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No Subject - Dianne Stromfeld Jul 30, 2010


Kudos to Sen.Liz Krueger, she certainly understands co op condo issues. Her bill to prevent short term stays in co op/condos and the current one to get some oversight for us show that we have a true voice who speaks our language. Perhaps, if we as owners begin to put pressure on our elected officials, we will finally be able to have an agency to help us in our times of need. If we want change we have to join forces and exert effort. Again, thank you Senator Liz Krueger.
Dianne Stromfeld

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I agree with you, I have been writing to all levels of government, Attorney General, Mayor,senators, congress,etc. without effort all say to get a lawyer, nobody wants to make an effort, but if I had more people like you behind me and for the cause to get protection I believe we could make a difference. Remember there is strength in numbers. Let's get together and make the difference, we need help our property is in danger, our rights have been abused by the power of those who have self interest only. We are being held up without a gun, by our neighbors who serve on the Board.

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There is a new organization forming devoted to the problems that appear on this message board
We have met with Liz Krueger and others to get the momentum this bill needs. To everyone who reads this, join us because in numbers there is power. Contact
Larry Simms, President
Alliance of Condo & Co-op Owners
www.condocoopowners.org
tel 212-842-4855
fax 212-624-0225



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How many good and decent coop shareholders have been literally FORCED OUT of their homes because they went up against corrupt board/ management who had building funds and more at their disposal? How many silent sufferers are out there, not knowing where to turn?

habftm@gmail.com

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INTERCOM INSTALLATION - DD Jul 27, 2010


We have eight Board members, five are friends and relatives and three are independent Shareholders for the betterment of our coop. We recently got a $1.00 per share assessment raising 98,000 this was after we took out half million dollar mortgage refinancing and had 244,000 in reserve for construction which didn't come nearly close to that figure. Now we have 177,000 in reserve (we think), and have shortfalls in our monthly financials. This $1.00 per share (98,000) was given without reason. Now these five want to install an intercom system requesting and threating for Shareholders and tenants to give them our private home telephone numbers to hook up to the intercom system. I refuse to give anyone my private, unlisted number to these people, that didn't get any other proposals nor did they disclose how much the system will cost the building. They did the same thing with the construction job, no bids or proposals, we could not trace how much they spent on the project because when the Shareholders did an audit at the Managing Agents office, we audited the operating account and saw that not one check was written out to the construction company that two Board members are associate with. We figured out that they attached a checking account to our reserve account which was not in the possession of the managing agent, nor could we trace the checks. Our problem is that the shareholders election is overdue and they refuse to wait to install the intercom after election. The only reason I alledge they are rushing this job is for the kick backs. Do we have to give these people our private telephone numbers which is unlisted? why can't they find a another system that does not require private telephone numbers. I believe that our constutional rights are being imposed upon, they are threatning that we will get fined if we don't give out our numbers.

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Unfortunately people go on boards because there is money to be made. Our building is almost destroyed because of kickbacks to management company and board. Until attorney general’s office takes an interest in this, condo and co-op owners will continue to be robbed.

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Yes it is a shame and unfortunate that many people run for office to see what they can get and also management knowingly turn a blind eye as they do not want to loose the contract. Far too often you complain instead of putting your name forward for election. Same story, others complain all the time when they have the choice of running for election to make a change/difference but decide not too.

UES

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Since it is being said that attorney general's office is not interested in condo corruption - where there is evidence of kickbacks - might the IRS tax fraud dept. be interested?

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The problem with kick backs is the contractor raises his price on his contract and kicks back in cash. You cannot prove this, unfortunately.

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My question was "when there is evidence of kickbacks" would the IRS be interested.

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The IRS doesn't have the resources to go after what they call petty crime. They only go after the big bucks. I have already reported the super for doing illegal renovations in our building and getting cash for it. He bought three homes on a super salary. Nothing was done. Government agencies are a joke. They too have their hands in our pockets, when it comes to protecting coops they look the other way, they say they don't get involved in private Corporation business. As I see it Business is Business and crime is crime.

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This whole thing sounds like a nightmare, and I don't have the answer about the unlisted phone numbers, but it sounds like your coop has a lot on its plate. Just wanted to offer my support if not answers.

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Thank you for your support and understanding. Yes, it is a nightmare. I only hope that when we call this Shareholders election under default by the current Board, we will take over and finally build up our Coop financially, and to clean it up right now it has been neglected,it looks worse than a City housing development. This current board has only one interest, to get kick backs and support the super that does not live in our building, but only goes around collecting proxies for them or they don't get any service from the super. The super bought three homes for him and his family on our backs.

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Good luck DD -- it sounds like you're on the right track, and the main thing now is to persevere. You know you're doing the right thing so don't let anyone undo your hard work.

