The first requirement is that the abatements be distributed according to the list you received from the Dept of Finance. How the DoF calculates how much each *eligible* unit (apartment) will receive is a mystery of the universe.

The second requirement is that all co-op assessments be made equally on a *per-share* basis.

The board is fulfilling its fiduciary responsibility by treating each *share* equally and not each *unit*. This cannot be changed, not even by amending the Proprietary Lease.

Non-qualifying shareholders (usually those whose unit is not their primary residence) are out of luck and there is no recourse. The City has chosen to give primary residents a perk in the form of a tax abatement *per unit* and the board is required to base and collect any assessment on a *per share* basis.

This abatement/assessment wash *never* works out for any unit, and the assessment is equal to the abatement. Some shareholders have a net gain and some have a net loss.

I've been a treasurer for 15 years and I've received this identical question each of those 15 years. I try to preempt it by including a basic description of the different ways the abatement and assessment are determined in the email I send to all shareholders. I still get a couple of calls each year

I hope this helps,
--- Steve

Excellent explanation, Steven. We also get the same questions year after year in our coop.

Just one point to add: the tax abatement is "vapor money." It's not that the coop receives a big pile of cash to hand around to those who were eligible. Instead, the building's property tax bill is reduced by the total amount of the abatement. The coop never actually sees the money, except in the form of lower tax payments.

So there's not any received money to distribute. Instead, most buildings - including ours - follow exactly the process you describe: impose a one-time per-share assessment that (roughly) flattens the abatement for those who receive it, and requires real-money payments from those not eligible for the abatement.

Steve and Carl, thanks for the responses. Very helpful and good to know it is not only us receiving this type of question. I am not sure if math has been done to compare the value of the abatement vs the cost to the non-qualifying shareholders but I have to expect they would ultimately be paying more in fees without the reduction in taxes. - Ed

1) If you're a union building (32BJ) ask your rep if they can create a list for you.

2) If you're not a union building or you'd like to augment a list the union gives you, try online recruiting services like Zip Recruiters or Indeed. You'll have to spend time going through the responding candidates send you.

3) Try doing a Google search. Figure out what keywords to use for your search. It won't take too long to generate a list of your most effective keywords.

Hey! My name is Nick and Im currently a part time super looking for a different building.

I have 5 years expierence as a property manager and a few years in project management. It would be a pleasure to email you my resume.

Nickcataldo@rocketmail.com

When posting on Indeed or LinkedIn, you tend to get those who are not serious and a lot of applicants who do not have what is you are looking for. Many times, the best applicant resume might be burried underneath 100 others.

Word of mouth is best. You try talking to a super in the buildings next to yours to see if they know anyone who might be a good fit.

What is an Annual Renewal and Change Form?

All co-ops are required to file this by February 5th every year to report changes in ownership and even if no new changes.

Steven - Here is the Annual Renewal and Change Form that marym is talking about. Thank you marym for the information!

https://www.nyc.gov/assets/finance/downloads/pdf/coop_condo_abatement/coop-renewal-application.pdf

Thanks, Marym and Marty. Our Property Manager and Managing Agent handle that for us and I think they refer to it with a different name.

https://mydigitalpublication.com/publication/?i=725658&article_id=4137037&view=articleBrowser

My understanding is that in order for a new shareholder to receive the abatement, they must first reside in the co-op for one full yearly cycle of Jan 1 through December 31. (Though I am not 100% sure about Jan 1. It might be Jan 5 through Dec 31).

Assuming it's Jan 1...If they closed on Dec 31, 2022, they will have met the Jan 1 through Dec 31 in 2023, so they'd be eligible for the abatement in 2024.

If they closed on Jan 12, 2023, then they will only meet the full 1 year residency in 2024, so they wouldn't be eligible to receive the abatement until 2025.

Steven 424 or any of the knowledgable people on this website - Please correct me if I'm mistaken about the dates.

I believe eligibility for the abatement is based simply on your status on the recording date. January 5th sounds very familiar.

Marty and I disagree on this so you should do further research Ask your MA, and I think the DoF website has information that might answer your question.

Steven424 - Here is the info from the NYC DOF website. Maybe you and others reading this can review it and see how you interpret it.

https://www.nyc.gov/site/finance/benefits/landlords-coop-condo.page

In the REQUIREMENTS section, it states, "You must have purchased the unit on or before January 5 to qualify for the abatement for the upcoming tax year. If the unit was purchased after January 5, you can apply for the next tax year."

