New York's Cooperative and Condominium Community

Habitat Magazine Insider Guide

HABITAT

Subscribe for Daily Updates!
Architectural Letter - Saft Nov 23, 2023

What is the going rate for Architectural plans for a small galley kitchen ? And does such cost include a letter of certification with seal, along with the floor plans showing the scope of renovation?

> Join the conversation
plumbing charges in a coop - DP Nov 22, 2023

Hello,

I understand that when something needs repair, anything "in the walls" in a coop is the responsibility of the coop/management, and anything within the apartment is the shareholder's responsibility. BUT...

I had no problems/issues with my kitchen faucet. It worked fine. Because of other plumbing issues in the building (I don't know what), my apartment line's water was shut off. After several hours, the water was turned back on. I immediately opened all my faucets to allow the dirty water that always occurs to flush through until it was clear/safe. All faucets worked fine except for my kitchen. After the flow of filthy water, it then sputtered, and stopped altogether.

I immediately texted the super a video, asked him to show the plumber (who was still on the premises), and have the plumber come up to my apartment. Regardless of the problem, the plumber said he was leaving, and left, leaving me without water in the kitchen.

He came back the next day, spent less than 15 minutes to clean the trap on the faucet, doing what I could have done for free had I known it had nothing to do with the work he had done... which precipitated the problem in the first place.

I just got a bill for $460+, on the plumbing company's letterhead, via the management company.

My issue, aside from the audacity of this charge, is that their turning off the water is what created the problem in the first place, so that the charge—even if the issue was in the faucet—is not mine to absorb.

I am going to try to fight this directly with the plumbing company b/c my management company is less than helpful. I don't have the means to hire a lawyer.

Any advice/thoughts? Thank you so much.

> Join the conversation Comments (3)

I used to abide by the “in the walls” adage, but it may not be true. It depends on the language in your Occupancy Agreement (aka Proprietary Lease).

Before you get into arguments and/or pay any money, review your OA. You might not be responsible.

In my OA, it said the MEMBER (shareholder) is responsible for:

Replacement of electric refrigerator
Decoration and painting
Replacement of gas range/oven
Replacement of flooring linoleum
Replacement of all appliances and fixtures
Repair any and all damages to the apartment or co-op premises due to negligence, carelessness, or misuse by the shareholder or any occupants of the apartment.

It specifically states that the Corporation (the co-op) will for all other repairs besides the ones mentioned above.

In my co-op, the s/h would not be responsible for the cost of the faucet. It would be the co-op’s responsibility.

Check out the OA and keep your fingers crossed.

Good luck.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (2)

Ok that is really high. What is his hourly rate? It’s about $400.00? Your co-op needs a new plumber. Is this in NYC?

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (2)

Thank you, Marty. Good idea, I will definitely read through the Proprietary Lease. But I know how the building manager is viewing this. One thing, however: I believe that faucets fall under "Replacement of all appliances and fixtures." I think a faucet is a fixture.
To be continued...

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Yes, the coop is in Brooklyn. Unfortunately, the plumbing company is upstate. Thank you for your opinion.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

A faucet getting clogged by debris from water shut-off is very common. It is a simple job and it is for the Superintendent to repair. If they elected to send a plumber for an out-of-the-wall repair like this then that was their mistake. Unless you asked for the plumber.... did you ask?
What is the full story and what is up with your super?
We have a corrupt one. It is terrible.
Who is your managing agent? They sound terrible.
We have Halstead. Not good.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

God coops are the worst. And most managing agents.
It sounds like you have a misinformed board and a bad managing agent.
Firstly, I believe they legally have to give notice before turning off water.
Secondly, they should have sent the Super to restore the flow of water.
You do not say if your trap was clogged? Was it clogged?
But a trap below the sink doesn't have to do with the flow of water?
Thirdly, any well run coop should have alerted you you might be sent a bill before you say yes to the work.. And given the option to hire your own plumber. You did not retain these plumbers., the coop did.
No, it is not your bill to pay. Send a certified letter to mng agent and board president stating you are not responsible.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

This issue is two folds: 1) Is the coop responsible if the sediments in the pipes reaches the faucets of the shareholders? Sediment in pipes is a normal occurrence so I would say that is not the Coop responsibility even if the sediment moved around because of a repair. 2) Is the coop responsible for the plumber's bill? From your description it sounds like you asked for a plumber and a plumber was sent to your unit. The Super could have handled this better but if you ask for a plumber and the job is not a coop issue, the bill is on you. About the bill amount: Unfortunately Coops can only hire vendors who carry adequate (very high coverage) insurance policies and the cost is passed back to the client. $400 for a house call is average in NYC these days. Next time ask the super to do the work and hand him a $20 (Yes, he should be paid because when he does something that is the shareholder's responsibility, the super is working for you, not the Coop.).

