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Habitat writer needs help on story - Frank Lovece Oct 30, 2013

I'm writing a story about co-op boards that have found ways of working with a really, really objectionable shareholder to avoid evicting him/her under a Pullman action.

I'd like to speak with a couple of such board-members to get your firsthand, real-world experience in this.

Anyone interest in helping other board members learn from their experience or mistakes, please contact me at flovece@habitatmag.com and we can set up a time to talk by phone. Thanks.

> Join the conversation Comments (3)

Dear Daniel Hardison: We have the same case here, only worse. In addition to supporting his family in the princely way to which they grew accustomed, he extorts money from us for every little repair job (to cure disrepairs that he himself causes). His two sons (grown up men in their 30's, one of them living with his parents in a free apartment) also participate in the grafting, in addition to regularly breaking into my apartment to steal things. His wife comes up to our door at midnight to insult my wife ("fuck you") for having denounced her son. We are subjected to all kinds of humiliations, extortions, harassments, etc, and the president consents to this. The super is a Hungarian who came to this country 20 years ago, and already owns 4 apartments in our building and 2 houses in PA. Success story from Communist countries inmigrants who came to America to live the American dream: to ruthlessly enslave and exploit the American naive idiots...We need a class action lawsuit. Please write to me, I am sponsoring one. g5grosof@msn.com. Concerned Citizens for Coop Reform- 1 347 321 8009

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Why not write a story about boards who threaten and harrass "objectional" owners who complain about corruption?

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I think you should contact us the abused shareholders. We can tell what the board should not do. A coop is a home to a family and it needs to be protected. But it is actually a club where we buy membership to be abused and destroy financially. Go to COOPABUSE.COM to read horror stories or email me and I will send you info about how I have been dragged in court since 2009. I had to stop by eviction 3 times. The board, in a luxury apartment in the Bronx (Riverdale) published my eviction as a better important notice in their website. But they did not published when the judge told them that I was here since they 1987 and it is impossible that I just became a trouble maker. They just want my apt because the sprinkle check valve in inside (which was hidden behind the wall when I bought it). The fire dept needs access to the valve to conduct a high pressure test. They want to take my apt without paying for it. They keep adding legal fees and other fees. I do not owe a penny to the, For some reason the target shareholders with no mortgage. Believe me we will be in court forever. In your report them them THEY SHOULD NOT STEAL NEITHER HARRASS. Email me at ROSA.NAZAR@GMAIL.COM if you more info for your report. Anybody else feel free to email me too and resgister with COOPABUSE.COM to stop the abuse.

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Board Meetings - Joyce Oct 25, 2013

Our board has frequent meetings whereby they order lunch not only for themselves but family members are seen carting multiple take out bags back to their apartments. This is not the only means of corruption they have and because I have exposed much more serious corruption, I am constantly harassed by renters banging on floor above me and lifting weights in middle of night – the last renter who did this was rewarded by a seat on board. If this continues, I will be posting more of their corruption.

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I would check the bylaws to see if renters or anyone else rather than shareholders and sponsors are allowed to serve on the board. Also, board service is unpaid, and the board should not be ordering food for anyone, including themselves, paid for by the building.

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The previous tenant above me bought a unit and was promptly rewarded with a board seat.

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This happens regularly in our Coop: who ever is the latest Coop owner (who bought directly from the Sponsor, the only one still selling units here), gets immediately selected and seated on the Board by "acclamation". It's the standard procedure in Sponsor-dominated boards, so that he, the Sponsor, can continue with the domination forever, running the Coop as an unregulated rental business (for transients). Our sponsor has been in charge (total undisputed and unchallenged control) for more than 25, since the creation of the Coop. This phenomenon is very common here in Riverdale-Kingsbridge area of the Bronx, and is called "The Sponsor in Perpetuity Syndrome": it is the root of all evils in the Coop calamity. It has been outlawed since the Jennifer case ruling, but it continues unabated. These people are outlaws, subverting the American system of home ownership, grabbing enormous ammount of equity, demolishing our basic Constitutional civil and human rights. We need a Class Action. Please write to me. g5grosof@msn.com - 1 347 321 8009

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If they are stealing food, they are stealing much more. You should get a forensic auditor and try to make a deal to give them a percentage of anything recovered.

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At Towers on the Park, in Manhattan, our board gets free pizza, salad and drinks every meeting, paid for by the condominium. When I was on the board, this practice bothered me, so I reimbursed the condo for anything I ate. I was only board member ethical enough to do so.

We have one board member who has a bike in the bike room, and with her cronies refuses to entertain any effort to raise the annual bike-room fee, which has been the same since the condo opened 25 years ago: $25 ... roughly $2.08 a month! I find this corrupt and self-serving.

At least one and possibly other board-members here also jumped to the head of a nine-year waiting list for storage bins earlier this year.

