Leasing & tenant law · Owners & management · 10/24/2026, 12:27 AM
Condo Boards Can Collect a Tenant's Rent to Cover Owner Arrears
Under Real Property Law Section 339-kk, a condo board can collect rent directly from a tenant when a nonresident unit owner is at least 60 days delinquent on common charges, assessments or late fees. The tenant pays the board until the arrears are cleared and cannot be made to pay twice. The remedy does not apply if the owner lives in the unit or no one pays rent.
Reported by Habitat MagazineRead the original ↗
What happened
Habitat Magazine, in a November 2026 archive article posted October 24, 2026, explains a New York law that lets a condominium board collect rent directly from a unit's tenant when the unit owner falls behind on common charges. The remedy is meant as an alternative to a lien foreclosure or a lawsuit, which the article says can be expensive and slow, especially for smaller buildings.
Under Real Property Law Section 339-kk, a condo board can redirect rent when a nonresident unit owner is at least 60 days delinquent on common charges, assessments or late fees, after any grace period. The tenant then pays rent to the board instead of the owner until the arrears are paid. Rent paid to the board relieves the tenant of paying it to the owner, and it is a defense if the owner tries to evict for nonpayment. One summary line in the article refers to "nonprofit owners," but the body of the article describes the rule as applying to nonresident owners.
Once the arrears are paid, the board must notify the owner and the tenant within three business days so rent goes back to the owner. The owner can challenge the claimed delinquency and request a hearing before the board. The remedy is not available when the owner lives in the unit or when no one is paying rent. The article says the statute is not clear about what a board can do if the tenant still does not pay. It suggests one approach is having the board's attorney serve the notices that come before a nonpayment eviction case, without filing one.
For boards weighing foreclosure instead, the article advises getting a title report first, since mortgages, unpaid taxes or other liens may take priority over the condo's lien and leave little for the building. It also notes that co-ops have a similar remedy under the General Business Law when an apartment is sublet.
Key facts
- Law
- New York Real Property Law Section 339-kk
- Trigger
- Nonresident condo unit owner at least 60 days delinquent, after any grace period
- Debts covered
- Common charges, assessments or late fees
- Tenant protection
- Rent paid to the board relieves the tenant of paying the owner and is a defense to a nonpayment eviction by the owner
- Notice after payoff
- Board must notify owner and tenant within three business days
- Owner's right
- Can challenge the delinquency and request a hearing before the board
- Not available when
- Owner lives in the unit or no one is paying rent
- Co-ops
- Similar remedy under the General Business Law when an apartment is sublet
What it means
Landlords
If you own a condo unit you rent out and fall at least 60 days behind on common charges, your board may be able to collect your tenant's rent until the arrears are paid. You can dispute the claimed debt and ask for a hearing before the board.
Tenants and voucher holders
If you rent a condo unit and get a notice to pay rent to the condo board, rent you pay to the board counts as paid to your landlord. It is a defense if the owner later tries to evict you for nonpayment.
Caseworkers
A client renting a condo unit may receive a demand to pay rent to the board instead of the landlord. Payments to the board protect the tenant from a nonpayment eviction by the owner, so it is worth confirming the notice is genuine and keeping proof of every payment.
The highlights
- Real Property Law 339-kk applies once a nonresident owner is 60 days behind.
- Rent paid to the board is a tenant's defense if the owner sues to evict.
- Boards must notify owner and tenant within three business days once arrears are paid.
Why it matters Landlords
Investors renting out condo units can lose rent to the board if they fall behind on common charges, and their tenants are protected from double payment.
What to do: Stay current on common charges for any condo unit you rent out.
Not known yet
- Whether the article's reference to "nonprofit owners" in one line is an error or reflects a separate rule
- What form the board's notice to the tenant must take and what it must include
- How the rule applies when part of the rent is paid by a subsidy or voucher program
- What happens to rent the tenant already paid the owner before receiving the board's notice
Background
In New York City condominiums, each unit owner pays monthly common charges to the condo board to cover building operations. When an owner stops paying, boards typically have a lien on the unit and can pursue collection through a lawsuit or lien foreclosure, but those liens can rank behind mortgages and tax debts. Tenants renting from an individual condo owner generally deal with that owner as their landlord, not with the building's board, unless a specific legal process shifts where rent is paid.
Summary written by Bulwark from Habitat Magazine’s reporting. The original story is at habitatmag.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0