If there's not such a prohibition, there should be, IMO.

Otherwise, a lot more self-serving "volunteers" would then become the accountant, contractor... etc.

Do you really want your neighbor to be the buildings attorney ?

Are you confident that he can initiate proper legal action against ... hmm ... let's say his next door neighbor who hasn't paid his dues for six months or the nice old lady down the hall that his wife loves to chat with in the laundry room. Are you really sure that he will be able to do what is in the best interest of your building or simply apply any board decision without any emotional interference ?

I would strongly advise you against even considering his application.

Thank you for your response. I wonder though why it would be any harder for the board's attorney, even if he owned an apartment in the building, to take legal action against a neighbor than board members voting on a resolution to take legal action against a neighbor? First, it's not the attorney's decision to sue anyone, it's the board's decision. The attorney acts at the direction of the board. Second, one could apply the same reasoning regarding favorable-neighbor-bias (or negative-neighbor-bias) to argue that board members shouldn't live in the building they govern because the neighbor-bias impedes board members from exercising independent decision-making about their neighbors. Yet, almost every residential coop and condo board is governed by neighbors. Is a board member less likely to vote to initiate a lawsuit against the next door neighbor who hasn't paid his dues for six months or the old lady down the hall his wife loves to chat with in the laundry room? Yes, probably or at least no more or less likely than a the board member would be. In fact, as an elected officer, the board member would be more influenced by neighbor bias. My question doesn't pertain to the general dilemma living and governing in the same building. Being uncomfortable or having conflicting feelings is one thing- these dilemmas make for the hassles, headaches and war stories of board members and residents aliek, but they are not stories of unethical behavior and self-dealing. If I vote with my board to fine my next door neighbor, I may be reluctant because he may resent me and he indeed may give me the evil eye in the hallway. But that's not an issue of self-dealing or unethical behavior. My question is about outright prohibitions on certain actions and whether there is a panel that issues advisory opinions for board members, analogous to ones with attorneys. The reason the panel exists for attorneys is that these issues are not facile and there are often countervailing benefits that sometimes result in the answer that an attorney is not acting unethically. For example, what attorney would more zealously represent the building's interests in a construction defect lawsuit against the developer than one who owns in the building? What attorney would be willing to give a discount for legal services to a building with weak financials for services other than one who lives in the building? Or should we reject this option because the attorney, who is a former board member, should continue to "volunteer." That's not realistic, expecting not only present board members to serve with no compensation but they should also continue to provide their expertise for free in perpetuity? I understand there will be differing and valid perspectives, but I really want to take my issue to an official panel if there is one for an advisory opinion rather than have an interesting debate that doesn't give me an answer either my board or the attorney can rely upon to protect ourselves.

Dear Coop and Condo owners, I would advise you not to allow an attorney that served on the Board to represent your building. The reason is about ten months ago our Board through the reccomendation of Cooper Square/Wentworth Management AKA Marvin Gold brought in an attorney Jack Lepper without a Board meeting or minutes. Cooper Square realty was fired by Seabreeze Condo board for the same illicit practice of harrassing Shareholders and covering up information.

The reason Cooper Square/Wentworth AKA Marvin Gold, brought in Jack Lepper was to cover up the Boards malfeasance. Mr. Jack Lepper involves himself with the Board meetings, how to conduct them, how to position n Board members at the Board election so that no questions regarding the buildings financial postion or the improprieties of funds, such as no money to pay bills, every month we are in a deficit etc. Mr. Jack Lepper of Kagan Lupic Lepper Lewis Gold Colbert 200 Madison Avenue 24th. floor, New York, N.Y. 10018. Mr. Lepper set up a mock meeting called the informational meeting a couple of weeks before the election,he advised his clients (the Board) to advise their supporters not to attend so not to hear the questions that will be addressed to the Board, what he did was to conduct the meeting, he is only to represent legal matters in the building no to run the Board meetings, it is only for Shareholders and he is not one of us. When he heard the questions that was asked and the Board could not answer nor will they answer them, he then knew how to postion his clients at the election, what he did was advise them not to sit at the podium so that questions will be directed to them, he had them scattered all over the meeting room so that they would not be questioned while he was busy counting proxies, he allowed his clients proxies that were extored to be counted, but disqualified all ours that held the name of a Board member collecting for her team, because she happened to be away that evening on a trip that had been preplaned. Instead of allowing us to go to those Shareholders to find out what their intent was, he disqualified them so that we would lose the election.

