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NORC Program
Last month, the New York Association of Realty Managers (NYARM) hosted a seminar on a somewhat new phenomenon known as "NORCs." Short for "Naturally Occuring Retirement Communities," the acronym has come to mean much to many seniors throughout the country, particularly New York City, who have been enabled to remain in their homes and communities. The term NORC is a demographic description resulting from a social pattern called ‘aging-in-place,’ says Nat Yalowitz, president and chief executive officer of NORC Supportive Services Center (NORC-SSC), a non-profit organization founded in 1996 to assist housing entities develop senior service programs. He explains, "Many older people who moved into apartment buildings or housing complexes when they were younger now need help to remain living independently in their residences." The NYARM seminar was just one step in an effort to educate the co-op and condo community about this evolving trend toward developing senior services. Read More
A Team Effort
Anyone who has spent time serving on the board of his or her co-op or condo knows that it is a job that no one can do alone. Even if you have the most conscientious group of board members, the job is too time-consuming for a group of volunteers to do in their spare time. That's where your management team comes in; the professionals hired by the board to help in the day-to-day and long-term operations of the building. But even if your board has hired the best management firm, the best attorney, the best accountant and so on, the team is only as good as its coach. And in the case of a co-op or condo, the board has to act as the coach: organizing meetings, making sure the various team members are working together, facilitating communications and working out strategies. Read More
Preserving Institutional Memory
One of the most common problems in co-op and condo management is the failure of building boards and staff to maintain accurate and accessible records of the past performance and activities within the building. Recording the minutes of board meetings and maintaining financial records, a list of on-going contracts, a history of individual apartment repairs and a log of parts and equipment replacement can go a long way in facilitating any future changes in building personnel or management. Read More
Working With Your Accountant
While real estate brokers live by the old adage, Location, Location, Location, accountants define their relationships with the real estate community with another phrase: Communication, Communi-cation, Communication. While cooperatives and condominiums generally hire accountants to take care of the fiscal necessitiesthe annual financial statement, budgeting, tax returns, etc.they still need to be educated about how to maximize their relationship with these professionals. To accomplish this, cooperative and condominium clients must gain a precise understanding of their accountant's role in their business dealings. Only by keeping the lines of communi-cations open between these two parties will the accountant's services be fully realized. Read More
The Shareholder Versus the Board
When it comes to key security, most co-op shareholders and other tenants have no choice but to trust in their building manager. That's because New York state law requires tenants to provide landlords with duplicate keys, if requested. Whether that key goes into a locked box in the superintendent's office, hangs in an open cabinet next to the doorman or is placed in a high-tech key management system depends on building policy. Read More
The Role of the Treasurer
The co-op and condo community has been shocked by recent disclosures concerning inappropriate and/or illegal activities by real estate managing agents, their employees and the various industries selling supplies and materials to co-ops and condos or rendering repair, mainM-tenance and capital improvement services. Read More
Capital Improvement Projects
Lucky are the board members of co-ops and condos who are able to play a purely supervisory role, simplyoverseeing the work of the managing agent who has the serious job of taking care of the building. In the vast majority of cases, however, board members find themselves facing one crisis after anotherthe boiler breaks down, the air conditioning chiller fails, the roof leak keeps getting worseand maintenance expenses that are consistently over budget. Read More
A Cooperative Effort
While everyone at 24 Fifth Avenue will miss the doorman, Caspar Orenga, nicknamed Mr. Wonderful, those who will be affected most by his retirement will be the older residents he cared for and attended to with patience and a smile for over 20 years. Like most building doormen, Orenga provided a sense of security and warmth for older residents. He took the time to say more than Good morning or Good evening; he was a friend. Read More
The Elderly Population is Booming
Will you trade in your co-op or condo for a Florida address when you reach retirement age? Don't be so sure. More and more New Yorkers are choosing to age in place in the same apartment they fell in love with when they were in their prime. If at least half of the units in your co-op or condo are occupied by people aged 60 or over, your building has evolved into a naturally occurring retirement community (NORC), a newly-coined phrase that reflects a growing trend. Even if your building doesn't have a large percentage of elderly now, it's not too soon to learn more about the NORC phenomenon. What you find out today could help you protect your real estate investmentand quality of lifedown the road. Read More
