New York's Cooperative and Condominium Community

HABITAT

BOARD OPERATIONS


HOW CO-OP/CONDO BOARDS OPERATE

How do NYC co-ops and condos operate? Governed by an elected board of directors, these housing corporations are like mini-cities with their own bylaws and governing documents. Here you'll find articles on a wide range of topics that co-op and condo board directors need to understand to govern their housing corporation wisely. 

One of the most important amenities a co-op or condo could have is a swimming pool. Nothing beats being able to cool off in one when the humidity feels like it's at 1,000 percent — which is why it's important for boards to make sure it's maintained properly. Unfortunately for residents of one co-op in Port Chester, Westchester, days before the pool was supposed to open for summer, they got a letter from the managing agent letting them know it would remain closed for the season. The problem, they tell Ronda Kaysen in this week's Ask Real Estate column in The New York Times, is that "the board had recently learned about an open permit that would require major modifications to the pool to bring it up to code. [The] co-op's lender does not allow for any open permits on the property." It's really crappy timing, and something the board should have caught sooner. But now that it's happened, shareholders want to know what recourse they have, if any — especially after one shareholder argued that "she should not have to pay her full maintenance" while the pool was out of commission and management responded by saying "it would report her to a collection agency if she did not pay the full amount." What a mess. Kaysen sympathizes with the shareholders but offers some sage advice: "Nothing puts a damper on Fourth of July festivities like a shuttered swimming pool. So I can only imagine how frustrated you and your neighbors must be at the managing agent and the co-op board, which should have seen this coming. But before you tear up your maintenance check, take a deep breath." James W. Glatthaar, a Westchester real estate lawyer, points out that withholding maintenance is misguided and doesn't help solve the problem. Why? Because the co-op needs that money to make the necessary repairs. The sooner the pool is brought up to code, the better, and that requires everyone's cooperation, even if everyone is really disappointed. Glatthaar adds that "most proprietary leases prohibit shareholders from deducting claims against the building from their maintenance. A delinquent shareholder could be declared in default, leading to late fees, legal fees and interest charges and possibly revocation of the proprietary lease." What to do instead? Kaysen recommends that instead of resorting to counterintuitive tactics, the shareholders should "consider a leadership shake-up. Read through the bylaws, which likely include a provision allowing shareholders to remove directors. In this case, shareholders might have a good reason to oust the current roster, especially if neglecting to close out old permits led to the pool closure." It's the smartest — and cheapest — solution. 

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A READER ASKS: I recently moved into my very first co-op apartment. Things were going pretty well, until the people in the unit before me said they had a leak in their bathroom. Ever since, the board has needed to gain access to my apartment to check that I'm not spilling water, that my toilet is running properly, that my bathtub is caulked and my faucets are all okay. I understand it's vital to fix a leak, but I'm not very comfortable with strangers being in my apartment when I'm not home. Am I being unreasonable if I ask for some advanced notice so I can make arrangements? 

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The Fourth of July is upon us, and that means many New Yorkers — depending on where they live — will be heading to the rooftops to catch the fireworks displays. Unlike most other community events held in a co-op building's common areas, however, a get-together on a rooftop does pose some risks. The good news is that co-op boards planning to host fireworks viewing parties can take steps to protect themselves and their buildings. 

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Co-ops seeking to upgrade their buildings' retail spaces to market rate face a complicated task. But a cross-section of professionals agrees that a set of specific steps can help in this new arena. Last week, we took a look at the first step: determining your financial goals. Today, we'll take a look at the next step, which is deciding what type of tenant you want to have.

"The biggest thing with co-ops is concern over how the space is going to be used and whether that use will interfere with, or have some sort of negative impact on, the residents," says attorney Jeffrey Schwartz, a partner at Schwartz Sladkus Reich Greenberg & Atlas.

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Case Notes: How to Keep Contested Elections from Getting Messy

Written by Richard Siegler and Dale J. Degenshein on June 30, 2015

New York City

Contested elections. Sometimes you just can't avoid them. In a matter with twists and turns worthy of a law school exam, the court had to decide which candidate was successful where the inspector of the election had failed to count a proxy that would have changed the winner. The case is Richard Mishaan, Charles Koppelman, Geraldine Kunstadter, Arthur N. Abbey, and Wayne Nelson v. 1035 Fifth Avenue Corporation, Eugene Atkinson, Emil Rad, Alex Green, Robert Schmon, Joyce Menschel, and Michael DiGiacomo. The property at 1035 Fifth Avenue is a cooperative housing corporation with a board of nine directors. Each director serves a three-year staggered term. In 2014, five candidates ran for three seats. 

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In Manhattan, Gani Gjonbalaj has been superintendent since 2006 at a state-of-the-art condominium that comes with many bells and whistles. The Lion's Head, at 121 West 19th Street, was the scene of a headline-making explosion in 2002 and was subsequently gutted and converted from a commercial space into residential condos. The building opened in 2005 and now attracts A-List celebrities.

"The renovation meant that we had the opportunity to put in new systems and new technologies," says Gjonbalaj, who boasts of the building's 21st-century heating systems, cooling tower, security cameras, fire alarms, and video intercom systems that are all monitored or controlled by computer. While those digital cogs turn over behind the scenes, Gjonbalaj says it is a communication platform called BuildingLink that most residents recognize as their building's technology front line. 

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A READER ASKS: I live in a midsize co-op building in Brooklyn. We have a new super and porter and while we often see them cleaning up the lobby, they aren't keeping the basement as clean as it should be. The trash bins overflow and it smells, and last week I was horrified to see a rat scurrying around. Where there's one there's many. I don't want to make trouble for the new super and porter with the board, but I feel like I need to say something before we're overrun with rats. 

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Anyone who read about the saga at Sherwood Village, a co-op in Queens, knows that it's not representative of your typical board. The board's treasurer from 1991 to 1995 became convinced that the co-op was riddled with corruption and "fictitious billing." He got the Department of Housing and Urban Development and the Queens district attorney's office to open formal investigations. Neither found any evidence of financial wrongdoing, but allegations of corruption continued. It's quite the story, and one that reminds boards about the dangers of letting politics get personal. However, it doesn't mean that boards shouldn't exercise caution and protect themselves from potential fraud. 

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Why should the garbage chute be at the top of your building's priority list? You might think it's just the place where building residents throw out their trash, but if the chute is not properly maintained and kept clean, it not only creates an excellent breeding ground for urban pests but also becomes a fire hazard. When you think about properly maintaining your co-op or condo unit, it's easy to focus on areas that are immediately visible: the lobby, the gym, and even the laundry room. We expect these areas to be clean, and in the case of the latter two, for equipment and machines to be in good working order. As we saw in our "Barons of the Boiler Room" series, it's easy to take areas that are typically considered stinky for granted, such as the garbage chute. 

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Good news for greening advocates. The Urban Green Council has launched a new website, Metered.nyc, to make benchmarking information simpler to access and easier to understand. Energy benchmarking is required under Local Law 84 for buildings larger than 50,000 square feet. What makes this new website so useful is that a building's data is compared over time, and if you have made energy improvements it will be reflected there.

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Ask the Experts

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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

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Cowley Engineering, P.C.

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