At the informational meeting we asked Mr. Jack Lepper why he was paid $4000.00 recently from our coop, his response was he didn't know, or remember, we asked him if Knight Marketing sounded familiar, he said no. We said but that was recently, why didn't he recall being paid $4,000 as a new attorney in our building. His response was oh that was for many services I performed, we asked what services, he said for letters written to Shareholders in arrears, that was a lie, the Board hadn't collected arrears in three years, she saves those people to extort signatures for her proxies come election. We showed Lepper an invoice for Knight Marketing in the sum of $2,000 that hadn't been paid in two years,for supplies delivered to our building, the client turned the invoice over to their attorney for collection and therefore, the invoice for $2000.00 was paid to Lepper plus $2,000 in legal fees. Which in essence Jack Lepper is guilty of errors and ommissions and will be reported to the Disaplinary Committee for unethical practices. Jack Lepper is now harrassing Shareholders with threats to those Shareholders that went against his clients. We are taking him before the committee on many unethical practices, as well as to court for mailings from his office without letter head in behalf of his clients. Do not use or trust Jack Lepper of Kagan Lupic Lepper Lewis Gold and Colbert or Cooper Square/Wentworth AkA Marvin Gold of 6 East 43rd. Street New York 10017 save your building and your investment. Our building is a nightmare since they have been brought in by a corrupt Board, birds of a feather flock together.

Too DD:
Was Jack Leppper a former member of your building's board?

No, but he is acting as one now. Whether before or after it is a direct conflict of interest, once on the Board or any affiliance in a coop or condo it is a conflict of interest, therefore they cannot represent the building in a legal capacity.

How ironic, Jack Leppers practice is advertized at the bottow of web talk?

Bob

It is ironic how this man should be allowed to practice. He has been giving false advise since March 2010 when he first was hired in our building without board meeting with all members, no competive bidding or interview process and no minutes. He has been giving false information to Shareholders and harrassing them not being familiar with our proprietary lease, by-laws or ammendments. He only requeste them when a potential lawsuit became visible in November 2010 when he contacted the Sponser for them, and they didn't have all the amendments. Would you trust him in your building?

Been there, and I sympathize.

But unless you have somebody sharp to hand off to... someone you trust implicitly... you simply cannot step down.

Except if it's affecting your private life or your business. (Mine was the latter - three years of full-time work as president, and :::crash::: )

I recommend highly either training someone already on the board - the treasurer comes to mind, since he/she is usually more aware than the others of the co-op's management needs - or recruiting someone to replace you from other members of the co-op. (You didn't say; is it difficult or easy to recruit board members in your building?)

Start by delegating more responsibilities to other members of the board, and see which (if any) follow-through.

If none of the above works... try getting excited about your work for the co-op all over again. Think outside the box. Pick a project that will be fun, inexpensive, and have a return on investment, like a tag sale. Create a short-range (2-year), mid-range (5 year) and long-range (20 year) plan of improvement, delegate the research to different board members and/or residents.

If/when you do leave the board... be prepared to miss it.

Best of luck,
R

Been there, done that. I am the President of a 50+ unit HDFC coop. We are doing extremely well, and that is because I work day,night, and evening keeping up with paperwork from the different city agencies. At least you have support from your board. I have NO support, a super who does not give a d**** and board members who only look to undermind everything I do for the coop. I have been doing this work for over 3 years and I am going to step down. I am exhausted. Unfortunately, there is no one to pass the baton to, but that's life. We have to make decisions that are best for ourselves. Don't want to sound selfish, but that life. You need to decide what is best for you.

Just want to say how much I admire and respect all you've done so far for you building -- eight years is an immense amount of time for one person to be on a board, especially under trying conditions. You are to be applauded. I know this doesn't help your immediate situation, but it's important that the best of us -- people like you -- be acknowledged.

It is my belief that board burn out is caused by not having sub committees etc, to handle the workload thus resulting in you being overburdened and burnt out. In addition you should set realistic goals on what your expectitations are for your property and not be afraid to ask other board members, your property management, and your super to help out. After all this is not a one man show but a team effort.