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> Join the conversation Comments (2)

Hi Frank,
I frequently hear about self-serving board members and am not surprised at members not wanting to increase bike storage fees due to self-interest. I am also not surprised at board-members jumping ahead of storage waiting lists. What I don't understand is why wouldn't you try to do something about it.

We recommend to take over the board and start running the building like a business. We have helped shareholders straighten these types of things out, at the same time as reducing expenses.

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> Join the conversation Comments (1)

My building's board used to meet in restaurants, bars and pubs. When I got elected, it all stopped. On the other hand, I pushed to enlarge our bicycle storage space and charge a minimal fee of $2 month. The basement space is not conducive for other use, and by keeping the bikes out of the elevators, hallways and apartments, the reduction in scratched walls, paint chips, etc. is worth losing a few dollars. The bike room and basement exits directly to the exterior of building.

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The coop corruption is a plague which needs to be eradicated. We have no protection for our home under the law. Housing neither Bankruptcy courts protect us. We need to work together to stop the abuse. Check COOPABUSE.COM to see coop horror stories and register by leaving your email. We are meeting with politicians to make them aware of our problems and pass legislation to protect our coop home. You can also email me at ROSA.NAZAR@GMAIL.COM

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I have see the same happen in a building I managed. How fitting that the landscaper that takes care of the common areas is the same one that takes care of the board Presidents terrace. It goes on and on (management look the other way as they do not want to ruffle any feathers) Unfortunately it happens all too often. These people need to ask themselves why am I on the board to serve the building needs or my own? Best of luck
Bob

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> Join the conversation Comments (1)

They are on the board obviously to serve their own needs since they saw a good money making opportunity. Even before the sponsor left, our board manipulated and strategized getting their group on the board, they slandered anyone who could help and don’t allow anyone, except for the most dense, to run for office.

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I have read that the average board meeting is two hours, yet our board meets monthly for five hours. I suspect the time is spent manipulating and strategizing how to reward followers and punish detractors also how to manipulate elections, etc. One example is that the board’s contractor while working on an adjoining unit cracked my patio in half. They have refused to fix it as I am a whistleblower owner. Yet they recently fixed the patio of a renter who, I believe, was responsible for his own damage as he continually left his door open with his air conditioning running and I have seen other air conditioning units damaged by doing this. They never look beyond who they like or dislike, therefore, are not bright enough to establish liability in these situations.

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Monthly five hour board meetings are certainly a cause for concern. Do you check the minutes??

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Water Meters - Can you install and charge shareholders on Usuage - DRCure Oct 21, 2013

Has anyone installed water meters to monitor apt water use? Has anyone done this and actually billed the shareholder for their prorated water bill amount? We are just thinking out of the box, but wanted to see if this is common.

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It is my understanding that it is cost prohibitive for older buildings and most buildings don't have enough room for individual meters. However, there are several water billing, auditing and monitoring companies that can look at your water bill and building to see if there's anything you can do. We're advising on a building that is going to change all toilets to low flow, and install a devise to reduce the water usage in showers and faucets.

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Most water pipes (risers) in older buildings serve more than one apartment, so you couldn't determine the actual usage without installing numerous meters near each unit, not just in the basement. My unit has 2 pipes for hot water and 2 pipes for cold water to feed my kitchen and bath, so 4 meters would be needed, if you could get them installed.
The lease probably provides for inclusion of water and heat in the maintenance charges, so you would have to be able to change the lease terms as well.
.

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property tax assessments - Alan F Oct 19, 2013

1. I am looking for a consultant to review my Co-op's property tax assessments, the City's comparables in its database and our offers for reduced assessment we have received and accepted. I am not looking for someone to take over our property tax challenges. Any ideas?

2. A related question is I am looking for a third party database of reduced Assessments for Co-ops since nearly every co-op challenges its assessment and probably receives some offer of reduction. There must be a systematic database of that. Hopefully a consultant I would hire would be familiar with that.

3. i'd like some suggestions for new counsel to challenge our 2014/15 assessment but more importantly I'd like to know how one can measure their performance if every co-op challenges and gets an offer of reduction.

thanks for any help you can bring on this subject.

> Join the conversation Comments (1)

My coop has been filing the appeals with Podell for years, we received one offer for about $15k on a $3 million dollar assessment in the last 4 years. The entire assessment process is a disaster. Old homes in stable neighborhoods are at fmv, while up and coming areas are no where near fmv (or sales price) and will never get there with the current caps on assessment increases. Some private 2 family homes in my neighborhood pay less taxes than 2 bedroom units in my prewar coop. How are coops considered to be commercial property when they are full of low and middle income owners?

