1. Join the crowd.
2. Sell and get my famous Wennebago or camping tent.
3. Offer your services as the Co-op Agent and quit your job.
4. Act as the paid Consultant of the Board with power to override bad decisions. Let the board do the work.

AdC

I would also like out, but have not found a way to extricate myself, short of packing it in and quitting.

It seems there are many bomb throwers but no one willing to step in actually do the work of a board member.

I would love to walk away but also find it difficult.

And this is exackly why, we need to bind together and get a few laws changed. Starting with manangement companies.
Email, has forced our Man company to work. Man companies assign one agent to too many buildings, but in the past, they had to do very little. And, in general no one was watching what they were doing. They often play along with BM who keep their paychecks coming.

CoOp owners have always looked like the priviliged, but our building is in a five star neighborhood, but is still basically a working-persons building. So we do have SH who are interested in the botton line.

But it took four years, of a few of us sticking together to boot out board members who ran the building as their own townhouse. Keep sending Emails, (anyone not doing their job or not playing by the rules hates the Email trail) Save Emails and SEND EVERY CORROSPONDENCE TO EVERYBODY... We found that if you send an Emial to the Pres of the Board and our Man agent, generally it was ignored...Believe me, if we can do it, anyone can....

It's disheartening to read such sad stories about shareholder miscomprehension, professional incompetence and an absence of interest to serve.

Your building can be run differently, and well, but it will take people who are committed to change and honesty to serve. Sound out your neighbors to see who wants a better place to live -- AND who can work as a team, commit some time, and remain honest.

My building, luckily, has a history of honesty. Our previous property manager was scrupulous -- so much so that she and the super would each speak to potential vendors alone, to see if they would offer a bribe to one or the other. Those who did never got contracts. Oversight with the funds and checkbook are critical. Our managing agent has a controller who keeps the book, but our board also retains an independent CPA who verifies all the accounting.

Can things get through? Sure, they can. Nothing is perfect. But we make it clear to staff that we do not tolerate cheating of any kind. Maintaining that standard requires board members who themselves are committed to it.

A point about shareholders. Not until a few years ago did our building even conduct interviews of potential buyers. As the interview procedure has evolved we have used it primarily as a way to explain to buyers (almost all of whom have never owned a home, let alone owned shares in a co-op) that the board is, in fact, the landlord; that shareholders do not, in fact, own their apartments; that safety (from accidents, trespassers and lawsuits) is of paramount concern to the board because accidents can be extremely costly; and that maintenance fees will never go down until inflation does too (i.e. when pigs fly).

A regular newsletter helps to remind shareholders of these points in a friendly format.

All of these things take time and, corny as it sounds, moral standing. (Serving on a board makes me realize why so many companies are so poorly managed: Good managers are truly tough to find.)

As I tell shareholders who don't seem interested in the co-op, "My apartment is my biggest single investment and maybe yours too -- if you want any investment grow in value, you have to take care of it." That means maintenance increases to cover rising inflation, assessments to fix a leaky roof, and strict oversight of renovations.

I find that most shareholder misunderstandings come from one of two erroneous points of view. Either they believe they own the physical apartment (and so ignore the board's legal & fiduciary obligation to oversee it), or they believe the maintenance fee is no different from paying rent (and then blow a gasket when the fee rises to cover costs -- THEIR OWN costs, of course). Explaining the difference calmly can make a world of difference to the board.

Steve, you call for something many people forget, "TRUST" in whom you elect. Many shareholders don't understand that TRUST is an important aspect of board representation.

A large % of participants' greatest problem seems to be placing "TRUST". For example, the increase of maintenance and assessment is seen as poor judgment. Mangers seem "INCOMPENENT" or "CORRUPTED." Superintendent are judged as "BEING LAZY", "TAKING ADVANTAGE", etc.

Well, with such attitudes or prejudices, "who can walk on water?" Obviously, being happy with management, the superintedent or a board means to understand their responsibilites and work scope and have specific measures to assess for their individual performances.

However, "TRUST" is important to build a good foundation. Boards should build trust by delivering their part: (1) business procedures that are sound and enforced in all areas by professionals and staff. (2) Open and honest communications with shareholders. (3) Taking the "hardball decision" when required. (4) SERVE above all since they were ELECTED at the PLEASURE of shareholders.

Once you have TRUSTING shareholders and boards who build TRUST the result will be a solid Co-op.

AdC

You're absolutely correct, AdC.

Trust is undeniably critical in leadership.

Most co-op shareholders need plenty of reassurance that the maintenance fees they pay are going to good use. (I'm assuming that a co-op is well run and without waste.) How many people balance their checkbooks? If that's too much hassle (I don't balance my own, I admit), then it's too much to ask that all our neighbors understand corporate finance.

Part of the solution is regular communication. Run-of-the mill stuff can go in a conspicuous public place. We find the elevator ideal for construction updates and whom to contact during the super's vacation.

Sensitive topics can go out in the mail, either from the property manager (a reminder to follow recycling rules) or from the board (explanation of new house rules).

All of these notices can help to remind people how their money is being spent (on the construction; on recycling fines; paying for someone to cover the super during his vacation).

Some boards go as far as allowing shareholders to attend a portion of the board meeting.

And always leave a phone number or e-mail address so residents can contact a board member. When they do, reply!