Good luck (MRM)

A board president is a manager of his staff i.e. property manager, super, board members. It is not your job to do everyone else's. If they don't co operate, have them replaced, especially people on salary. It is a tough job market as you well know so replacement shouldn't be much of an issue. Spend your time now writing a job description for each one with a method of accountability. Your burden will be lightened and your team should be supportive of your efforts to make your building a better run one.

Good luck
Dianne Stromfeld

It really depends on your monthly income and the state of your buildings structure.

I gather that your building has no elevator. So the main emergencies you could have is the boiler and maybe some major plumbing work. Local Law 11 shouldn't apply for your building ( facade maintenance )

Typically banks require that coops maintain at least 10% in reserves, which is by far not enough.

You should have enough money in your reserves to cover emergencies like replacing a boiler if it's reaching it's life expectancy for example. The roof and facade should be on your list as well.

Reserves vary from building to building. Before deciding on an amount, I'd recommend you do a complete survey. How long will your boiler last? Your oil tank? How are your windows? Your fire escapes? Your facade? (Even if you're not covered by LL11, you need to make sure no liability issues are sneaking up on you in the form of loose bricks.) What infrastructure improvements (electrical, plumbing and waste disposal systems) are needed? How's your foundation? Your roof? Is your building dingy/dark/dirty? What's your mortgage? How are your arrears? Think of every question you will need to address in a financial manner.

Spend a little money upfront to get an engineer's assessment, then sketch out a timeline for capital improvements (boiler in 5 years, roof in 10, etc.) and other needed repairs. Try to build your reserves to cover these without an assessment.

If your immediate financial needs are high, you may need to boost your reserves quickly, through a maintenance increase, flip tax, or income-producing idea; you can also impose one-time operational assessments, such as a fuel-oil surcharge, if your PL permits.

Best of luck! R

My complex has about $8k per units and we do not consider this level sufficient. We currently have:
• Capital Reserve Account
• Mortgage Escrow
• Water/sewer self escrow
• Real Estate Tax self escrow
• Insurance self escrow

Why self escrow? Well it has benefits for financial flexibility, earns interest on the accumulation of funds and saves costs. Here is a summary of our current funds:

The Capital Reserve is self explanatory and we have currently $650k in a segregated account.

Our mortgage agreement states that we maintain a separate reserve for mortgage payments equaling 10% of annual shareholder revenue (not including rental income). Its balance is currently $72k in another segregated account.

We save up monthly for the annual Water/sewer bill. We currently have $40k in a yet another segregated account for this purpose. This will need a lower balance if we can switch to quarterly billing.

We save up monthly for the annual Real Estate Taxes. This allows us to pay it off early (all at one time) and to take advantage of earnings on the accumulation of funds and the NYC discount for paying early. We currently have $100k in a yet another segregated account for this purpose.

We save up monthly for the annual Insurance Policy charges. This allows us to pay it off early (all at one time) and to not incur premium financing interest and fees. We currently have $11k in a yet another segregated account for this purpose.

The last three are considered operating reserves and we can draw on these funds at any time if necessary. If we do that though, we have to live with the fiscal consequences – like how do we make up the funds for when the payments are due. But sometimes buying time is all you need.

Having this many reserve & escrow accounts really adds to our financial flexibility, however, it is a bit of a complex structure. In my opinion, it takes a savvy management company to run this type of a set-up. All of these accounts are at Vanguard. If you want the management company we currently use, just e-mail me.

We also like to keep $45k in the operating account by December of each year to get us through the Jan – June lean months. We keep this account at a local bank (we don't assess the abatements).

Our audited financial statements can be found here: http://www.naborsapts.org/wp-content/uploads/2010/02/finst09.pdf

That seems large depending on the value of the building. We have a 111 unit three building complex with a self-amortizing mortgage originally valued at $2.7 million and now valued at $2.0 million. We also have two unsecured and self-amortizing loans totaling $830k for a windows install. Our Audited Financial Statements are available for details for all to see at: http://www.naborsapts.org/wp-content/uploads/2010/02/finst09.pdf.

With a mortgage that large, I hope the building is making payments on the principal (amortizing). If not, you are at risk not only for high interest payments but if the value of your complex does not increase, you borrowing power may be effectively capped.