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Thank you for your vote of confidence. I shall presevere, I am determined to make a difference hopefully, for everyone that owns a coop, God knows we need the help all we can get. Unfortunately we are on our own.

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Hi DD, HabitatReporter here. Mark Hankin, of Hankin and Mazel, has some answers for you:

"You have an absolute right to privacy in your personal identifying data i.e. Social Security, name, number, etc. New York State has enacted many laws which prohibit release and require notification of a breach of personal identifying data. (See Information Security Breach & Notification Act and New York Social Security Protection Act). Generally, other than a governmental agency which requires the data in order to provide and confirm its policies, you are not required to provide this data i.e. IRS, Medicare, etc. On the other hand, if you provide it because private entities will not give you the service or goods you are seeking without it, they are then obligated to secure the data and notify you should there be a breach of the security."

Hope this helps!

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Thank you for the information. We would rather do without the service the reason being that these Board members that want to install our intercom with only our private telephone numbers cannot be trusted. They have already deceived Shareholders to collect proxies from them. They had their friend the Super going around the building under the pretense of doing repairs that their work orders have been unattended for 9 plus months. The super would have a clip board with him telling the shareholders to sign a release that the work was done, what he did was turn the page and make them sign a proxy for the the tyrant board in power. How do we know they won't get hold of a device and bug our telephones. How do we know this would not be another Watergate in a coop. These people are pirates and cannot be trusted with any private information, they are to desperate to remain in power they will stop at nothing. The President of the Board's son sells drugs in the building, the Vice president of the Boards daughter was caught forging and making up false graduate deplomas and selling it to school teachers. She herself applied for a teachers job without any credentials. The Treasurer and Secretary had their company do the major capital improvement on our building (conflict of interest). Another members brother in law ripped off our building for hundreds of thousands while he was Vice president and they are all protecting the super that does illegal renovations and causes muliple fines for doing these jobs without permits and endangering the lives of others by not having these permits, meanwhile the super is working on the coops clock double dipping. Would you trust these people with your private information?

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You do not need to give your telephone. However, your visitors may not be able to communicate with you from the building entry door. You may need to come down to open the door to your visitors as the intercom selected by your Board uses a telephone line to communicate your visitor with you through a local telephone call. In fact, telephone entry systems may be restricted to dial local area codes only to keep costs down. If you have a cell phone with an out of area number, you may be excluded from such a restricted intercom system.

Going back to your issues with the Board, I would seriously suspect a board that keeps segregated funds in reserve accounts and are not part of the financial reporting of your management company. These are easy accounts to raid by unscrupulous board members. Forget about kickbacks for a telephone system that today their costs are $5K to $12K depending on functions, etc. Talk about orphan reserves accounts, easily manipulated and poorly audited.

Good luck!

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You do not need to give your telephone. However, your visitors may not be able to communicate with you from the building entry door. You may need to come down to open the door to your visitors as the intercom they have selected uses the telephone number to communicate your visitor with you. In fact, telephone entry systems may be restricted to dial local area codes. If you have a cell phone with an out of area number, you may be excluded from such a restricted intercom system.

Going back to your issues with the Board, I would seriously suspect a board that keeps segregated funds and that they manipulate. Forget about kickbacks for a telephone system that today is only $5K to $12K. Talk about orphan reserves accounts, easily manipulated and poorly audited.

Good luck!

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Thank you for your feedback. Yes, any Board that does not reveal all payments made through the operating account and hides it with a non disclosed checking account in the reserve account is up to no good. According to GAAP all checks written from a corporation must be disclosed in the operating account and not taken out from the reserve which is owners equity. Reserve is only for emergency capital improvement.

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2 Questions - FIOS and Cell Phone Towers - DavidG Jul 27, 2010


Hi All,
I have two questions:
Question 1 -- FIOS /Fiber Optic Cables – We have a request by Verizon to run Fiber Optics through our building to another building to upgrade their Cell Phone Tower (AT&T owns it). That said, this fiber optic cable could eventually be used to wire our building for FIOS, though not happening right now. Should there be any compensation to us? They are talking up the good neighbor angle, but we don’t get much benefit… What are your thoughts?

Question 2 – We have a contract with T-Mobile for our Cell Phone Antenna, it expires next year, and we plan to renovate the roof so the equipment will come down. What’s the best method to solicit other Cell phone tower companies? I am told by T-Mobile they would be willing to pay almost double the current rate to remain our provider due to a good location, unobstructed signals and a larger roof, still want to see what else is out there. Any thoughts?

Thank You all in advance for any comments and thoughts.

