N.Y. Real Property Law § 339-cc

RPL § 339-cc: rebuilding a damaged condominium, and the three-quarters rule

Real Property Law § 339-cc makes a condominium board rebuild using insurance proceeds, and allows partition only after a three-quarters destruction.

Official text N.Y. Real Property Law § 339-cc — New York

§ 339-cc. Repair or reconstruction. 1. Except as hereinafter provided, damage to or destruction of the building shall be promptly repaired and reconstructed by the board of managers, using the proceeds of insurance, if any, on the building for that purpose, and any deficiency shall constitute common expenses; provided, however, that if three-fourths or more of the building is destroyed or substantially damaged and seventy-five per cent or more of the unit owners do not duly and promptly resolve to proceed with repair or restoration, then and in that event the property or so much thereof as shall remain, shall be subject to an action for partition at the suit of any unit owner or lienor as if owned in common, in which event the net proceeds of sale, together with the net proceeds of insurance policies, if any, shall be considered as one fund and shall be divided among all the unit owners in proportion to their respective common interests, provided, however, that no payment shall be made to a unit owner until there has first been paid off out of his share of such fund all liens on his unit.

  • 2. Notwithstanding the provisions of subdivision one hereof, in the case of a qualified leasehold condominium, any damage to or destruction of the building shall be promptly repaired and reconstructed by the board of managers, and the proceeds of the insurance policy or policies required for qualified leasehold condominiums pursuant to the provisions of section three hundred thirty-nine-bb of this chapter shall first be applied to such repair and reconstruction.

Text as published in the 2026 snapshot of the code.

Source: Vaquill Open US Law, compiled from official state publishers (huggingface.co), reproduced under license CC BY 4.0.

Read this provision at the official source →

What it actually says

The starting position is that the building gets rebuilt. Damage to or destruction of the building shall be promptly repaired and reconstructed by the board of managers, using the proceeds of insurance on the building for that purpose, and any deficiency constitutes common expenses - which means it is apportioned among the owners under § 339-m. Insurance first, owners for the shortfall.

The exception is a threshold with two limbs, and both must be met. If three-fourths or more of the building is destroyed or substantially damaged, and seventy-five per cent or more of the unit owners do not duly and promptly resolve to proceed with repair or restoration, then the property or what remains of it becomes subject to an action for partition at the suit of any unit owner or lienor, as if it were owned in common. The net proceeds of that sale, together with the net proceeds of the insurance policies, are treated as one fund and divided among the owners in proportion to their common interests - with the qualification that no owner is paid until the liens on that owner's unit have first been paid out of the owner's share.

Subdivision 2 removes the exception for qualified leasehold condominiums: there, damage or destruction must be promptly repaired and reconstructed by the board whatever the extent, and the insurance required under § 339-bb goes first to that repair.

When it applies

  • A fire or flood damages part of a building and the board has to decide how to fund the repair.
  • Insurance proceeds fall short of the cost of reconstruction and owners are assessed for the difference.
  • A building is largely destroyed and the owners cannot reach the required majority to rebuild.
  • An owner with a mortgage wants to know how proceeds are distributed after a partition sale.
  • An owner asks whether the board must repair damage to a unit as well as to common elements.

What this section does not say

  • It is not a general repair obligation. This section is about damage to or destruction of the building, not routine maintenance.
  • It does not say what insurance must be carried. That is § 339-bb and the declaration.
  • It does not let a minority force a sale after ordinary damage. Both the three-quarters destruction and the failure of seventy-five per cent of owners to resolve to rebuild are required.
  • It does not deal with the contents of a unit or an owner's own losses, which are matters for the owner's own policy.
  • It does not free an owner from a mortgage. Liens on a unit are paid out of that owner's share before anything is distributed.

Worked examples

Invented situations, written to show how the wording bites. They are not real cases, not judgments and not precedent, and nothing here predicts what would happen in yours.

Illustrative example

A fire destroys a substantial part of a condominium building. The insurance settlement falls well short of the rebuild cost, and the board assesses every owner for the difference.

How the wording applies

Damage to or destruction of the building shall be promptly repaired and reconstructed by the board using the insurance proceeds, and any deficiency constitutes common expenses, apportioned among the owners under § 339-m. Insurance first, owners for the shortfall. The exception has two limbs and both must be met: three-fourths or more of the building destroyed or substantially damaged, and seventy-five per cent or more of owners failing duly and promptly to resolve to rebuild.

How the parties settled it

The owners agree the assessment is payable quarterly over two years, and the board publishes the insurance settlement and the contractors' tenders so everyone can see where the shortfall comes from.

Illustrative example

After a near-total collapse the owners are split. No resolution to rebuild comes close to seventy-five per cent, and several owners want the site sold instead.

How the wording applies

Where both limbs are satisfied, the property or what remains of it becomes subject to an action for partition at the suit of any unit owner or lienor, as if owned in common, with the sale proceeds and the insurance proceeds treated as one fund divided in proportion to common interests - and no owner paid until the liens on that owner's unit are met out of that owner's share. So it turns on the extent of the destruction and on whether the resolution failed promptly, not on who is keenest to sell.

How the parties settled it

They commission one independent survey of the extent of the damage before anyone votes again, and agree in advance to abide by the vote that follows it whichever way it goes.

Illustrative example

An owner whose furniture, books and floors were ruined asks the board to meet the cost out of the building's insurance.

How the wording applies

The section is about damage to or destruction of the building and the board's duty to repair and reconstruct it; it does not deal with the contents of a unit or an owner's own losses, which are matters for that owner's own policy. It also does not say what insurance must be carried at all - that is § 339-bb and the declaration.

How the parties settled it

The board circulates the building policy's schedule so owners can see exactly where it stops, and the association covers the plaster and the original fittings while owners carry their own contents cover.

Related sections

N.Y. Real Property Law § 339-m RPL § 339-m: how condominium common charges are apportioned N.Y. Real Property Law § 339-i Condo Board Access Rights | N.Y. Real Property Law § 339-i N.Y. Real Property Law § 339-x RPL § 339-x: you cannot escape common charges by not using the building N.Y. Real Property Law § 227 Stop rent if untenantable: N.Y. Real Property Law § 227

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We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.

This page reproduces the text of N.Y. Real Property Law § 339-cc in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in New York.

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