I have heard that a formula is used to calculate the size of the mortgage to the size of the building, as a percentage. I am in a building with 300 units. How high should a reasonable mortgage be, and what is the formula- if one exists- based on?

A Christmas wreath is definitely a Christian holiday decoration, so you would seem to be on pretty safe ground exactly as you are. Perhaps the closest analogue to a menorah would be a Christmas tree with a star on top. Both are bright, festive, and religious but not in-your-face religious. A manger scene would be over the top, in my view.

We've had both a Christmas tree and a menorah in our lobby for as many years as I can remember and there have never been any complaints. In your case, you should try to get some idea of how widespread the sentiment is for changing things in your building. If the complaints are really restricted to just one obstreperous board member, you can take a formal vote and close the complaint. (Of course you should check with your attorney to make sure you position is defensible.)

To me, in the context you are discussing, a menorah is a holiday decoration like a wreath and Xmas lights. I think it would be offensive if there wasn't a menorah up with the xmas decorations. What else would you put? I don't think a menorah is necessarily a religious symbol at all. I'm a secular Jew and I don't view it as such.But just like I wouldn't have a wreath or xmas lights in my house, I'd be happy with wreath, lights, xmas tree AND a menorah in my lobby. I wouldn't be happy with a creche
because that feels too religious.

I think this issue is foolish. I am of both faiths Jewish and Catholic. First and foremost most symbols are Pagan, they don't stand for anything. A tree is lovely, I've never had one in my home, but a Menorah is a symbol of a struggle and of oil that was given for one night and lasted 8 days. A manger is clearly a religious article and I would not want that in front of a building, in front of a church is one thing but that is a but over the top. Just let it be the wreath, tree, Menorah and that's it. If this person wants a manger let them put it in their home or window.

Fortunatly, this cost can be precisely budgeted for:

Effective January 1, 2011, there is a weekly increase of $12 per employee for health benefits and $4 for pension. On April 20, 2011 salary increases become effective. Superintendents get an increase of $19 per week, handy persons $17 and other employees $15.

anyone know if this is correct?

For New York City’s fiscal year 2010, which ended on June 30, the cost was $6.76 per hundred cubic feet of
water used, according to the New York City Department of Environmental Protection. For current fiscal year 2011, the price rose to
$7.64.

The tax rate only slightly increased, however many buildings face significant increases in their assessed values which factor into the overal real estate taxes due. Our building's taxes went up by 8%

please see information:
You can calculate exactly what your January and April bills will be as described below. For Fiscal 2011-2012, we could actually see REDUCED assessments due to the phase-in; the property tax abatement program for qualifying home owners in NYC cooperatives and condominiums is in place for fiscal 2012.

Despite the down economy, this year’s property tax assessment actually consists of 20% of the assessment change for Fiscal Year 2010-2011, which may be lower to reflect current conditions, 20% of the assessment change for the Fiscal Year 2009-2010, when market conditions were quite dismal, 20% of the assessment change for the Fiscal Year 2008-2009, developed based on a snapshot in time on January 5, 2008, when all looked rosy, 20% of the assessment change for Fiscal Year2007-2008, when times were very good, and 20% of the assessment for Fiscal Year 2006-2007 – ancient history with excellent market conditions.
. Late in June, when it adopted the budget, the City set a tax rate of 13.353% for Class 2 properties for Fiscal Year 2010-2011, a modest increase over last year’s rate of 13.241%. Here are the new rates for key classes of NYC properties.

Fiscal
2009-2010 Fiscal
2010-2011

Class 1 (1-3 family homes) 17.088% 17.788%

Class 2 (multiple dwellings) 13.241% 13.353%

Class 4 (commercial property) 10.426% 10.227%
But these rates were not established in time to be applied to our July 1st tax bills. The Department of Finance must send out those bills mid-June. Therefore, the Department of Finance applied last year’s tax rate (13.241%) to this year’s assessment on July and October 2010 tax bills. The shortfall will be made up on our January and April tax bills, which will reflect the new rate of 13.353% PLUS the additional 0.112% not billed in July and October. This should not be overlooked in budget planning .

for the EL 2 rate - most commonly charged for residential buildings , there will be NO increase for gas or electric for 2011 !!!!

