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Litigations against Board President - Stanton Club Apr 30, 2008


Is anyone aware of a court case where the owners or shareholders sued the condo/co-op Board and the Board President ended up selling his or her property in the building to pay for damages?

I am conducting searches for actual court cases where Board President is being held personally liable for his or her decisions or actions for a condo or co-op.

Thank you in advance for your help or suggestions.


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The scenario you mention (a board president having to sell his apartment to cover legal fees) isn't ringing any bells for me, but I'm interested in the question of boards being sued by shareholders for negligence/breach of warrant of habitability and would appreciate it if you would check back and let us know what you find out.

Officers generally have insurance to buffer them against such action. See, e.g.: http://www.cnyc.com/code/archive/conference/conference-sum04.htm

Also, here's a rather old article from the NYT that is not without interest: http://query.nytimes.com/gst/fullpage.html?res=940DE3DF103AF937A15757C0A96E948260&sec=&spon=&partner=permalink&exprod=permalink

Good luck and please keep us posted.

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Broome v. Biondi, a sublet discrimination case, is the best-known example. Biondi's legal fees were covered, but he was held personally liable for the punitive damages, which insurance cannot cover under NY law. Biondi ended up selling his apartment to pay the six-figure punitive damages.

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innapropriate staff incident - Ned Apr 29, 2008


an elevatorman has made repeated passes at a resident. he is union. what do we do? she feels too uncomfortalbe to write a letter.

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Ned, I would sit him down in the office and explain to him what he is doing is not permitted and that he is harassing the woman. I would suspend him and place a letter in his file, cc to the Union and RAB.

Bottom line is he must go! Start the paper trail.

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in addition to what Mike said I would add, if she feels uncomfortable she should nt only wirte a letter but file a complaint with the police.
pg

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I agree with Mike, and the Email/Paper trail is essential. But your Manag company should be involved. Usually the Mang company is in charge of the staff and they know the Union rules. Also the woman should speak up now, as oppose to when the problem is out of hand.

We had a similar problem and the EMan was transfered to another building... Perhaps our problem now workes in your building.....
VP

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The person complaining should put it in writing, if it is a union bldg. any action taken against him might not hold up because you need proof of complaint. She might not be the only resident so be careful.This should not be tolerated and the most severe penalty allowable should be issued. Perhaps some educational training is in order.

RH

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I am a Super/Resident Manager. What you need is a paper trail, this lady needs to go on the record and this person needs to be reprimanded for his indecent behaviors. I would do all i could to get this low life out of the building.

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Abuse of Board Authority - Anonymous Apr 27, 2008


Hello:
I serve on a Board where two members feel it is their duty to police the building and direct the staff.
One of these members thinks it is appropriate to discipline her neighbors on things like trash disposal. She also has, on at least two occasions, publicly disciplined security officers on duty.
Both of these members routinely assign tasks to staff members.
I have been diligently advising the Board President as well as the Managing Agent about protocol in certain situations, e.g. the role of Management and the role of a Board Officer.
I maintain that the role of Board Officer does not include supervisory duties in day-to-day operations. At the end of the day, we are all neighbors, these delicate issues better left to Management to handle.
Any thoughts/experiences?
Thanks

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depands on how truly well managed your building is and staff are. It may be that they really are not that well supervised since a building manager is not on site except rarely. This really depends on a building though in an ideal world you are right. In our building the Super and staff is constantly doing private jobs in people's apartments during coop paid hours and the Board is hands off though it is not an ideal situation for obvious reasons. . what can we do?

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Board members must always be above the fray.

Only if there is an imminent safety hazard should a board member intervene.

I’m on the board in my co-op.

If a light bulb fails, I notify the doorman. (But, I also notify the building manager as some workers tend not to report items.)

If a security guard is asleep, I will notify the supervisor and the building manager.

If a car speeds through the garage, I notify the building manager.

If a vendor creates a hazard or viuola6tes our policies, I’ll notify the building manager and if need be our security staff.

If the trash overflows the waste bin in the mailroom, I’ll notify the doorman and I’ll pass a note to the building manager.

If the building porters fail to put down mats in the elevators during inclement weather, I’ll notify the doorman and I’ll pass a note to the building manager.

I never chastise a resident. But, I’ll notify the doorman of an event and I’ll pass a note to the building manager.

Kindly note the behavior, e.g.: always notify someone.

Hope this helps.

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The board's job is coop governance, not overseeing day to day operations in the building or disciplining residents.

If, however, a board member see something that needs repair or correction in the building, s/he should tell the super.

