QUEENS

By spreading payback over years, boards can get cash in hand to do capital work.

The Forest Hill co-op board in Queens takes a DIY approach and reaps a fat profit.

From quarters to smart cards, Automatic Industries has changed with the times.

North Shore Towers becomes the largest smoke-free co-op in the city.

Shutdown of L train will be a bruise for Brooklyn but a potential boon for Queens.

Co-op and condo boards are not responsible for shoddy renovation work.

Under the leadership of board president George McGrath, the posh co-op called Forest Hills South Owners dodged a shady property manager. But that didn't change the fact that it faced major capital investments. Roofs and aging elevators needed to be replaced in all seven buildings. In addition, the board recognized that evolving dynamics in New York's real estate market meant general improvements were required to keep the curb appeal of its buildings, so the co-op added an indoor gym for residents. All of that costs money. The co-op was in fairly good financial shape but they wanted to get into better financial shape.

George McGrath, board president of the posh co-op called Forest Hills South Owners, says his board has maintained a "trust but verify" policy for many years. That legacy includes a simple but effective list of processes when dealing with building finances and management companies.

When the cops finally came for Michael Richter, the board members of one Queens co-op knew they had done the right thing. Richter, owner of Charter Management, had acted as managing agent for Forest Hills South Owners, a 605-unit co-op spread across seven buildings. They fired him.

On July 13, 2010, police arrested Richter and charged him with five counts of second-degree grand larceny and five counts of first-degree falsification of business records. Richter was also charged with embezzling almost $1 million in tenant maintenance fees throughout a six-year period from five co-op buildings in Jamaica, Forest Hills, Rego Park, and Elmhurst.

A touch of history can pay off in a big way.

Take Dunolly Gardens. The 360-unit Queens complex earned thousands of dollars in tax credits because the property is listed in the National Register of Historic Places. The National Register is the official federal list of historically significant districts, sites, buildings, structures, and objects.

For co-op and condo boards, historic designations have often brought little beyond the honor of being recognized (usually a plaque). Owners of private property listed in the National Register are free to maintain, manage, or dispose of their property as they choose, provided that no federal money has been spent on restoration.