My coop has been filing the appeals with Podell for years, we received one offer for about $15k on a $3 million dollar assessment in the last 4 years. The entire assessment process is a disaster. Old homes in stable neighborhoods are at fmv, while up and coming areas are no where near fmv (or sales price) and will never get there with the current caps on assessment increases. Some private 2 family homes in my neighborhood pay less taxes than 2 bedroom units in my prewar coop. How are coops considered to be commercial property when they are full of low and middle income owners?

It is an issue that needs to be addressed. We have seen our real estate taxes increase significantly year after year.

Well, no argument there. Our condo apartment's taxes jumped quite a bit this year -- under a Republican mayor. Although even our Manhattan taxes are less than for houses valued less in some parts of New Jersey (with a Republican governor).

Oh those dangerous Republicans - imagine shutting down the government because they want to contain spending before raising debt. Let's just spend ourselves into bankruptcy and not worry about it.

So it's OK to shut down the government every time you want to repeal a law you don't like? Really? That's not extremism? if you think it's normal to do that -- even after the Supreme Court OK'd it -- then people like you are the dangerous ones.

I agree!

Not a Republican. Those people are crazy -- they shut the government down because they didn't like a law that Congress passed, the president signed, the Supreme Court affirmed, and that withstood every other legal challenge thrown at it. Maybe 12 years ago a New York Republican was his own man, but now? The political landscape has gotten extreme -- even the moderates kowtow to the extremist wing. Republicans are dangerous

We're not religious antiabortionists who vote for a candidate based on a single issue. We have a responsibility to look at the totality of a candidate, not just what's good for us, personally, in one narrow area.

All the NYTimes Q&A is saying is that the board cannot pass and enforce a new house rule if it conflicts with the lease. That's been a settled point for ages and is not news. Changes to the lease require approval by a super-majority of shareholders.

The interesting part is the question-asker's claim that their lease explicitly allows home occupations. That would be quite an unusual provision, if actually present. Our own lease is based on the same template as many co-op conversions from the early 1980s. There is no mention of home occupations or zoning, and the language in Paragraph 14 ("Use of Premises") explicitly rules out any use except as a private dwelling: "The Lessee shall not, without the prior written consent of the Lessor on such conditions as Lessor may prescribe, occupy or use the apartment or permit the same or any part thereof to be occupied or used for any purpose other than as a private dwelling ..."

"...Notwithstanding the foregoing, (a) the Lessee may use the Apartment for any home occupation permitted under applicable zoning law, building code or other rules and regulations of governmental authorities having jurisdiction..."

Nope, that clause isn't in our lease or the early 1980s-template used by many co-ops. If it's in your lease, however, then it sounds like you're covered and the board could not overturn it without a supermajority vote by shareholders.

You should ask a lawyer to confirm the zoning laws in your case. For example, the NYC Zoning Resolution states that a home occupation "occupies not more than 25 percent of the total floor area of such dwelling unit or rooming unit and in no event more than 500 square feet of floor area." Furthermore, you're only allowed one employee who doesn't live in the apartment. If you meet those criteria and the related ones specified in the zoning laws, and your lease contains the clause you quoted, then you should be okay, regardless of any house rule to the contrary. (I'm not a lawyer and you should definitely consult one if you plan to ignore a house rule because you believe it is unenforceable.)

Fired, immediately, once substantiating facts are ascertained. Do not say anything as you do not have to explain, give notice, or warning. Anything you say can be used in a lawsuit. They work at your pleasure as work for hire employees. Once your Board has decided and voted of course. Do not discuss with shareholders as you can be sued for defamation.

If it is factual how could a resident be sued? However the staff member will lie about what happened (of course.)

Defamation is only when statements are not based in fact. For a one time incident - for something that is factual - you cannot be sued for discussing. Defamation has a much larger definition. You should also call the police and make a harassment or assault report.

Do your detective work. Find out what really happened first. Many times when I have been told a staff member/shareholder did such, I found upon investigation and talking to witnesses etc the events were different from what was reported to me. Get the facts first. Then act based on the truth.

Bob

The word of a resident should always be given priority over the that of a staff member. Is the staff member related to any other staff members? They probably protect each other. Are some staff especially nice to Board members? That is often a reason these things are not give full credibility. This staff member should be removed from the premises immediately.

Report him to the police immediately, let a detective from the precinct come and "investigate".

Hi Alfred,

I am glad it is not more than $500k. I have noticed that co-op financing has become more difficult recently (even with a co-op like my own with a fully amortizing mortgage in the next 10 years [read mortgage free in 10 years] with great finances). Here are some quick thoughts.

Pros:
No interest to pay by getting a loan (less expensive)
Not reflected in the maintenance costs (easier to sell units)
Gets added to the shareholder cost basis
A single event – it can be explained away

Cons:
Your co-op didn’t save up ahead of time and earn interest in the process (missed income)
Means you are not getting a loan: loan interest is tax deductible (but you pay more)
Surprise factor: while everyone knows that an assessment is possible, do your shareholders know that one is probable?
Not knowing your demographic specifics, $4,800 for 12 months may be more than some folks are capable of paying
You may not get reelected
You will have to explain more (tends to heighten shareholder interest in what you are doing with the funds)

It sounds like you have approximate 100 units in your co-op. I would counsel holding a larger reserve fund so that doing an assessment for this amount would not be necessary in the future.

