The article discusses the authority of co-op boards to impose surcharges on maintenance fees for rented apartments, underlining that such actions are often within their jurisdiction provided they adhere to the governing documents and the business judgment rule. While the board can make decisions affecting nonresident owners, it's essential for shareholders to review their proprietary lease to understand the conditions around subletting. The imposition of fees is common, and as long as the board treats all shareholders equitably, it is generally not seen as discriminatory or illegal.
A co-op board operates under the business judgment rule, which gives it latitude to make decisions in the best interests of the building and shareholders.
Charging an extra fee for shareholders who sublet their apartments is not uncommon; the board must treat shareholders equally within the governing documents.
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