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The discussion that was there a while back is still valid:
1. The sponsor retains its own management comapny to handle its units.
2. The co-op management handles the co-op affairs, i.e., the individual shareholders and the sponsor, plus all the managment issues on behalf of the co-op.
3. The co-op management works for the co-op not for the sponsor. The co-op management may need to interact with the sponsor for preparation of amendments, sales, etc., but the loyalty is to the co-op, not to any individual shareholder or sponsor.
4. The sponsor pays its OWN management for managing their units in your builidng and other buildings. The co-op does not pay any money for the sponsor's management..
4A. The sponsor management may represent the sponsor on your board. So, treat the person as a professional because this person usually knows his/her business better than you do. So, getting along with this person will be a good source of informaiton, but REMEMBER, that person is there to represent the sponsor, not necessarily your interests. In other words, the interest of the co-op and the sponsor may be similar, but not 100% the same. The reason the person serves there is to make sure the board makes reasonable decisions on maintenance and assessments that does not greatly impact the sponsor's interests.
5. A maangement company not only represents co-ops, but sponsors. Just make sure your current maanagement company does not represent the sponsor in your co-op and everything is save.
The rest is bogus!
AdC
Miriam,
What does your plan of conversion tell you about sponsor giving up its control? This is the most critical aspect of the governance of the co-op. When does the sponsor is supposed to relinquish in great part its influence over the co-op for purposes of conversion?
Again, boards must understand their documents and read them to get some very basic answers. The second part is getting assistance from co-op or independent counsel to interpret and act on behalf of individual shareholders so that they may start taking over governance.
AdC
AdC
Thank you. I'll have to rescue it, read it carefully and I'll come back to you all
I have several buildings where i manage the sponsors end and the coop end of the building. This is not a conflicting situatino for me or the building.
It needs to be realized that the sponsor has more of a vested interest in the property than any individual shareholder and wants the apartment and property value to raise, probably more than you do. All my decisions as a manager are exclusively with the interest of the cooperative in mind... if it prospers, the sponsor prospers.
A good manager is not a slumlord type of manager, if he has this mentality, then you have a problem as he will not want to spend adaquately on repairs and upgrades. In this case, he/she should only manage for the sponsor.
I have an excellent relationship with all 4 of my buildings where i manage both ends. My Boards like me, are not bound by a sponsor who maintains control, or any agreement... 100% free will. As a matter of fact, one building had a change of board and the new boards mission was to "graduate to a level where the sponsor is not managing the building..." Long story-short, they have since asked me to manage the building again because they didn't realise that I went way over and above in my duties as manager (in part because I managed 100% of the building).
So, like anything else, do your homework on the sponsors mindset, the management company, the manager himself and then make an informed decision based on your individual needs and findings...
Good luck
Read his/her answer. Very interesting and I don't disagree with the point of view expressed. The real issue is INTEGRITY and from your answers in the past, I believe you have it!
Thank you for your contributions.
AdC
Can you tell me how to contact you directly.
email me and i will give you my cell #
reapllc@aol.com
AR
(Anthony)
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