It all depends what you are trying to accomplish and the size and scope of the work:

If you are talking about an exterior work or window replacement, etc. the engineer or architect should be able to select the best companies and any other companies that you may recommend. In many cases, you may have 5-10 invitees to review the work and the RFP's or RFQ's. From those 5-10, perhaps 2-3 will end up providing bids depending on how busy the contractors project their schedules to be by the time you intend to do the work.

In other words, many will be called, but only a few will come through.

In small works such as a $30 - $75 K and depending upon the nature of the job job you may have 3-5 potential bidders and only 2 may respond, again because of the same considerations.

AdC

In our building, anything less than $1000 we don't bother with bids. If the cost is less than $5000, the board discussed whether we want to do multiples bids. If there's a contractor we've worked with before, and we like his work, we may just go with him without bidding.

For larger jobs, we do bids. AdC does a great job of laying out the details for those big projects.

Many managing agents have the ability to perform small repairs up to a certain dollar amount without board approval. Most of the time these jobs are given to a house contractor, super or regular. I have about three contractors that I use often, but I play them against each other to obtain a lower price/better job, etc.. I also on projects that I many not have experience in (where I do not know the pricing and protocol on my own), I will call in an outside contractor or two so I know I have everyone being kept honest (plus I learn). That is how I do it, but i have at minimum 3-10 projects going on at a time... so if you are a "newbie" to the contracting world, I would suggest obtaining 3 bids by sending a package to 5 contractors and create a spreadsheet and compare each item, apples for apples.

~AR

YOUR QUESTIONS: Isn't it a conflict of interest for the Board to vote on his approval, because we inherently want the unit to sell? Or is it enough that we are balancing our interest to sell with our interest to have good paying tenants?

MY ANSWER: Boards should be motivated to review the sales of individual shareholders with the best intentions of accepting a sale so that the individual shareholder may continue with his/her life. However, this goodwill should be balanced by your responsibility to ensure that the potential buyer has the financial attributes and fulfills the occupancy expectations that you wish to see in a new shareholder.

In the case of the co-op selling the unit, I'm sure your board wishes to maximize the market value of the unit for the benefit of the corporation, but more important than obtaining the market price for the unit is to get an individual shareholder who meets the attributes that you expect to see if the unit were to be sold by an individual shareholder.

Again, money should not be the final consideration, but the potential shareholder's financial test and the other considerations that make the evaluation of an application. Finally, if the potential buyer is paying the right amount, but the board is not sure, the much talked escrow account in prior postings could also be added to the sale if additional attributes for the potential buyer are also met.

AdC

many of my buildings have experienced changes. What is the issue?

I have 4 buildings right now going through an eminant domain where they are taken back for the duration of the second avenue subway project. some were closed, some changed, etc...

~AR

Pgrech, from the American Bar Association:
"What does "right of quiet enjoyment" of the premises mean? That legal phrase does not refer to noise; it refers to the tenant's legal right to occupy the apartment. The landlord would violate the right by renting the same apartment to two different tenants or by removing the tenant's belongings."

My assumption--and I could very well be wrong--is that if the resident is complaining about noise renders his/her apartment unliveable, then NYS Real Property Law §235-b the warranty of habitability may be the relevant law but it's up to a judge to decide if the noise is illegal. NYC also recently passed a new noise control ordinance that took effect this July but I don't know the formal name.

Finally, NYS business corporation law is important for coops but I think they literally constitute volumes so I can't pinpoint which sections are most relevant because I'm not lawyer!

Thank YOU.
Pg

First please attach some name when posting (Mary, Bob, Jane, not annon). I am aware of Coops charging a fee for alteration agreements (this is for the preperation work involved/or additional work involved, such as reviewing the agreement, faxing, sending copies to the architect etc, and is a one off charge). This does happen.

Fat Nickie.

remember, the management co. wants YOU as a client. keep the fees as low as possible. like $100 for a simple decoration agreement (painting etc), $300 for a more in-depth one. etc.

It seems like I didn't word my original message correctly. You mean I, as a shareholder, have to pay the management company, for example, $100 to paint within my own unit? I am not talking about common areas.

Are you anon? same person?

