does it sate that additional charge for select shareholder in the proprietary lease?
i doubt it .
they could probably raise everybody $100. but not some.
do not let them in to spray if you have allergies.. even with the financial threat.

Was a specific reason stated for the new policy? Are you aware of a pest problem anywhere in the building?

Is this a 1-time treatment, or will regular visits to each apartment be required?

Do you happen have a new pest control company?

Seems that the fine is the lesser of your concerns. The best test of whether this is a legitimate, good faith effort to ensure the building is pest-free is to ask the Board if they'll allow you to instead have your apartment treated--at your expense--by a licensed vendor of your choice. If yes, you can hire a "green" firm & pursue organic or non-pesticide options.

If the Board refuses, it's time to be suspicious & dig deeper...

Check your Property Lease. Most of the time, the corporation ( the building ) has the right to inspect and perform repairs and preventive maintenance in all units. It is the shareholders responsibility to give access to any staff or contractor that the board hires to perform the necessary maintenance.

Not complying to the building rules can expose you to fines or legal action.

Why not let the vendor hired by BOD to treat building for bugs/mice into your apt. and let them inspect to put the BOD mind at rest. There is a good chance that other SH ARE having problems and it is the Corp's responsibility or at least make best efforts to ensure all SH have a pest-free home. Chances are if one SH has a problem, many more do and may not be aware of it. We had that happen in our building-some seniors couldn't hear the mice or see the droppings. Exterminators know where to look for signs of pests that you may not be aware of. We had them. It seems to me the BOD is acting in good faith and you should help them do their job without injuring your health.

Because the attempt, apparently sudden, to impose a $100 fine each month on non-compliant shareholders is suspicious...even if legal.

Because we don't have enough information to presume that the Board IS acting in good faith.

Because I've seen similar tactics used in other buildings. One, for example, had a large fiscal incentive for the Board to have apartments treated, even where there was no evidence of a pest problem.

More questions need to be asked & answered before concerned shareholders can be comfortable with the Board's course of action.

We have monthly service to spray our common areas. Fortunatley we do not have a problem. We had one incident where a "Collier Bros" person had lots of newpapers, paper bags, and cartons in the apt. We had the super remove them since this person complained of mice.Since mice do not have bones, they can slide into cartons and paper bags at will. Since we cleaned up, there have been no problems. We were worried that the mice would infest the building.

I am having the same problem in our building. Our President of the BOD is refusing to let three members and shareholders inspect our reserve account and bank statements. The last two Management Corporations we had gave us no problem with our inspections, Cooper Square in Manhatten is they are nutorious for such actions.We have hired an attorney to file an Order to Show Cause with an action that contains Errors and ommissions. Once they are serviced and appear in Supreme Court of New York, they will have to turn over all documents requested and permit any and all inspections of the books along with the daily activies. If you have a Management Company they are probably holding all the information you will need to inspect, if they do not comply find out who regulates their ethical conduct and file a complaint against them. Good luck, I know exactly what you are going through.

A certain percentage of your maintenance goes toward paying mortgage costs for the co-op; that amount is tax deductible as far as tax laws permit.

The co-op should provide you with that figure.

Consult a tax advisor before proceeding.

Does this mean that if the yearly maintenance on a coop is $25,000 and that at the end of the year you can deduct %50 percent off of your taxes, that you actually are paying $12,500 on your maintenance for any given year?

Assuming that your maintenance fees are just that - no storage fee, no fitness room charges, no other miscellaneous charges, etc. - yes.

That would be a hefty mortgage service, though; I believe our co-op's deductibility is closer to 34%.

Please - check with a tax advisor, which I am not, for complete information.

There are undoubtedly also articles on Habitat regarding this subject... read them, as well.

Jeff, yes interest paid on an underlying mortgage on the building is deductible just as is interest on a mortgage or co-op you may have personally. However, the largest deductible portion of your maintenance is most likely your share of the real estate taxes which are included in your maintenance. Real estate taxes can easily represent more than half of your monthly payment, depending on the size of your building's other financial obligations.

The co-op's auditors/accountants should issue a letter to the shareholders each year, detailing how much real estate tax and how much mortgage interest was paid per share of the co-op. Simple multiplication of that rate by the number of shares you own gives you the numbers you need for your income tax calculation. From that number you should deduct any tax rebates that you may have received as a co-op share owner, such as the co-op rebate, STAR, etc.