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NYC's NEXT MAYOR - Alfred D. Oct 16, 2013

The only candidate speaking of an issue near and dear to coop owners hearts and wallets is Joe Lhota, who has stated that the way in which coop apartment building values are assessed is unfair.

FINALLY! This issue needs more attention.

We coop owners have been hosed over the last 10 years.

What do you think?

> Join the conversation Comments (4)

It is an issue that needs to be addressed. We have seen our real estate taxes increase significantly year after year.

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Well, no argument there. Our condo apartment's taxes jumped quite a bit this year -- under a Republican mayor. Although even our Manhattan taxes are less than for houses valued less in some parts of New Jersey (with a Republican governor).

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Oh those dangerous Republicans - imagine shutting down the government because they want to contain spending before raising debt. Let's just spend ourselves into bankruptcy and not worry about it.

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So it's OK to shut down the government every time you want to repeal a law you don't like? Really? That's not extremism? if you think it's normal to do that -- even after the Supreme Court OK'd it -- then people like you are the dangerous ones.

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I agree!

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Not a Republican. Those people are crazy -- they shut the government down because they didn't like a law that Congress passed, the president signed, the Supreme Court affirmed, and that withstood every other legal challenge thrown at it. Maybe 12 years ago a New York Republican was his own man, but now? The political landscape has gotten extreme -- even the moderates kowtow to the extremist wing. Republicans are dangerous

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We're not religious antiabortionists who vote for a candidate based on a single issue. We have a responsibility to look at the totality of a candidate, not just what's good for us, personally, in one narrow area.

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Your right to Home Occupations - Mathew Right Oct 12, 2013

New Rule Affects Home Businesses
Real Estate Q & A
Submit your real estate questions to realestateqa@nytimes.com.
Go to Real Estate Q & A

Connect With Us on Twitter
For news and features on real estate, follow @nytrealestate.
Q. Our co-op has a new house rule barring shareholders who have home-based businesses from having clients or customers come to their apartments. This is in direct conflict with the lease, which states that we may have any home occupation permissible under local zoning laws. How can we persuade the co-op board to rescind this rule? And if we can’t, what can the board do if we violate it?

A. If a new rule materially alters a shareholder’s rights and obligations, it may not be enforceable, because, it can be argued, it is an impermissible change to the terms of the contract between the co-op and the resident, according to Matthew J. Zangwill, a Manhattan real estate lawyer.

A co-op’s proprietary lease is the principal document that sets forth the dos and don’ts of daily living in a co-op, and the house rules are usually part of the proprietary lease. The lease, which is a contract between the co-op and the tenant/shareholder, usually gives the board of directors the power to adopt new house rules without the consent of the shareholders, Mr. Zangwill said. But a new rule would not be enforceable if it changed the terms of the contract.

> Join the conversation Comments (1)

All the NYTimes Q&A is saying is that the board cannot pass and enforce a new house rule if it conflicts with the lease. That's been a settled point for ages and is not news. Changes to the lease require approval by a super-majority of shareholders.

The interesting part is the question-asker's claim that their lease explicitly allows home occupations. That would be quite an unusual provision, if actually present. Our own lease is based on the same template as many co-op conversions from the early 1980s. There is no mention of home occupations or zoning, and the language in Paragraph 14 ("Use of Premises") explicitly rules out any use except as a private dwelling: "The Lessee shall not, without the prior written consent of the Lessor on such conditions as Lessor may prescribe, occupy or use the apartment or permit the same or any part thereof to be occupied or used for any purpose other than as a private dwelling ..."

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"...Notwithstanding the foregoing, (a) the Lessee may use the Apartment for any home occupation permitted under applicable zoning law, building code or other rules and regulations of governmental authorities having jurisdiction..."

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> Join the conversation Comments (1)

Nope, that clause isn't in our lease or the early 1980s-template used by many co-ops. If it's in your lease, however, then it sounds like you're covered and the board could not overturn it without a supermajority vote by shareholders.

You should ask a lawyer to confirm the zoning laws in your case. For example, the NYC Zoning Resolution states that a home occupation "occupies not more than 25 percent of the total floor area of such dwelling unit or rooming unit and in no event more than 500 square feet of floor area." Furthermore, you're only allowed one employee who doesn't live in the apartment. If you meet those criteria and the related ones specified in the zoning laws, and your lease contains the clause you quoted, then you should be okay, regardless of any house rule to the contrary. (I'm not a lawyer and you should definitely consult one if you plan to ignore a house rule because you believe it is unenforceable.)

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staff physically pushed and grabs a resdeint - ZZZ Oct 11, 2013

One of our staff members physically attacked a resident. There was no provocation or justifiable reason for it. He pushed the person and grabbed them He has a very aggressive streak having yelled at and blocked residents in the past. Should he be fired? He is not in the union.