The super should supervise building staff and direct them on what to do but he or any maintenance staff member should be astute enough to replace a burned out lightbulb or sweep up a mess in a hallway without being told to do it.

If a board member sees that the super/staff aren't doing their job or taking proper care of the building, or knows that a specific resident is not complying with coop rules or causing problems, s/he should notify the managing agent.

To Barbara who said her super/staff do private jobs in apts during coop work hours and the board does nothing about it - your board should do something about it. I wouldn't want to know that our super/staff whose salary is money that I and all my fellow shareholders) paid in aren't working for it and are doubling their money on our time by doing jobs for some individuals.

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In the last twenty years I have observed perfectly normal people joining the board only to become egotistical dictators. It’s incredible how a little power can transform someone.

I agree that correcting the staff and reminding SH to follow the rules should be taken care of by the Mang company. This removes the Board from being accused of having personal agendas and conflicts with neighbors.

We now have one BM (young and inexp) that issues orders, thinks he can ignore the bylaws, and insults BM who are older, successful and nice. He has been “reined in” and spoken to on three occasions – and for a while he behaves. We now work around him and ignore his ranting Emails – and personal (he hates his neighbor) agenda. The S/H are aware of his arrogance, and we hope he is not re-elected.

You can, as we did, have the most diplomatic BM speak with them and if that doesn’t work, have an intervention by the whole board. Good luck!
VP

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After spending most of my adult life in residential property management it was a surprise to me when the newest group of elected board members decided it was time for new horizons. I guess having lasted for 20 years and 20 boards I had nothing to prove. I do have to admit when I took the job I did so with the full understanding that it was at my own peril. You have to admit being a property manager is more akin to managing the Mets than, I guess the manager of the Mets.

I guess the first thing I would like to say to my fellow managers is this, there is life after residential property management, for every co-op, or condo there is an office building, a shopping center, or a mall. These buildings also require skilled property managers, professionals who expect to be treated like a professional in a professional atmosphere.

Imagine just for a second, being answerable to a select few professional peers, not a jury of volunteers.

Steering the Buick back onto the road (and the point), the point being this, it is my expert opinion that the role of a board member is more often than not used for the building of ones ego rather than that of sound business practice. What is it they used to say on TV, only the names have been changed to protect the innocent? They say only a fool defends himself, I would assume even one more foolish would believe themselves to be the ultimate manager, doorman, handyman, and porter rapped up into one unit called (gulp), Board President.

What it boils down to this, a Board Member, Board President, Grand Puba or whatever you call him/her is an ADMINISTRATOR. For those who never passed Business 101, an ADMINSTRATOR deals with LONG TERM GOALS rather than DAY TO DAY operations.

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I've only worked with one, for three years as Board President.

I had the utmost respect for the depth and breadth of her knowledge, the work ethic she brought to her job despite long hours and 24/7 availability to the multitude of buildings she managed, her sense of humor in crises, and her steadfast support of our co-op's short and long-term goals, no matter how hard or fast we were pushing.

Sorry to read you've been so mistreated.

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Get all the shareholders together and vote these members off the board. They obviously do not know what they are doing or are supposed to do. Why not hold an early election and get new members who might actually handle themselves with professionalism?

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Being that I am a full-time Super/Resident Manager. It is in the best interest of the building for the B/M to remain on the sidelines. Set up a maintenance committee or other committee's to address building concerns. We know how to operate and maintain the building, advice and suggestions are always welcomed. But who goes to the surgeon and tells him how to operate.

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Fuel Cell - Anonymous Apr 25, 2008


Hello - I've been doing some preliminary investigation recently into the practicality of power/heat/hot water cogeneration with a fuel cell and, after seeing the article here on microturbines, thought I'd post to see if anyone else has looked into this and has any experiences they can share?

Based on my research so far, I see that natural gas fuel cells exist and can generate power into the 200-400 kW range plus 900k BTU for hot water. Between any applicable city/state/federal subsidies/tax breaks and selling any surplus power back to the grid (if Con Ed allows that), I'm hoping this will prove to be a feasible idea.

Thanks,
Henry

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I would be interested in obtaining information on this if you can direct me.

Also, check out
http://REAPConsultingLLC.com
and click
The Future of Energy Management

~AR

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SCHE - RLM Apr 24, 2008


According to a Habitat article on tax abatements,

"New York State Senior Citizen Homeowner’s Exemption (SCHE).
If you are 65 or older, and your federal adjusted gross income minus unreimbursed medical expenses is less than $35,500, you may qualify for a five to 50 percent reduction in the assessed value of the home. When the assessed value is reduced, the total tax bill is automatically reduced as well."