Best of luck,

Steve

It all depends on what the $400 is compared to the monthly maintenance. You have to consider the ability of your shareholders to pay that much more per month for a year. Our building had an assessment that amounted to about 20% of the maintenance for a 24 month period to cover major facade and terrace work. The 20% seemed to be the most we could charge before it became a problem for a number of people in our building. If the $400 in your building is more like 40% of maintenance then look at charging a lower amount for a longer period of time and put off the work if possible.

Hi Alfred,
I agree with Steve. But have you considered trying to cut costs instead of assessing? Do you have a marble polishing contract that you could cancel? Brass polishing? Motion sensors in hallways and basement? Can you bundle your Verizon bill? I know of a building that increased cash flow by $250,000 over the course of just two years by simple cost cuts that didn’t initially seem to be significant. Then, if you’re lucky enough that your building has a cellphone tower lease agreement, you might want to consider selling that for an upfront payment. Those sometimes go for over $1 mm. Contact my website: www.thecoopblog.com

How urgent are the capital needs, what are they? It sounds like a big burden for the average coop owner. Can the capital work be spread out over a few years, and do a $100 per month assessment? Some expensive items like elevator replacement, do one a year until done, roof replacement, possibly do a foam seamless roof on top of the old one, pointing, do the worst wall(s) first, top to bottom, then do the next worst the following year.

How many unit(apt) r in your building.
What boro are you in?
Are u using gas or oil
I am be able to give you some idea on getting huge tax credits. You maybe to get 20% or more depending on questions I asked

How many unit(apt) r in your building.
What boro are you in?
Are u using gas or oil
I am be able to give you some idea on getting huge tax credits. You maybe to get 20% or more depending on questions I asked

How is the money saved it has to come from somewhere
If they are doing it without assessments where does the money come from
How high is maintenance Is maintenance increased to build these funns

The money comes from the budget. It is the same total amount of money as if you paid the bill broken down to several payments during the year or if you paid it all at once. The difference is that if you pay it by JULY - and all at once - you save thousands of dollars.

This can work in a 'rich' building where a substantial reserve fund exists or can be created if everyone deposits $$ into it. Our taxes are around $275k after STAR and coop credits this year, with a budget of about $850k and $200k in reserves. You try to collect an extra $250 per month per unit in a squeezed middle class neighborhood to save $2750. And with banks paying maybe 1/4 of 1% interest, you're not getting much there.

I think this is a great tip that many boards are unaware of, I believe we will be pushing for this next year.

Hi Larry,

I was reading the posts and I came across some of my own writing – what a hoot!

My co-op is not rich by any means. We are located near Dyckman Street in upper Manhattan in zip code 10040. Our maintenance fees are approximately $1.10 per square foot. With that, we are also paying off our mortgage in 10 years.

Most co-ops pay their property taxes each quarter (some through the mortgage escrow fund). What is needed to set this up is having the funds for the other three quarters worth of tax amounts. We initially had some good financial news, so in the first year, we paid all of the taxes off in July and gained the discount only. Then in August, the co-op decided to set aside approximate 1/12 of the next year’s payment and so on, earning interest along the way and also earning the discount when paid in year two. This one time change (really an investment in our co-op) has paid up four years now. And those monthly savings are available as working capital in case of extreme need. This is our way of making sure the annual expenses are kept as low as possible.

Well that worked so well that we started the insurance and water/sewer self escrows when more good new came (likely a small property tax refund or similar).

The culture of the Board is what really changed however. Initially, there was the realization that we could change and save up ahead of time.

Then more action: we are now in year two of a semi-permanent assessment equaling 5% of the maintenance to save up for future needs. It was 2.5% in year one. I envision this to increase to 7.5% of maintenance next year and finally to 10% for year four and ongoing. Let’s face it; there is always a need for capital funds. This type of semi-permanent assessment sets the expectation with the shareholders that things will eventually break and this is the Board’s estimate of an owner’s long term financial commitment above and beyond maintenance changes.

Finally, in 2023 when the mortgage is paid off, we can drop maintenance charges even more.

So please don’t tell yourselves that we are “rich” or “special”. We just decided to do it and you can too.

Thank you for sharing the original post,

Steve

http://www.nytimes.com/2013/10/08/nyregion/cuomos-office-is-said-to-rein-in-ethics-board-he-created.html?ref=nyregion

Mr. Capoccia is a big donor to the Real Estate Board of NY and is a large donor to our Gov. Our building has been screwed by this developer and we have gone through a couple of HPD Commissioners, so that's pretty useless. Public Advocates office doesn't advocate for anyone and Consumer Affairs is another big black hole. Elected officials have received a ton of money from this developer so as seen on previous threads this man seems to be untouchable. Would love some reporter to do a story on this.