis:
"Cooperatives and condominiums have self-reported annual premium increases ranging from 15% to over 300%, an excessive number of non-renewals, and reduced coverage."
REBNY is the trade association for NYC real estate. Their testimony to the Rent Guidelines Board confirms:
Government agencies have approved continued rate increases:
Sources: NY PSC Rate Decision, NYC Water Board
Southridge 4 continues to invest in critical infrastructure to maintain building safety, functionality, and long-term value. These projects represent significant capital expenditures that benefit all shareholders.
Completed using reserve funds to improve energy efficiency and building envelope integrity.
Ongoing carrying cost for building improvements and capital projects.
Elevator maintenance, modernization, and repair expenses.
NYC-mandated facade inspections and required repairs to ensure building safety compliance.
Yearly maintenance to keep building plumbing systems operational.
Security improvement project to extend fencing between buildings for enhanced resident safety.
Looking forward, several factors will continue to impact building costs:
Local Law 97 is NYC's climate law requiring buildings to reduce energy use and emissions. If we don't meet the limits, we face fines. Requirements get stricter in 2030, which may require investments in energy efficiency upgrades.
Con Edison's approved rate increases extend through 2028. Water and sewer rates are reviewed annually by NYC, with consistent upward pressure expected.
The insurance crisis isn't improving. The Board continues to work with brokers to find the best coverage at competitive rates.
The Board continuously reviews expenses and looks for efficiencies. However, the major cost drivers—insurance, utilities, taxes, and labor—are largely outside our control. Cutting essential services would negatively impact building quality and property values.
Our 9.64% increase is in line with what similar NYC co-ops are experiencing. Many buildings have seen double-digit increases for multiple consecutive years due to the same market pressures.
The Board is actively exploring energy efficiency improvements, negotiating competitive contracts, maintaining strong reserves to avoid special assessments, and monitoring market conditions to make timely decisions.
The new maintenance rates take effect February 1, 2026. Your February maintenance bill will reflect the adjusted amount.
Please contact the management office or reach out to any Board member. We're committed to transparency and welcome your questions.