I don't think the recording date comes into play but I could be mistaken.

You've rolled several questions into one post. Ordinarily, a change to the flip tax requires the approval of a supermajority of shareholders. It's possible, however, that your governing documents give that power to the board. You'd have to check.

Failure to pay your vendors is not "criminal," but it's bad behavior that could lead to legal claims by the vendors. It could also make it harder to engage vendors/contractors in the future.

Almost all co-op by-laws require an annual meeting of shareholders, along with a board election. You may need to engage a lawyer to force a meeting. That would be an expensive proposition on your own; see if you can get other shareholders involved.

Couldn’t the shareholders vote for a “special meeting” and really for an election?

Yes, provided there is the appropriate language in your co-op bylaws. Generally, that's how it's done, but some customized or amended bylaws may contain non-standard language so there is no definite "yes" or "no" answer.

After your review of your by-laws but before you take any unilateral action, I *strongly* advise you (as Carl Tait did) to solicit the support of other shareholders. This group could also form the basis of a slate of opposition board members who run against your current board at the next election.

Good luck!

You're asking questions of a fairly complex legal nature, which can have serious ramifications, as you pointed out. My advise is to bring this situation to the attention of the Co-op's attorney as soon as you can. There may already be board decisions in the records that are affected by the apparent invalid composition of your board.

In a situation like this the only person who should be advising you is your Board attorney.

Good luck!

All s/h receive the same percentage maintenance increase. Since different apartments have different amounts of shares, not everyone will pay the same dollar amount for their maintenance increase. So, if the Board votes a 5% increase, everyone's maintenance will increase by 5%.

The Board is elected to represent the s/h and run the co-op. This includes the right to raise maintenance if they think that's the right financial decision. The Board has strict ethical and fIduciary responsibilities that is supposed to keep them in check. If enough s/h disagree with the way the Board runs things, then other s/h have a right to voice their opinion about the way things are run. They also have the right to run for the Board and get involved in running the co-op.

You're right that real estate taxes have skyrocketed, but so has the price of everything in the past few years due to inflation. Everything costs more, including the prices charged by your plumber, electrician, contractor, etc. Co-ops are also navigating the climate change/carbon emission laws enacted by NYC. That may very well also increase expenses to the co-op.

It's possible that the co-op had some large expenses (roof, elevator) they incurred before you moved in, so they may still be paying those off.

It's important for all s/h, especially new s/h like yourself to look at the big financial picture and not just what's happened in the past year or two. I always felt that you need to look at a 10 year period to review the co-op's expenses and revenues to get a more complete picture of the co-op's financial situation.

As far as potential new buyers requesting to see the last 5 years of maintenance fees, it's important that they also see the last 5 years of financials - to give them a complete and accurate picture of the co-op's finances. There may have been boiler and heating upgrades that the co-op made. These might have cost lots of money now, but will pay off in the long run.

Remember that the Board is responsible for making short term and long term decisions on behalf of the s/h in the co-op. You can also ask Board members why they raised the maintenance fees? Communication is very important, so don't be afraid to ask the Board directly if you have any questions. It's always better to ask the Board than to listen to fellow s/h, who may not have all of the information that the Board has.

Good luck.

NYC property tax bills are available on the public portal: https://a836-pts-access.nyc.gov/care/forms/htmlframe.aspx?mode=content/home.htm.
Concord Village's BBL is 3 (Borough), 86 (Block), 11 (Lot).
The November 2020 quarterly tax payment was $926,173.00 and the November 2022 quarterly tax payment was $1,293,372.22. This is a an almost 40% increase.
Co-ops and condos have been lobbying for a separate tax class as we are currently in the tax class with market rate rental buildings.

Wendy - I'm not a co-op lawyer, but I am a commercial litigator with decades of experience and have served on three co-op boards. Mediation is generally conducted by a trained mediator who can professionally evaluate the strengths and weaknesses of each side's position and guide them to a voluntary resolution. Board members would not ordinarily have that expertise. But even if they did, they are likely to be perceived as having conflicts of interest by one side or another. If the dispute involves one or both shareholders violating house rules or the proprietary lease, then the Board's role is to police and enforce the rules. If it is a dispute that does not involve violation of the rules, then the board should stay out of it. But of course, a dispute that disturbs neighbors likely violates the rules.