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I'm a shareholder in a midsized Brooklyn coop. My complaint today is regarding the useless BODs my building has in power. A couple of these people are sickly and elderly and others are not involved to the point where they have no idea about common housing laws, what type of boiler the building has, how the financials look from month to month. They never question what money is being spent on. They all depend solely on the management company to not just give guidance but tell them how things should run and what to do about various issues. Most of these people have been living here for decades and have no idea about the current NYC laws, housing changes, finance matters. They're dead weight waiting for the building management to tell them what to do. The problem is replacing these people would not be an easy task since most the people in the building as a whole are long time shareholders who just don't want to get involved. I can't blame them really. I'd like to trust my BOD and trust that they're doing the best job they can and trying very hard to keep on top of things. Truth be told, I don't trust these people one bit and I'm losing sleep over this investment. Any ideas?
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Do you received copies of the financial statements each year? You should, if not, contact the management company for a copy. It is supposed to be provided to all owners annually. Then read through them as best you understand, as well as the comments at the end. Does the accountant express any concerns? By law, you're also able to examine the board meeting minutes (minutes of meetings are required by law), but you may have to read them at the management company offices.
You are able to check out your building on the web at nyc.gov (finance, dept of buildings (DOB), EPA, and other sites. You can view sales, property deeds, certificate of occupancy, water and sewer charges, property taxes, property valuation, violations, inspections, property management/ownership registrations, etc. etc.
You can go to the NY State Dept of State website and check the registration for the corporation with the state to see if it's up to date. NYC.gov also has info for managed property registration.
Go on the web, find out what you can. If the board is all asleep, you will see all kinds of violations, penalties, out of date information, etc. That would be a clear sign of a poor board and/or management co.
Does anyone else run for the board at the annual meeting, or does the old board just get rubber-stamped? If there seem to be a lot of issues, you could summarize them and present them to the board at the annual meeting (or pass out copies to other residents prior) and either run for the board yourself or vote for someone else interested in fixing things.
There are upcoming 'trade' shows such as the COOP Expo in midtown Manhattan where you could attend for free and show the financials to an accountant who could explain them for you if you don't understand them. What kind of reserve fund does the building have? You can also subscribe to the Cooperator free newspaper and read a lot on the Habitat website for all kinds of useful information.
The answers to the questions posed by the respondent above (Joe B) would help evaluate whether the board is responding to new NYC laws and taking advantage of potential operating cost savings, to keep maintenance fees down.
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When is the next annual meeting? Have you considered running for a seat on the board ?
Are there other shareholders who agree with your concerns? if so, do they represent a majority of shares?
Does the board have an attorney? Have you addressed your concerns with them? What do they recommend?
Do you know your management company and trust them?
How many units in the complex? Staff?
Have your Real Estate Taxes been appealed?
What is your source of heating, oil, gas?
Sorry to pose these questions to you, hope they will be of some help to you in pursuing the changes that you would like?
I am a seasoned professional manager and would be delighted to discuss your concerns.
Best wishes,
JFB
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