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Budget - marym Nov 17, 2023

In preparing our draft 2024 budget, the Treasurer has listed the co-op tax abatement as an expense but not as income. How do other co-ops handle this?

Thank you.

> Join the conversation Comments (1)

1) Calculate the *total* dollar amount of the full abatement. Include all abatement components such as R/E tax, STAR credit, and Veterans Credit into this single dollar amount.

2) Divide the total abatement dollar amount by the total number of co-op shares.

3) Board approves a one-time shareholder assessment in the amount of the value calculated in step #2, per share.

No shareholder will receive the exact amount from the abatement that they are being assessed per share. Some will have a net gain and others a net loss.

This is due to the incomparable way the abatements and assessments are calculated. DOF abatements use alchemy and voodoo chants to decide how much each unit (apartment) will receive as an abatement.

On the other hand, the assessment the board authorizes is on a strictly per-share basis. By corporate law, every share in a co-op must be treated equally. Thus each share owned by all the units must be assessed the same amount, to the penny.

For example, lets take Unit 7D which owns 100 shares. The DOF, without any further explanation, sends the managing agent a spreadsheet showing Unit 7D is to receive an abatement total of $900.

After doing the Total-Abatement/Total-Share calculation, the managing agent reports to the board that to break even, an assessment of $10 per share. Doing the calculation:

$10.00 per-share * 100 shares = $1,000 total assessment

we find that Unit 7D will have a net loss of $100 ($1,000 - $900). The owner of Unit 7D's shares will be hopping mad, but there is nothing the board can do. The differential is due to the ways the abatement and the assessment are required to be calculated.

Good luck!

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)

Thank you Steven for this detailed answer. Having served on many BODs over the years, I’m very aware of how the co-op tax assessment can be treated. Some years it was all returned; others we had a special assessment per share. The current BOD is preparing next year’s budget and obviously can’t decide now what to do with the abatement next year. The new Board will decide that.

My question is if the abatement is shown as an expense on an upcoming budget, should it also not be shown as income, balancing each other out.
Thank you.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)

Hi marym - Thanks for letting me know about your board experience. I tend to assume most members have little board experience.

I checked our most recent audited financials for the answer to your question. Our accountant classifies the abatement as a refund of Real Estate taxes. It is definitely *not* income, which could have tax consequences.

The corresponding shareholder assessment is listed as being used to fund operations.

All of this is handled by our CPA. You might want to check with your co-op attorney to find out how they deal with abatement and assessment

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Engineer & Construction companies working on a project - Pooh Nov 05, 2023

Hello

What do you think of a Board hiring a construction company to work on a project but then they hired a subcontractor? the contractor is overseeing the subcontractor. Why??? To me that doesn’t make sense. Shouldn’t the engineer company oversee the construction company? Why do we need two construction companies unless someone isn’t insured properly. They didn’t hire a huge engineer company so that could be the case. They assessed the damage etc but that’s it. I’m also assuming its also cheaper. The two Construction companies working together are going to agree with anything that’s done but if the engineer company oversees it then it’s fair and a neutral.

> Join the conversation
resale policy - EW Nov 03, 2023

The board of directors has changed the resale policy without consulting with the rest of the shareholders and didn't even notify them after changing it. It is now much harder to sell/buy an apartment, because our coop is already an HDFC building, but the board decided to put even more restrictions (for example, the buyer cannot buy the apartment for cash and cannot have more than a certain amount of assets). Is it within the board authority to change the resale policy without the approval of the majority of the shareholders?

> Join the conversation Comments (2)

The Board has the legal authority to change the resale policy whenever they feel it's necessary for the good of the co-op. That's within their rights as a Board. Remember that the Board was elected to represent the interests of the shareholders and to make decisions on behalf of the shareholders.

