A thief is a thiesf alive or dead.

Um ... what about all the thieving board members in the rest of the story? Did you read just the first paragraph or something?

Dear Concerned: You are absolutely correct when you say that management closes their eyes and has deaf ears when the Board is embezzling funds from the coop's Corporation. Cooper Square Management is one of those Managing Corporations that do just that. They refuse to turn over financials to cover up for the Board. They do just what the Board wants them to do illegally against Shareholders. In one instant maintenance was refused to be accepted to start an illegal foreclosure on a Shareholder, the building incurred a large law suit for their actions. On the other hand Aris Properties resigned from the same building, when they were ordered to attack Shareholders with violations, when Aris Prop. wanted to collect arrears that were due by the same shareholders for two years the board refused Aris to send those certain shareholders letters demanding payment, but because these shareholders signed those members on the boards proxys they were allowed to remain in arrears while the building had shortfalls monthly to pay bills. These board members are affiliated with a construction company and all they do is sign contracts for major improvements to the building that cost more than it should, work is written up and charged to the building without physically being done. All the work is done by the same company without bids from other contractors. The corruption goes on and on, without intervention or regulations, after all even if it is a private Corporation there should be some control. Shares were written up and offered to the public who purchased apartments, their shares should be protected, why doesn't the SEC or some other form of government oversee and protect our interest whether public or private and offering is an offering why isn't the Attorney General getting involved? After all our coop's were approved and signed off through the Attorney General's office all offering plans go through his office, why doesn't his agency protect us? Crime is crime whether private or public.

DD--

You're right: sadly, some agents act as if they work for the Board, rather than for the building corporation/association. The consequences can be severe, as in the examples you cite.

Unless it's a sponsor or conversion issue (& sometimes even then), the Attorney General's office won't get involved; it's not in their scope of work. Instead, the AG will advise hiring a private attorney & filing suit. (We all know what that costs...& how long it takes.)

This situation has prompted state legislators to propose new laws which will create & fund a NEW AGENCY expressly to assist with co-op & condo governance. The impact will be profound, giving owners & Board members pragmatic options for resolution when some Board members--or professionals--breach the By-Laws or the BCL.

To read the bills, go here:

senate: http://open.nysenate.gov/legislation/bill/S7958

assembly: http://assembly.state.ny.us/leg/?default_fld=&bn=A11452&Summary=Y&Actions=Y&Memo=Y

To ensure these bills are enacted, write a letter of support to your own representatives, no matter where in New York State you live.

NOTE: Some parties--predictably--oppose these "Ombudsman Bills," claiming good Boards will be punished & the "new tax" will break the bank. Rational people that read the bills will conclude such claims are rubbish. Honest Boards that respond to their constituents will be left alone...& a total cost of $6, per apartment, per year, isn't likely to break anything.

I agree ... it is a new tax but that will save us quite a bit of money in legal fees in the long run.

The problem is that the bills have been in the legislature for 10 years and nothing has been done - It is desperately needed for some type of legislation to protect coop/condo owners - need publicity -can we all unite

I live in North Shore Towers a co op community with a budget of 43 million dollars that is run, not by the board, but by the management company. General manager tells board members what to do, not vice versa. Members probably want the title, but not the responsibility. We waste hundreds of thousands of dollars in legal fees because there is no government agency to help us. After casting 5 million shares in an election, I lost by 806. The board refused to do a recount and told me I had to go to court, which I did. My attorney charged $5,000 the board paid between $50,000 and $80,000.Our own attorney on retainer, Errol Brett didn't handle the case which occurs most of the time when we have litigation. No one can get an accurate accounting. Ultimately,the courts cleared the way to the ballots for a recount. What a waste of money. Mr. Brett was recently asked what the policy was to enforce a bylaw and we were told there is no policy. So now we have bylaws but no means of enforcement. I could go on and on with the nonsense that constantly goes unchecked here. We would gladly pay $6.00 each to help create a responsive governmental agency which would understand our communities and help us. Please support these bills immediately with letter writing campaigns and phone calls. Dianne Stromfeld

Good idea - suggest everyone write their representatives.

Great idea. If each of us could get 10 neighbors who in turn got 10 neighbors, etc. t0 contact all our elected officials as well as candidates, expecially those in a primary, we could put pressure on them to pass this bill. Also,send mail to Mike Kelly New York State Association of REALTORS®, Inc.
130 Washington Ave
Albany, NY 12210
Office: 518.463.0300 ext. 216
Fax: 518.462.5474
http://www.nysar.com/

The power of the people often can make necessary changes. for right now, let us all stop writing letters to each other and write to those who can help us make our lives tolerable. Let us fill this column with examples of success or failure we have had with p;oliticians. Perhpas together we can really get this going.

Being a Board President myself and after reading the proposed bill, I am of the impression that "good" boards have little to fear and a lot to gain.

This going to court all of the time is itself a hidden tax of ownership. One that I would like to see reduced under mediation & arbitration as potential alternatives to litigation. Furthermore, the education factor from a non-biased (or at least a less biased) state agency would be welcome too. In my corporation, I would welcome better educated shareholders and board members.

Even good boards would benefit by the additional potential for oversight as you know, complacency can lead, however innocently, to abuse.

I can see a gain for shareholders if Managers felt like they had someone looking over their shoulder occasionally too.

What is the downside – is it $6 per unit per year? To whom can my corporation write the check!