They could easily become a victim of fraud, and lose their investment, and/or pay twice the normal fees.
the cooperator magazine which is free and also ha a on line version, has at least one article a month about co-op fraud perpetuated by a member of the BOD or managing company..

It does not matter; although the sponsor does not qualify, it has to pay for taxes assessment just like any other shareholder. If you bought from the sponsor and the tax credit assessment was not announced until after the sale, you need to pay for it. Unfortunately, you did not know better and did not ask the sponsor to cover it prorate as part of the condition for the sale.

Do you have proof of your allegations? Have you discussed your concerns with any other shareholders? Do you have a lawyer?

You raise a number of issues here.

* The authority for fines and sublet fees must come from the Proprietary Lease. If these clauses do not exist in your lease, you should let your board and managing agent know why you are contesting these fees. Don't bother to mention that there's no "sublet shareholder on the board"; that's not relevant.

* The board has the authority to raise maintenance without shareholder approval. In fact, setting maintenance is one of their primary jobs. A good board will explain the reasons for any increase, but no shareholder discussion or vote is required.

* "The sponsor added a $300,000 mortgage": If the board approved this, that's well within their authority. Figuring out how to fund operations and projects is one of a board's primary duties. There may be improprieties in how the mortgage was obtained or used, but that's a separate issue.

Hi FS,

Congratulations on making the board! If you and your fellow board members are looking for some guidance, be sure to check out our February issue (in print or in the Digital Edition at http://www.nxtbook.com/nxtbooks/habitat/201102/ ) for some of the basic responsibilities of the board.

Good luck!

I think that the debate about debt ceiling in Washington is just a political game that the GOP is playing with the Administration.

Not raising it would have catastrophic consequences on the country.

I am pretty sure we will have an 11th hour deal.

As for cash accounts, we maintain about 30% of our Reserves in cash and the rest with CD and MM.

Thank you VP11104 for your response. For a lousy 1% investment return, there is too much risk - even if created by politics.

For me, I would rather forgo the $675 monthly earnings for a couple of months (1% on $810k) than to subject my shareholders on this even temporary risk. My Co-op is pulling out of our money market and short term treasury mutual funds today.

Have you looked at NYSERDA's Multi Family Performance Program as a means to possibly fund a large portion of this and/or any other energy related projects? If your building can implement measures that reduce building wide energy consumption by 15% you could be eligible for a considerable amount of money. Wireless Energy Management Systems, Lighting and Separating DHW production from the buildings Heating system are key "target" measures for NYSERDA funding. There are also rebate programs out there for sub metering projects. If you have further questions let me know and I will provide a phone number.
Eric

Bob,
I apologize, I just noticed your buildings are actually in New Jersey. There are several utility and possibly state sponsored rebate/incentive programs that should address your issues. When you are comfortable doing so let me know your utility company and I will look into their energy programs. Also, feel free to contact me should you have any questions.
Eric

They make money for the co-op.
They make it convenient for shrhlders. to do their laundry

What I meant was allowing shareholders to install washers and dryers in their own apartments. (We already have a laundry room with communal washers and dryers.)

You really need to know what your building rules regulations will be for those that are considering installing W&D. Questions such as.

1. Scope of work.
2. Will the building archict be involved.
3. How will the dryer be vented.
4. Who will do the electric and plumbing work?
6. What safety/preventive measures will be required (should the washer leak)
7. Is it possible to tie into a water source and waste line very easily?

You need to do your homework before you consider if is feasable. Good luck MRM.

I echo MRM's list. But I'd add that your shareholders and board need to come to an understanding about the future of these machines.

For example, a recent expensive renovation included a washer and dryer, moved for proper venting, etc. according to an architect's specs... all reviewed and approved properly by the board, as was its right. (There are apartments in the building with w/d, many installed outside proper channels in bygone years.)

But... the following board has now outlawed all w/d in individual units... and gone a step further. If the machine breaks, one can FIX it, but not REPLACE it - though a) in many cases, it will cost less to replace than to fix; b) it may be impossible to fix; c) it could be beneficial to replace with more efficient equipment.

Is this a sound policy? Isn't it a kind of breach of contract for a board to approve expensive plans -- and a year later, turn around and negate a lot of the resale value for the individual shareholder? Would it not have been more prudent for the board to announce that all w/d must meet certain plumbing codes, and if they do not, they must be updated to do so?

I would even understand a moratorium on new installations... but not allowing a shareholder to replace a broken machine seems punitive and a little silly.

i would think that downstairs neighbors be furnished with proof of adequate insurance.
The co-op is not responsible for damage. the w/d owner would have to pay for all the repair work,
you would need a auto-shutoff for the overflow.

Those sort of go without saying, if your board has any savvy at all...

When speaking about allowing washers/dryers in units is a complicated topic.

1) Does your building have suds zone? given what you said about the age of your building, I doubt it.

2) Since your building does not have a suds zone, I assume you also do not have a vent stack for the draining of the washing machine.

3) If you do allow Washer/dryers, who is supervising the work? to make sure that a legitimate plumber is doing the work as per the requirements that the buildings architect put together. Yes, your building should have guidelines that your house architect put together. And your architect would have to approve all requests.

Keep in mind that I have seen many things go wrong such as allowing washer/dryers to be installed without the proper prerequisites to prevent unwanted situations. I have seen custom kitchen cabinets get completely ruined due to suds coming up into the sink from the drain line. All because there is no suds zone/vent stack for the washing machines. Seek professional consultation before you open up a can of worm and then you will have a lot of unhappy residents.

We have a small 12 unit building in which 2 SH have bought portable washers that attach to their sink faucet. We have no rules in place for such appliances--at present there is no problem but if we all get the one, can we be setting ourselves up for waste line back ups and other problems? Who would we consult--there is no building architect.

We have the same issue coming up in our building. People in upstairs units have caused floods into their downstairs neighbors apartments because of a tear in the hose or the machine was filled to capacity and somehow overflowed and they didn't realize it.

Then we had some shareholders who figured if they were in a downstairs unit, it was okay because no one was beneath them if their machine overflowed. One such Shareholder had a major flood because of her washing machine and was upset that her homeowners insurance denied her claim because they ruled the damage to be due to her negligence in having the washing machine in the apartment.

That is something for Shareholders to think about regarding putting them in the apartments.