This is clearly a case where the lawyer should be contacted. The guy may appear pleasant and demure, but he's already harassing people on the phone and trespassing on your property. Don't assume he'll go away quietly. If nothing else he's demonstrating that he is not the kind of person you want as a neighbor.

Your lawyer can write a letter to his lawyer (the one who represented him in the purchase application), which will a) embarrass him and b) cause him to realize he may have to pay legal fees if he continues.

May I suggest a PC with a large hard drive (used PC is OK, but a very large hard drive and a DVD burner is a must) and a wireless connection to four five or six wireless PZT webcams. Yes, you will need a small battery/UPS to avoid outages during electrical hits, etc.

And you will need software to capture and retain the images, e.g. one frame every five seconds or only as the image changes. There is free or inexpensive software available:
http://www.freedownloadscenter.com/Search/newsearch.php3?S_S=webcam+capture&image.x=15&image.y=14

http://www.canadiancontent.net/tech/downloads/Video-Capture-Programs.html

Sorry, I neglected to include my name.

Thnaks, Bill. May I contact you directly with a few specific questions regarding your great suggestion? If not, wondering if the webcam needs to be visible or if there is a type that can be concealed or is concealed already. The distance it would be from PC is about 15-20 feet and there is one wall/door the signal would have to pass through. IS that feasible for the type of system you describe? Thanks again.

what is the resident doing exactly?

Gluing locks, urinating, and seems to be ramping up activity.

this sounds a little vague. what locks are they gluing and why? what is ramping up activity? who is telling you that someone is doing this and does the informer have their own agenda that they might be defaming a resident? sometimes things are not as one-sided as they seem.

Taking newspapers from in front of other shareholder's doors,SHs report clothing,disappearing from from the common laundry machines,bicycle storage room being breached.

Was this person someone who just bought into your co-op, or the partner of someone who is currently residing? And if they just bought, did you guys vet him/her?

Not at liberty to say at this point. Sorry.

It's worth the cost. With someone gluing locks and "escalating," you'll quickly pay $1200 for repairs anyway. Video evidence will be useful in any legal proceedings (including eviction). And once he's gone you'll still have a way to protect people's safety.

I've found there are always interesting items in the New Products section on the Habitat front page. Even the stuff that's expensive or not right for a particular place can stimulate some new ideas.

I've found two security items in the archive:

BrickHouse Nightvision DVR Spy Lamp

http://www.habitatmag.com/publication_content/previous_new_products/brickhouse_nightvision_dvr_spy_lamp

and

Speco HT-B10X Security Camera

http://www.habitatmag.com/publication_content/previous_new_products/speco_ht_b10x_security_camera

http://www.snapfiles.com/get/securecam.html

Yes, I've been reading. Would comment there but don't care to have my name etc included.

So I'll reply here to one of his/her posts, about the interview. The blogger suggests that interviews may be too fraught such legal traps like race, job status, whether the buyers are veterans etc, that they should be discontinued and replaced by a more thorough vetting process on paper.

I disagree. Not that the financial background shouldn't be vigorous, of course. But the interview should be used if nothing else to explain the co-op/condo's rules. Most people have no idea what it means to buy into a co-op (I certainly didn't).

So take the chance to explain the nature of the business they're investing in. Tell them about your reserve fund: is it big enough to pay for the next capital improvement? Explain that when utilities, property taxes and inflation increase, maintenance will increase.

Then tell them about every-day issues. They will need to know who is responsible for problems like leaks. Explain why the board reviews renovation plans. Whether the newcomers should call the super or the property mgr or a board member with a question. Our interviews always end with asking the new buyers to run for the board!

None of these points require you to ask any questions that could get you into trouble. If interviews make you uncomfortable, ask your managing agent or lawyer for a list of categories you can NOT ask about and review them with the interview committee.

I agree with all of your reasons for having the interview. Your points are well taken and we certainly have not stopped the process. We do have all applicants notarize a copy of the rules as part of the board package stating that they have read and understand them. We also have a comprehensive list of Interview Do's and Don'ts that we developed with our attorneys; however conversation during the interview can easily stray into sensitive territory. In today's world, I just question whether the potential pitfalls outweigh the advantages.

Thanks for the feedback!

BTW, according to Habitat you should be able to respond in Habitat Blog using a pseudonym and hide your email address, just like you can on Board Talk.

Hi. As Board Prez notes, it's possible to leave pseudonymous comments on the Blog. See instructions at the first comment at:

http://habitatmag.com/index.php/habitat/activities/habitat_blog/top_ten_list_pet_peeves

I understand points made about interviews, but I have a few comments:

-- The interview gives you the chance to not only meet and find out things that paperwork can't tell you but also to let an applicant meet and interplay with the full board.