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DON'T, I REPEAT DON'T allow any company to use your building without huge compensation. They need you and are prepared to pay a greatdeal if you have people experienced in negotiating contracts. They will take advantage if you don't. FIOS needs your building, let them pay for the privilege. Perhaps wire yours and give residents a greatly reduced rate for 5 years or so in addition to a cash payment and then rent each month. dianne stromfeld

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FiOS will pay and it is a good idea to get them. We have a 150 unit co-op. We negotiated $150 a unit to have them pre-wire, so we got $22,500 to have them pre-wire. Plus they paid for our website and our back-end management software. We now have a web-based work order queue to manage our work orders. People can submit work orders online, from their iPhone, Blackberry, Doid and FiOS TV. The super gets it on his phone right away and it goes in the online queue. The super then can work the work order and put any detailed needed in it, in case we need to revisit the issue.

It is worth getting them, but make sure you negotiate for a few things.

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Wheelchair Ramp Signs - North Riverdale Jul 22, 2010


Here's a new situation: Our co-op has built a wheelchair ramp in the rear of our building. We are not a new building. There are regulations for new construction that signs must be posted showing where the wheelchair ramp, or handicap access is, on that new building. So in our case, for example, a sign would be installed on both the front and back of the building, to aid people who otherwise don't know about the ramp, to show that the building is accessible.

Some on our Board adamantly don't want to install signs giving these reasons: (1) we're a residence not a commercial building; (2) we are not a nursing home; (3) if a person using a wheelchair is visiting, the handicapped person will be told in advance about the ramp.

Others on our Board say we should respect the dignity of the handicapped and post the signs, and since we've just spent thousands of dollars on the ramp, and we ought to let people coming to the building know about it.

The City on the Commission of Human Rights was consulted and gave us guidance to post the 2 signs, even though the code is for "new" construction.

What would you do? Many thanks.

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Why do condo owners want to hide the handicapped? Why are you embarrassed to admit that people are handicapped?

Did you know that anyone of you could be in an accident have a stroke or get a disease like I have & within momments go from being able bodied to being handicapped?

Because of advancing disability I had to move in with my mom in January. She lives in LIDO TOWERS in LIDO BEACH NY. ALMOST EVERY DAY I CONSIDER GOING INTO A NURSING HOME (I am not even 50 years old) because IT WOULD BE BETTER THAN LIVING HERE.

These *(#)_#@_)(@($*#( PEOPLE have spent $18 million over several years to refurbrish & rehabilitate this building. You cannot imagine how much money they spent on painting this building PINK so that it would look like the original "PINK HOTEL"

Through all of this THEY HAVE SPENT ZERO/ NADA/ NOTHING ON ACCESSIBILITY FOR THE HANDICAPPED.

Right now my wheelchair is broken but I DON'T CARE because when I would use my wheelchair IT WAS A NIGHTMARE. The ONLY DOOR I could get in & even then WITH A GREAT DEAL OF DIFFICULTY was in the very back of the building & MANY TIMES I WOULD NOT go out BECAUSE IT WAS JUST TOO DAMN HARD TO FIGHT WITH THE DOORS

The sidewalks on the property are BROKEN & DISCHEVELED so when I walk with my walker I am ALWAYS TRIPPING.

There are 5 HANDICAPPED PARKING PLACES FOR THIS HUGE COMPLEX & ONLY 2 near my condo. MOST of the time I am able to get one of these handicapped spots but if I can't I AM FORCED TO PARK IN A SPOT THAT IS TOO SMALL FOR MY VAN BECAUSE THE CONDO MANAGER DOES NOT FEEL THAT HANDICAPPED PEOPLE SHOULD BE GIVE PRIORITY PARKING

So next time you or anyone else lies awake at night trying to think of ways TO HIDE THE HANDICAPPED realize that you are all ONLY ONE STEP AWAY FROM BEING HANDICAPPED YOURSELVES & NO YOU DO NOT RUN A NURSING HOME but SHOULD ALL HANDICAPPED PEOPLE be hidden away & warehoused in nursing homes so that you do not have to deal with them?

It was not too long ago that BLACK PEOPLE WERE REGULATED TO THE BACK OF THE BUS it took a great deal of fighting & loss of life before they earned the right to be treated like THE EQUAL CITIZENS THEY ARE. The handicapped have fought a similar fight & while the AMERICANS WITH DISABILITIES ACT of 1990 GRANTED HANDICAPPED PEOPLE ALL KINDS OF THINGS there are still MANY PEOPLE (like condo owners) they try really hard to "KEEP US ON THE BACK OF THE BUS" so to speak.

Wake up & smell the cofffee folks - it could be you someday!

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Peggy, I thoroughly agree with you and thank you for your sincere and speedy response. As soon as our ramp was ordered I also ordered the signs, and at our recent board meeting was stunned and dismayed that even one director, let alone 3, would fight them. There is one person in our building using a wheelchair and I was very pleased that he gave the Board a letter requesting the ramp, requiring us to build it. Now he can get out of the buildling again. The day after the directors fought the signs I phoned the City Commission on Human Rights and that office was also stunned that any director would argue about them, and offered to speak with anyone on the Board who wanted to discuss it. One director did, and amazingly is still unconvinced. The terrible prejudice of those directors shows their ignorance, but the signs are going to be installed.

