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Can someone decipher? Re: Assessments Thanks - don Feb 18, 2013

Pur prop lease (co-op) it states:
"As long as the sponsor owns any shares, the apt corp. may not impose on shareholders any assessment whatsoever except by vote of 100% of issued shares unless the reserve fund is under $15k or irrevocably committed to other improvements."

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annual meeting roberts rules - ellennora Feb 18, 2013

we are haveing our annual meeting this month. we are trying to install a new board. we are not happy with what the board has done this past year. we are suposed to vote and accept the actions of the board. we plan to table the vote till the election is over and if we get elected then we can see the financial records and then determan if we can vote to ok the past years decions of the board. can we do this?? one of the decions of the board caused a lawsuite to be filed with the human rights commission and a lawsuite against a shareholder who insisted the co-op fix the leaking roof that was inundating his apt. can we be forced to vote to accept the boards actions.?

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annual meeting roberts rules - ellennora Feb 18, 2013

we are haveing our annual meeting this month. we are trying to install a new board. we are not happy with what the board has done this past year. we are suposed to vote and accept the actions of the board. we plan to table the vote till the election is over and if we get elected then we can see the financial records and then determan if we can vote to ok the past years decions of the board. can we do this?? one of the decions of the board caused a lawsuite to be filed with the human rights commission and a lawsuite against a shareholder who insisted the co-op fix the leaking roof that was inundating his apt. can we be forced to vote to accept the boards actions.?

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i am answring my own question as to roberts rules. the vote was taken to table the vote on the past decions of the board they sceamed bloody murder but it passed. the motion was carried to table/ now we have a new board and have a financial disaster on our hands. to clear up. pray or us. 99/% of all the shareholders refuse to pay an increase for our regular and past due bills.. i am going to write up a five year plan and produce it to the new board. maybe when they see the figures in black and white they can understand our financial situation.

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Leaky windows - Frankie D Feb 17, 2013

My coops windows are leaky. I could swear I saw my plants swaying from the cold winds and there is a draft. What do you recommend I do? My coop board is unresponsive and I have the worst managing agent.

which is part 2 - is there a comprehesive list of worst managing agents. I

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Frankie,

Your proprietary lease should provide some guidance as to who is responsible for maintaining the windows in your co-operative. When you write to your board site the proprietary lease section that identifies who is responsible.

A qualified window maintenance vendor may be able to solve your issue by replacing rubber gaskets around the glass, weather stripping or spiral balances. We have had similar issues in a condominium and the Board has started a maintenance and repair project to solve the issue.

Best of luck.

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Habitat writer seeking help - Frank Lovece Feb 17, 2013

I'm writing about how different boards handle homeowner tax abatements.

Most seem to assess homeowners an equal amount, in order to build up the reserve or operating accounts. But some pass them along directly to homeowners.

I'd like to speak with board member at a place that passes it along directly, as a way of showing that there are different ways to handle abatement proceeds. Please contact me at flovece@habitatmag.com ASAP. I would only need 10-15 minutes of your time on the phone.

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We pass it along based on our semi-annual property tax bill statements on a monthly basis as a specific credit to our residential shareholders. With the new
abatement legislation we don't think we will do it that way anymore since we really don't yet understand how the city will sort out all these primary residency issues and obviously any shareholder with a second home can change his primary residency without telling the coop board. so beginning July 1 we will not credit shareholders with their tax abatements until we get a final statement by shareholder from NYC and will then credit it in a lump sum.

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Assessments - can it be done depiste this clause in the prop lease? - Ned Feb 17, 2013

Pur prop lease (co-op) it states:
"As long as the sponsor owns any shares, the apt corp. may not impose on shareholders any assessment whatsoever except by vote of 100% of issued shares unless the reserve fund is under $15k or irrevocably committed to other improvements."

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Ned - You need to talk to an attorney about this. If you rely on any advice you receive on here for this matter (except from an attorney), you'll get what you paid for it

Good luck!

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anyone?

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you need to provide some facts to answer and while this one sentence from a prop lease is pretty clear, there may be some conflicting language elsewhere in the lease.

but this one sentence says to me that assessments are possible. If the sponser owns shares one is possibles when the reserve fund is under $15k, or is otherwise committed to other improvements. If 100% of the shares are owned by new shareholders (ie the sponsor is gone) then (probably) the Board can assess whenever it feels it has to.

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Hi Alan, in our case, the sponsor has about 30% of the shares.

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Right of First Refusal for NJ Coops? - Pk Feb 17, 2013

Does anyone know if "right of first refusal" can be exercised by NJ coops?
Have any coops in NJ tried this? I've suggested to our Board, to add this to our bylaws/proprietary lease as a way of maintaing value in our building as I've read a few NY coops have done. There have been a few 1 bedroom units & a two bedroom "dumped" recently which is ruining comp sales and the ability of shareholders to refinance.

Are there any downsides to doing this? We have a line of credit at our disposal so we could act quickly. Given Hurricane Sandy, there is a shortage of rentals as well as housing in our area, If we needed to rent out the newly acquired unit vs trying to flip and sell it, is this a bad idea? Should you always buy and then try to sell immediately? We believe we could make at least $25,000 doing this if we bought and then resold. Past articles say to only do this if you can realize a certain profit.

Is this option not available for NJ coops?