Trust goes beyond mere communications. In fact, I will disagree to what you proposed. HATE things posted on elevators to be exposed to visitors and potential buyers, letters from managers and the board as general reminders, etc.

When I wrote my message, I meant HUMAN TRUST and KNOWING function. Example:

When we go to the POLICE, we place TRUST in this enforcement body because it is our understanding that their BUSINESS PROCEDURES (enforcement procedures guided by the LAW or CODE) will lead to some GOOD (PREVENTION, CAPTURE, SURVEILANCE ETC.) so that ORDER is again imposed in society.

Thus, boards need to develop and/or review periodically its business procedures that will lead to some good. Sound procedures established and periodically reviewed by the board are translated in good management, good response from the employees, good admissions policies, etc. All of those things that chatroom visitors complain about here.

Apparently, there are many individuals that post messages here, i.e., Alice T, Big AL, etc. whose level of TRUST in the BOARD is minimal.

However, WHO WANTS TO RUN FOR A BOARD when the trust level is minimal? when Alice T is advocating in trying to collect e-mails from shareholders to blame board members? Isn't this what is happening today in US politics? Who trusts anyone when we are ready to accuse, get dirty laundry out, or not give a chance to anyone?

TRUST is key! Knowledge of the function is key for board members too. This is why I mentioned how board may also build TRUST:

1) Business procedures that are sound and enforced in all areas by professionals and staff.
2) Open and honest communications with shareholders.
3) Taking the "hardball decision" when required.
4) SERVE above all since they were ELECTED at the PLEASURE of shareholders.

FYI - Taking "hardball decisions" would be the most difficult. It translates for me, "I don't care if I am not elected again! I did what my conscience and fiduciary duty called for!!!" This is why I tell shareholders, "I never promised you a rose garden."


AdC

AdC is certainly on-target. And while I agree with him that trust must be created and maintained in many ways, I still believe that messages in public places can be one of those tools.

Using AdC's point about exposing visitors and potential buyers to building info, I suggest that boards do not post things about the latest vermin infestation, reminders that shareholders in arrears will be assessed fines, or notes telling people to pick up their dog's poop. That sort of thing should be done in personal mail.

On the other hand, notices about improvements -- "Painting in the hallways begins Tuesday morning" -- or upgrades -- "The workout room now has a new DVD player" -- or routine maintenance that affects residents -- "Hot water will not be available Thursday between noon and 4" -- can be an effective way to let everyone know what's going on. And when these messages promote good things (repainted walls, new equipment in the fitness room), they can help sell the building.

I agree it would be nice to Trust the board. But, we live in a real world, and personal agendas of Board members have almost ruined our building. And, because we began to REVIEW and QUESTION their decisions, in the last three years alone, we have saved ariybnd $100,000 by stopping work that the former Pres of the Board (and the man co) wanted to approve, but as it turned out -- was TOTALLY unecesarry.

The Forth Estate, as deemed by the founding Fathers of our nation -- is the Free Press. And with the Free Press we have Checks and Balances... And with our Emails (which were signed and there was no spying or whatever) or pititions, we became the Fourth estate in our building. With every layer the NEW board peels back, they find old problems that were never addressed. Avenues of revenue that were ignored for personal reasons or incompentence.

You are starting to sound like one of our Old board members who wanted to conduct secret meetings, keep the Board min secret and refuse to answer to any shareholder who questioned a decision or how THEIR money was being spent, and why a few Board members did not need permits for the renovations in their apartments.

No matter how much you may not like the Email Power, it was through Shareholders bonding together that we were able to change things.
ONE MORE THING: As for sneaking around and spying on the Board. We discovered that the IN-YOUR-FACE peition, and the signed, dated EMail Trail, was the best way to change things...As for finding people to run for the Board, after the Shareholders saw that we ould make a diffrienc, we have more than enough people running for the Board. And we replaced most of the old Board.

AliceT

I'm sorry to give you my impression of a co-op whose mode of doing "check and balances" is based on e-mails of shareholders being manipulated by one or a reduced number of individuals who may have well founded or not so well founded information on what is going on:

Just simple ANARCHY!!!

Perhaps the tactic worked well to remove an ineffective board, but once done, the co-op has to grow and new boards have a need, if not an obligation to construct SOLID TRUST on effective business practices.

In other words, the TIME OF TERROR is over!

AdC

If the Board is honest, and doing the right thing, than they should have no problem with sending out min or talking with SH, or sending Email varification.

There was no Anarchy, secret spying or whatever else you seem to think we were doing. We were direct, straighforward and the more we found out, the more direct and straight foward we became. And because over 80% of the SH (and one major sponsor) bonded together, sent SIGNED Emals and pititions etc,,, it was hardly a Time of Terror.

The Terror was for the Board members who had been in charge for so long, seeing thier power and the SH apathy dissapear were the ones who were terrified.

We, the Shareholders of our building, took our building back, in a very open and honest way. And its now on the road to recovry. Why do you so object to this? We do trust our new board. And the new Board members, having been on the other side, know the value of transparency and Email verification. The Board also has to TRUST the SH. We are a group of professionals, who care about our investment.

I have very much appriciated the business-like exchanges of information on Habitat, and at this point dont see that this is a productive exchange of information or ideas, so this is my last response to you on this subject.