We also completed a windows replacement project in 2009 and the shareholders received the residential energy tax credit amount. We did not plan for this however it was a nice addition. A sample two bedroom unit received $71.9053 per share and with 140 shares; this generated a $1,500 tax savings.

Board Prez. is right, The co-op's auditors/accountants should issue a letter to the shareholders each year, detailing how much real estate tax and how much mortgage interest was paid per share of the co-op." You add both figures and multiply it by the number of shares. This gives you the total amount of your maintenance used to pay these two items exclusively.

To calculate the percent maintenance deduction of your unit the calculated amount in (1) is divided by your yearly maintenance. This percent is used by realtors in real estate listings to show the amount of maintenance that a potential buyer may deduct through their IRS-1040.

It also shows you how much of the total maintenance collected by a building is dedicated to pay taxes and interest. Example, a high percent, i.e., 65 or 70%, shows that the co-op dedicates the same amount of their total collections to pay real estate taxes and underlying mortgage interest and credit lines if any.

Hope this helps!

AdC

seriously.

Consult experts in soundproofing your ceiling and get costs.
Look at your condo documents for habitability warrantees.
Consult a lawyer on how best to move forward with the condo board re: paying for soundproofing.

My neighbor hired contractors to rip out the ceiling above his bedroom and blow noise-attenuating insulation in between his ceiling and his upstairs noisy neighbor's floor. It didn't help much. You need to get an expert--Bonnie Shnitta is an acoustician who can probably help you. She's based on Long Island. Good luck, it's awful, I know.

in all reality the 80 percent carpet rule , usually means little as far as noise reduction . Unless the rule specify the type of carpeting and pads etc.
a cheap paper thin carpeting with no padding is not going to stop that kind of noise. I doubt it would stop any noise.
i think the only way to approach it would be to put an acoustical ceiling on your ceiling, it sucks, cheap thin carpet will probably meet the requirement of the board and house rules.

Moving--in addition to being an extreme remedy--isn't guaranteed to bring relief. What will you do if, after you suffer that expense & inconvenience, you have a noisy neighbor at your new place? Repeat?

Noise rules are notoriously tough to enforce, but floor-covering rules are not. Pressure your Board...it's their responsibility. If the managing agent won't act, the Board can replace the agent or intervene directly with the offending neighbor.

If it's still a problem--or if your Board won't act--bolt subwoofers & tactile acoustic transducers directly to your ceiling, essentially turning the slab into a speaker. Find suitably annoying bass-heavy music, & get some high-quality earplugs. You should have their attention soon.

Be prepared for calls from the agent & Board, & assure them you'll cooperate with their requests to control offending sounds if they can assure you their enforcement efforts are equally targeting all noise offenders...particularly those not in compliance with the floor-covering rule.

This requires a modest investment [buy gear on Craigslist] which should not seem extreme if the alternative is relocating.

What can the Condo Board do??

On creating a noise nuisance, it depends on how your house rules are written. The Board should in any case formally notify your neighbor that there have been complaints, & that they should moderate their behavior so Board action won't be necessary.

On the floor-covering rule, the Board should send a reminder that the neighbor must be in compliance & request affirmation that this has been or will be done. Follow up with an attorney letter advising the neighbor that action will be taken if they do not comply, & that they'll be liable for all legal costs [almost certainly the case, but check your by-laws].

Excellent advice to contact the board to send a letter. However, you need to be proactive. Start your Email Trail. Keep all of your corrospondence, and be consistant. Every day/week send an Email to the Board and your ManCo. documenting the weeks noise. and, CC --Everyone. The MangCo should recoginize that you are building a record.

If you need to contact a lawyer, this will be your proof that you have done everything possible.

EmailPower works! VP

While I can understand feeling so angry that this remedy seems like a good approach--and it actually did work with a SH in our building who was blasting music to get his neighbors attention--they were stomping on the floor above him-in another instance it started a 10 year-long Hatfield and McCoy battle in another building. If the Board doesn't produce sufficient improvements, go on and get the sub woofer!

