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Hi
I am writing to solicit this community’s thoughts, advice, and comments on our sponsor issue.
Our building converted in 1984 – today the sponsor still owns 55% of apartments and 60% of the voting rights. They have no motivation to sell because they are clearing good money in rent. The sponsor is also the managing agent. There are 5 seats on the board 3 residential board members – 2 sponsor members.
Many aspects of NYBL are not followed – meeting minutes are not recorded, records of shareholders are not current, apartments are transferred and there are no resolutions just an email here or there, infect there was a garage increase implemented – but no meeting minutes to record it and no resolution to adopt it…. Very suspect….
Forget about Capital planning and financial management – they don’t have the experience or contacts of making our building structurally and financially sound.
We actually have made some progress since my joining of the board least year – but when we push back things get murky – late night renovations – We now have college dorms in our co-op building. Additionally, we fail to meet NYC building code – think no need for an EPA certified contractor, Fire extinguishers that are updated, painting sprinklers – why bother – Months after asking for a copy of our elevator service agreement – the one I was given was from 1984 and signed by the sponsor….
We are at the boiling point as I don’t want to be associated with something that is breaking all the rules of the prop lease, NYBL, and the spirit of a residential co-op. And since the sponsor has no intention of selling apartments – we have to plan the next step.
If anyone has experience with the attorney general, or experienced lawyers who can assist us, please let me know – My email is public.
If you want to know more of the situation – please let me know, I was thinking of creating a working group to help brainstorm ideas etc. Something has to give --We have a beautiful building, and good people, but we are heading in a bad direction.
Thank You
you gotta switch agents asap!!
Two words: Jennifer Realty. Google it.
Hello David,
You are part of the solution not the problem so hang-in there. Here are some suggestions:
1) Get a lawyer
2) Make sure you have personal liability insurance.
3) You may need to set-up a shadow Board.
4) You have got to find the leverage to unhinge them. I would suggest finding a way to alter the flow of funds.
Just some thoughts...
Consult the corp attorny, call the Attorny General's office and inquiry about your rights. But be prepared for push back.
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our original sponsor is still the managing agent, i always wondered how common this is.
27 year conversion here.
i see it as a no lose gravy train for the sponsor/managing company
if they still have a lot of units for the first 10/20 years after conversion, they don't do the required maintainance, because they want their cost kept down. By the time the problem is evident, the sponsor doesn't own anything, and are just collecting managing fee's, and now they are dealing with big $$ projects which can be padded very easily. The owners are tagged with assessments.
our roof had to be encapsulated doors replaced, a lot of work that would have been avoided with normal maintenance. Now it is a big job, since no agent did roof inspections in 27 years
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