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boiler issues - Marianne Feb 04, 2014

I purchased a co op around 6 months ago and I noticed black soot around the house the last few weeks. Other owners told me that they are having the same problem and that this happened to the 2 years ago and it became progressively worse. The boiler was fixed then but now it is starting again. When we complain to the board, they tell us the boiler is fine and to go through our insurance to get our apartments cleaned! I fear this situtation is going to get worse as it did in the past and I am also concerned with what I am breathing in! Any advice?????

> Join the conversation Comments (2)

Hi Marianne,

Find out what fuel the boiler uses. If #6 or #4 fuel oil, that fuel will be banned soon and your co-op will have to replace the boiler (or boiler's burner). If #2 fuel then I agree that if sounds like it or a neighbor's boiler might be to blame.

Regardless, put pressure on the Board to tell the owners what the scope of the issue is and when it will be fixed.

Good luck

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I think it indicates a problem. I would call 311 if this is inside NYC as a boiler issue. Could be .a chimney blockage, or even a problem with a neighbors system or chimney. Could cause a chimney fire, or carbon monoxide poisoning./death.

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Star Program Transparency - Rob Jan 30, 2014

I found this on the Department of Finance website. My co-op never gives us this information. It just says Star/Abatement (one amount) on the monthly statement. It would be great to request this type of breakdown especially 60 days in advance.

“Cooperative apartment corporations must provide to each eligible tenant-shareholder a written statement detailing the full amount of the STAR exemption (or STAR-related savings) including information regarding how the amount was calculated, and how the exemption or saving is being credited to the tenant-shareholder. Such a written statement must be mailed to each eligible tenant stockholder within 60 days of the corporation’s receiving the exemption of savings.”




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extortion from the Super - MLK Jan 29, 2014

A contractor came to give an estimate on work on our apt. He said-" you do realize I will have to give money (a bribe not a tip) to the Super? To me, this is unacceptable. The super has a big free apt and lots of benefits and this sort of extortion is unethical. What can we do??

> Join the conversation Comments (3)

it is customary for someone to tip the super when construction is being done in an apartment. the reason is that renovations bring a super more work - yes it is his job, but it is nice to recognize him at this time. any super that asks a contractor for money or intimates that the job will go more smoothly if he is tipped should be reprimanded.

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Actually, it does not seem in best overall interests of a cooperative to encourage such a situation. For example, out Super spends coutnless hours surfing thie net and doing nothing - all on the clock. Taking contractors up the elevator is not "more" work for him - it is just normal work. I certinaly do not feel any monty changing - when it comes to contractors - hands shoud be routine. He gets a big enough tip at Xmas as it is.

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When there is renovation going on in our building, the super checks in on the work at least once every day. and he checks on the cleanliness as the men leave AND clean up after them if they don't clean up properly. To my way of thinking, that's worth a few bucks.

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He is compensated more than adequately . It is detrimental to allow enable any situation which allows money to pass hands in such situations. it has led to contractors doing work beyond the scope that is approved in our building. In fact, it can be outright dangerous to the physical plant. Permitting "tips" btw the contractor and the super is not in the best interest of any building.

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You really do not have much to go on here as it is simply someone relaying a conversation. You have no proof that this happened. No independent witnesses, recording etc. I would make a mental note of it but be attentive to the operation of the building.

MRM

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We have been told before

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Unfortunately I find that this is more difficult to deal with than it should be. No one wants to put in writing that they were asked for a "bribe" as often people are intimidated by the super or fear reprisals.

My feeling is encourage people to put it in writing. If it is happening often enough perhaps you can build a paper trail showing it is a repeated action.

To me there is a very big difference between a super asking for money before a job, and a tip being given at the end of a job.

One other thing that you might watch for in a building is reports that the super "pushes" certain contractors on the shareholders when they mention renovations.

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Does a Co-op have the right to keep Star credits? - CS Jan 28, 2014

Last year my co-op was late in distributing the Star credits. To make up for this they divided the late credits over the remaining months and applied them in addition to the current years Star credits.
This year, the star credits and Abatement stopped in December 2013.
Some cooperators who were approved for the Enhanced Star program back in March 2013, which runs from July 2013 through June 2014 were expecting an increase in their applied credits, however this did not happen.
Instead the E-Star recipients were told it was their responsibility to contact the Department of Finance and find out what the additional dollar amount would be. Once they received this information they needed to bring it to the manager and the additional credits would be applied to their maintenance statement retroactively.
Some of the cooperators followed these instructions and presented the information they received from the D.O.F. to the manager. They were then told, “It was a mistake”.
The additional credits would be take affect and be retroactive once the city applied them to the co-op.
Now the E-Star recipients were told the star and abatement credits would begin in February 2014, however they would only receive credits from January 2014 through December 2014. There would be no adjustment for the 7 months the Enhanced Star credits were not received.
On the acceptance letter for the Enhanced Star it states the following:
Your property qualified for the following property tax exemptions(s). The exemptions(s) will begin on July 1, 2013
• Enhanced Star
Are Star credits retroactive? Is this ethical?