Our back door, like yours, is too heavy for most people and will have to be changed. One possibility is an electronic door that would enable us to key in a code rather than use a key and I've asked the property manager to call an expert to look into it.

Peggy, I am sorry for your plight at Lido Towers. Please call the City Commission on Human Rights and learn what your rights are -- force Lido's action on your behalf. My husband became a paraplegic instantly as the result of an accident and lived only until age 48, dying before NYC had the protections for the handicapped that it has now. Ramps and curb cuts were not yet required and his life was very difficult. Everyone who is disabled or advocates for those who are should be aware of the protections this City affords. Harvey Fisher at the CCHR can be reached at 212) 306-7510 and hfisher@cchr.nyc.gov. He is compassionate, patient and a great asset to the City.

Thank you again for your reply which with your permission I'll print and share with my Board.


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PLEASE PASS THIS ON TO EVERYONE!

Lido Towers WAS WILLING TO INSTALL THE ELECTRONIC DOOR THAT YOU SPEAK OF ~~~

AT MY EXPENSE!

That is right, I will tell you EXACTLY who said it the building manager SHARRIE MOORSE said that she would INVESTIGATE THE COST & I COULD HAVE SUCH A DOOR INSTALLED - AT MY EXPENSE!

She ALSO told me to WALK MY SERVICE DOG OFF THE PREMISES using the REAR VEHICLE ENTRANCE near the "E" LOT she said that the PLATES that were put on the ground for the constructions workers would be REMOVED WITHIN ONE WEEK.

That was ALMOST 4 MONTHS AGO. She NEVER did give me a COST on the ELECTRONIC DOORS, MAKE ANY EFFORT to make this place more accessible & NOT ONLY ARE THE PLATES STILL BLOCKING THAT REAR EXIT - THE REAR EXIT HAS BEEN UNUSABLE BY ANYONE FOR CLOSE TO A MONTH BECAUSE "MORE CONSTRUCTION" is being done in that area & the WHOLE SECTION IS BLOCKED BY CONSTRUCTION VEHICLES

I THINK the ONLY REASON I stay is is to SEE WHAT HAPPENS NEXT. Sharrie Moorse & her band of merry men (the board of directors) TRY ON A DAILY BASIS TO MAKE IT MORE DIFFICULT FOR THE HANDICAPPED TO GET AROUND THIS BUILDING & GROUNDS.

I have HUNDREDS of PHOTOS of the LOONESY that goes on here. Of the 5 HANDICAPPED PARKING SPACES 2 ARE NOT even MARKED as HANDICAPPED (no signs). I found (& took a picture of the fallen signs) THROWN IN A PILE OF CONSTRUCTION DEBRIS.

My mom is almost 80 years old & if anything happens to her INSTEAD OF FIGHTING TO REMAIN HERE IN MY HOME, I WILL GO IN A NURSING HOME because there seems to be NO ONE that can DEFEAT SHARRIE MOORSE.

PLEASE PASS ON MY MESSAGE & ANYONE NEEDING MORE INFORMATION ON THE LAW & ACCESSIBILITY PLEASE LET ME KNOW I HAVE PLENTY OF INFORMATION - THE ONLY PROBLEM IS LIDO TOWERS FEELS THEY ARE ABOVE THE LAW!

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Peggy, The situation you describe is outrageous and probably unlawful. (You should not be asked to pay for the door, for example). Please call Mr. Fisher at the NYC Commission on Human Rights: (212) 306-7510. If Mr. Fisher is not in, please ask for Mr. Finkelstein. They are there to help.

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Honest Ballot Company - Anonymous Jul 20, 2010


Anybody know something about that company.Look like that not very honest.

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I disagree. I've worked with them many times on various buildings and have always found them to be very thorough and honest.

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my co op used them several times and there were always questions about the way ballots were counted. Try American Arbitration, very honorable company.

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We got situation after used them:
Preliminary result after 2 hours of count
Candidate # 1 – 50000
Candidate # 2 - 40000
Candidate # 3 - 39000
Candidate # 4 - 35000
Candidate # 5 - 29000
Candidate # 6 - 28000
Candidate # 7 – 22000
Final result
Candidate # 7 – 45000
Candidate # 2 - 40000
Candidate # 3 - 39000
Candidate # 4 - 35000
Candidate # 5 - 29000
Candidate # 6 - 28000
Candidate # 1 – 8000
How is this look?
Plus they admitted telephone conversation with candidate #7 during the time between
preliminary and final.

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looks like a typical honest ballot count.

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Look like what?They just not confident or may “help” somebody to win?

