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video cameras - Bogie Jun 03, 2008


We are a townhouse community A few homeowners have asked for the OK to install video cameras in their windows facing the outdoors. They have provided specs, etc. The one outstanding question for the Board is: should we require them to post a sign? Our managing agent says yes. But we have been unable to determine if it is a legal requirement. Appreciate any advice you can give us. Thanks.

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Lobby Renovation - Tracy Sebben Jun 02, 2008


We are about to embark upon a Lobby renovation. Does anyone have any companies they would recommend for:
External Doors
Intercoms

Thanks

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I am a Superintendent of a Cooperative and we use Academy Intercom for maintenance, new installation and for engravings. They are very professional and their response time is Great.
Telephone number Academy Intercom(718/212) 539-1000

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Board conflict - rose May 31, 2008


Hello hope that someone here can help. First off i am the president on the board here at the condos where i reside. I have been treated unfairly and accused of doing things that are untrue but that is not my main reason for this letter. The main reason for this inquiry is to help the residents here. Two of the board members have gone crazy with the "power" that they have being on the board. Have made decisions w/o all board members being notified,passing ammendments not voted on by the owners,locking out other board members including myself they say they where instructed by the atty yet no letter to this was ever received. The owners are furious to all that has happened and want this board to be dissolved immediatly. They have asked me what can be done since the owners dont have money for legal representation.They have begun a petition but once signed what do they do with it at that time? Please help!!

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We had a similar problem. Start to document everything with an Email. Dont sent Emails accusing anyone of anything. but ask questions. Such As: Is it legal for two board members to vote without consulting the rest of the Board. or I dont think its legal to bypass the bylaws,, could another BM clarify this.
KEEP every Email... You will be surprised by the results. Good luck

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Rose,

The first thing you need to do is check your by-laws and become family with the rules of it.
If you can get 2/3% of the owners together, you should be able to remove these 2 off the board.
This must be done quietly at first and then call a special meeting of all the owners or have proxies set up by them.
If you can get them removed, be prepared to refill their positions immediately.
Try to have as little communication with these 2 as possible...
That is the only way to get your situation resolved...
Good Luck..

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Copy of Annual Meeting/Proxy Form - BN May 24, 2008


Our property manager fails to do anything lately-from monthly financial statements to calling our Annual meeting last April, she does nothing. Anyone have a form letter announcing an annual and a copy of a proxy? We have to do this ourselves over Memorial Day weekend because of the nonfunctioning manager.
Thanks,
BN

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How to handle violations of safety practices - BillB May 23, 2008


More and more, we are perturbed that contractors and vendors hired by the co-op (as opposed to residents) come on site and violate simple safety procedures.

Yes, one expects a firm to follow all standard and prescribed safety measures.

Yet, if asked, safety is the corporate mantra for the firms we engage. But how often a mechanic or worker enters a co-op site and proceeds to violate simple safety procedures, hazarding himself or herself and others?.

Here are but a few of the recent safety transgressions, we noted in our building.

1. A worker running cables in a ceiling of our lobby for a new elevator communication system, stood atop the top knuckles of the stepladder (it did not have a top shelf, as it was one of the all purpose ladders that can be folded or extended into various configurations) to reach into the drop ceiling opening of our lobby while pulling cables.

2. A landscaper working on our property left a gardening tool, with a long wooden handle, protruding from the shrubs and intruding onto the adjacent walkway space where anyone who was less than vigilant could have sustained an eye injury.

3. An elevator mechanic descended into an elevator pit without placing a barrier and warning signs around the opening to thwart and prevent an individual or more so a child from approaching the opening and possibly falling into the pit.

While the worker can sue his or her company if an injury occurs, here are some what if scenarios.

In this day of knee jerk litigation, attorneys cast a wide swath and add every entity possible to the law suit. What if the co-op is added to a lawsuit and needs to defend itself. Yes, we have insurance, but why should we have an “experience” on our file for the stupidity of a worker and the lack of supervision by the firm?

What is a co-op employee or resident is injured through the negligence of the vendor or contractor?

How do we reduce or eliminate our culpability, however remote?

Has your co-op corporation encountered such lackadaisical attention to safety procedures by on site workers from vendors or contactors?

If you have, what steps has your co-op taken to ensure compliance with safety procedures?

In some cases, the vendor is under a contract that has two or three years to run.