If you are not happy with the Board's decisions and policies, you have every right to ask the Board about them. If you feel that you can do a better job than the current Board as far as making decisions that affect the co-op, then run for the Board and work to help the Board make better decisions.

Having said that, the Board should have notified all shareholders about the change in Resale Policy since it can affect every shareholder. That's a potential issue that you can run on - "I will do a better job than the current Board in communicating with shareholders about important matters like this."

Good luck and keep us posted.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)

This is an HDFC and the resale provisions should be in the By-Laws. If so, it would take a vote of the shareholders to change the resale policy. Read the By-Laws carefully and see what they say on this subject.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)

I actually need to change my comment above. What the Board has done is not change the resale policy but probably added provisions to the application process. Therefore, it would have the authority to do this without shareholder approval.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Thanks all for the feedback. I reread the documents, including the By-laws, which clearly states that "The Corporation have entered into or shall enter into a Regulatory Agreement with the City of New York, acting by and through its Department of Housing Preservation and Development ("Regulatory Agreement"). The Regulatory Agreement contains restrictions and requirements concerning, among other things, renting and subletting, right of certain tenants, restrictions on shares of individual units, increases of maintenance charges, assessments, transfer fees, primary residency, management training for directors, and reserve funds. The Regulatory Agreement has been or will be recorded against the building and the Corporation, which will be subject to all the terms and conditions obtained therein."
To me, it sounds like each shareholders should have been given a copy of the Regulatory Agreement (for the record, we were not), since the RA is referenced in the By-laws. And maybe I'm taking it too far in my interpretation, but since we have to abide by that agreement, only the City of New York could change that agreement (including the resale policy). As mentioned the current resale policy was never shared with the shareholders (the board admitted to it when asked during a recent meeting of the shareholders and they didn't want to discuss it, because they claimed that it wasn't the right time, since most shareholders didn't even have a copy of it). And yet, at least one apartment is currently on the market with this new resale policy handed out to perspective buyers.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Income Cap - Prospective HDFC purchaser Sep 22, 2023

Hi all,

I have found myself in a peculiar situation, and I have no idea where to turn to in order to get some sound advice. I'm hoping you can help!

I recently had an offer accepted on an HDFC co-op. Initially, when I first reached out to the agent listing the property, I was told I made above the income cap so I would not qualify. Later, he got back to me and told me that the income cap had been raised, and I now qualified. This is all in writing.

Fast forward to now and I have already completed a home survey, and my lawyer has gotten me to the point where I am just about to sign the sales contract. Unfortunately, he received communication from the sellers lawyer that neither the seller, the lawyer, the co-op board, or the co-op board president had been told that the income cap had been "raised". The seller's lawyer has said said that if I try to proceed, it will mean that I am negotiating in bad faith. The agent that I have been dealing with has said multiple times that it is fine, and that he has received explicit permission from the board president to allow me to proceed with the purchase. He has suggested that the problem is with the coop board not being able to put anything in writing, and that the sellers lawyer is just being overly cautious. It's all very strange I know, but why would the agent take me so far down this path if he hadn't cleared everything with the co-op board already?

My question is: can an income cap be raised for a purchaser who earns more than what is stated in the co-op policy, or is this figure written in stone.

Thank you.

> Join the conversation Comments (1)

What does your attorney have to say about all of this? Why aren't they handling all the communications and negotiations between you and the seller, the seller's lawyer, the co-op board, and the board's president? S/he has a legal obligation to navigate you through these kinds of last-minute cockups. For the most part, the rest of us are armchair lawyers and the advice we provide is worth what you pay for it.

Good luck!

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Need an up to date article explaining the fiduciary responsibilities of Condo Board members - Elisa Sep 16, 2023

Hello, I'm concerned that my fellow board members do not have a clear understanding of what their responsibilities are as fiduciaries for the condo association. Could someone please provide me with an up-to-date article on the fiduciary responsibilities of board members? These are not explained in our condo by-laws, but as I understand it New York State/ City regulations stipulate that elected Condo and Co-op board members act as fiduciaries for the Condo/ Co-op association. A definition of "fiduciary responsibility" as part of the article would be helpful. (In doing a search I did find a couple of articles, but they were from about 10 years back. I think my colleagues need to see an up-to-date article) Thanks.

