Who can think of, or has successfully used, incentives to convince more residents to serve on the board?
Some ideas I've heard:
--Term limits (to break up entrenched boards);
--requiring a certain term of service as a condition of membership, or levying a fee in exchange for non-partipation;
--paying nominal honoraria;
--Waiving a month of MT fees.
Our boards tend to attract mainly people who want something; we've had incidents of board members harrasing their neighbors, self-dealing and outright theft.
The smart people seem to steer clear, refusing to serve, and sometimes moving rapidly away.
How can we turn this situation around?
I know many buildings have faced similar issues.
--Need (smarter) participation
I went to the CNYC conference last weekend and to the treasurer sessions, and I'm still a little confused on the different accounts we 'should' have and the purpose of each. My understanding: 1. operating fund (not a lot of excess in here, basically a checking account for regular expenses) 2. Reserve Fund (3 - 6 months of operating expenses as a hedge against emergencies) 3. Capital Reserve Fund: based on your 5 year plan for upcoming expenses and major repairs (boiler, elevator, local law #11, etc) or major initiatives (new roof garden, gym, etc).
Is this breakout what most people are doing? Do you then also have separate savings accounts or CDs or something for a portion of these funds so you're earning some interest within each of these funds (except Operating)?
Advice/guidance/sample splits and targets appreciated!!
Are you raising maintenance this year?
If so, by what percentage?
Does anyone know what the standard (and not too expensive) accounting software is for management companies? And, how do you review your invoices, payments, reports? What kind of access to the system do you have? I.e. it seems like there should be a system where an offsite user/treasurer could see the accounts, current balances, run reports, click for details, etc online--rather than receiving paper or pdf reports. Does anyone know if a system like that is available or widely used? Thanks.
9.15 to 11.15 a.m. 6.BREAKING THE GRIP OF AN ENTRENCHED BOARD Some cooperatives and condominiums cease to function in the democratic way provided by their governing documents. A self-perpetuating board does not communicate with residents, nor call annual meetings, nor hold elections. Then there are those boards dominated for years by investor owners and sponsors, with the issues of resident owners largely ignored. Residents become so disheartened or fearful of the power of the board, that they accept this diminished situation. In some instances, there are very serious repercussions, including depressed re-sale prices and increased costs in obtaining financing. But change is possible. Attorneys Theresa Racht and Alfred M. Taffae will provide advice on how shareholders or unit owners can organize to break the grip of an entrenched board. 69 additional seminars available. Learn more and sign up by visiting http://www.cnyc.coop or calling 212-496-7400
In light of recent posts, I thought this may be of intrest:
The New York Energy $mart Multifamily Performance Program harnesses the latest in building science technology and applies it specifically to your building's design and daily operation. Using a partner network, made up of engineers, energy consultants, and other industry professionals, the Multifamily Performance Program uses a customized approach to address the specific energy and operational needs of your building.
In the Existing Buildings Component eligible buildings are required to benchmark their energy performance compared to a set of similar buildings. Depending on their relative rank, they are assigned a performance target to achieve. Implementation of an Energy Reduction Plan and confirmation of achievement of the target make the buildings eligible for NYSERDA incentives.
By participating in the Multifamily Performance Program you will:
• Improve the value of your building
• Provide tenants with a comfortable and affordable living environment
• Save thousands on annual energy costs
Comments and questions should be directed to 1-877-NY-SMART
This is a very informative link and site:
http://www.getenergysmart.org/buildingowners/existingmultifamily/overview.asp
Also, see the http://www.nyserda.org site
~AR
They keep assessing, raising our maintenance,& now decided to charge us all a flip tax when we sell. Our maintenance is high to begin with. The board has now removed landscapers from our premises and is using super as landscaper. the property is too big for super to do. place looks like a pig sty. tired of paying all this maintenance and all board does is scale down. What are they doing with our monies; they are not returning monies for services not being rendered. We spoke to Dave Mejias & he suggested that we contact government upstate to have laws changed. what are we to do in meantime? help.
If you have issues and questions, this opportunity is the best to get face to face advice from renowned experts in the field. The seminars are the most objective, non-commercial I have ever experienced and I've been around for longer than I care to admit. There's still time to sign up if you act now!
http://www.cnyc.coop.
Hope to see you there!
Do any coops or condos audio tapes communications between the management office and residents, contractors, vendors, etc.? Likewise, do buildings tape conversations with the doormen, superintendent, security, etc.?
Does your building have the facility to tape telephone audio conversations?
If no, have you considered taping conversations and what dissuaded you from taking the action?
If yes, which conversations do you tape?
Do you tape conversations with the management office?
Do you tape conversations with the concierge / doormen?
Do you tape conversations with the security office or staff?
Do you tape conversations with the superintendent’s office?
Do you ever tape conversations of those who visit your management office such as to the office window or counter?
How do you handle conversations with belligerent or bellicose residents, contractors, vendors, etc?
Thanks.
We are demoing the cement and sidewalk in the front of our building and re-pouring -- the public side of it was pocked and a liability. Should the Board have a contract with the cement company and are there warranties that should be included? I have no idea what insures a "good job" or how long it should last. Are there permits and insurances we should have from the cement people? This is happening next week so quick info would be appreciated. Thanks!
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The best reason I've come up with to encourage shareholders to run for the board is this:
PROTECT YOUR INVESTMENT!
For most people, and certainly for me, one's home is the biggest single financial investment we make. As if New York apartment prices aren't high enough, add the cost of the interest on a mortgage and you have a truly huge amount of money tied up in your apartment.
Serving on the board means you decide how to maintain it (replacing old pipes, repairing aesthetic damage like, saving money for future expenses) and how to improve it (buy things with a short warranty or pay for a longer warranty? establish uniform and fair methods to enforce house rules). You decide where the money goes, and how much to take in.
Other reasons:
-- Living in NYC we're lucky in that our apartments appreciate in value nearly without exception. Want to make it worth even more? Improve the building (facade, boiler, elevator), improve the financials, and give people a reason to want to live there.
-- Buying into a cooperative means you really ought to cooperate, and help each other out, even if it means serving a year on the board.
-- Those who serve even one year on the board end up knowing much more about how the building & business run, and what the co-op's possibilities and limitations are. In my own experience, nearly everyone who "retired" from the board in our building no longer complains about the building -- because they know what it's like to be on the other side, trying to resolve those complaints.
Not everyone will want to serve on the board even in the best of buildings; don't badger these folks. Focus on the ones who are fair, polite, and open to alternative points of view.
If you have a dishonest board, you may need to run a slate against them. But don't feel that's the only way. Get a couple of good people to run, and encourage them to campaign.
Let me comment on your other ideas ...
-- Term limits. Fine, but remember that you'll have to find people to fill the forced openings, and that one day you'll force out really good people. (One way around this is to limit terms of offices -- pres, treas, sec -- but not to the board itself.)
-- Requiring service. It's probably not legal, and even if it were, that would mean forcing people into something they won't contribute to. And it means that nutty neighbor with 17 cats or the all-night partier will end up deciding what's best for you.
-- Paying a nominal honorarium/maint fee abatement. Paying is dicey only because it gives people the wrong motivation. That said, waiving one month's maint fee (at the conclusion of a full year's service) would help some of us feel better about the hours of time we volunteer in the service of our neighbors.
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