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they seem to be incredibly "helpful"

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Are boards required to give the opposition names of owners of unoccupied units so that these owners can be informed about both sides of issues?

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All shareholders are entitled to the names and addresses of the owners of all units.

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Our board refuses to give names of absentee owners - we were going to look them up in public records.

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If you are in a co op I don't think thatis possible, condo probably not too difficult. Legally you are entitled. Check you black book/rules/proprietary lease. Do you have an attorney/resident?

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You are entitled to have the list of units and the name of the owner(s). No more no less.

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This is a condo. We know the names but not all the mailing addresses.

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Obviously public records, but time consuming. Have you thought about mailing to owner at unit address and mark it "please forward".

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Votes - Anonymous Jul 19, 2010


We had annual meeting. Two previous members of the board try to get back, but they do not get enough votes, so they put togezer all what they hat and one of them get in. Is this legal to turn people votes to other person without notifying voters?

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certainly doesn't sound legal. If you vote for someone, that is who you choose. Unless your bylaws say something else, this is not proper.
Dianne

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Absolutely not legal. It goes against all the rules.

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I am not sure I understand: If they voted along with everyone else, and thier votes were counted at the same time -- they can vote anyway they want... However, if you mean that they voted AFTER the voting closed -- than this was illegal.
OR, did they change proxys of S/H who were not attending the meeting, but had given them thier proxy -- this would also be illegal. Once a proxy is filled out and signed by the S/H it cannot be changed... VP

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We filed a petition to remove a director with over 60% of votes. Management held a meeting and said we need a lawyer to prove cause and management implied they would vigorously fight this on our dime. My question is how long do we have to produce the letter – we have plenty of cause? And shouldn't they have honored the petition as is?




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Chek By- Laws.I do have them from 4 different coop ,all have a section Removal and all state "With or without couse".So "prove cause" most probably is wrong.

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The by-laws say directors can be removed for "cause." There is plenty of cause.

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You assuming its “cause”, they are not. It’s not look too good.

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Hi Anonymous, HabitatReporter here. We'd like to help you, but we need some more information first. Does your building use cumulative voting? Were proxies used? If you can give us some background, we can try to offer some advice.

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Hi,

We need your advice! We had general shareholders meeting this month and had hired a company to calculate the votes – Honest Ballot. The reason we did it was because we had very painful election last year thanks to a small group of shareholders. After the meeting we’ve got PRELIMINARY result from the Honest Ballot and the list of elected officers with the number of votes for each candidate. Official report came out 10 days later with the results shocking most shareholders in the building. Person who got the least # of votes was placed on the top. We also discovered that his wife contacted Honest Ballot before the results were officially released to the management company and other candidates.
Currently we use cumulative method of counting votes as it stands in our by-laws. Our Certificate of Incorporation does not specify the counting method.
Most shareholders were not satisfied with the result of the election and signed Petition for a new election meeting (it was more than 30% of the shares). This Petition was presented to the coop’s Lawyer who is a retainer and he said it was not the appropriate method to re-elect the Board. He also mentioned that in order to challenge the election we need to go to court.

Our questions are:
1. Was the lawyer’s advice correct? Our by-laws say that we can call for emergency meeting with 25% of shareholders.
2. How can we switch to a non-cumulative voting count?

Thanks.

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If I remember it correctly, NY Business Law has a provision for coops that do not have a clear voting system spelled out in their bylaws.

The "default" voting system, in those cases is cumulative voting.

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Where is the clause in the BCL that states if your bylaws are not clear the default voting system is Cumulative voting. Well, we had a Special Shareholders meeting, we technically won the election we had the most votes to remove all four members, but their attorney Mr. Karl Bikhman was deceitfull and said that the BCL says Cumulative, it is wrong. Your Certificate of Corporation is the Mother Load, it must state it on the Certificate, if it is silent it automatically is Plaurality. (the Majority wins).

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"Under the BCL you need an amendment to the certificate of operation authorizing cumulative voting..." according to "Understanding the Business Corporation Law," by Raanan Geberer, published in "The Cooperator."

http://www.cooperator.com/articles/1508/1/Understanding-the-Business-Corporation-Law/Page1.html

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To call a special shareholdes meeting you must have 25% Shareholders signature. Once you get that you must submit in writing that you have the 25% and are calling the Special Shareholders meeting. If they refuse to call it you must attain an attorney and go to court. The Judge once he sees that you have the % he will order the meeting called.

If your bylaws do not specify how the meeting should be calculated, than your attorney must get hold of the Certificate of Corporation, if the Certificate does not spell it out, and is silent than it is automatically a Plaurality vote and the ones with the most votes get on Board. No need for adding, dividing, multiplying. It is staight forward.

Good luck!

