You should speak up and not let the board dictate how shreholders are to spend their money

How many members does your board have? How many minutes, hours and facts did you gather to arrive to the assessment, the size of the assessment and the way the job is to be accomplished?

Obviously, a board should have carefully considered all the angles of the problem to be resolved and what is the impact of the assessment on the general shareholder population. In fact, board members may be also exclaiming Ouch!, but may have more facts on hand.

Unfortunately, shareholders have opinions and plenty of Ouch!, but may not know the full implications of the need for assessing.

What do you need? Articulate the need for the assessment and why the board has considered the assessment and the way the work will be done as the best solution to the problem.

Good luck!

AdC

thabk you for the response. many shareholders in the bldg have approached me with these very same questions. the shhldrs have also submitted a petition to call for an open mtg prior to the first assessment in May. Are they entitled to know all of this? I would think so

They are also asking if they make the first payment of the year long assessment(maybe more)does that make them liable for the rest. On the flip side they want to know what the repercussios are for not paying and placing the money in escrow until sorted out.

your thoughts.....

First, read or review your By-Laws regarding the power of the board to fix the budget and any additional amounts required to cover repairs, etc....Obviously, there is a need to refer to your documents so that people understand that the power of the board.

Second, a board out of courtesy should be upfront with shareholders. An open shareholders meeting helps dissipate any problems with perceptions. The board should put the cards on the table relating to the decision and shareholders, no matter how much lamentation and grinding of teeth they may do, will have to accept the decision. After all, shareholders elected them to do the HARDBALL decision.

Putting your assessment in ESCROW is a NO!!! Read your documents and find out if there is such an animal available in your case.

Again, BOARD members (who work for the advacement of the co-op) are elected for the purpose of breaking their heads in good faith to advance the business of the co-op by taking the required decisions, no matter how unpleasant or umpopular they may be. Shareholders have an obligation to question and find out understand the decision Also, they have the right to vote for the right board members and nominate themselves if they feel they have the character to make decisions that may not always be applauded.

Finally, a board that communicates and overcommunicates will get their point accross even when they know their decision may be unpopular. An open shareholders meeting is logical and good for the co-op when decisions that affect the lives of shareholders are on the table.

AdC

I am the President of my board and although the board most probably can do what they want, if they are not polling the shareholders concerns and being prudent with the cost associated with the job, this should be raised by a shareholder as a representative of the non-board members then

This is nonsense! But take it personally, but the main thing as a board member is to know what your responsibilities and obligations are as a director.

So, you assess because you have a fiduciary responsibility to (1) keep the co-op above water (2) keep the property in good repairs.

Now... part of the equation is to communicate. If boards do not communicate you raise the suspicious flag. So, present the issues as they are. If you are not elected again, SO WHAT!!! You took care of your responsibility.

A problem wih many boards is not knowing how to state regularly what is happening and the challenges that the board faces. Part of the problem is BLOWING YOUR OWN HORN and prepare the way for incrases, assessments and any measures that require tough decisions.

AdC

This is nonsense! But DON'T take it personally, but the main thing as a board member is to know what your responsibilities and obligations are as a director.

So, you assess because you have a fiduciary responsibility to (1) keep the co-op above water (2) keep the property in good repairs.

Now... part of the equation is to communicate. If boards do not communicate you raise the suspicious flag. So, present the issues as they are. If you are not elected again, SO WHAT!!! You took care of your responsibility.

A problem wih many boards is not knowing how to state regularly what is happening and the challenges that the board faces. Part of the problem is BLOWING YOUR OWN HORN and prepare the way for incrases, assessments and any measures that require tough decisions.

AdC

>>"You should speak up and not let the board dictate how shreholders (sic) are to spend their money."<<

This misconception is one of the toughest parts of being a board member: the idea that owners somehow don't have to pay for the maintenance and upkeep of their own property!

On the contrary, the reason a board exists is to determine just how shareholders' money will be spent to keep their investment safe, in good condition, and in a state to increase in value.

The board does not "dictate," Anonymous, it makes decisions on behalf of shareholders -- the very same shareholders who elected them. If you don't want others to decide how to maintain the property you share with them, either get a seat on the board or sell and buy a house.

Finally, remember that board members are shareholders too -- they are subject to the same assessments as everyone else.

If you, as a Board Member, act outside that venue with your concerns -- i.e., as an "agitator" siding with other Shareholders -- you will end up alienating the other members of the Board, and could possibly split the whole co-op.

Do you really want to live in such a poisonous environment? If not, I strongly suggest you make your best case TO THE BOARD for handling the assessment differently -- and, if you cannot, that you resist supporting efforts to subvert the Board's decision. As a Board Member, your responsibility is to the health and safety of the co-op as a whole. If you cannot convince the Board of your logic, try discussing with the individual members their reasons for supporting the assessment; they may change your mind and/or help you better understand and support the Board's point of view.

Alternately, you could try to help the Board find a point of compromise between its position and that of Shareholders who are not on the Board (just keep in mind, such Shareholders have not been privy to ALL of the facts, and to the Board's deliberations, and therefore will not have completely informed opinions).

But I urge you not to foment a "palace revolution" -- that will only have really bad consequences, and it could take your co-op years to recover. Work towards consensus, always.