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Sweetheeart Deal Leaving Us Broke! - Chris Sep 01, 2013

When our building went co-op some 20+ years ago, the former owner was given a contract which enables him to collect rent from the commercial properties in our building. He pays no assessments, no maintenance nor any utility bills. The loss of this income is negatively affecting our co-op as we operate with a constant deficit.
Where do we start trying to find a way out of this situation?

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The task should be your property mangers and a good atorney. The contract that was writen 20 years ago may have an end date, Or the years many coop bylaws have changed that my void or contract or give you room to modify some of the conditions in the contract.

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Prayer Meeting in Community Room - Joan Sep 01, 2013

Can condo board forbid a weekly prayer meeting in community room when no one else is using the room and when the board originally gave permission?

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Your policy needs to be content-neutral. If you allow unit owners to use the community room, you can't say, "You can use it for a book club meeting but not a prayer meeting." So long as the proposed activity is legal, not excessively noisy, and not disruptive or dangerous to other residents, you should allow it.

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We believe this was caused by one member of the board who shouldn’t even be on the board. He was voted off previously because of the severe financial damage he caused the building during his reign of terror which included screaming at owners, continually lying, i.e. anytime he wanted something the owners didn’t want – he would just say it was a NYS law. He was reappointed against the will of 80% of the building owners who tried to get rid of him but were manipulated into keeping him.
Also of note, there are daily card games including a weekly high stakes poker game that no one has objected to.

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Roommate and coops - Annie O Aug 31, 2013

one person owns the apt - then she got married and the new person is not a shareholder nor listed on the lease. does the new spouse count as a roommate or are they allowed to have an additional roommate?

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In every Proprietary Lease I've ever seen or heard of, a shareholder's spouse is explicitly allowed to live in the apartment. The spouse is not considered a roommate. The NYC Rent Guidelines Board confirms that "in addition to your immediate family, state law allows you to have one roommate" - see http://www.housingnyc.com/html/guide/basics.html#Roommates

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Co-op by-laws - Marie Aug 29, 2013

4yrs ago we were told there were irregularities by treasurer we have not gotten any audited financials for those 2yrs.we are now in court.the sponsor has encouraged the board to change the bylaw requiring audited financials to
Just giving annual compilations what can we do?

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Can condo's ban topless females common areas? - Kohn Weimer Aug 28, 2013

Can condo's ban topless females common areas? The NYS courts rules females can be nude in public.

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I'm not a lawyer, but NY seems to support rules and regulations created by condo's and coop's under the business judgement rule. Whereas NYS may declare it legal, it's not in good taste for women to be topless in common areas where members of the public and children would be present. If I were on the board, I would push to amend the House Rules to that affect. Generally, the corporate bylaws charge the board with promulgating rules and regulations for operation of the corporation, so no owner approvals should be required.

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I'd imagine you'd have to have the same rules for men as for women. You couldn't allow men to be barechested in the common areas either.

Just how much of an issue is this in your building?

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We have a new owner that is demanding we allow this for them.

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Public area dress codes should be part of house rules, no bare feet, swim clothes, bathrobes, pj's or nighties in halls or common areas. Is this an over 55/seniors- type Coop or a young Coop? Obviously not a naturist specialty coop...

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Too many rules. As for the bare breasts, I guess it all depends on what shape they are in.

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I'm not a lawyer, but I'm very doubtful you could ban topless females in common areas, as that would be discriminatory. However, I'm pretty confident you could ban topless *people* if you wanted to do so. See the concurrence in the key case in the topless area (ahem), People v. Santorelli (1992): "Although protecting public sensibilities is a generally legitimate goal for legislation, it is a tenuous basis for justifying a legislative classification that is based on gender, race or any other grouping that is associated with a history of social prejudice."

You don't need to go crazy with this. If you really want to pass such a rule, make it short and simple: "No topless people are allowed in common areas." You don't need to come up with a whole dress code - well, unless your next problem is some crazy guy wandering the lobby in an undershirt and jockey shorts screaming, "I'm not topless! I'm not topless!"

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As a Part owner, You can attach a rider to your building policy. All you need to do is to present the issue at your next anuall meeting of all share holders and put on table for a vote

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Speeding up Foreclosure Process - Ken Aug 20, 2013

When I took over as board president in our condo, a foreclosure on one of the unit owners was started by that owner's lender. Prior to the foreclosure the prior board placed a lien on that owner. 2 1/2 years later the foreclosure process is still ongoing and the owner has lived in our complex without paying maintenance or his mortgage. That owner now owes $60,000 in maintenance, late fees and interest. Our attorney ( who is a very well respected Coop/condo attorney who contributes to Habitat) has advised us that there is not much we can do to push the process through the courts. We have filed a notice of appearance and there are a number of other entities money is owed to including a second lender. The rest of the owners are very angry about this owner living in our complex for free. They say the board and our attorney are not "aggressive enough" in forcing the foreclosure, but realistically, what else could we do since the foreclosure was started by the owners lender?

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We're publishing a podcast today on collecting arrears in a condo. While your situation sounds like it has progressed beyond this, there are some ideas mentioned that you might use. If you have any amenities, this unit owner could be barred from them. If your board was so inclined, this unit owner could be publicly shamed (other condos have done this).

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Hi. Thanks for the reply. The Podcast was interesting to listen to. Weve followed much of the advise, including starting with liens, official communications with owners in arrears, and setting limits after which legal action is taken. Unfortunately, there are no amenities we can block the owners from. The only amenities are our security, gated parking lot and parking spots. None of these can be taken away legally. I noticed you mention publicly shaming owners in arrears. In what way? Ive always been careful in protecting privacy by not mentioning owners in arrears by name. Perhaps this is a mistake.