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Ombudsman Legislation - Lee Jul 16, 2010


As a former Board member and one who has witnessed first hand unwarranted and nuisance lawsuits by shareholders against shareholders and shareholders against the Corporation and Board of Directors, I wholeheartedly support the legislation for creation of an Office of Ombudsman. Every single legal action was a waste of money and time by board members, management and attorneys. The only winners in every one of these cases were the attorneys who collected the fees at the end of the day. Everyone of them could have been settled through an impartial party reviewing the corporate papers and existing documents that pertained to the individual cases. Six dollars per apartment ANNUALLY is nothing compared to the thousands of dollars wasted each year by coop and condo corporations and shareholders.
Think about: who wouldn't want this legislation passed? Good Boards who can now settle nuisance complaints without incurring legal fees? Good managers who can resolve issues between shareholders and/Boards without expending precious staff time? Shareholders who have legitimate complaints who can now go to an impartial third party without having to take out a loan against their apartment? Get this legislation passed ASAP!

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Sublet fee raises that are questionable - Naomi Semeniuk Jul 14, 2010


Our coop building board recently raised the sublet fee to 100 dollars to shareholders in our coop building who're renting their coop. They say it's because of property taxes but the building is secure financially. Last year a sublet fee raise in the coops in our building was 55 dollars but 100 dollars just like that to me is questionable and I would like to ask if it's lawful. The coop board like in every building has absolute power but what happens when they do questionable things? One hundred dollars for sublet fees to shareholders who're renting their apartments doesn't sound lawful to me. Can you shed some light on this issue????

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Hi Naomi,
I would start with reviewing your governing documents – does it allow subletting, and if so does it allow a fee for subletting? If yes to both questions – any fee must be applied equally to all shareholders.
The board has discretion as to what the fee will be and to increase/reduce it. Some buildings don’t allow subletting at all; some have higher fees like $1 a share per month –others a flat fee like $50 or $100. The board can set the fee as necessary under the BCL – and they don’t have to justify the decision to shareholders.

I am glad to hear your building is financially sound - Many boards can point to the increase in water bills this year along with continued rise in real estate tax, energy, insurance prices and staff costs and an increase in regulatory requirements to increase maintenance, fees etc.
Has anything else changed in the sublet policy or is it just the fees? If it’s just the fees, the board may be proactively planning financially to raise capital while still allowing sublets and maintaining costs for all shareholders.

Just my thoughts from a board member that worked hard to impose our first sublet fee where none existed, we needed to increase revenue and while sub letters were slightly disappointed – many are renting several hundred dollars above the maintenance charges - the benefits financially for the corporation have been well received by the board and shareholders.
I hope this helps.

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Hi Naomi

DavidG is right.
Boards have as much power as the property lease give them, and I can assure you it's not absolute.
But the sublet increase is very likely legal.

I'm glad your building is financially sound, that means the board is doing something right.

Why not transfer the increase to your subtenant ? $45/month seems reasonable.

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Sublet fees are usually within the scope of the Board's powers. Although they are not often viewed as a positive to the Shareholder who is subletting, excessive subletting in buildings could cause an issue with lending banks, so it's a way of deterring it and giving the Cooperative some soft-income in the process. In addition, subletting is seen as a privilege, not a right, and a lot of Cooperatives like to charge a fee to the shareholder since more likely than not, the Shareholder is making a profit on their apartment per month.

With subletting, the Cooperative should always have a Rider to the sublease agreement stating that if the Shareholder fails to pay maintenance, the Cooperative can capture the arrears directly from the rent of the subtenant and once the Cooperative is made whole again, the Shareholder can receive their rent again.

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Hello all! HabitatReporter here, this time with advice from Phyllis H. Weisberg, Esq., of Kurzman Karelsen & Frank, LLP:

"Typically, for a sublet fee to be valid, it must be specifically authorized in the proprietary lease. If not, except in limited cases, it will be invalid.
If the sublet fee here is authorized by the proprietary lease, then the question is whether the proprietary lease also gives the Board the discretion to set and/or change the amount. If the proprietary lease in this case specifically set the sublet fee at $55.00 and did not give the Board discretion to change the amount, then, notwithstanding the Board’s broad powers, it is without power to change the amount without amending the proprietary lease – an act that requires approval of a supermajority of shareholders. If, however, the proprietary lease gives the Board the authority to set and/or change the amount, then the Board acted lawfully in changing the amount and its determination will withstand legal challenge."

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Coop Embezzlement (to Habitat on line) - Concerned Jul 09, 2010


Regarding Coop embezzelement I am of the opinion that you are taking a cheap shot at Anrew Kissel as he is dead. The industry is full of board members (current) who rob openly and management turn a blind eye as they are afraid of loosing the account.

concerned

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A thief is a thiesf alive or dead.

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Um ... what about all the thieving board members in the rest of the story? Did you read just the first paragraph or something?