Can you please give me the official source of this information. I could not find it mentioned anywhere. Thank you.

Babara

For the small commercial rate commonly used by buildings. the last raise went into effect in April 2010 and the man told me there are no more next year.

I pulled this from coed's web site:

quote"
Frequently Asked Questions

What does the Con Edison rate plan include?

The plan includes a levelized annual increase of approximately $420 million in each of the three years, April 1, 2010 through March 31, 2013. Once again, increased taxes drive a substantial portion of the rate plan, accounting for approximately 30 percent of the overall increase.

How will this affect customers’ bills?

A typical New York City residential customer using 300 kilowatt-hours of electricity a month would see a total bill increase of approximately $3.63 per month in the first year. A typical Westchester County residential customer, using 450 kilowatt-hours of electricity a month, would see a total bill increase of approximately $5.04 per month in the first year.
" end quote

I suspect that commercial plans are affected as well.

Thanks. am working to confirm. But Con Ed told me this press release can be used to budget:

http://tinyurl.com/ycawyjg

Answer to your questions
(1) Depends - we are a small building with 57 apts but 70K of space ,terraces, two indoor parking garages so our mortgage is quite large as we have to maintain and upgrade our facilities, plant, and equipment. I can’t speak for your building since I don’t know the location and layout and work done or the terms of your underlying mortgage.
(2) Sponsor only has to file amendments with the attorney general if they are actively listing apartments for sale. If they are not actively listing apartments for sale - nothing is required. Our sponsor still owns 55% of apartments 60% of shares, 30 years since the co-op converted, so we are very versed in the requirements.
The sponsor amendment should state the apartments owned, rent roll, any pledges of their shares.
The Board should have a copy of the most recent filing, you can ask the managing agent and/or sponsor when the last amendment was. Most bylaws require a copy of the amendments to be distributed to all shareholders - but this is often not done - and cost is a factor in distribution. So we and the managing agent accumulate for shareholders who ask.
Another way to obtain the most recent sponsor statement - since your sponsor still owns more than 10% of the shares – any refinance or purchase financing from a bank will require the most recent sponsor amendment or questionnaire with the details you seek, you may want to investigate.
My suggestion is ask in writing about amendments and keep investigating, review your budget and underlying mortgage documents, and plan for the future with your fellow board members in a transparent manner.
Good Luck, hope it helps.

We ave the same problem also. In fact out hot water is colored blue. We even had to replace a section of pipe that caused a flood. This all started two years ago when we converted from oil to natural gas heat.

A plumber suggested we get an electrician to do an inspection and make sure that nothing is grounded to or near a water line as the culprit could be electralysis which. I'm going to look into having an electrician doing this, but if this fails, I really don't know what else to to.

You should consider hiring an engineer to properly examine your system.

increase your reserve fund. update and make sure your common spaces are polished, and when i say polished i mean shiny. make sure all of your mechanical equipment is in good working order.

Hi,

Our Board asked just that. This is what we are doing:
• Make your building look as good as possible. Have the city plant sidewalk trees; plant, care for and water your gardens; a fresh coat of paint on the corridor walls and lobby, clean clothed staff; no offensive odors; clean common area glass (windows); no sidewalk or garden trash;
• Reserve & self escrow funds – we currently have about $7,500 per unit and we are finding that is not enough (we have 111 units);
• Make sure maintenance charges are at a sustainable level – raise your maintenance on a cost of living basis each year so there are no sudden spikes;
• Encourage people to renovate before they sell, including estate units;
• When shareholders are preparing to sell, talk up the building. Suggesting starting their pricing on the high side then backing off if necessary;
• We hold a view that we can influence the market (by doing the above). We are under no illusion that we can control the market;
• Make sure everything is in repair;
• If your windows are strong enough and you area is safe enough, encourage people to take down those gates;
• Hide the rat traps.

I often find that I can just walk through the buildings and not notice things because I am just doing my routine. Have Board Members perform a "walk-though" on each floor and public space: have them pretend that they are seeing the space for the first time and develop a list for management to address any dirty, unsafe & unsightly issues.

As a result, we have had two record prices for units this year in N Washington Heights and S Inwood (between Nagle and Dyckman St).

Good luck!