Don’t invest time, energy and money in responding in kind. If you’re going to invest anything, invest it in solving the problem. Your management company should see that the 80% rule is enforced. If that still doesn’t help, consider http://www.apartmenttherapy.com/ny/good-questions/good-questions-ceiling-soundproofing-tips-015695, but definitely consult soundproofing professionals before purchasing: it can get pricey.

You need to write to the Board - you should have "peaceful enjoyment" of your unit. However, if this neighbor is "belligerent," have an attorney write to that person with a copy to the Board. If your bylaws say that 80% carpeting is required, you have a case.

Check the offering plan which should state when the sponsor's agent can be replaced or when the board can achieve total control over sponsor/holder of unsold shares. Get your corp attorney involved as well and as always you have the state attorney general to speak with.

first, the co op doesn't have an attorney, they use the managing agents, who was the sponsor.
the sponsor no longer has control of the building as board votes. The board keeps thinking the managing company the sponsor converted themselves into is upstanding and doing a good job, i see other other wise.
i was just wondering if it is common for coops to still use the original sponsor as their now managing agent. I would think a smart group of people would get away from the original owner.
The managing company plays rotation of incompetent managing agents. When one board complains too much, they shift the bums onto the next unsuspecting building/.
A real managing company would not keep these types of people on their payroll.
In reality , they always had control of the building, even though they gave the board seats up after the specified time frame, we are talking past 25 years now.
Now we are getting assessed for stuff that should have been covered by preventive maintenance. I will contact the AG.

I manage about 5 buildings for both the sponsor and coop and it works well even in the buildings where the sponsor owns a low level of apartments.

Unfortunately not every sponsor has a good outlook on their investment as the ones I work with so this needs to be taken into consideration. slumlord or landlord? I will not even take a building from a slumlord, but welcome the later... Turning buildings like this around is my area of expertise ...

Anyway, your in a dangerous place from a financial and liability perspective. Repairs and maintenance items must be proactively resolved and not reactively, which ALWAYS costs more. At this point, I would create a five year capital and maintenance plan for the site, create the budget to go along with it and make it happen ASAP. If the managing agent is adverse to this, get rid of them. It most definitely would require an assessment, possibly even a five year capital assessment and a raise in maintenance because obviously he money was not in operating to take care of these items in the first place...

If you have a copy of the offering plan it should outline the management mandates (which should have long expired. If your on the Board and in a position to initiate the change, I would not waste time... Feel free to contact me if you need more specific assistance..

Best
~AR

Buildings and building repairs/capital improvements all wear out over time. This is the real world basis for the accounting treatment called depreciation.

Take a roof for example, when the roof needs repair again (in the future) how is the condo going to pay for it? Not paying principal on the loan means that the condo could be relying on an increase in property values to increase borrowing power to get yet another loan. As we have seen in the last couple of years, real estate prices do not always go up. So, what will you do if you need to get the new loan the in the down portion of the real estate cycle? In my opinion, I would only rarely get a loan and not pay principal and this is not one of those cases.

You already know this loan is a bad idea, but borrowing is something Boards can usually do [check your by-laws for possible constraints], with or without consulting all owners.

Given your apparently shaky finances--inadequate operating funds, coupled with units in default--I'd be particularly eager to learn how this loan is securitized. In this climate, it's hard to imagine many lenders being eager to give funds to a condo on the brink of trouble.

Get the facts on this loan.

http://www.bestpriceatvs.com/product.php?productid=16788&cat=265&page=1

Here is a site for Folding Portable Aluminum Ramps used for wheelchairs.

Good for you for acting so quickly on behalf of your resident.

This is a good source: http://www.rampsforliving.com/

They have various kinds of ramps that you can see on their website & we found them very caring.

it would be a good idea to check with united spinal. they are in queens ny .
united spinal org
They know all the ins and outs.
the slope and rise is a big consideration

The NYC Commission on Human Rights is the office to call for the information. They are very helpful - call Harvey Fisher at 718-722-3133 or email him at: hfisher@cchr.nyc.gov. Or Ted Finkelstein, same phone number.

They will also send you literature about the regulations and provide guidance, but can't recommend vendors or contractors.

Dear MR,

Your question is a tough one for the same reason you feel uncomfortable with the new mortgage – lack of information. A building generally has four ways to fund capital repairs: sell treasury stock (owned units); assess; use operating excesses; and borrow.