Working With Your Super
At eight o'clock on a weekday morning, you won't find Peter Grech hustling to catch a train or waiting in line for the bus. Nor will you find him snug in his bed, dreaming the morning away. Grech is a resident manager for the Alfred, a 224-unit condominium on West 61st Street. Mornings, from eight to nine am, once he's finished his building rounds, you can find Grech in the lobby, shaking hands and taking down problems tenants are experiencing. Read More
Sharing The Workload
Board members don't always see eye to eye. In a tragic case in Boynton Beach, Florida, an argument over the number of votes needed for a quorum led to the accidental death of a 70-year-old board member. During a discussion about the upcoming board of directors election, one board member allegedly grabbed the other, possibly causing him to fall backward to the pavement and fracture his skull. Thankfully, this one-in-a-million type of incident isn't a common occurrence; however, that doesn't mean that it's always smooth sailing at all board meetings. Read More
Running Effective Board Meetings
Board meetings provide the time and space for co-op and condo leaders to establish and direct building operations. These vitalmeetings can be productive decision-making sessions conducted in an atmosphere of mutual respect, or ego-driven marathons characterized by acrimony and self-interest. In an effort to fit your meetings into the former category, and to keep them running smoothly and efficiently, it is important that the board follow certain guidelines. Read More
Judging Board Performance
Like most business corporations, co-ops rely on a board of directors to oversee operations and make decisions for the benefit of all shareholders. What makes a co-op's board unique is that itsmembers are responsible not only for the corporation's finances, but for the quality of life within the building as well. Thus, it is vital that co-op shareholders have a unique system by which to judge their board's performance. Read More
Honest Board Elections
Imagine that your building's sponsor has planted a friend or business partner in one of the units he owns in the building. Read More
The Value of Newsletters
The terraces were crumbling and the board engaged an engineer to make a recommendation. When the engineer reported that the terraces needed several hundred thousand dollars worth of repairs, the board went through a bidding process with the help of their managing agent, and hired a contractor. Scaffolding went up, work commenced, and before long every shareholder was billed a special assessment to pay for the work. Read More
Welcome Aboard. . .Now What?
Tom Marcossan laughs when he remembers joining the board as treasurer when his building went co-op in 1986. "I was stupid. I didn't read the magazines available or take advantage of any organizations out there. We were the first board the building had. We learned mostly by knocking our heads together," says Marcossan, who has since become president of his 340-unit Greenwich Village co-op. Read More
All A-Board!
Owning your own home is a huge commitment, but imagine being accountable for your neighbors’ homes as well. It’s a commitment hundreds of individuals throughout New York’s condo and co-op community make each year as members of their building’s board. It takes a great deal to be an efficient and productive board member, but more importantly, it takes a group of individuals who know the duties and responsibilities inside and out. Read More
The Good, the Bad and the Ugly
Here’s the scenario: the sponsor of your co-op, who owns enough units to throw his
weight around, hires a managing agent who plays fast and loose with the
municipal tax codes. So much so in fact, that he winds up in jail—and your building winds up owing some significant back taxes. The sponsor then
brings in a new, wet-behind-the-ears managing agent, who pays the tax bill with
an unmarked—and untraceable—starter check, which the city cashes…without crediting the proper account. It’s like a parking meter ate your quarter, but instead of 25 cents, your building
just lost $90 grand.
Read More
The Key to Board Efficiency
Until recently, Claudia Tracey worked full time in a position that required an
extensive amount of travel. At the same time she was, and still is, board
president at Hampton Vistas Condominiums in Manorville, New York, which just
went through an $860,000 assessment for major renovation work spread out among
48 owners. Their typical monthly board meetings turned into weekly meetings until the
assessment was complete.
Read More
The Benefits of Being on the Board
Being on a board of a condo or co-op is no picnic. There are tons of decisions to be made, disputes to settle, finances to keep track of and a chance of being sued for a slip-up. So why do so many people decide to serve on a board—some for years at a time? Even though it's easy to lose sight of them under the pressure and responsibility, there are benefits to being on a board. Read More
Disruptive Pet Projects, Grudges & Other Distractions
When it comes to board members pushing their own pet projects, stalling
meetings, and generally gumming up their building’s administrative works for selfish reasons, Chris Ebert, senior property manager
of Downtown Properties in Manhattan, feels like he’s seen it all. But the memory of one particular board member’s personal agenda stands out in particular.
