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.

Why don’t you ask your condo attorney? I’m sure they have seen this before and could help and give a fair solution.

While condos do not have shares as in a co-op, there is the % of common elements assigned to each condo. Generally, the vote should be tally by using that aspect, which in essence is like the shares in a co-op. A review of the bylaws should review how the voting should be handled. There should be a rare occurrence of an exact match or tie.

Set up your account with your bank and they will send payment directly to the Management company, NO FEES. I would send a paper check but at times it went until the last day before they cashed it. This is quick, easy and takes the worry out of paying your maintenance

Setting up auto-pay with your bank so a check is sent automatically is a very good solution... most of the time.

[Take II]

Setting up auto-pay with your bank so a check is sent automatically is a very good solution... most of the time.

[Take III - Discovered the boards don't like emoticons :-( ]

Setting up auto-pay with your bank so a check is sent automatically is a very good solution... most of the time. ;-)

Sometimes the actual amount of the monthly maintenance is different than the regularly scheduled amount. This occurs when there is a one-time assessment or in the month the DoF real estate abatement/assessment takes place. Some MA's have a very hard time dealing with unexpected over or underpayments.

A way around this is if your bank has a means via their portal by which you can change the auto-pay amount for a single month. This is the best of both worlds. Or you can simply have your MA set up an ACH connection to your bank and then pull the exact amount each month. I've used this method for years without any problems.

I don't think this is the right forum for getting answers to your question - why don't you try attorneys who offer free legal advice? One I found on the internet is: https://www.justanswer.com/sip/online-law-advice?r=ppc|ga|27|Legal-Law-Search-BMM-Testing-New-Strategy|General-Legal-1|&JPKW=%2Bfree%20%2Blegal%20%2Badvice%20%2Bline&JPDC=S&JPST=&JPAD=626739019355&JPMT=b&JPNW=g&JPAF=txt&JPRC=1&JPCD=&JPOP=&cmpid=8505055328&agid=86138280203&fiid=&tgtid=kwd-318564805094&ntw=g&dvc=c&r=ppc|ga|27|Legal-Law-Search-BMM-Testing-New-Strategy|General-Legal-1|&JPKW=%2Bfree%20%2Blegal%20%2Badvice%20%2Bline&JPDC=S&JPST=&JPAD=626739019355&JPMT=b&JPNW=g&JPAF=txt&JPRC=1&JPCD=&JPOP=&cmpid=8505055328&agid=86138280203&fiid=&tgtid=kwd-318564805094&ntw=g&dvc=c&gad=1&gclid=Cj0KCQjw6KunBhDxARIsAKFUGs_CBaeHlt5kf-9K5MPrBcYIPjLCOQuxrqGPSf9NUVn6A7InD44PIOwaAnKkEALw_wcB

Why don’t you reach out to your co-op attorney or accountant? They would know what they’re seeing in other co-op’s and give suggestions on the size of your co-op.

Why can’t you do a part time super since it’s a small co-op? Do you really need a full time super?

Also what about benefits? I’m assuming you’d need to pay for that too or would it just be for a full time or part time depending on the hours. Would your co-op need to have a union super?

Larger co-ops will have a super full time, probably a union super, they might live in the building in a unit that is owned by the co-op, they pay for benefits, OT, maybe pension, also cell phone, utilities for the unit.

Maybe it doesn’t have to be a super but a porter.

I would speak to the co-op attorney…labor rules etc too.

I am a senior and a Veteran. I was told that if you did not get that abatement when you originally came in, you are not entitled. I have been here for (22) years. I was a veteran when I came in, but did not qualify as a senior until (8) years ago. Please let me know how I can get an abatement, or if I even qualify now. I read my Updates daily.

Technically speaking, the senior and veteran exemptions are not property abatements, they are exemptions, and you are legally entitled to receive those monies.

Our Board would pay all abatements and exemptions over a 3 months period so as not to break the bank account.

If you are entitled to receive a senior exemption of $500 and a veterans exemption of $400, that’s $900. We would give you that money over a 3 month period by crediting your maintenance $300/ month for 3 consecutive months, thus reducing your maintenance $300/mo for these 3 months for a total of $900.

Sandra asked how to apply. I went online and found this:

Senior
https://www.tax.ny.gov/pit/property/exemption/seniorexempt.htm

Veterans
https://veterans.ny.gov/property-tax-exemptions-veterans

Thank you Marty. Printed out the forms.

That’s great news Sandra. I wish you the best of luck.

My experience was that the Fire Dept is the authority that said nothing is to be in the hallway because, in case of an actual fire, evacuation of the shareholders might be delayed because of various items in the hallway.

Remember that during a serious fire (which can break out in very little time), the hallways may become pitch black due to smoke. If people have any objects impeding their escape route, there could be deaths and possible liability to the co-op. The worst of both worlds.

If you say that you're being unfairly singled out for your doormat while others are allowed to keep their items (bikes, strollers, etc) in front of their doors, then I recommend that you take video of these other offending objects. This can then be given to the Board as proof that the rule is being unfairly applied to shareholders. Then ask the Board why YOU are getting the eviction letter and the other shareholders (s/h) are not. After all, aren't the other s/h violating the rules, too?

In order for a Board to be respected and successful, they must apply the co-op's rules fairly and across the Board. If you're being singled out while others are not being penalized, your video proof will stop all talk of eviction.

One last thing, keep all documentation - legal letters, emails, phone calls. Anything and everything. You may need it in the future to support your claims.