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doorman cutting his shift short - Joe Aug 18, 2013

We have one staff member who regularly eliminated his lunch break and cuts short his 8 hour shift by leaving the premises 45 minutes - 1 hour early. Two of the other staff members cover for him. This seems irregular. Thoughts?
He is paid for his lunch hour as per union rules.

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to the best of my knowledge, union employees can't opt to skip lunch and leave early. he should be written up for this by your management company.

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The first thing you should do is talk to this person and find out how it originated (does he/she have it in writing, did someone approve it, etc). The are many unanswered questions here. Is he/she paying relief to come in early to cover? I personally do not agree with an employee cutting his shift short as what do you do if the next person wants the same? I also believe your super and managing agent should have addressed this issue when it was first noticed and nipped it in the bud. Get the facts, make a decision, and if you decide to revert back to the way it should have been, put it in writing to the employee.
Hope this helps.

MRM

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QUESTIONABLE BOARD BEHAVIOR - Sivad Aug 14, 2013

I am interested in starting a shareholder advocacy group to represent the interest of shareholders who are not board members. I am a former board member who has substantial evidence of the misdealings of certain board members but find myself in a situation of dealing with a former president who seeks to continue the duties of that position not by actually holding the office but by placing another person in that office and being that person's mouthpiece. Whilst this former President has substantial knowledge, it is also thought that this Person has used this position for her own benefit, i.e., securing another unit that was for sale, employing a friend as contractor and paying an astronomical sum. . .the list can go on. How does a group of shareholders make their concerns know to such a conniving set of board members. . .????

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Forming a shareholder advocacy group sounds like a start. I would also suggest calling for a Special Shareholders Meeting and put all your concerns on the agenda. Perhaps, even over throwing those in power.

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Special Meeting Of Shareholders - Denise Aug 12, 2013

I'm a first time poster and new Board member seeking advice. It seems the shareholders have had enough of the President & Vice-President who have managed to run our coop into financial and operations peril. In response, the shareholders have gathered roughly 60% of the shareholders to hold a special meeting to dissolve the current board and elect an entirely new one. Per the by-laws and NYS BCL the letter, w/original signatures was sent to the Secretary, who's also the Treasurer and VP. There are 7 members on the Board, including myself. Would the Board have to vote to have the special meeting or is this the decision of the Secretary? What if the vote fails - can the shareholders take the Board to court and "force" the meeting? Any thought, including personal experiences, would be appreciated.

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Though you haven't shared your by-laws, it's highly unlikely a vote would be required. The Board [or its chief exec] is simply obliged, on accepting the petition, to call the special meeting. HOWEVER...

1--expect the validity of signatures, & the viability of the petition, to be challenged. There are no time limits set for resolving such challenge.

2--similarly, there is [usually] no time limit set for how soon the Board president must call the special meeting.

3--though your by-laws almost certainly constrain the special meeting to the agenda set forth in your petition, such meetings are often hijacked by Boards & modified to suit officers' own interests.

4--if you already have 60% of SH support, consider "action without a meeting." Scan your by-laws & you may find you can bypass the special meeting & election process entirely. If the option is available, that's the route I'd take to avoid most of the headaches & delays mentioned above. You'll still find opposition, but you're in for a fight either way, & this route could give you control far quicker, w/much less collateral damage.

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Read your ByLaws and follow the directions. We needed a certain number of Shareholder signatures. According to our bylaws, the meeting would have to be called for one specific reason. We drafted the petition to include exactly what we wanted to discuss. Had no trouble getting the needed signatures.

Stay businesslike, and away from personal opinions or slights.

EMail POWER: Collect the Emails of Shareholders, and start communicating. As a group (only takes a few) sending out businesslike Emails, to discuss problems -- will not only prompt the Board into action, the last thing your MangCompany and Board wants is -- is an Email trail of the problems.

It only takes a few to lead -- but you have to stay professional -- most Shareholders dont think of their Coop as a business, a financial investment.

Good luck, VP

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Star Program - Carol Aug 09, 2013

Can a Co-op’s managing agent delay applying any of the Star program credits to the shareholders and instead use them to pay the property tax?

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Well if I can read behind the lines, it sounds like your co-op has insufficient funds. Take for example the STAR credit. The 2013/2014 one is not ready yet so you must be talking about the 2012/2013 one. That credit was for the previous year (2012/2013). It is usually credited to the shareholders January through June or January 2013 through June 2013 in this case.

Sometimes there are processing delays outside of the control of management necessitating a Feb-June or March – June payout, for example.

While not getting the STAR credit by this time is a concern, not having funds to pay Real Estate Taxes should be even more alarming. Many properties (mine, for example), save up ahead of time and pay off the Real Estate Taxes in June for the entire year (not just the payment due at that time). This gives the property interest while saving up each month, a discount when paying and a working capital buffer in case of true emergencies.

By the way, be careful if you assess the STAR or Co-op credits back to the corporation. If you only assess those who receive the credits, you may be inadvertently treating the shareholders unequally and opening up yourselves to legal action.

I would suggest finding out how much cash is coming in, where the funds are going, and making the hard choices necessary to put the financial footing of property on back on track.

Steve

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Thanks Steve..

I am not sure if the co-op is using the credits to pay the property taxes.

I'll check The BBL on DOF sight.

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a co-op can opt to assess the STAR credit. however, they must also assess those who don't receive STAR for the same amount.

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