> Join the conversation Comments (2)

We had a few shareholders in similar situations approach the Board for guidance. The management company reports to the Board; if you show that you followed the procedures to receive credit, then the Board should instruct the management company to provide retroactive credit (via one time check or credit to your maintenance account). Try to approach the Board before the next Board meeting so they can instruct the PM to do it face-to-face.

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Thank you Dave,

You were very helpful. I will tell the other in the same situation.

Perhaps we can request a meeting with the board to discuss the matter.

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if the building does not reimburse you for the star credit, i would contact the state branch that handles STAR, it is you money, and they should not be using it for anything , as in not investing it in a ponzi scheme, or any think less than a CD, money markets i consider to dangerous for the shareholders money.

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Thanks Efy,
I have contacted the DOF to find out if my BBL received additional credits in July when the Enhanced star went into effect.

I also reached out to local officials.

I want to have all my ducks in a row before I approach the board.

This site has also been very helpful.

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Hi All,

I am a co-op president and I work at a very large insurance company here in NYC. I have a management role in administering a large pension plan. My understanding is that with the law changes on the credits, the communicative process between the government and the management companies has been a nightmare. For example, if one has the ability to apply for a Basic STAR credit online until 12/31 – it is impossible for the management companies to get that on the January bills (that were probably already printed by 12/20). Thanks to the law changes, gone are the days when a January through June credit appears on the maintenance bills.

While the State/City and the management companies work this out, I suggest taking a more of a conciliatory approach:
• Ask the management companies how they are responding to the new law & rules;
• Ask if someone is reconciling retro-credits and what the expectation is on when those would be applied to the owner accounts;
• Ask when would be a good date to follow-up.

I suspect that some management companies are having a rough adjusting and if given a chance, they will work it out.

Steve

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> Join the conversation Comments (2)

Thanks.. I think?!?!?!?

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Hi Steve,
Where can I find information on the new law & rules pertaining to Star credits?

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Interviewing Committee - WestChsterCOOP Jan 28, 2014

Just a quick question - we're trying to form a new interviewing committee; however, we want the composition of the committee to be Board members as well as shareholders, to ensure a level of fairness and transparancy in the selection process. Has anyone else in the forum attempted this? If so, how has it worked out for you?

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We've been interviewed by a number of committees prior to meeting with the full Board of Directors over the years. A committee is helpful because they can do a lot of the legwork that the Board won't necessarily have the time to do as a complete unit. The committee (I have seen many that have been mixed with Shareholders as well) will interview and conduct the walkthroughs of the property and then give their overall impressions and recommendations to the full Board for the decision to be made once all of the initial interviews have been completed.

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Vindictive Ex-President - Val P. Jan 28, 2014

Hello - seeking advice ASAP. It's been known for years that the previous President of the coop had personally maintained a petty cash account for keys, fobs, and misc. expenses; however, has been reluctant to transfer responsiblities and management of said account to our new management company, due to primarity her stubborn and bully-ish demeanor. The President was ousted at the last annual shareholder's meeting and to this day has yet to relinquish the account, only to give a certified check to the corporation for the supposed amount that was in the account. As the new President, I strongly suspect that the ex-president not only didn't close the supposed account but actually co-mingled any corporate funds into a personal account, since the certified check came from their name, personally.
Has anyone had a similar situation with a previous Board member in relinquishing corporate account information and if so how did you go about ensuring that all documentation, including financial informaiton, was transferred to the new Board. Thanks!

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Petty cash accounts are cash cows for boards - I have seen them charge personal items to coop's credit card and petty cash accounts.

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we don't use one. all expenditures are reimbursed via receipts/expenses submitted to management company. petty cash accounts are an invitation to steal for anyone who is unscrupulous.