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Dear Concerned: You are absolutely correct when you say that management closes their eyes and has deaf ears when the Board is embezzling funds from the coop's Corporation. Cooper Square Management is one of those Managing Corporations that do just that. They refuse to turn over financials to cover up for the Board. They do just what the Board wants them to do illegally against Shareholders. In one instant maintenance was refused to be accepted to start an illegal foreclosure on a Shareholder, the building incurred a large law suit for their actions. On the other hand Aris Properties resigned from the same building, when they were ordered to attack Shareholders with violations, when Aris Prop. wanted to collect arrears that were due by the same shareholders for two years the board refused Aris to send those certain shareholders letters demanding payment, but because these shareholders signed those members on the boards proxys they were allowed to remain in arrears while the building had shortfalls monthly to pay bills. These board members are affiliated with a construction company and all they do is sign contracts for major improvements to the building that cost more than it should, work is written up and charged to the building without physically being done. All the work is done by the same company without bids from other contractors. The corruption goes on and on, without intervention or regulations, after all even if it is a private Corporation there should be some control. Shares were written up and offered to the public who purchased apartments, their shares should be protected, why doesn't the SEC or some other form of government oversee and protect our interest whether public or private and offering is an offering why isn't the Attorney General getting involved? After all our coop's were approved and signed off through the Attorney General's office all offering plans go through his office, why doesn't his agency protect us? Crime is crime whether private or public.

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DD--

You're right: sadly, some agents act as if they work for the Board, rather than for the building corporation/association. The consequences can be severe, as in the examples you cite.

Unless it's a sponsor or conversion issue (& sometimes even then), the Attorney General's office won't get involved; it's not in their scope of work. Instead, the AG will advise hiring a private attorney & filing suit. (We all know what that costs...& how long it takes.)

This situation has prompted state legislators to propose new laws which will create & fund a NEW AGENCY expressly to assist with co-op & condo governance. The impact will be profound, giving owners & Board members pragmatic options for resolution when some Board members--or professionals--breach the By-Laws or the BCL.

To read the bills, go here:

senate: http://open.nysenate.gov/legislation/bill/S7958

assembly: http://assembly.state.ny.us/leg/?default_fld=&bn=A11452&Summary=Y&Actions=Y&Memo=Y

To ensure these bills are enacted, write a letter of support to your own representatives, no matter where in New York State you live.

NOTE: Some parties--predictably--oppose these "Ombudsman Bills," claiming good Boards will be punished & the "new tax" will break the bank. Rational people that read the bills will conclude such claims are rubbish. Honest Boards that respond to their constituents will be left alone...& a total cost of $6, per apartment, per year, isn't likely to break anything.

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I agree ... it is a new tax but that will save us quite a bit of money in legal fees in the long run.

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The problem is that the bills have been in the legislature for 10 years and nothing has been done - It is desperately needed for some type of legislation to protect coop/condo owners - need publicity -can we all unite

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I live in North Shore Towers a co op community with a budget of 43 million dollars that is run, not by the board, but by the management company. General manager tells board members what to do, not vice versa. Members probably want the title, but not the responsibility. We waste hundreds of thousands of dollars in legal fees because there is no government agency to help us. After casting 5 million shares in an election, I lost by 806. The board refused to do a recount and told me I had to go to court, which I did. My attorney charged $5,000 the board paid between $50,000 and $80,000.Our own attorney on retainer, Errol Brett didn't handle the case which occurs most of the time when we have litigation. No one can get an accurate accounting. Ultimately,the courts cleared the way to the ballots for a recount. What a waste of money. Mr. Brett was recently asked what the policy was to enforce a bylaw and we were told there is no policy. So now we have bylaws but no means of enforcement. I could go on and on with the nonsense that constantly goes unchecked here. We would gladly pay $6.00 each to help create a responsive governmental agency which would understand our communities and help us. Please support these bills immediately with letter writing campaigns and phone calls. Dianne Stromfeld

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Good idea - suggest everyone write their representatives.

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Great idea. If each of us could get 10 neighbors who in turn got 10 neighbors, etc. t0 contact all our elected officials as well as candidates, expecially those in a primary, we could put pressure on them to pass this bill. Also,send mail to Mike Kelly New York State Association of REALTORS®, Inc.
130 Washington Ave
Albany, NY 12210
Office: 518.463.0300 ext. 216
Fax: 518.462.5474
http://www.nysar.com/

The power of the people often can make necessary changes. for right now, let us all stop writing letters to each other and write to those who can help us make our lives tolerable. Let us fill this column with examples of success or failure we have had with p;oliticians. Perhpas together we can really get this going.

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Being a Board President myself and after reading the proposed bill, I am of the impression that "good" boards have little to fear and a lot to gain.

