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My Board has never disclosed the annual Budget to shareholders. Is this the norm?
H.
We receive the annual report, but not the budget, which shareholders might find informative, as it indicates projected expenses for maintenance, heat, staffing, etc.
We had a budget where there was a 30,000 mistake , not in our favor, for a expense that was constant every year.
I realized that the management company had to be farming out the financials to a party that was not familiar with the cost of items like yearly insurance.
It would be the same as if i budgeted $50 for the two cars auto insurance , with full coverage, and didn't think that was off.,t
he real deal is the financials especially the miscellaneous , where they hide a lot of stuff, especially since we hearof more and more coopos refusing to breakdown $50k to 1million in miscellaneous. what is actually spent, and when they refuse to disclose that, you know there is something going on. #1 it is the law, and #2 it reeks of fraud and corruption and being above any laws.
We need to have a coop of shareowners to check prices in our area as a a COOPERATIVE GROUP> and to check the work of the companies, start becoming real coops , and throw these management companies to the media wolves.
Media is a good way to expose these real estate companies. Many are also in the selling business and have many properties they handle, No one is going to buy ANY of their properties once this refusal to follow the laws and redisal for trqnsparancy, through in all the self dealing.
I would think it would be a tort if a pre conversion owner now is lossing 40% or more on their property because the true , not the fraudulent owner -occupancy ratio has been exposed, among other items,like refusal to show the financials. Especially when the sellers are senior citizens or disabled. i am starting to think that a regular law suit lawyer may be all that is needed, since the evidence has already been gathered, and the financials will be the fatal blow when the alleged upstanding owner of the management company is exposed for the madhoff like person he is.`I have a couple cases in thos bldg i am looking at that angle, one seller lost about 40%, and a board members mother bought the apartment. Due to his refusal to perform his due diligence and fiduciary duties , a family member gains. I do not think that would look good in front of a jury. Another board member bought unsold shares for a song, after 25 years of it being occupied by a rent controlled tenant. I havent had time to check if he was legally allowed to buy unsold shares.
We have to get aggressive with this corruption – since elected officials don’t listen – we must begin picketing them – especially now that Kathleen Rice is said to run for the Senate. She should answer for the fact that she doesn’t prosecute condo corruption.
I think you have a right to see it. Our co-op Prop Lease and By Laws say shareholders are entitled to an annual financial report, which is prepared by the co-op's accountant and includes the budget. It also may be state law, see BCL 624.
http://codes.lp.findlaw.com/nycode/BSC/6/624
I believe Co-ops are required to prepare annual audited financial statements, but the budget is not part of those statements. If a co-op is not sold out, the sponsor is required to prepare an annual amendment to the prospectus in NYS. Usually, the budget is included in that document, which would also list the unsold units and other investments of the sponsor. We usually provide copies of our budget at our annual owners meeting in the spring.
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It is amazing how boards think they are above the law. As far as I understand it is the law they have to sent a annual financial report. Coops are a complete fraud and the sad part is that we have no laws that protect our home. we can loose our home just because they add usury legal and other fees. We need to fight together to demand politicians to pass law to protect our home. Check out COOPABUSE.COM and register to get information about our effort to pass laws. Also email me at ROSA.NAZAR@GMAIL.COM because if we fight together we can finish with this abuse.
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