-- At interviews, we always ask an applicant if he understands what a coop is v. a rental or a condo. They always say yes. We then ask him to tell us what a coop is. They almost always say that you own your apt, and coops cost less than condos. We then explain that you own shares in an apt corp not an apt, a coop is a state business corp like other corps that sell shares to the public that must comply with business corp rules, etc.

-- We may note a few policies or bldg rules at an interview but we don't explain all of them. There are too many, and applicants are nervous and won't remember much of what you say. You're lucky if current SHs know what they are or bother to ask if they don't.

-- We give an applicant our "Welcome" flyer as soon as he's told that he's approved. It has a short intro then bullet points with initial guidelines he needs to know: move-in rules, super/doorman's hours, phone numbers for the super, property mgr, etc.

-- An applicant must sign each page of our house rules in the sale package, but that doesn't have to be notarized. Notarization basicall confirms that the person signing is who he says he is. It doesn't confirm that he read and understands the house rules. Just signing is sufficient.

-- At an interview we ask an applicant if he has questions about the coop, bldg, staff, etc. Boards ask questions but they sometimes forget to ask applicants if they have any.

-- 10 years ago, we created a SH's manual containing all coop policies/procedures, a copy of the house rules, fees/fines, who's responsible for what, etc. and master copies of key forms such as applications for doing renovations, sublets, refinancing, etc. When a SH sells, he's has to give his manual to the buyer at closing or pay $100 for another copy. Buyers are advised to read and keep it handy. This is a lot easier than trying to explain all the rules at an interview. All SHs are told to refer to the manual or call the property mgr with any questions, before they start apt projects, etc. With a manual like this, SHs can't give excuses and say "I didn't know that" or "no one told me."

-- There are areas you can't touch upon, but many boards hesitate to ask much and tippy-toe through interviews. We're courteous of course but we ask an applicant why he wants a coop, why he wants to buy into ours, etc. There's nothing wrong with asking questions or posing a little challenge. We may ask, for ex, "What would you do if a neighbor..." Answers can tell you a lot about a person's character, level of maturity and sense of responsibility.

FYI: Per anti-discrimination laws, there are 14 "protected categories" in which law suits can be put forth if it can be proven that someone was rejected for a job, purchase or whatever on any of these grounds:
Age
Disability
Partnership status
Alien status
Gender (including gender identity)
Race
Children (or childless state)
Lawful occupation
Religion
Country of national origin
Marital status
Sexual orientation
Creed
Military status

Excellent ideas, BP! I'm going to share them with my board. Thanks.

Very impressive and very organized, BP! This sounds like a very well-run co-op.

Hi. It's actually possible to leave pseudonymous comments on the Blog. See instructions at the first comment at:

http://habitatmag.com/index.php/habitat/activities/habitat_blog/top_ten_list_pet_peeves

To JB - thanks for the plug and sorry for the lack of posts the past few days. I've been fighting a winter bug but feeling better now and just posted something new.

These are bonds and CDs. You don't expect to cash them in early anyway, and when they reach their due dates, you'll get the full amount. The value of the present yield is meaningless.

I applaud the board for letting share holders know, though I might have added the preceding point.

This segment of the investment is FNMA and FHLMC preferred preferred stock. There is no "maturity value". As far as I can tell these securities are virtually worthless or at the most nil in value.

Wow - a very expensive mistake but they had no choice but to be honest with the shareholders and I would give them credit for the honesty. They must now develop and implement a strategy for rebuilding their reserve funds. We have about $1.5M in our reserve account but have never invested in stocks of any kind. We do have GNMA bonds which are guaranteed, unlike their stock. The rest is all in T-Bills & Notes which are paying very little but the principal is guaranteed. The first item in any board's investment strategy must be to preserve principal - it's much more important in the long run than a potentially higher return.

You don't indicate the size of the co-op or the amount of reserve funds, both of which are relevant. The portion of total reserves which were moved into these securities is critical.

Does the statement "All of our reserve funds in our account are currently invested in fully insured CDs and US government guaranteed bonds" refer to when this announcement was made, or to the time immediately preceding the securities purchase?

If all or most of the co-op's reserves were moved from CDs & bonds into the securities described, then the decimation of reserve funds calls for a lot more than candor: these Board members should apologize to their neighbors & resign. While the law allows Boards to gamble with co-op funds, few shareholders would condone any investment philosophy or action which puts principal at risk.

This presumes that shareholders were not polled on investment strategies, & that these decisions were by Board members alone. If so, they've proven themselves unworthy to exercise their judgment in the common good.

