NEW YORK CITY

A co-op board can use what's known as a "Pullman proceeding" to evict tenant-shareholders for illicit activity, violation of the cooperative's rules or chronic "objectionable conduct" — all based on the landlord relationship inherent in a proprietary lease.

Appraisals are subjective — how much is a view of Central Park worth? In one case, a woman on the Upper West Side wanted to refinance her one-bedroom co-op. Appraisals by two different banks valued the apartment at $350,000 and $400,000. Her mortgage broker, Jordan Roth of GFI Mortgage, suggested she try a new bank. The third time around, the apartment was valued at $550,000.

The rise in low appraisals began in 2009 after then-New York State Attorney General Andrew Cuomo hashed out a deal with Fannie Mae and Freddie Mac to sever a cozy relationship between mortgage brokers and appraisers. Critics of the old system pointed to lax appraisal rules as part of the reason that home values were so woefully inflated.

Hate dealing with secondhand smoke in your co-op or condominium? As an attorney I often hear complaints from co-op board and condo association members about the extra costs incurred as a result of heavy smokers. Staff sweep up cigarette butts day after day, boards hire outside vendors to steam clean upholstery, curtains and area rugs and the windows must be washed more frequently. The problems are even worse if smokers throw cigarette butts off the balconies. 
 
Costs aside, condo and co-op board members are feeling pressure from residents about secondhand smoke permeating a building, especially where there is a central heating, air conditioning and ventilation (HVAC) system.  In one recent example I learned of a lung cancer survivor that resides next to a heavy smoker — the secondhand smoke presents a very real threat to his welfare.

Last January, Villas on the Bay, a 42-unit condominium in East Moriches, Long Island, switched to Fairfield Properties, a larger property manager than the one it formerly had. The 30-year-old community had capital improvements on the horizon and thought Fairfield could get them better prices.

"FINALLY!" That's the feeling many buyers have when it's time to close on their co-op apartment. As a co-op shareholder and a residential real estate broker doing business in my own building from time to time, I always find it challenging to answer buyers and sellers when they ask, "Why is it taking so long to get through the approval process in your building?"

Barbara Hubshman, a co-op shareholder at 1010 Fifth Avenue in Manhattan, sued her board, each individual member, the managing agent and others, claiming that they failed to maintain the building, as required by the proprietary lease — and tried to conceal from residents and possibly governmental agencies dangerous conditions that existed in a the building's fireplaces and flues. In fact, she claimed, the board even went so far as to encourage residents to use their dangerous fireplaces even though the board knew there were problems with the chimney.

The condo apartment's occupant, a middle-aged man living alone, had a severe case of Collyer's syndrome. The apartment was littered with papers and garbage and wholly unsanitary. How unsanitary? There were bottles filled with excrement stored throughout. The odor in the hallway and on the floor was horrendous. The apartment was a constant source of roaches.

Water

Water rates are one thing that buildings can count on. In May, the New York City Water Board set the rates for fiscal year 2012-2013, pegging water rates to rise 7 percent. One change is that the city is ending the so-called flat-rate frontage program, which set a water rate based on th

Most condo boards that attempt to collect common charges from delinquent unit-owners are faced with essentially three choices – enter into a payment plan with the defaulting resident, sue for money damages or foreclose. 

The problem with the payment-plan option is that when a unit-owner misses a payment, the board must start an action, which takes time and money. This is really just delaying the inevitable. If a board decides to go straight to court (Small Claims or otherwise), the board may succeed in getting a judgment on the outstanding common charges, but would have to begin consecutive actions in order to keep collecting the common charges as they continue to accrue. Also, collection on the judgment(s) may be impossible. This starts a cycle of continuous legal bills and unpaid common charges.

A monthly column by HABITAT's editorial director.

Let's call the super Pete, and the only other thing I'll tell you about him is that he's honest, hardworking, and knowledgeable. Oh, yes, and I've known him for 25 years. When he complains about something, it isn't idle talk.

At this moment, he was pretty incensed: "This guy," he said, referring to another super he knew, "shouldn't have gotten that job."