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We had a scary expereince such as this a couple of months ago. A contractor sent by managing agent to repair leaks around roof equipment was using a blow torch. This is illegal in NY and he started a fire on the roof. The fire department was called (contractor hid the blow torch and said the vent from laundry caught fire from lint) but them I found out afterward what happened. This is a terrifying thing--we could have also had a gas expolosion if the flames had travelled down the vent to the washer/dryer. We will be addressing this with the managing agent.

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Perhaps the best way would be as follows:

1. Check references of your vendors and only deal with reputable vendors. You may also want to interview the principals and know exactly their safety procedures and record.

2. Ensure that the vendors provide you with worker compensation insurance and liability insurance.

3. Have your own employees oversee once in a while the work of these contractors and make sure to report anything that is not safe so that they may demand it.

4. If you see or witness a problem immediately halt the job until you speak with the principal of the company and demand expected safety standards.

Obviously, some employees may take the work beyond the scope as they become daredevils themselves, but principals whose worker insurance may suffer as a result of careless by an employee may even think to retrain or fire the employee for simple stupidity.

AdC

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NYC trees - BP May 10, 2008


We have several trees near the curb in front of our coop. I know trees are city property but they're on sidewalk area on our land. We're responsible for sidewalk repair within the limits of our building property so I assume the sidewalk is "ours."

Can residents plant flowers around the trees without asking us, or at least telling us what they plan to do? Do they need coop permission to plant -and/or do they need city permission?

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I am a Superintendent/Resident Manager of a Co-Op. Usually, the resident will request the supers direction, in which the super will bring it up wit the manager or board of directors and they will give direction on how to proceed. At my building we have a maintenance/grounds committee. All issues are brought to me and if i feel that the board needs to be involved i will include them in the processes. But usually with landscaping/gardening I take all the inquiries into consideration and I usually try to make everyone happy.

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There's an article on the subject in the March 2007 Habitat, if that's of any help.

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legal fees - There's no free lunch? - GU May 09, 2008



Hi there's no free lunch:

Since the coop's attorney freely engaged in communicating with a shareholder without disclosing any potential fee associated then the shareholder is not responsible. Too, there are no provisions in the governing documents and at the last shareholders meeting an amendment was shot down to cover such activity. The coop's attorney was responsible in declaring that he does not represent shareholders and needs to get board approval to engage in corresponding with a shareholder. None of this was done so it is a matter strictly between the attorney and the board to work out compensation.

Read: Recovering legal fees, by Bruce Cholst, Esq. The Cooperator. "Another limitation set forth in the typical proprietary lease clause regarding collection of attorney's fees is that it does not allow the recovery of any attorney fees prior to the commencement of a formal action or proceeding. Thus any pre-action analysis, correspondence, etc would not be recoverable."

So you see the shareholder has no liability for legal fees especially when the attorney made it clear to the NYSBA that he billed the coop and not the shareholder.

Any additional thoughts on this?

GU

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This is very interesting...

Legal recovery of charges at the court level has to be adjudicated by the judge. Therefore, the charges may be wiped b;y the judge and absorbed by the co-op!

AdC

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new to the board - Alex May 08, 2008


I have just been elected to the board and was wondering what I should learn. the other board members have suggested we gather to discuss issues. what questions should I be asking to become knowledgable about issues.

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The best place to start may be to read through these posts, try the Cooperator at http://cooperator.com/ also for allot of useful info.. between hab mag and them you can keep real busy for a while. there’s of course always this board to post any specific questions you have... good luck to you

~AR

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My advice is to relax and attend the orientation meeting with open mind and open ears. Actively participate in the meeting by asking questions when something may not be clear to you. It may have been poorly stated or the person assumed that the language used to express a problem or a concept was familiar to you.

To prepare for the meeting, you may wish to review the board minutes for the last 12 months to know what were the major issues and current ones. From these, you may have a short list one of those that are still outstanding.

You may also request a copy of the financial reports for December 2007 to get an idea of the expenses, budget against expense report; also, you may ask for the past 4 months monthly reports. Examine the arrears, take a look at the expenses without passing judgment as being too high or too low, and the current financial position of the co-op.

If you are not too versed in accounting, don't worry; financial reports are very much like your checking account or a credit account. Just read them to familiarize yourself but don't loose sleep over it!

Aymara

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NewBM,
This may sound simplistic but read the mang contract, house rules and by-laws carefully. Last year, six months into a new board, we discovered that three of our new members did not have copies of the Mang contract or house rules -- and had not read the By-laws.

The Mang company had taken advantage, and were running the building as if they owned it. Fees, SH complaints and calls were not returned, unauthorized checks written,,,etc.... They no longer work for us.

Also, pass rules and make decisions that looking into the future, you as a Shareholder, not board member, can live with.

