WORKING-CLASS HEROES: REAL-LIFE LESSONS FROM HDFC CO-OP BOARDS

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For many HDFC properties, this education process begins before conversion: when residents push for the switch from rental to ownership status. In 1997, when there was talk of converting 29-33 Convent, Jamison renovated her apartment, then threw a party and convinced 10 friends — ranging from a theater manager to an architect — to move in and redo their own units. There was no super, so they did their own work; one hooked up a water heater and the group coordinated hot-bath appointments ("You can do that when you're young," she notes now).

The "young people" started a tenants' association, reached out to wary older tenants and mined city services for help, from Harlem Legal Aid, which helped file eviction proceedings and collect rent, to UHAB.

Class Act

"We took classes, got a 7A administrator and then a property manager. I think a lot of the older people began thinking we were okay when we got a boiler," recalls Jamison (in center below, with fellow board members Richard Ray and Thia Calloway). "The next big thing was hiring a superintendent and getting the building secured. And there was endless follow-through: If you don't stay on top of things, you can get an ugly surprise when you least expect it."

Education can be an eye-opener, revealing unexpected costs and forcing boards to find solutions. At 1815 Prospect, the newly minted board had to cope with the key-fob system already in place before the rental-to-co-op conversion. Rather than giving residents easily copied traditional keys, the property had issued key fobs; touched to a magnetic plate, they electronically activated the door mechanism. The upside: improved security. But there was a downside: ongoing repair costs.

"We had no idea what it cost every time the system broke down until we had to pay for it ourselves," Robinson (below) notes. "As soon as I realized, I said, 'We have to change this.' People resisted, because it was a way of maintaining control over who had access. But it came down to numbers: If we're spending this much money every time the system goes out and it's going out every couple of months, we can't afford it. So we changed over to restricted keys."

Communication, Community

HDFC co-op boards also demonstrate that it is important to communicate with the residents regularly and to be as transparent as possible in their dealings — two lessons that some conventional co-op and condo boards have yet to learn.

"We told shareholders, 'There will never be a time when you don't know how much money is in the building account or what construction project is coming up,'" Jamison says. "We started newsletters, and all our finances are on QuickBooks [a software package by Intuit, Inc., allowing instant access to up-to-the-minute accounting information], so we can respond immediately to any questions from anyone. Participation is difficult, but when people feel they know what's going on they really respond."

Fostering a sense of community doesn't have to be expensive or onerous. "This year we put winter season decorations outside and the feedback was great," says Robinson. "We're going to continue that. We have a beautiful garden space, and last year we planted vegetables. I'd pick them and leave them in the lobby, and everyone took them to cook with."

But neighborliness can vanish in the burst of a pipe. "We had an incident where there was a leak in one apartment that spread to the one downstairs," Robinson notes. "The owner of the top apartment contacted the insurance company, but I said, 'Don't you have a $5,000 deductible? All the downstairs tenant wants is some minor painting and patching — the super can do that. It will cost less, happen more quickly, and save everyone money.'

"I always say, talk to us first — don't go to HPD, don't go to your insurance company," continues Robinson. "Speak to your neighbor. If you don't want to speak to your neighbor, speak to the board."

Weatherizing Heights

But the bottom-line lesson the HDFCs offer is the power of people working together to achieve a common goal: to protect their investment and create a comfortable home. At Rosario's co-op, a brush with foreclosure in 2008 galvanized the board.

Fortunately, she says, "In 2009, we got a grant for $60,000 and put in another $30,000 for a weatherization program — new windows and smoke detectors, new lights, new roof. We refurbished the boiler and put covers on the pipes — some of our bills are lower. We've sold several apartments [seven units remained rentals after the conversion] that brought in some money. Now we increase the maintenance and hold new elections every year. Because of the bank, we have a monitor to make sure our finances are going right; every year we pay our insurance in a lump sum. We pay our taxes and keep our water bill up to date."

She is realistic but optimistic about where the journey will take her and her fellow owners. "Things still aren't perfect and it's a struggle," she admits, "but we're working together toward the future. If everything goes well this year, we plan to buy another building. People in the community are always looking for apartments."

Adapted from Habitat March 2012. For the complete article and more, join our Archive >>