That is a good question. I would like to know the answer. What is the penalty for? We are all on a fixed income pretty much. Everything is going up but the pay check! Please continue comments. I read them!

I don't know anything about Mitchell Lama co-ops, so I can't speak to any specifics about them. Generally speaking, for other types of regular co-ops, the By-laws and proprietary lease (aka the Occupancy Agreement) take precedence over the House Rules.

That's because they are legal documents that specifically outline the shareholder's and corporation's legal obligations. House Rules are usually applied to quality of life issues that affect the co-op's shareholders.

If a penalty is specified in the House Rules and (very important) is applied equally and fairly to all shareholders by the Board of Directors, then the Board has the right to impose a penalty. If you think the penalty is excessive, I recommend that you ask the Board why is the penalty in that amount. Let them explain the rationale behind the penalty.

It's possible that a penalty for one offense can be higher than another offense. That's because the possible financial impact to the co-op of the first offense (ex - a renovation that goes wrong and affects the structure of the co-op) might be much greater than the financial impact of the other offense (ex - littering). So, the co-op is trying to protect all shareholders by letting everyone know in advance what the penalty will be.

I hope this helps. Good luck and please keep us posted.

I always ask: Who polices the Board?
Who says they follow all the rules?

I’ve lived in two co-ops and both I’ve seen board members do things wrong (not all of course). They have to practice what they preach because then there’s NO respect towards them.

Can I ask election independent company count ballots and votes in front of shareholders. Can shareholders control them on time when election in process (2 HR)
250 units.

In my old co-op we had the management company and random shareholders at the annual meeting help (3 were selected) and count the votes so that makes it fair. Ask for that and make it something that happens each year.

Pooh - In my old co-op, we had 3 volunteers and the attorney count the votes - just so no one could say that the mgt company was possibly biased. The system worked well with no problems.

BTW who's going to pay for that? The count can be done in front of SH. But what is the rush? why should they be timed?

To answer your question, no, House Rules don’t supersede the by-laws (which address corporate governance issues for the housing company) or the proprietary lease/occupancy agreement (which address various housing company and cooperator rights and responsibilities).



However, House Rules are intended to supplement the terms of the proprietary lease by addressing many of the day-to-day issues that arise in connection with life in a cooperative. Virtually all co-ops have House Rules; M-L co-ops in the HPD portfolio are required to obtain HPD’s approval of their House Rules, and HPD has reviewed and approved the attached House Rules for GG. Regarding the contemplated fines for violations: As you know, the Rules include extensive “due process” and “right to contest” provisions, and in almost no case would a fine be imposed unless and until there is a repeat violation after the shareholder has first received written notice of the violation.

I understand fines are needed for shareholders who ignore others around them ex: loud TV, banging a hammer after certain hour, but due process?
Why would a board side with you when they levied the fine? It's like admitting they were wrong
In my area, we have other Coops nearby, I suggest invite other Coop boards for a meeting and use another board as appeal process. If we have a shareholder who wants to appeal, then the board can reach out to another board and ask if they will hear their appeal or have other boards send people to listen, ( Total 3 people) and render a fair and unbiased opinion

All Boards are not alike. What is done in my coop, does not necessarily work for your coop. Different strokes for different Folks. By Laws are pretty much the same, but fines for one thing may be a higher or lower fine for something else, and somewhere else.

Thank you for that information. Good to know!