Be careful of going along with Board-team-decisions -- that you know are wrong. Although bm's admitted the old Mang was incompetent, we kept this Mang co, for an extra six months because Board members did not want to offend other bm who supported and were friends with the Agent. Two bm's refused to be part of the team, joined a group of Shareholders (dont underestimate the SH) sent out a petition which was signed by 80% of the CoOp, and fired the Company.

And finally: Leave you Ego at the door.
AliceT

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Yes, you're right!

I overlooked these very important documents. Without them, you cannot really make decisions.

Ignorant BM of the contents of the documents make poor decisions.

Thank you!

AdC

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I advise new board members to read the executive minutes as far back as you can. It gives you a quick history of what has gone on before both good and bad.

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As others have mentioned, the Proprietary Lease, By-Laws, and House Rules are fundamental (but dry) reading. Going through recent meeting minutes is also a good idea. For more interesting reading, the Habitat archive is a gold mine. Habitat is the *only* magazine I read cover-to-cover every month.

Also, don't be shy about asking a more experienced board member to sit down with you and talk about how things work. Then Google some articles on "What is a Co-Op?" and that sort of thing.

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sponsor selling apt. with tenants in it - QT May 07, 2008


rent controlled apt. sponsor selling it. this has never been done before in our bldg. can they do it? tenants will not leave - and are healthy in their 60's

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They have a ton of rights as a New York tenants. Here's the Web site http://www.tenant.net/ of a well-known and very scrappy tenants' rights group. They are in fine shape unless the new lanlord want them out, and if he does, he need to jump through quite a few legal loopholes to do so.
In my opinion nothing changes. The new owner must honor existing lease agreements for the term specified and at the rent specified.
When the lease expires, normal renewal practices are in effect (i.e., if the building is rent-controlled, the same requirements apply as if they were renewing under the old owner).

Nothing will change except the address they mail the rent to.

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Yes, the Sponsor may sell any apartments he owns -- occupied or not -- to anyone, without Board approval. The tenants will almost certainly stay in the apartment until they die, since their rent is typically hundreds of dollars a month less than operating costs, much less market rent.

Where this is going to get sticky is the next round, when the investor who buys the rent-controlled apartment eventually sells it to someone else. Does *that* sale require Board approval? It depends on the definition of "Holder of Unsold Shares," which is still in some dispute. Check out the decision in Kralik v. 239 E 79 from 2005 and the alternative view in Sassi-Lehner v. Charlton from 2007.

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flip tax - Anonymous May 06, 2008


I need some strong arguments as to why the sponsor is exempt from paying a flip tax.

Is it safe to say that all sponsors are exempt in Manhattan?

I could also use some words of support that all the personal abuse we are getting is worth the reward.

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Sponsors are exempt from a number of things that Shareholders enjoy:
- Board approval of residents/potential buyers
- Board review and approval of structural changes
- Board review/approval of renovations of ANY kind
... all to the frustration of many a Board, I'm sure.

Let your angry Shareholders know that any "holders of unsold shares" (shares that have never been sold, but reside with the originator of the co-op) have -- usually, depends on the Proprietary Lease -- broad rights, especially financial. And quote them the exact passage in your PL where these rights (and exemptions) are outlined.

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This is everyone's problem: why the sponsor...?

My question is:

What is the percentage # of shares that the sponsor still holds in your builidng?

Consider then, this percentage as the amount that you subsidize the sponsor by way of flip tax $ every time a unit sells.

If the percent # shares is still significant, then the policy was ill-conceived. The assessment method of raising funds would have been FAIR and EQUAL for all shareholders.

Sorry, but I'm not sympathetic to the flip tax. Only would consider it if a person were to sell the apartment prior to the first 18 months after buying the unit.

AdC

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Its been a while since I was here... anyway..
I manage some sponsor units, (as well as many others), each offering plan outlines the exemptions for the sponsor, some place specific timelines on how ling the exemption is in effect.
I have one building where the sponsor is exempt for any assessments, taxes and fees for the only the first 5 years.... I have another where we have a great sponsor relationship and even though he is exempt, they did agree to contributing to the cause by 1.5% as opposed to the 3% regular shareholders are required to pay.
So, the answer you are seeking is clearly spelled out in the original plan to convert and/or its amendments.

Additionally, you have to realize that eventually everyone pays. with less transfer fees coming in, the shareholder maintenance must be raised to compensate.

On the sponsor side, he may argue that it is because of him you own your apartment in the first place and his exclusion from certain fees such as this are part of the price paid for that privilege.

~AR

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