2007 Jul
2007 July Vol. 27, No. 7
Focus on...Budget & Finance
It's Budget Time
As every board member knows, a realistic budget is essential to the financial health of their co-op or condo. Creating a workable budget is not an easy task: while you can use the current year's budget as a jumping off point, many expenses must be estimated. Determining these numbers often feels like stepping into the unknown, as predicting expenses can prove difficult. Read More
Beware of Red Flags
Consider the story of Dave. He was the treasurer for his co-op, and served the board for just over four years. Dave felt that he'd done a tremendous job—not that anyone ever noticed, much less bothered to thank him. Read More
Look Out for Predatory Lending
Cons and hustles are as old as civilization itself. For as long as there have been goods and currency to collect and divide, there have been unscrupulous individuals who are ready to relieve the unwary consumer of their holdings. Banking today is no different, but it doesn't mean consumers should operate with paranoia. A healthy dose of skepticism and a pocketful of questions can mean the difference between the perfect loan and the perfect scam. Read More
What Happens When a Building Defaults?
Hard as it is to imagine such doomsday scenarios in today's more-than-robust New York City housing market, the truth is that there are plenty of buildings throughout the five boroughs that could very well be in danger of defaulting on their financial obligations. Or buildings that have members whose financial troubles will come back to haunt the board if they're not adequately handled. Read More
Refinancing Made Simple
Most co-op buildings carry an underlying mortgage—the cost of which is paid for each month by shareholders as part of their maintenance fees. Quite often, a co-op corporation will seek to finance a major project or building improvement by refinancing their underlying mortgage. The building's board is responsible for this major move within a co-op, and should always proceed with caution. Read More
Estate Planning for Co-op and Condo Owners
Most people would rather not talk about divorce or
death. Unpleasant as they are however, they're both facts of
life—facts that any apartment owner must face up to and plan for. In the case a co-op or condo apartment, a thorough,
legally sound plan for your property is one of the most important things to
do before the need arises. Questions over ownership and inheritance are the
last thing a grieving or separating family needs at what is already a very
difficult time. Read More
A Look at the NYSSCPA
As the oldest state accounting organization in the country, the New York State Society of Certified Public Accountants (NYSSCPA) holds an iconic place in the numbers realm. With 16 chapters spread out across the state, from the Adirondacks to Staten Island and of course, Manhattan, NYSSCPA has grown to 29,000 members over the course of its 110-year history. Read More
Financial Demographics Affect Buildings
In any business—whether it's a flower shop or a gas station—there are those who have more dollars to work with, and those who have fewer. It's the same for co-ops and condos. New York is home to a seemingly endless variety of residential buildings, from four-unit boutique co-ops with apartments selling for eight figures to more modest buildings with 40 units going for six figures apiece. Some buildings receive government subsidies, some are involved in federal funding programs. Still others have former U.S. presidents—or Hilton sisters—living in their penthouses. Up and down, from the highest financial peaks to the valleys below, charting the financial differences between the thousands of co-ops and condos in the five boroughs can be dizzying enough to require a few doses of Dramamine. Read More
Renter vs. Shareholder Mentality
When a long-time renter purchases a co-op or a condo apartment, the move is perceived as a step up. No longer are you just shelling out rent every month—you're building equity, investing in your own security. Regardless of whether your new home is a co-op or a condo, you have a stake in maintaining your building—and by implication, your neighborhood. Read More
Harlem on the Rise
Nearly every neighborhood in New York City has had its fair share of ups and downs over the decades. Yesterday's demilitarized zone is today's luxury condo haven. Double-wide strollers wheel down sidewalks where yuppies once feared to tread. This has been the pattern everywhere from the East Village to Hell's Kitchen—and don't even start with Brooklyn—but nowhere has the resurgence of development and renewed real estate interest been quite as clear as it has been in Harlem. Read More
Managing Laundry Contracts
Having a well-lit, well-maintained laundry room in one's building is a definite plus. Residents don't have to traipse out to the overcrowded Laundromat in the dead of winter or in the pouring rain to spend hours waiting for machines when the facilities are right in their own building. Residents will depend on their building's facility to be clean, modern and in good working order. The building's board and management company will expect that the laundry vendor will provide new machines, good service, updated technology—bye-bye coins, hello smart card!—and regular maintenance. Read More
Q&A: Atrium/Courtyard Rules
Our new condominium contains, as part of its common elements, an atrium and courtyard. What do I need to know about instituting rules and regulations for these common areas in light of the fact that the board would like to afford residents the opportunity to “rent” the atrium and courtyard for parties or other functions? Read More
Q&A: Service Contractor Liability
I am looking for information regarding service contractors (i.e. cable, TV, phone) needing to set up a prior appointment to access equipment that is installed on owners’ terraces. Does the unit owner have to be at home to let the workers through their apartment to the terrace to do the job, or can a super or other building staff member open up the apartment and be there while the worker does his/her thing? What are the liability issues raised by having outside contractors traipsing through private homes? Whose responsibility is it if some personal property is damaged or stolen during the course of cable/satellite/telecom work on a terrace? Read More
Q&A: Co-op-Run Sales Office
I am a shareholder in a co-op that has 400-plus units in our building. We have an outside management company that has an office in our building and handles the general operation of the building. I would like to know if there are any legal ramifications if we, the co-op, opened our own sales office inside the building and handled only those shareowners that wanted to sell their apartments, and we would only work exclusively with our building. The shareholder/owner would have the option to use us, or go to any outside broker if they prefer. Read More
Q&A: Unpleasant Co-op Living
I have lived in a co-op in Little Neck, New York for 21 years. The shareholder-elected board of directors use their authority to mistreat the shareholders. They write letters that are nasty, rude and potentially derogatory. They’ve threatened me with letters when I was late with my maintenance payments during a period of time when I was caring financially and physically for my dying father. When I ask to meet with the board they ignore my request and continue to send unacceptable letters. These letters sent to the shareholders are cc’d to the co-op attorney. Read More
Q&A: Basement Noises
For the past 2 months our apartment, which is on the ground floor above the basement, has been inundated with a loud noise from a faulty system of leaking pipes and non-working control valves, causing the sump pump to cycle on and off every 4-5 minutes, interrupting sleep. Read More