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illegal coop sublet - JG in NYC Feb 11, 2013

We have an illegal (unapproved) sublet. Fairly recent purchase, buyer advised he must wait 2 years before applying to sublet and that it is not guaranteed. Ownership is under 18 months now. Other than having a lawyer letter sent, what is an appropriate fine/penalty other than moving to revoke his lease? No bank mortgage on the unit.

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You should check if your building has the reserves and operating funds the spend money on legal action and how much trouble it'll take to recuperate the cost. If the owner never sells, the building is out of luck along with the funds wasted on violating the proprietary lease. Don't be penny wise pound foolish. Use the funds on improving the building instead unless you find his tenant obviously breaking more than house rules. You can try sending a warning letter first if the building retained a lawyer that includes sending Notice to Cure.

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Charges to Shareholders - Frank Feb 10, 2013

My understanding is that shareholders in a Cooperative are financially responsible for paying to have window guards installed. Management can make arrangements but costs are the owners/shareholdes responsibility. One board member, who btw, served only one term, had self serving goals. The one year on the board this shareholder insisted window guards (and some other items normally billed to shareholders) were at the expense of the corporation. To boot, this shareholder had "custom designer" guards installed (triple the price of NYC mandated ones). The next term the board discovered the information given by this ex-board member was inaccurate. My question is, can the Corporation now bill this shareholder for the guards (two years later) stating board was misinformed?

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If that ex-board member acted alone, without board approval (see minutes), the answer is yes.

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If the Board members treated themselves differently than other shareholders there could be much more that could be done now.

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this particular shareholder/board member bullied the other board members and presented inaccurate findings about who would be responsible for paying for guards. no one wanted to confront the bully. the board allowed reimbursement. why can't the board recind the vote?

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"Fiduciary responsibility", all shareholders can demand it of their Boards. If no one will, the shareholders pay the price.

Those ChaRges can lead to more than small ChaNge if enough is wanted and willing, but may require more than outstretched hands.

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info on finances - ellennora Feb 10, 2013

i cant make the annual meeting . so i wrote to the co-op board and asked them to send me the annual statement and the amount of taxs i could deduct and any other inportant info to me via us mail i was told that the board wants me to send them a stamped self addressed envelope. i told them i pay a $320 dollar a month subletting fee and they could deduct the costs from that. they told me if i dont attend the meeting or send the envelope i wont get any information. . for the past 8 years i have not recieved any info. i asked a freind who is a board member and buiding manager to help me she said she would get into trouble if the board found out she helped me. i am disabld and find it hard to attend. what can i do/

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Hi Ellennora,

I am sorry to hear about your troubles. I am a Board President myself. I cannot imagine my co-op being in such dire straits as to not afford postage (a little sarcasm here :)!

My co-op produces an electronic version which we make available: on our website; and via e-mail. Why don’t you offer a compromise? Ask them to e-mail it to you. If that doesn’t work, reply to this post.

Good luck!

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my co-op put up a email site SEND THEM AN EMAIL AND YOU NEVER HEAR FROM THEM ITS A GULAG and an info site .. ONLY IF YOU GO THERE IT WARNS YOU IN RED TO STAY AWAY AS THE SITE IS COMPROMIZED. TWO TIMES I WENT THERE AND MY COMPUTOR CRASHED. I HAD TO HAVE MY SON COME AND RENEW MY COMPUTOR. I TOLD THE BOARD ABOUT THE PROBLEM AND THEY INSIST I KEEP TRYING. MY DAUGHTER GOT THRU AND THERE WAS NOTHING ON THE SITE. TWO OTHER SHAREHOLDERS TOLD ME THEY HAD HE SAME PROBLEMS. AS THIS BOARD REFUSES TO LET US HAVE THE MINUETS OR TO ATTEND ANY MEETINGS THEY FOLLOW THER OWN SECREAT GUIDLINES. SEVERAL SHAREHOLDERS ARE NOW TRYING TO RUN FOR THE BOARD TO HELP OPEN IT UP. I OFFERED ALL THE HELP I CAN TO THE CONCERNED SHREHOLDERS. ALSO IF YOU GET THE MINUETS OR THE TREASUERS REPORT. IT HAS NO SIGNATURE OR THE NAME AND ADDRESS OF THE CORPORATION. I TOLD THE BOARD AT A REBELLS MEETING TO CORRECT THIS . THEY TOLD ME TO BE QUITE. NO TALKING ALLOWED. I REALLY DONT WANT TO SELL BUT I CANT TAKE THE HARASSMENT. THEY TURNED DOWN MY RENTERS BY DISCRIMINATING AGAINST THEM AND THEN RETAILATED WHEN I TOOK IN ROOMATES. I FILED WITH THE HUMAN RIGHTS COMMISSION AND THE BOARD REFUSES TO ANSWER ANY OF THE CHARGES. HOPING I WILL GO AWAY. I THINK CO-OPS HAVE A BAD NAME NOW AS I HAVE READ ABOUT SO MANY OTHER CO-OP SHAREHOLDERS SUFFERING FROM A PLAGUE OF XENOPHOBIC MAJESTERIAL BOARD MEMBERS. MY APT IS NOW FOR SALE . I HOPE THEY OK MY BUYER IF I GET ONE. THANK YOU ALL FOR THE INFORMATION.

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As Steve said, good luck!

Unfortunate that there is more than one bad apple in the Big Apple. There are reasons that Condos have become more predominant as some Co-op Boards have become bad landlords with poor regulation. Some in the State Legislature are taking recognition of this.

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Another issue with failed regulation of co-operative and un-co-operative housing. Consider implications of ADA if Steve's good suggestions don't produce results.

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