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Adding family members to a lease - Masie Jan 27, 2014

Hi - I wish to add my wife and kids (not adults) to my lease and/or stock certificate. (I bought the apt before marriage.) Our lease states apts may be transfered without any approval (financial or otherwise) to immediate family including adult children. Please note: this is not a full transfer (my name is to remain on the lease) - it is merely adding names to the above documents. Can some tell me how this might work? Thanks

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You should probably talk to your attorney to ensure that you are understanding the Proprietary Lease as it is written, completely, and that this is possible. The transaction of adding others to the stock and lease will result in fees from the management company and possibly the legal representative for the cooperative. In essence, a new closing will take place as the old stock and lease will need to be cancelled out and replaced. If you have a mortgage on this property, the recognition agreement requires that you notify the bank of your intentions and they must approve of the transfer as well.

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Board Governance - Ned Jan 25, 2014

Is it possible to create a board position for Governance? (i.e. Director - Governance). This is a position that would ensure that the board has and follows proper processes and procedures and governs itself in a professional and ethical manner?
Thank you

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This is the Presidents duty!

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Does management agent have to be present at board meetings??

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The managing agent should be at the board meetings in order to provide the board with updated information and answer questions the board members have. If you don't trust your managing agent you should get rid of him or the managing company. The managing agent is essential for the board to operate otherwise it operates blindly. The only time the board should meet without the agent is to take action against the agent or discuss issues related to the agent.

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So every vindictive action taken by the board against a unit owner is with the full knowledge and consent of the management firm?

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Should be however saying that the private and public sector in recent years have migrated to either a Governance Board, Sub-Committee, individual etc. whose primary role is to ensure that there is governance - and that includes ensuring that the president is performing his required duties.

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You most likely can't create a Board position due to the restrictions placed in the bylaws, but the existing Board is probably provided with the ability to create a committee of one or more directors (or residents) to oversee various issues. This could be the way to enact a position such as this without stepping on the bylaws.

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Thanks Mark. I am actually in Toronto Canada so I am not sure if there are By-Laws here for that - I will have to check that out.

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Vertical Combinations - Alice Walker Jan 23, 2014

Does your coop allow for vertical combinations of apartments owned by shareholders on successive floors of the same building?

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Discrimination - Esther Jan 23, 2014

I am a member of a 48 unit co-op where board members have used racial remarks. Recently they tried to discriminate against an applicant. What recourse do I have to protect myself if there is a discriminatory action against the board.

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Esther I am not a lawyer and I suggest you stay within the law. Some board members believe they are above the law. There was a case against Goodman Management and I believe even the super paid a huge fine and maybe even went to jail. Descrimination is federal. Maybe request to record the votes. I understand if one member request it has to be done. Make sure is done. Try to consult a lawyer but not the coop lawyer. When it comes to descrimination, I understand, board members can be sue personally. Consult a lawyer and make sure you document everything. Stay out of it and make sure you let them know you are not part of it and your vote reflects that. Unfortunatly most board members think being on the board gives them a license to steal, descriminates, abuse shareholders and everybody else. Go to COOPABUSE.COM to read coophorror stories and to register. We are fighting to pass laws to protect our coop apt home. I used to be a real estate agent and while selling a coop in Yonkers, I had a perfect qualify buyer and the board did everything to disqualify her. They lost papers, made her submit them again, lost them again, she had to apply again for the approved mortgage, they kept on saying she did not qualify. I kept on asking why? They do not have to say why. The board only reacted when I said I will report this as a descrimination case to the human rights and the national association of realtor's. I even ask the buyer are you sure you want to live there. She said yes. She was a perfect buyer but she is black. Well the board got scared and approved her. She is there and she is making sure this things stop. You have job to do and it is not easy. We have no protection. Remember you owe fugidiary duries to all shareholders but it does not mean violating federal or any laws. Feel free to email me at ROSA.NAZAR@GMAIL.COM

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> Join the conversation Comments (1)

Rosa, it's FIDUCIARY, not "fugidiary". Fiduciary comes form FIDES, Latin for FAITH. It means the moral and legal duties contracted by a person in whom we have deposited our faith and trust. All the board members have FIDUCIARY duties towards us shareholders, because they have access to our money, which they administer for our benefit, not theirs.

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The fiduciary duties are not limited to finances. The actions of Board members must be for the benefit of the shareholders. Therefore, not only finances but rules, regulations, by laws and any other action of the Board.

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One more thing you should check if they sue you personal for descrimination or any other violation of the law, I believe but I am not a laywer you should consult one, that the coop would not pay for your defense. You might have to pay your own laywer. Be very careful and protect yourself and the interest of all shareholders. Maybe those people should be removed from the board for descriminating and putting at risk the interest of all shareholders. There is no place for these people on the board and you should let all shareholders know so they remove them from the board.

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