[...and what is your interest, if this is "a co-op in the neighborhood?"]

I'm on the board of my own building and we never ever invest in stocks. A few of my friends are shareholders in the building that dissipated the reserve funds and asked my advice.

Then you know what to tell them: approach the Board members individually & discreetly, suggesting they step down, thereby avoiding the unwelcome fuss of a recall campaign. There's no forgiving an error this big, but avoid any discussion or threat of accountability; on this front, they'll fail [& only create a worse atmosphere than they already suffer].

We are in the process of doing a story on laddering investment, and would love to include this example as a cautionary tale (and also what boards should do). Can you contact me for further discussion?

This is a horrific story, and underscores the fact that Boards should stick with risk-free investments.

It's especially troubling that these investments were made in May and June of 2008. Fannie Mae had reported a loss of $2.2 billion for 1Q08, and the stink was already in the air:

Reuters, Tue May 6, 2008
Fitch Places Fannie Mae's Preferred Stock On Rating Watch Negative
http://www.reuters.com/article/pressRelease/idUS200843+06-May-2008+BW20080506

What led this Board to invest in FNM preferred stock at such a time?

In general, it's a bad idea and a future problem waiting to happen, not to mention a possible conflict of interest if he/she cannot separate themselves properly. I can guarantee that almost no matter what they are charging, the long term it will cost you more if the person has no experience.

Notwithstanding my personal opinion, there are several factors to look at...

~Who will be responsible for banking and financial transactions?
~If it is the Manager, then you want some adequate fidelity bond insurance.
~Check with the D&O policy and ensure there are no exclusions for this.
~All billing and invoicing must be approved by the board treasurer in addition to the managing agent to create a system of balance.
~Are you going to purchase management/accounting software? Will you give all this to third party? Good software can be costly.
~A strong system of checks and balances must be in place.
~a small private building is not a coop or condo, the laws are different, how will he educate himself?
~Is the Board placing themselves in a vulnerable position? I believe so.. speak to your attorney about negligence and your fiduciary responsibility to do what is best for the shareholders...what is the reason for the change? To save money? cheaper is not better...

Unless you are a small building and will actually self manage and use this person as a liaison/manager it cannot work.

Food: when you fire anyone, even a superintendant, you have the benefit of removing him leaving the premises; what if you have to fire this manager?

There are many more, and I can probably write a small book about concerns and proper protocols, but just wanted to toss a few out there to you. Obviously, these are just my opinions, but having been in the business for 23 years I am confident in them. let us know what you decide to do and how you make out please.
Good Luck

~AR

Thank you AR, for your very wise words. They are very helpful, indeed. You always provide such reasonable advice. You are an asset to this blog, for sure.

I don't know if this candidate will be chosen yet by the Board, but there is a very strong chance since he is friends with 2 of the Board members. The reason the management company will be replaced is because most in the building believe they have done, at best, a negligent job and now the building's financial condition is in truly terrible condition.

Oh, how I rue the day that I bought into this condo building

Thank you for your kind words.

Many times i see boards who do not want to raise maintenance enough to cover the budget and later it falls on the managing agent who reccomended the increase in the first place.

I recently had a similar situation, but after fighting with the Board and putting the budget in writing and my recommendations, in addition to the possible consequences, the Board reluctantly agreed. That was last year.. this year they thanked me.

Perhaps it's time for you to run for the Board?

I switched over once, to something I believe called ITC, just for my own apartment. The monthly bill went significantly up. Why? Because (and I don't remember the exact name and don't have a bill right in front of me) "transport charge" or "delivery charge" that Con Ed charges itself is lower than what it charges ESCOs.

So even though the rate per kilowatt hour was lower with the ESCO, the overall bill was higher.

We have not made a switch yet but have been working with a company called Tradition Energy who will put your building out to bid with a number of ESCO's. I've never heard of the "delivery charge" changing if you switch because Con Ed continues to bill you for the delivery charge after the switch, but it's definitely worth asking. Most savings are realized on the reduction in sales tax.

Mice came out of the holes and the exterminator plugged the holes up with steel wool. Mice come and go from the same path. They can't get back into their exit point so they will run around until they are caught. I would place glue traps in the area until they are all caught.

The solution is so simple, it's been used for millennia: See if he'd consider getting a cat. That is the one surefire thing that works.

BN: Your SH may be clean, but if he has a hole in a wall mice can get in the apt if they find it. Your exterminator overlooked it when he put in new heaters or didn't look everywhere. Check where sink pipes go in the wall, behind the range/fridge/dishwasher and around electrical outlet wall plates.