Good luck and please keep us posted.

That is a good question. I would like to know the answer. What is the penalty for? We are all on a fixed income pretty much. Everything is going up but the pay check! Please continue comments. I read them!

I don't know anything about Mitchell Lama co-ops, so I can't speak to any specifics about them. Generally speaking, for other types of regular co-ops, the By-laws and proprietary lease (aka the Occupancy Agreement) take precedence over the House Rules.

That's because they are legal documents that specifically outline the shareholder's and corporation's legal obligations. House Rules are usually applied to quality of life issues that affect the co-op's shareholders.

If a penalty is specified in the House Rules and (very important) is applied equally and fairly to all shareholders by the Board of Directors, then the Board has the right to impose a penalty. If you think the penalty is excessive, I recommend that you ask the Board why is the penalty in that amount. Let them explain the rationale behind the penalty.

It's possible that a penalty for one offense can be higher than another offense. That's because the possible financial impact to the co-op of the first offense (ex - a renovation that goes wrong and affects the structure of the co-op) might be much greater than the financial impact of the other offense (ex - littering). So, the co-op is trying to protect all shareholders by letting everyone know in advance what the penalty will be.

I hope this helps. Good luck and please keep us posted.

I always ask: Who polices the Board?
Who says they follow all the rules?

I’ve lived in two co-ops and both I’ve seen board members do things wrong (not all of course). They have to practice what they preach because then there’s NO respect towards them.

Can I ask election independent company count ballots and votes in front of shareholders. Can shareholders control them on time when election in process (2 HR)
250 units.

In my old co-op we had the management company and random shareholders at the annual meeting help (3 were selected) and count the votes so that makes it fair. Ask for that and make it something that happens each year.

Pooh - In my old co-op, we had 3 volunteers and the attorney count the votes - just so no one could say that the mgt company was possibly biased. The system worked well with no problems.

BTW who's going to pay for that? The count can be done in front of SH. But what is the rush? why should they be timed?

To answer your question, no, House Rules don’t supersede the by-laws (which address corporate governance issues for the housing company) or the proprietary lease/occupancy agreement (which address various housing company and cooperator rights and responsibilities).



However, House Rules are intended to supplement the terms of the proprietary lease by addressing many of the day-to-day issues that arise in connection with life in a cooperative. Virtually all co-ops have House Rules; M-L co-ops in the HPD portfolio are required to obtain HPD’s approval of their House Rules, and HPD has reviewed and approved the attached House Rules for GG. Regarding the contemplated fines for violations: As you know, the Rules include extensive “due process” and “right to contest” provisions, and in almost no case would a fine be imposed unless and until there is a repeat violation after the shareholder has first received written notice of the violation.

I understand fines are needed for shareholders who ignore others around them ex: loud TV, banging a hammer after certain hour, but due process?
Why would a board side with you when they levied the fine? It's like admitting they were wrong
In my area, we have other Coops nearby, I suggest invite other Coop boards for a meeting and use another board as appeal process. If we have a shareholder who wants to appeal, then the board can reach out to another board and ask if they will hear their appeal or have other boards send people to listen, ( Total 3 people) and render a fair and unbiased opinion

All Boards are not alike. What is done in my coop, does not necessarily work for your coop. Different strokes for different Folks. By Laws are pretty much the same, but fines for one thing may be a higher or lower fine for something else, and somewhere else.

Thank you for that information. Good to know!

You can knock on neighbors' doors and chat informally about this issue. Also, do you have any common areas in your building? If so you could approach your neighbors there. Do you have email access to your neighbors? If so you are free to send messages to them. Good luck!

1) Calculate how much additional revenue you need to wipe out the debt in, say, three years. Add 10% or so to begin to create a healthy reserve fund.

2) Have the board vote to impose the assessment or increase, effective immediately. From the situation you describe, you need a cash infusion ASAP.

3) Announce the assessment and/or increase to all shareholders.

4) Watch how quickly shareholders suddenly take an outsized interest in the board and fiscal operations.

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The board has a fiduciary responsibility to ensure the Operating Account breaks even at the end of each year (via maintenance increases) and the Reserve Fund contains a minimum of three months (optimum six months) of maintenance income. This is *after* all of the unsafe conditions in the building are eliminated.

Do *not* let shareholders participate in any maintenance increase or assessment votes. There is nothing in the Proprietary Lease or Bylaws that requires shareholder participation, and you'll never get anything passed. Shareholders do not have the same fiduciary obligations to maintain good fiscal management as board members.

Expect very intense pushback from your shareholders. Before you make any maintenance increases or assessments known to the shareholders, prepare a one or two-page bullet-point summary outlining why the increases are necessary. This will save your vocal cords and mental sanity.

Make sure your annual audited financial report and budget projection are sent to every shareholder before any announcements are made. You should get both of these documents from your accountant. You *do* have an accountant on an annual retainer, right?

Once the financial report and budget are sent to shareholders, solicit feedback about how/where shareholders feel the co-op can be more efficient.

Something I used to do as treasurer is go through the budget line by line and highlight which expenses are non-discretionary. IIRC the top four are real estate taxes, mortgage principal and interest, insurance, and staff salary and benefits. I think you'll find non-discretionary expenses are 75% to 80% of your monthly maintenance income.

One final suggestion, and I cannot stress this strongly enough, is start having long conversations with your accountant and your attorney. These are the professionals who can best guide you and keep you financially healthy. This is what you are paying them for.

Good Luck!