Loan rates are generally low right now. So, is the fee for paying off the old mortgage early less than the savings on the interest rates minus the new loan fees? If so and in my opinion, then it could be a good deal. If not, then I would question it if no urgent life/safety repairs are needed.

Also in my opinion, the loan balance is not generally that important (though it can give one sticker-shock) except if the building is reaching the point where it can't borrow anymore. I would look more closely at the proposed monthly payments – can the building afford these would be the more relevant question?

In my opinion, if you are Treasurer and you are not informed of the terms and fully understand them - this gives me great concern.

Regarding conflict of interest: many times the collective building's interest and the individual interest of a shareholder/board member are aligned. I would say that if the 'future improvements' include life/safety repairs or cost saving repairs they would probably be fine. However, if the repairs are entirely cosmetic (a lobby re-do, for example) which might drive up the value of their units prior to sale you may have a point. However, even here if it drives up everyone's value, it still could be valid.

My suggestion would be to become more comfortable with the loan terms. In my opinion, this will allow you to make a more informed decision. I would also place a call to your corporate Lawyer and CPA to obtain their opinions on the matter.

Good Luck!

This refi is actually being done to pay off huge legal bill that blind-sided us. Does that change your very well reasoned and sound advice?

Dear MR,

Thank you for the information. I don't know the circumstances surrounding how the legal bill legal bill was incurred however it sounds like your co-op does not have sufficient reserves to cover the amount due. I would never recommend capitalizing, into a mortgage, legal fees unless they were associated with getting the new mortgage/property/building.

It would help at this point to see the corporation's most recent Audited Financial Statements. I have made my e-mail address public. You can e-mail them to me if you want. I am President and former Treasurer of my Co-op. My Co-op's Audited Financial Statements are publicly available at: http://www.naborsapts.org/purchasers/key-documents/

My background is that I work in the Accounting Field with a very large pension fund with over $3 billion in assets.

Regarding the activities of your two Board members who want to sell in a year or so, it is possible that they are trying to keep the cash needs of the corporation low (either assessments or maintenance) in order to increase either the value of their units or the speed at which they might obtain a sale. There could also be other legitimate reasons too. If their reasoning is at odds with fiscal prudence, there could be conflict however a lawyer would need to be consulted.

Steve

I think Steve's advice is excellent--particularly about not capitalizing non-mortgage-related legal fees--but I differ on 1 point: "if their reasoning is at odds with fiscal prudence," as he theorizes, then the question about conflicts of interest is moot. You're the Treasurer, & your responsibility is to the shareholders, not to the Board. You don't need a legal opinion...you need common sense & a conscience.

Your own judgment here is what matters, & refinancing is NOT an issue on which a Treasurer can legitimately abstain. If you still lack info you feel essential to reach a decision [which is particularly disturbing, since you should be the point person on this task], you must oppose. Whether you simply vote "no" or work to find better terms &/or alternative financing depends on your building's circumstances, & we don't have enough detail.

However, if you're not convinced that the financing package makes sense, voting against--when you know you're alone in opposition & the vote will carry--is not enough. You have suspicions about this deal, & about the motivation of some of your fellow Board members, or you wouldn't have posted here. You probably can't consult building counsel, whether because the attorney is in the pocket of the Board President, or for the simple fact that the attorney's large & unexpected bill [it would sure help to know more about this] is what put you in the financial bind that started all this.

Seems to me that you can responsibly choose between: a] carefully bringing this entire issue to the shareholders, expressing your concerns; b] resigning, publicly explaining your discomfort with the loan, etc.; c] resigning quietly. Of course, once you make your decision, discussing it in advance with the Board may cause them to rethink & open a new path to resolution...

It sounds like there's a lot more going on here than just the refi issue, but if you boil it down, that's what counts...& you can fight it, or quit.

More than likely your apt. corporation was formed under the BCL of New York, so the BCL will take precedence over your by-laws. But you should be reading your Prop. Lease and running all questions by the attorney you hired.

Also, it's "Cumulative" and "Rasputin."

Thanks Westchester for the correction. Certain statues in the bylaws reccomend that you go to the BCL instructing to go to the page,clause etc. But, our bylaws clearly states the majority votes can remove,it does not refer to the BCL to elaborate the law. Thank you for your advise, I told our attorney your advise.
I appreciate your help and any other suggestions you may have.