> Join the conversation Comments (3)

Fired, immediately, once substantiating facts are ascertained. Do not say anything as you do not have to explain, give notice, or warning. Anything you say can be used in a lawsuit. They work at your pleasure as work for hire employees. Once your Board has decided and voted of course. Do not discuss with shareholders as you can be sued for defamation.

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If it is factual how could a resident be sued? However the staff member will lie about what happened (of course.)

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Defamation is only when statements are not based in fact. For a one time incident - for something that is factual - you cannot be sued for discussing. Defamation has a much larger definition. You should also call the police and make a harassment or assault report.

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Do your detective work. Find out what really happened first. Many times when I have been told a staff member/shareholder did such, I found upon investigation and talking to witnesses etc the events were different from what was reported to me. Get the facts first. Then act based on the truth.

Bob

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The word of a resident should always be given priority over the that of a staff member. Is the staff member related to any other staff members? They probably protect each other. Are some staff especially nice to Board members? That is often a reason these things are not give full credibility. This staff member should be removed from the premises immediately.

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Report him to the police immediately, let a detective from the precinct come and "investigate".

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Affordable Care Act Deadline Article - Joe Plumer Oct 11, 2013

Your article about what employers must due by Oct 1 should have listed this information - "Most small employers, those with 50 or fewer full time employees, are not required to offer health insurance coverage under the Affordable Care Act. Even businesses with more than 50 full time employees have gotten a 1 year reprieve from penalties if they don’t offer insurance. But all companies, regardless of size, are required to notify their employees about the Affordable Care Act marketplaces."

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Assessment? - Alfred D. Oct 07, 2013

Our coop needs to raise 500,000 dollars over the next year for capital needs, and is considering doing it through an assessment, which would equate to approximately $400 per month for the average shareholder. Pros and cons?

> Join the conversation Comments (6)

Hi Alfred,

I am glad it is not more than $500k. I have noticed that co-op financing has become more difficult recently (even with a co-op like my own with a fully amortizing mortgage in the next 10 years [read mortgage free in 10 years] with great finances). Here are some quick thoughts.

Pros:
No interest to pay by getting a loan (less expensive)
Not reflected in the maintenance costs (easier to sell units)
Gets added to the shareholder cost basis
A single event – it can be explained away

Cons:
Your co-op didn’t save up ahead of time and earn interest in the process (missed income)
Means you are not getting a loan: loan interest is tax deductible (but you pay more)
Surprise factor: while everyone knows that an assessment is possible, do your shareholders know that one is probable?
Not knowing your demographic specifics, $4,800 for 12 months may be more than some folks are capable of paying
You may not get reelected
You will have to explain more (tends to heighten shareholder interest in what you are doing with the funds)

It sounds like you have approximate 100 units in your co-op. I would counsel holding a larger reserve fund so that doing an assessment for this amount would not be necessary in the future.

Best of luck,

Steve

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It all depends on what the $400 is compared to the monthly maintenance. You have to consider the ability of your shareholders to pay that much more per month for a year. Our building had an assessment that amounted to about 20% of the maintenance for a 24 month period to cover major facade and terrace work. The 20% seemed to be the most we could charge before it became a problem for a number of people in our building. If the $400 in your building is more like 40% of maintenance then look at charging a lower amount for a longer period of time and put off the work if possible.

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Hi Alfred,
I agree with Steve. But have you considered trying to cut costs instead of assessing? Do you have a marble polishing contract that you could cancel? Brass polishing? Motion sensors in hallways and basement? Can you bundle your Verizon bill? I know of a building that increased cash flow by $250,000 over the course of just two years by simple cost cuts that didn’t initially seem to be significant. Then, if you’re lucky enough that your building has a cellphone tower lease agreement, you might want to consider selling that for an upfront payment. Those sometimes go for over $1 mm. Contact my website: www.thecoopblog.com

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How urgent are the capital needs, what are they? It sounds like a big burden for the average coop owner. Can the capital work be spread out over a few years, and do a $100 per month assessment? Some expensive items like elevator replacement, do one a year until done, roof replacement, possibly do a foam seamless roof on top of the old one, pointing, do the worst wall(s) first, top to bottom, then do the next worst the following year.

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How many unit(apt) r in your building.
What boro are you in?
Are u using gas or oil
I am be able to give you some idea on getting huge tax credits. You maybe to get 20% or more depending on questions I asked

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How many unit(apt) r in your building.
What boro are you in?
Are u using gas or oil
I am be able to give you some idea on getting huge tax credits. You maybe to get 20% or more depending on questions I asked

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flooded again - MK Oct 07, 2013

It is bad enough the the woman above flooded me three times. This time my storage area in the basement was flooded from a toilet malfunction in the apt above. Although the management is not responsible for damage to property contained in the storage area, shouldn't the person who flooded it be responsible.

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