Board Service: Gerald L. Fingerhut

Rebuilding turned out to be relatively easy; the contractors we selected were outstanding. It was more challenging arranging financing for the co-op; assisting shareholders paying their share of an $11 million assessment; dealing with the city, numerous architects, engineers and lawyers; and interacting almost daily with the state's insurance department and with roughly 35 insurance companies, convincing almost all of them to pay shareholders' loss assessment rider claims, totaling in the millions.

The aftermath of that event continues today. The wall has been rebuilt, the grounds are more beautiful than ever, a new and expanded children's playground was completed this fall, and a graceful pergola, with seating overlooking the Hudson River, the Palisades and the George Washington Bridge has been completed. The sounds of kids playing on our acres of lawn are once again heard. People picnic when the weather is conducive. When it snows, kids find the grades suitable for sledding.

The reality check of taking on the awesome responsibility of a project with a price tag exceeding $25 million was a wake-up call for everyone in Castle Village. In its aftermath, came several other realities, all under the heading This Was Not Going to be Business as Usual.

Castle Village was converted to co-op in 1986. It was now 2006; 20 years later and our corporate documents had not undergone any significant revisions. From a financial standpoint, they did not provide for transfer, sublet or storage fees. Furthermore, while we recognized the need to "green" our five buildings and wanted to submeter electricity, we faced an onerous 75 percent requirement for passage of any amendments.

Fortunately, with the support of a great many shareholders who worked tirelessly to get out the "yes" vote, we were successful. We modernized our corporate documents, reduced the requirement to amend them to 66 2/3 percent, instituted transfer, sublet and storage fees that are already generating several hundred thousand dollars each year, and received shareholder approval for submetering.

We also authorized an energy audit, which was completed this past fall. The board and the energy committee reviewed the findings and approved the project in November. It's projected to cost approximately $2.4 million, which will be funded in part by a subsidized loan of $1.9 million from the New York State Energy and Research Authority (NYSERDA) and grants of another $500,000. The recommendations consist of energy-saving improvements that include submetering, the installation of multiple cogeneration systems in each of our five buildings, and thermostatically controlled steam valves. Energy savings are projected to exceed $300,000 per year.

Viva Volunteers!

A complex as large as Castle Village, with 585 units on seven-and-a-half acres and five high-rise buildings, consists of a large, diverse community. We're somewhat unusual in that our park-like grounds are conducive to neighbors getting to know one another. However, we felt that was not enough. In order to nurture a better sense of community, we initiated or revitalized several initiatives began work to make our five buildings compliant with the Americans with Disabilities Act. We now have:

• A bimonthly newsletter produced by two of our residents

• A Web site where information is posted on a regular basis and e-mailed to shareholders

• A community-connections committee focused on quality-of-life issues

• An event-planning committee responsible for developing and executing picnics, plays, readings, children's events and the like

What have I learned? I'm constantly reminded that community service is a reward in and of itself. I've met many wonderful neighbors and formed numerous lasting friendships. In the final analysis, co-op management means running a corporation. It requires financial expertise and business acumen combined with compassion for the well-being of one's neighbors.

Fortunately for Castle Village, we have been blessed with wonderful volunteers. We couldn't do it without them.

 

Adapted from Habitat February 2009. For the complete article and more, join our Archive >>

Photo by Carol Ott