July 4, 2008 — A scenario from the proxy wars: a very prestigious building, inhabited by some Very Important People. For some reason, their control of this co-op board became the most important thing in their lives. The campaign for office was brutal and the election meeting was intense and contentious. Unfortunately, it was all about personalities — and frequently in such cases, elections are so close that every vote counts. That's when proxies — a document authorizing a specified person to vote your corporate stock, generally because you cannot attend a meeting for some reason — can tip the balance. Read More »

Post-Issue Update: June 17, 2008 — New York State Governor David Paterson has signed a four-year extension to the New York City property-tax abatement program for city coops and condos. The legislation, introduced by Assembly Speaker Sheldon Silver and State Senator Frank Padavan, allows the Department of Finance to include the abatement in its property-tax bills for the 2009 fiscal year, which begins July 1, 2008. Read More »

You may call me mad — other men have. Yet a story is no less true for having driven its witness into the mouth of madness. You will understand, when I report to you of a creeping unknown more dark and fearsome than Cthulhu or Shuma-Gorath … the entity known as Local Law 48 of 2006.

I first heard of Local Law 48 — which amends Section 26-118 of the New York City administrative code to increase the fines for violations of stop-work orders at construction sites — from a gentleman I shall call T. His small, self-managed Manhattan co-op was having plastering and waterproofing done on one façade. Their contractor had inadvertently neglected to obtain a Saturday work permit. A small thing, 'twould seem, no more loathsome than a pedestrian crossing 'gainst a stoplight — a technical violation of no noise or bother.... Read More »

If your building is lucky enough or prudent enough to have multimillion-dollar capital reserves, keeping them intact and growing them brings unique albeit pleasant problems. The real estate boom of recent years saw some co-ops, for instance, convert commercial rental units into additional shares and selling them, while others acquired large sums via flip taxes. Whatever the reason, cash accumulated quickly, and it's now up to you to make maximum use of those funds. Read More »

Heather Dunleavy wasn't herself. Literally. But Chase Bank didn't know that when it let an impostor withdraw nearly $15,000 from her account — not long after Dunleavy had given a co-op board copies of an application package, complete with her Social Security number (SSN), all her banking details and much, much more. Read More »

The British are coming! And so are the French, Italians, Germans and Greeks. With a weak dollar, co-ops may soon have to relent on restrictive admissions policies and let ’em in. But permission must come with protections. What are the risks that boards take in permitting foreign ownership? What steps can you take to reduce risks? Read More »

With real estate taxes, energy costs and repair bills continuing to head into the ionosphere, many co-op and condo boards have been scrambling for ways to pay without imposing dreaded assessments or maintenance increases. Among the more popular revenue sources are sublet fees, late fees and transfer fees, a.k.a. flip taxes. But be careful of levying that last one, since it could flip you into court. Read More »

Ellen Covas is treasurer of a seven-unit Brooklyn co-op with a DVD-rental shop on the ground floor. Until recently, her 24-year-old co-op was having such a hard time complying with the law concerning real estate tax and mortgage interest rate deductions that it was considering turning itself into a condominium or even a cond-op to comply. Her building was not alone. Read More »

In golf, people warn of possible physical danger by yelling, “Fore!” In co-ops and condos, nobody warns of possible financial danger by yelling, “Foreclosure!” Maybe someone should — because the possibility of an apartment foreclosure is one that all boards need to know how to deal with. Read More »

Of all the renovations one can make to co-op or condo apartment, some of the most elaborate and controversial involve the kitchen and the bathroom. When modifications to them place such "wet rooms" directly over a living room or a bedroom, the situation can almost literally leak trouble — leading to everything from bruised feelings to insurance nightmares to lawsuits. Indeed, one such lawsuit pending before the State Supreme Court is a reminder for co-op and condo boards of the minefield that "wet-over-dry" construction can be. Read More »