Update: Condo Board Collection of Unpaid Common Charges in the Face of COVID-19 Regulations
With all of the Executive Orders from Governor Cuomo and the Administrative Orders issued by the Chief Administrative Judges of the State and City of New York in response thereto, Condo Boards and Managing Agents are justifiably confused as to what, if anything, a Condominium Board can do to collect unpaid common charges.
Currently, no Executive Orders or Administrative Orders prohibit Condominium Boards from commencing legal action to collect unpaid common charges. Boards can file liens for unpaid common charges and prosecute foreclosure actions in Supreme Court for the same. Boards can also commence money actions for the collection of unpaid common charges in the City and Civil Courts. The only Executive Order that currently applies to common charge lien foreclosure actions and condo money actions is Executive Order 202.60 signed by Governor Cuomo on September 4, 2020, which extends the tolling of statutory time limits, including the time to file an answer, to October 4, 2020.
While the Courts are moving forward with the cases, conferences are being held virtually but judges are adjourning cases for several months where the defendants have not appeared or are not represented by counsel. Due to the enactment of EO 202.60, we also anticipate that courts will not entertain motions for default judgment until at least October 5, 2020. Further, it has been our experience that the courts have been reluctant to issue decisions on pending non-default motions in foreclosure actions as well, effectively staying cases for the time being.
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