Mice can chew or push thru steel wool. Stuff holes with fine copper wire mesh then seal it with silicone. Mice won't chew copper; it's poisonous to them. If there are exhaust vents on kitchen/bath walls, put a sheet of copper wire mesh behind the cover panel.

Also, if the SH below has dogs/cats, mice in the walls (and all bldgs have mice in the walls) may smell pet food, esp if it's not eaten and left out too long. If they can't get into that apt, they'll go in any nearby hole they find. Mice will climb UP inside walls to floors above but they seldom climb down to floors below.

Thanks all BT participants for sharing suggestions with me. We've had exterminator in since I posted and they sprayed foam into all the crevices and spaces recommended. It's pretty unsightly, but SH seems to have some relief from mice for a couple days. I will discuss copper mesh/silicone as next step. We're considering having exterminator come and do an inspection of outside of building for entry points. It's not very $$- $100, they will then make suggestions for mouseproofing perimeter. Think this is a good step?

BN: Spraying foam in holes helps for a while but it turns to liquid and will eventually evaporate. Holes have to be sealed.

We did major extermination a few years ago. The result was great. We sealed holes on the bldg exterior on the ground floor. Once mice get into the bldg, they can go thru walls and get into any hole they find -- in apts and in bldg service areas.

We were painting all our bldg service areas anyway so when we removed all the equipment and supplies from the offices, trash areas, store rooms, etc., our exterminator sealed holes before we painted and put everything back in place. We also sealed holes in the compactor, boiler, oil tank and meter rooms. We were amazed at how many holes and wall fissures were found in those areas. We put metal sweeps on all service room doors (not rubber, mice can chew thru it) and got new trash bins with attached covers.

We sent residents a firm memo reminding them to discard trash properly and to seal holes in their apts. and we kept on top of this. We've had no complaints of mice/bugs since.

Interestingly, we also found that after we sealed all the holes in bldg service areas, the temperature on the ground floor was 8-10 degrees higher, so we've saved money on the cost of heating the lobby and the hallways to ground floor apts.

BN - You may not want to go as far as we did but I recommend your exterminator checking the bldg exterior for entry points and doing any common are interior work you can afford. People still have to seal holes to keep mice out of their apts, but anything you can do to keep mice out of the bldg, and inside the walls if they do get in, is worth the effort.

Thanks for info. I asked exterminator if he handles sealing up perimeter holes on the outside and inside, such as in our basement which has old brick walls. He doesn't do certain types of hole sealing that involve more than--? Is there someone you can recommend who can fill holes in walls with whatever needs to be used. Maybe we need a different exterminator? He said he used to recommend people to seal masonry but then it backfired if they didn't do a good job.

BN: Many exterminators won't seal holes, or charge a lot for it. Ours located and marked holes with chalk. Since we were painting our bldg service areas anyway the painters we've used for years patched the holes before they painted. A few wall fissures in the boiler room, compactor room, etc. were so wide they couldn't be patched. They had to be filled with poured concrete. A lot of bldgs don't think about maintenance in rooms like these. There can be holes/cracks in them for years. If holes from outside give mice entry points into the bldg, they can then travel around in the walls and find their way to apts.

If you don't seal exterior masonry, at least seal what you can inside the bldg.

If i may Rene, why are you unhappy with Capital One ?

I Use Lawrence J. Berger P.C.

200 Madison Ave, ste:1902
212-532-0222
ask for Lawrence Berger or Harvey Shiff

~AR

Check your Proprietary Lease for details on terminating a lease for "objectionable conduct" -- it's often Paragraph 31(f). Different leases have different procedures: some require only a 2/3 majority vote of the Board. Take a look at the decision in London Terrace Towers v. Michael Davis.

Most importantly: Consult your lawyer! This is a drastic and awful step for everyone involved.

Yes, check your lease - in some cases it requires a majority of the shares to approve OR a 2/3 or 3/4 vote by the board. In any case, have a strong paper trail to substantiate your claim and work closely with the lawyer. As long as the shareholder being accused is still a shareholder, then they should be able to vote.

Isn't this rather a nuclear response? I mean, Pullman?

I know you can't talk about specifics on a public forum, but eviction can handle anything from hoarding and pest-created problems by a SH, and financial things like missing maint. payments. The law can handle someone violent or threatening.

What does that leave? Kicking someone out because you don't like him or her? So they're rude in the elevator? So what? Are they suing the board? Lots and lots of SHs sue boards -- and sometimes they win, because boards aren't always right. You're allowed to sue a board without being kicked out of your house. What could someone possibly be doing to deserve this, and have you tried other means of resolution? A mediator maybe? Or do you just go nuclear?