Subscribe for Daily Updates!
After 7 years my CoOp raised the garage rental 3% which is $2.40 total monthly garage rent is $82.40 The building can only have 36 spots available out of 150 families. The reason for this very low rental is because 5 out of 9 on the board has spots. This a quorum so for all these years they have not raised the garage until now. Why? To shut up the majority in the building thinking we all are idiots thinking that we all don't take this as an insult. The waiting list is about 12/15 years to be in the garage. These 36 renters feel we who are waiting or some who don't even drive are subsidizing the garage. So every year they raise the share holders maintenance to 3% and takes an assessment of 9.45% or $115,000. But they are a bunch of idiots because they get a raise also. To try to change this board is to vote out the quorum. In the mean time how do all 119 share holders try to have them raise this rental to market value? Monthly passes on the MTA is over $180 a month.
Join the Conversation Comments (2)
I agree with most of what Marty advises and suggests, and I'd like to offer some of my own opinions.
The overhead costs of parking spaces should be born exclusively by the s/h who currently occupy them. Costs include lease payments (if there is any sort of lease agreement with an outside property owner), physical up-keep (repaving, re-striping, snow removal, etc), security, taxes, etc. This cost should not be split across all s/h because only a select few s/h benefit from the use of the spaces.
The co-op may choose to raise revenue by charging more per month than the overhead costs. This is perfectly acceptable.
There is a way of forcing a board to take actions they may not agree with. Most co-op bylaws (or maybe the proprietary lease) have a provision whereby 20% or 25% can sign a petition requiring the board to hold a special shareholder meeting for a specific purpose. In your case, the purpose would be to vote on a motion to modify the rate structure for renting out parking spaces to shareholders.
Carefully consider what you want to accomplish, canvas the rest of your shareholders to see how many would go along with the motion, and then get the petition signed. BEFORE YOU TAKE ANY ACTION, MAKE SURE YOUR BYLAWS OR PROPRIETARY LEASE ALLOW YOU TO CALL A SPECIAL MEETING, AND MAKE SURE YOU COMPLY WITH ALL REQUIREMENTS FOR A SPECIAL MEETING (and yes, I'm shouting because this is extremely important).
As Marty suggests, there is always the option to put forward a slate of shareholder who feel as you do. If you're elected you can change the parking space rate structure, and probably a number of other things that need to be modified.
Just remember that nothing will change unless you and like-minded shareholders are willing to walk the walk after you've talked the talk.
Good luck!
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
I can only comment based on my Board experiences.
This can be a tricky situation for a Board and I understand your feelings about the situation.
We try to keep our parking rates below market rates because we are trying to help our shareholders (s/h) save $$ on parking.
Having said that, you have 36 spaces, which is just 24% of your total shareholders. 31 of those 36 spaces (86%) belong to non Board members.
Needed revenue for the co-op should come from as many s/h as possible, so I understand the maintenance increases and assessments since they are paid by all s/h. In the past, we have sometimes raised parking space prices as a way to get more revenue.
Parking space decisions are made by the Board and it is their prerogative. If you don't like their decisions then you certainly have the option of voting them off the Board.
I'm not sure if all 119 s/h can force the Board to raise the parking fees. As I said, this is a Board decision and the Board is elected to make decisions on behalf of the s/h.
You best option, if you feel this issue is that important, is to elect new members to the Board who agree with your viewpoint.
Good luck and try to stay calm. Being angry won't necessarily change anything.
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.