This going to court all of the time is itself a hidden tax of ownership. One that I would like to see reduced under mediation & arbitration as potential alternatives to litigation. Furthermore, the education factor from a non-biased (or at least a less biased) state agency would be welcome too. In my corporation, I would welcome better educated shareholders and board members.

Even good boards would benefit by the additional potential for oversight as you know, complacency can lead, however innocently, to abuse.

I can see a gain for shareholders if Managers felt like they had someone looking over their shoulder occasionally too.

What is the downside – is it $6 per unit per year? To whom can my corporation write the check!

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REFUSALS TO BE OFFICERS, AND MORE - NORTH RIVERDALE Jul 06, 2010


After our recent shareholders meeting, the new board tried to elect officers. No one wanted the nomination of president or vice president; the previous secretary wanted that position again, and said if she "had to be" president she'd resign from the board. We agreed to try again at our 1st Board meeting. As the outgoing president, I later emailed an offer to be interim president for a month & all agreed. At that 1st board meeting, 3 directors flatly refused any officer nomination, but 4 directors "agreed" to be Pres, VP, Treasurer, and Secretary.

There are 2 questions here: (1) since there was no election, are these "agreements" valid? (the minutes reflect "agreed") and (2) the secretary believes, because she is an officer, that she "has the right" to convey board decisions instead of leaving it to the president or vp. Recently, she did so without advising the president, and made a $9,000 mistake in the vendor's favor. Fortunately, the property agent alerted the president, but not until after she signed the papers. (The contract was cancelled and re-worked by the president.) This Secretary makes decisions on her own, including spending shareholders' money and the super's work time, without prior board approval. This is inappropriate, but is it worse? (Some of you might remember her as the secretary who changed the co-op's on-line banking passcode but wouldn't tell the president or VP about it.)

Does someone have a constructive suggestion as how to responsibly to deal with this? The shareholders are asking what's going on, and the Board is liable for one director's actions.

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(1) no they are not.
(2) the secretary cannot act alone without board approval.
Why does your secretary have access to your bank account ? That's the treasurers job.

You are doing a big dis-service to your building by allowing this situation to continue. If no one wants to be an officer, you should call for another election ... and find someone who is willing to take some responsibilities.

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Thank you VP11104 - I thought the same thing and wrote to see if I was on the right track. Last year was my first as president -- it was a learning curve taking time from my job (not good) and my personal life (expected). This year I was dismayed that no one else would consider the job, so I am doing it again with some experience under my belt. Our biggest problem is the Secretary working behind the scenes to do as she wants (as last year), and I hear most of it from others after it's done. We need to be an effective Board of Directors, and I need guidence to help the Secretary understand her proper responsibilities/limitations. (No director will attend any workshops or classes.) Any ideas please?

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As President of the board, you obviously "preside" the meetings and oversee the general management of your building ... it is time consuming, yes.

The secretary should only be involved in keeping meeting minutes and submit those minutes to the board for approval. He/She does not have the power to sign any contract unless authorized by a majority of directors for a specific item. Only you and the VP has the power to do so.

You should instruct your managing agent not to approve any expenses that was not discussed during board meetings and approved by a quorum of directors.

The best workshop I found is a board room with a copy of the property lease, a copy of the cooperator and habitat magazine with lots of reading :)

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I do appreciate your note VP11104. Learning to "preside" has been a challenge, but I'm getting there. Thank you for your support on what the president's and secretary's duties are, which are also clearly set out in our bylaws. One responsibility is not mentioned though: trying to keep the peace among the directors themselves! Thanks again.

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North Riverdale: Aside from other basic secretarial duties, the board secretary's main job is taking minutes of board meetings and the annual meeting.

Why is your secretary acting behind the board's back (appoving work, etc.) and why are you letting her get away with it - and for more than one year?

You said you need guidance to help her understand her responsibilities/limitations. It doesn't sound to me like she cares about understanding anything if she just does what she wants anyway.

Check your by-laws. Article III, Section 6 of ours states that a director may be removed from office by a majority shareholder vote at a meeting duly called for that purpose.

You also said your shareholders are asking what's going on and your board is taking the heat for your secretary's impropriety. Call a meeting, document her actions, and get her voted off the board.

It seems that you're having difficulty getting all board members to work actively, but this secretary will take you two steps backward for every step that you try to move forward, and she could cause your coop and all your shareholders major problems.

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BP, thank you for all the information in your response. I've prepared the pertinent section of our bylaws for the secretary, and will write here again with a follow-up.

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North R: Be sure to give your secretary the section in the by-laws that outlines what the secretary's duties are. She shouldn't be doing anything beyond those duties unless she's working as a team with the rest of the board or has board approval to take on a certain task or research something (but NOT approving work, signing contracts, etc.)

The by-laws outline all board directors' duties. Maybe you should give them to the others to get them working on a more active, cooperative basis.

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