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.

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

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.

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

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

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

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

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

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

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.

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.

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.

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.

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.

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

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

Depends on the Board qualifications (if any) outlined in the By-Laws. Does a Board Member have to be a Shareholder, a resident, or are there any restrictions? Our co-op has no restrictions whatsoever; in others, a BM must be a resident. If the Board Member you ask about lives within the building, it would seem that he is still eligible for Board service.

If a BM in this co-op needs to be a Shareholder, the Board Member in question should consult an attorney.

First, I think the board should find out why the agent and atty could not make exact plans and stick to it.
If the agent agrees to be there and does not show up, unless it was an emergency, I would hold them responsible for the atty's fees.
The atty needs to really explain why he can't represent you without the agent there.
Why would this be in small claims court?? I don't think you need an atty for that type of court, depending on the situation.
Make both parties explain why this is going on and the board should put their foot down. Someone from the board may just have to go and get this matter dealt with, even though you may not want to do it, you may have to.

Good luck...

did he assist in causing a condition that caused the small claims claims? If you have several claims, you may have a big problem. Like: mismanagement.

Check your management contract first and see if there is a provision for court appearances. (so you cam hold it in front if him/her)... An adjournment does cost time and money and someone has to pay.. since it is small claims, is it an evening court? Ask the manager directly why he does not go and how the situation can be rectified, then start seeking new management because you are not being represented properly...if it is a larger company, ask for a new agent.

~AR

Please make sure that the vote of shareholders is necessary in your by-laws as a result of the first few years of operations or the sponsor involved holding a certain percentage of the unsold shares of the corporation. Otherwise, the by-laws have tied the hands of the board more than necessary by not being able to assess when necessary, i.e., capital emergency repairs, raising reserves, etc.

Now, returning to your question, if the board proves you wrong because you believe that you need to vote, then you get the late fees.

AdC

that if the holder of unsold shares holds any shares then there must be a vote (he has plenty) . it also says if the reserve fund is under $15,000. OUrs is way over that. while they sort this out, they are apparently calling the reserve fund a slucsh fund.( I do believe shareholders would vote it in if it were an emergency. ) - but it it is a bylaw it must be upheld, no?

Hi, QT,

I've lived in two co-ops and in both the abatement was offset by an equal charge. If your by-laws restrict assessing so dramatically then, as AdC points out, your board is severely limited in its ability to raise funds

But the board can always work around the limitation. Instead of calling it an "assessment," they could call it a "surcharge" or "fee" and avoid the issue. Why don't you make that suggestion?

hi treasurer,

is it legal to just plunk on a fee like that? without it being in house rules etc? we also have had a 19% mntnce in crease in the last three years so shareholders are restless.

I'm not a lawyer, so don't take this as legal advice!

But just you would charge a shareholder for other work -- such as an emergency leak, where the super calls a plumber & the plumber bills the co-op -- you can certainly charge for this.

I'd urge you to call your lawyer first if you want his/her opinion.

oops! i was replying to a different thread -- sorry ... anyway:

Check your bylaws. What do they say about a surcharge? Or one-time fee? I'm no lawyer, but I don't see why a corporation should be prevented from raising money under N.Y. State corporation law. Sure, it's using a loophole to your advantage, but if it's the board's decision that you need the money to stay in the black, you have the authority raise the funds.

As mentioned in my mistaken response, check with your lawyer (or property manager) for more info.

Our board and our manager have contacted several of Habitat's advertisers over the past couple of years. Each was courteous and helpful, and our board ultiimately hired them both. One was a management company and the other the company advertising on your site now.

Our Board contacted, interviewed and ultimately hired a storage contractor from the advertisers in Habitat.

The magazine is an invaluable resource in more ways than one.

Thank you RLM and AJ Gregory. Your input is appreciated. Happy to hear your experiences were positive.