Read More
Avoiding Sticky Situations
Most co-op and condo boards that hire managing agents, rather than manage themselves with in-house staff, are reasonably satisfied with them. After all, the managers are presumably trained and experienced professionals. Read More
Understanding the Business Corporation Law
If you live in a co-op, as opposed to a condo, in New York State, chances are that your co-op has been organized under the designation of the Business Corporation Law, or BCL. Read More
Cultivating an Owner's Mentality
Talk to enough property managers and board members, and eventually you’ll hear the phrase “owner’s mentality” mentioned in reference to co-op and condo dwellers. Usually the phrase is
uttered by way of a complaint, as in, “Our residents just don’t have an owner’s mentality about their units or their building.”
Read More
Seeing Through it All
Any relationship depends upon effective communication to function properly. In a co-op or condo, the relationship between the board and managing agent, or between the board and the shareholders, all have boundaries regarding what is acceptable for discussion, and what information is available to inquisitive eyes. Documents that a board member could be privy to might be sealed to nearly all others, while legally speaking, some community records should be available for the asking to every resident of a building. Read More
Discussing D&O Insurance
The board of directors runs on volunteers. They put in hours of unpaid time and effort into making sure your condo or co-op runs efficiently and effectively. And then they make a mistake and wham! There is a lawsuit and suddenly they are being sued. Sound scary? Without Directors & Officers insurance, that scenario is not only scary, it's probable. Read More
Growing Numbers of Non-Owners Pose Challenges
Renting out their unit has long been a strategy for condo owners (and some co-op
shareholders) who—usually because of an extended absence, or as an extra revenue stream—wish to retain ownership of an apartment that they’re not living in at the moment. The tanked economy has expanded this trend
throughout the region as more owners are looking to save or even make money on
their apartments.
Read More
Developing an Online Presence
Nowadays people are using their computers to connect to the Internet for just
about every facet of their lives. Whether it’s buying cheap airline tickets, making reservations at their favorite restaurant
or connecting with old friends on Facebook, most people are parked in front of
their computer screens or connect remotely with their BlackBerry or iPhone at
all hours of the day or night.
Read More
A Guide to Alternative Dispute Resolution
When dozens and sometimes hundreds of personalities live together in one space, conflict inevitably will ensue. When passionate individuals serve on boards and are responsible for the overall well-being of the co-op or condo which they serve and the people whom they represent, again disagreements and arguments can arise. Read More
Under the Microscope
Admission requirements for co-op buildings in New York City are typically pretty stringent. A board has the authority to require prospective purchasers to provide extensive financial documentation along with social and personal reference letters, to interview with the board and/or an admissions committee of the board, and in many cases, to undergo criminal and financial background checks.
Read MoreUse vs. Abuse—and How to Tell the Difference
Everybody sometimes disagrees with the decisions of their co-op or condo board.
Maybe the choice to rearrange the garbage receptacles out front seems
ridiculous, or the ongoing clattering of machinery on the roof is driving the
top-floor residents nuts and the board seems determined to let it fix itself.
These are the kinds of inevitable complaints that every board has to deal with
sooner or later, and most manage to handle such issues with prudence and
aplomb.
Read More
Sharing Difficult Decisions with Residents
Like telling kids the awful truth about Santa Claus or deciding to spend the
holiday bonus on treasury bonds instead of a trip to the Bahamas, sometimes we
all have to say or do unpleasant or unpopular things. The same is true for
co-op and condo board members, most of whom will one day face the dreary
prospect of raising maintenance fees, instituting assessments or levying flip
taxes. Those tasks may come with the territory but that doesn’t make it any easier for the men and women who have to step forth and break the
news to friends and neighbors alike. Read More
Protecting Your Building from Fraud
Most individuals have a healthy sense of ethics, choosing to run their personal lives and business affairs aboveboard. Unfortunately, a few bad apples are inevitable. Read More
Co-ops and Condo as Movie Sets
They torched cars and set fires throughout the park and
around our building in 50 mile-per-hour winds. And, yes, the fire spread to
unprotected areas. Read More
Working Toward Common Goals
Nothing worth doing is ever easy. That rule of thumb certainly applies when it comes to the creation of co-ops and condos. Whether constructing a new building or converting an existing one, it can be a tricky business. The person or group establishing the co-op or condo must solve a whole flurry of issues before the first resident ever sets foot in the building. His or her partners in this adventure—those brave souls who sign on to be the building's first board members—have their own interests in mind as well, working together to try and create a place that they can call home. Read More