Bob

Dear Anon,

You probably have to fill out a form stating your intentions (to paint), and to indicate that you (or your contractor) have adequate insurance.

The management company then has to verify and file the information. That work is typically done by someone besides the property manager. You're paying for that person's time.

You'll ask, Aren't I already paying their time?

Nope. The management company charges its lower possible rate to get your condop as a client. Extra services are paid by the individual who wants the extra services done.

If you wanted a management company that didn't charge for special services, your board would pay a higher annual fee to the management company, which the board would then pass on to you in the form of an increased common charge or maintenance fee.

Charging the individual keeps the monthly fee low for those residents who don't do extra work.

In most cases this is not double dipping. Read the management contract, most likely it will be in there that the management company shall charge for alteration agreements, project management as well as closings. Most management companies do. This is a way to supplement the low management fee they charge per month.
Pgrech

As some other posters put it, Management contracts are written to keep the management companies rates low. in doing so, many services are not included into the contract. Most of these include Alteration, Sales, Sublet application and agreements, closings and refinancing. Therefore, when these services do arise, the management company rightfully charges for them.

~AR

As far as "ongoing responsibility of mgmt vs. board", mgmt works for the corporation/association which is responsible for things whether it's a coop or a condo. It seems to me that, coop or condo, mgmt can't be held accountable (in the legal sense) if a resident's dogs are the source of many complaints/problems and this isn't being resolved.

I'm in a coop so I'm not that familiar with condo laws, but consult your condo's attorney. Write to the tenant/owner again. At some point I think your attorney should write to them. Keep a paper trail of residents' complaint letters and correspondence to the tenant/owner.

Find out as much as you can about the dogs from residents in nearby apts. Suggestion. If the dogs aren't housebroken, rarely taken out and causing terrible odors in the bldg, it may be a case of neglect or mistreatment. To get more info on this, you can call the ASPCA's Humane Law Enforcement Dept at 212-876-7700, extension 4450.

The person(s) that the managing agent should be going after is the unit owner. It is the unit owner's responsibility to take care of these matters. The managing agent can only go so far in this situation. The matter should be turned over to the Condo's attorney for appropriate actions.

House Passage: 10/04/2007
Bill Passed 386 - 27 (Roll no. 948)
Senate Referred to Committee: 10/04/2007 : Finance

Link below provides a summary of the highlights. YOur 80/20 is there and what alternatives will be used for co-ops:

http://waysandmeans.house.gov/media/pdf/110/07%2009%2026%20Mortgage%20Summary.pdf - Quick summary.

http://thomas.loc.gov/cgi-bin/query/z?c110:hr3648:

AdC

What is your sense of whether this bill will become law and change IRS code?

If I read right, this is a deferral of tax by reduction of home basis. And so, the forgiveness of debt is re-categorized from being subject to income tax to being subject to capital gains tax.

If a contractor working a project on behalf of the coop corporation creates dirt, debris, damage, etc., the contractor is responsible for any remediation. We do not distinguish in these cases between sponsor vs. owner units.

We do distinguish when a “renter” has an issue with something within the apartment that is “not” the coop’s reasonability, e.g.: wall repairs, broken sink, broken cabinet, etc. In this case, the renter is referred to the sponsor’s rental office.

Read the contract between the coop and the contractor. In most cases like this, Unless otherwise specified the cleaning is limited to broom sweep and hosed cleaned. The contractor, (again unless otherwise specified) is not going to have the windows professionally cleaned.
Next time put it in the contract (if it isn't there already).
Pgrech

I agree with Peter, my building don't clean the windows after the contractor points.

We allow living trusts...I think there is a legal name, but as I am not in the office and don't have it at my fingertips.

We haven't had anyone transfer their shares to a living trust yet, but just curious why do that? Is there a tax advantage to the shareholder? I am under the impression there is not.

Thanks,
BN

Per the experts, perhaps the biggest advantage of a living trust is that it does not have to go through probate, as does a will.

http://www.pueblo.gsa.gov/cic_text/money/living-trust/livtrust.htm

Yes, most of my buildings permit it. In NY and NJ it is not as common as it is on the west coast, where it is done quite predominately.

You might want to speak to your Atty and find out about maintaining a personal guarantor, in spite of the living trust being the owner of shares of record.

~AR