> Join the conversation Comments (1)

You're actually using one of the best resources for information about co-op and condo board members - Habitat Magazine. Check the archives for phrases like "co-op board member fiduciary responsibility". I believe they have more current articles than 10 years old.

If this doesn't work contact the Council of New York Coops and Condos (CNYC) at https://www.cnyc.com/. Check through their archives. If you're not already a member, become one.

Narrow your Google search to "NYC coop board member fiduciary responsibility". When I tried it, it returned 425k articles one-year-old or less.

"Fiduciary Responsibility" is a broad category with different meanings in different situations. The fiduciary responsibilities of a co-op board member are much different than an estate executor or of a financial advisor or the trustee of a trust.

I hope someone on here has an article or link that is on point to what you are looking for. If not, you will be exposed to more information than you thought possible but will be eternally grateful you found out about when dealing with your fellow board members. :-)

Good luck!
--- Steve

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (2)

Here’s a few articles which nicely explain fiduciary responsibility. From 2022: https://www.joindaisy.com/blog/whats-the-fiduciary-responsibility-of-board-members

From 2021: https://www.armstrongteasdale.com/thought-leadership/overview-of-fiduciary-obligations-of-board-members/

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Thank you sooo very much for the information! I was thinking of this, and did not know where to start. But I should have known better! HABITAT HAS EVERYTHING TO KNOW/SUGGEST, OR DIRECT COOP, CONDO BOARDS! THANKS AGAIN HELPED ME ALOT.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Proper procedures for annual meeting - Elisa Sep 13, 2023

I was elected to my Condo's board, and I'd like to follow proper procedures. A volunteer took notes at the meeting (I was elected at the end of the meeting), and his notes are much too detailed. I served on a board several years back; and recall that notes are not supposed to be extremely detailed. Also, when are the notes supposed to be okayed, and by whom? Any other tips on minutes --for annual meetings, as well as for Board meetings--and for record-keeping, in general? Thanks.

> Join the conversation
Making changes to By-Laws in Offering Plan - Elisa Sep 09, 2023

Our condo's original offering plan (written decades ago), including by-laws, specified a certain number of board officers which was an even number. In practice, however, over the last several years, there have only been a small, odd number of board members who have been elected and served. A long-term owner told me that someone, several years back, decided to merge 2 of the roles mentioned in the by-laws into one--but that change is not reflected in any addendum or revision to the offering plan. My question: Wouldn't we formally need to change the by-laws in order for this practice to be kosher? I do know we'd have to pay attorney fees, but wouldn't this fairly slight change be less expensive than others? Thanks for any intel.

> Join the conversation Comments (1)

I lived in a co-op , not a condo. Any desired change to the existing by laws required that an amendment to the by laws be put to a vote of the shareholders, and it needed approval by 2/3 of the shareholders in order to pass.

You'd need to check your by laws to see the procedures and percentages required to amend the by laws. I'm sure that these procedures will probably be stated quite clearly in your by laws.

In our co-op, if that didn't happen, then the original by laws remained the law of the co-op.

If your condo was our co-op, then that merging of the 2 roles without a by law amendment would be illegal and invalid. So you definitely need to contact an attorney to find a course of action.

Trust me, if any of the people who illegally changed the by laws are still on the board, they will scream bloody murder at your proposed actions. But, stick to your guns. They will scream because they KNOW that they violated the by laws - and any challenge by you and/or other condo owners will be upheld in court.

Good luck and keep us posted.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Legal? - Datrik Wass Sep 06, 2023

This is the scenario:
7 Board members total.
4 Board members vote to direct general Coop funds to an elective project that directly and only benefits those 4 board members.
Motion Passes since the vote is 4 yes, 3 no.

Legal?

> Join the conversation Comments (1)

I feel the best course of action is for you and all other questioning shareholders to engage your own attorney. You've provided very little information about this scenario (which is understandable). Only a trained attorney can evaluate the facts and offer an opinion regarding the board's fiduciary responsibilities vs. the business judgment rule.

Good Luck.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

1 2 3 4 5 6 7 8 9 ... 218

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?