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Our issue is as follows: The sponsor is also our managing agent of a co-op in Riverdale. I am the last sale for the sponsor 2007. Upon joining the board the residential shareholders have really stepped up their game and are making changes, improvements, and driving forward a building that was at the sole mercy of the sponsor with 60% of outstanding shares (building went co-op84) with more patching and less infrastructure work.
This month we informed the sponsor of our plans to hire and engineer for a physical survey, conduct a NYSERDA audit, and implement a storage room, and garage upgrade.
We were making real progress changes like saving money in the reserve fund, making infrastructure improvements vs. patching etc – real change is hard to find.
Today - The agent has informed us we can no longer receive any cash report, rent rolls, or even advise who didn’t pay their prior month’s maintenance or any financial reporting until the third Friday of each month – this will slow us down and reduce our planning position – we like to reconcile internal books vs. the agent and ensure our cash flow can meet our set targets, money has been deposited into reserve, and bills paid correctly. – Yes they comingle our funds with other buildings.
Is this normal? Please tell me your managing agent and how long it takes to receive the monthly financial reporting?
We have come so far, and need a good comparison to escalate the issue.
Thank You all for any comments.
David, can you e-mail me (mblevine@ebmg.com)
Thanks.
It sounds like David G's coop has been doing great, but now needs a new management company. They are supposed to be guided by your policies, not the other way around. Easier said than done though!
Has your coop become a member of Association of Riverdale Cooperatives & Condominiums? They might be of help. The website is www.riverdale-arc.org
Good luck!
p.s. Our monthly statement isn't sent to the Board unti the LAST week of the month.
Hi David!
We usually get out draft monthly financials within the first week (we are expecting our July ones today). We have a period of comment then we get the final ones for our monthly Board Meeting, the third Wednesday. Our reports arrive in PDF format right to our email inboxes.
I hope this information helps!
Steve
the management company we just got rid of delivered our monthly financials around the 25th of the month. Our new company has them out to us between the 6th-9th of the month.
that was just one complaint against our former company.
some others were: losing $250,000 in flip taxes--blaming the bank then finally admitting that they sent the flip taxes back to the sellers of the apartments. all but $27,000 has been recovered (one person is playing hardball and the mgt company will have to make it up).
after they were informed that they were being let go they stopped paying bills and caused a lot of ill will with vendors and contractors; because they had a board member in their back pocket they knew they were going to be terminated and promptly resigned which meant we had to keep them for 60 days instead of 30 and they demanded that extra month management fee or they would hold our records hostage.
we also found a binder with a "partnership" proposal for an outside security company to take over the security function from our in house security force.
SO THE ADVICE WAS CORRECT...DON'T ASSUME YOUR MANAGEMENT COMPANY HAS THE BEST INTERESTS OF YOUR BUILDING ...MAKE SURE YOU COMPLETELY RESEARCH (AND SPEAK TO BOARD MEMBERS FROM OTHE BUILDINGS MANAGED BY THEM) ANY COMPANY THAT YOU INTEND TO HIRE. IT WAS A COSTLY LESSON FOR US.
David G - If your bld went coop in '84 and your coop plan stated that the sponsor had to remain as managing agent for the coop's five 5 years, then you should have gotten rid of the sponsor as managing agent in 89.
First - I'd suggest you research, interview and get a new management company ASAP.
Second - Maybe I misunderstood you, but your residential SHs shouldn't make decisions to hire an engineer, initiate bldg projects, etc. If you want their input, fine, but these are decisions the board should make.
I want to clarify - The Board is responsible for setting policy SH can provide comments, recommendations, but we don’t allow them to initiate actives outside of board approval etc. Sorry for the confusion.
Thank you for your comments, we have a clear theme, the time has come research and move on from the managing agent. I will discuss with my fellow residential board members.
David G - Sorry, I accidentally hit "send" before I finished my reply to you. I'd said: first - get a new management company ASAP and second - your board should be making decisions on getting an engineer, initiating bldg projects, etc., not your SHs. Picking up where I left off......
Third - As long as your sponsor is managing agent, it sounds like he'll put a stopper in anything you try to do, if you let him get away with it. If he doesn't have majority control of your board, you can hire whatever management company the board wants to hire.
Four - As managing agent, your sponsor can't tell you when he'll give you financial info or withhold info. The managing agent works for the board, not the other way around. And he should definitely not be co-mingling your coops' funds with those of other bldgs.
In our coop, we get a monthly management report with owner payments, aged payables, bills paid, funds in accounts, etc. for each month by the 5th of the next month. Also, we (the board) can call our managing agent or his company's accounting dept at any time and get replies to any financial questions, such as did Owner X pay his arrears yet or how much to date is in our reserve fund.
The coop's management agent/company works for the coop. They can advise, recommend or make suggestions, but all final decisions should rest with the board.
If you want your monthly financials earlier than your sponsor, as managing agent, wants to give them to you, tell him so. He should have been out of this role years ago.
Start looking for new management now. The longer your sponsor is managing agent and controls you, for every step forward you try to take, his involvement will only result in your taking two steps backward.
Your reply re the sponsor as managing agent is a good one for all board members about their management companies -- especially new directors, who often don't understand the dynamics yet and think the property manager's position is the final one. Even seasoned board members sometimes let everything be decided by the property manager, actually believing (or convincing themselves) that's the PM's job. Things can get out of hand without anyone noticing (even the PM).
Hi David
I commend you, that you joined the board a year after you purchased your apartment. Our building is 33% owned by the sponsor, and they were our managing agent until a year ago. After a long search we finally switched agents, it wasn't easy to find a good agent that would take over from a sponsor management. since then we have had substantial improvements. Our Monthly report comes on the 15 of the month, we have the option of email or hard copy sent to us. However if we ever need any information earlier they have no problem giving it to us.
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First, congratulations on getting out from under Sponsor control. It sounds like you're making great progress in improving your building.
"The third Friday of each month" is sometime from the 15th to the 21st. That's a little late, but not too bad. Most management companies (including ours) aim for no later than the 15th, and are sometimes a little earlier than that. However, you should always be able to have specific questions answered almost immediately if necessary. "Did Mr. Jones in 9A ever get around to paying his overdue maintenance last month?"
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