I took this to mean that shareholders 65 or older can claim the SCHE... but I seem to recall that our Sponsor gets a sizable check from the co-op at least twice a year (most of his tenants are 65 or older).

Why would this abatement attach to a corporate entity? Is it because the principal is over 65 and he owns the apartments (shares) in which the older tenants reside?

I haven't wrapped my mind around the best answer... anyone know? Am I misremembering this and it's some other acronym?

Thanks, appreciate any ideas.

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Answers right here on Habitatmag. com - Web Editor Apr 23, 2008


We've run a few articles addressing this very problem. The most recent one is "Kitties 'n' Canines in Co-ops 'n' Condos," at this link:

http://www.habitatmag.com/publication_content/habitat_s_purchasing_primer_news_for_new_buyers/kitties_n_canines

but if you do a search for "Pets" in the search box above, you'll find a slew of pieces that will help. You'll find there are good and even revenue-enhancing ways of establishing good-pet policies. Good luck!

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House Rules Dogs - White Plains, NY Apr 22, 2008


We are a 6 story mid rise and have cameras in our elevators yet still dogs pee on the elevator carpeting and we can't prove who's dog(s)are doing it. We are considering a move to non-carpet- kind of rubber floor covering, which is too bad as it's not as nice. ...........So, I am wondering if anyone has ever heard of a co-op charging a nominal (like $20) annual fee for the privlidge of having a (board approved) dog in the building? If it's wacky idea I don't even want to bring it up to my fellow BODs. My thought is that that $400 a year might put new covering in the elevators...and they'd be paying for it vs. us non-dog owners. Thoughts anyone?

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I don't think this will be possible if the dogs are board approved pets and in residence. You may be establishing one for new pets, but then you won't collect $400. YOu'll have to wait many years for those dogs that currently live in the building die and are substituted by new ones. In such cases, a "no dogs" rule may be the best way to stop incontinence.

AdC


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I agree with AdC. A no-dogs policy may be the only way to go. You said you have cameras in your elevators. Can you adjust them so the area closer to the floor where dogs are can be viewed? Or reposition them so you get an aerial view of the elevator that will include people and dogs. Also, what will you do if/when you find out whose dogs are peeing in the elevator? If you don't have a house rule with a fine in place for this, you should enact one.

Too bad you have to replace carpeting if that's what you prefer, but an elevator isn't the best place for it - too much foot traffic, the nap flattens and it wears quickly. Keep in mind that a rubber/vinyl floor covering won't be good if you have dogs peeing in the elevators. It's porous, dog urine will permeate it, and the odor will linger. Not very good, especially in a confined area like an elevator. If you replace the flooring, go with something that isn't porous, or you'll be replacing it often because of the odor (and staining too).

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assessment/tax rebate: by-law - queen latifa Apr 21, 2008


So this is in our bylaws and it looks like we cannot have an assessment when there is a tax rebate - without a vote. Anyone run into this? (our sponsor owns about 20%).

"So long as the Sponsor or the Holders of Unsold
Shares continue to own any percent of the then
Outstanding shares of the Apartment Corporation, the
Apartment Corporation will not impose upon the
shareholders any assessment whatsoever except by
affirmative vote of one-hundred (100%) of the issued
and outstanding shares, unless the Reserve Fund has
first been reduced to a sum of $15,000, or such sum
has been irrevocably committed for other improvements. "



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Do you automatically place exce4ss funds in the capital reserve funds?

Do you not separate ordinary income from capital improvements for “tax purposes” for the owners? Your CPA should be advising on this.

Do the bylaws elsewhere stipulate that there are to be several reserve funds?

If yes, then capital reserves and ordinary working capital reserves need not be commingled and should not be commingled. Again your CPA firm should be offering counsel. Thus, if there is a need for capital improvements, one can ensure that there is less than $15,000 in the “capital” reserve fund after the board commits to spend it, regardless if a contract has been signed for the capital work.

Again pass this through the corporate counsel and CPA firm.

And, maybe plan on changing the bylaws to more clearly state the restrictions and to reduce 100% to something tolerable.

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anyone: bulk cable? need to talk - st Apr 20, 2008


input and advice needed regarding this for UWS coop. thanks. bulk arrangements with RCN, satallite, , etc. thanks!

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Management / PEO - Mike W. Apr 16, 2008


Anyone with experience using a PEO or Professional Employer Organization? I cannot find anything in Habitat's archives. Our Managing Agent is understandably hesitant, but prospective PEO is offering substantial cost saving for health benefits policy for staff of 2 (non-union) as well as payroll service. We retain final authority to supervise and hire/fire. Any downside to outsourcing ?

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