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Q&A: Transparency of Board Operations
A number of shareholders have raised questions about the management of the our co-op corporation. The board has been largely in place for 10 years, the managing agent for 20, and the board retains an attorney, who also served the enterprise for 20 years. The major issues involve a lack of transparency. Read More
Q&A: Can Board Reconsider after Signing Sales Contract?
Our cooperative board has approved a buyer for one of our units. The seller and prospective buyer have already gone to contract. There are presently a number of board members who have second thoughts about approving the buyer and would like the board to re-vote. Can the board reconsider their approval after a contract has been signed? If so, what is the risk? In general, until what point can a board reconsider and is there a difference if the reason is financial or character-based? Read More
Q&A: Subletting Sisters
I have used my sister’s co-op apartment as my primary residence for 12 years. She holds the proprietary lease and owns the shares but she has never lived here. Recently the old co-op board was replaced, and the new board is trying to force me out. I’ve never had a problem with my neighbors or violated any particular house rule. The building and board have ignored my presence here for more than a decade—what are my rights as my sister’s tenant, and how can I stay in my home?” Read More
Q&A: Board Resisting Removal
A group of majority unit owners in our Manhattan condominium are trying to remove our current board of managers for failing to operate the building in compliance with our bylaws. This group signed a petition and did everything necessary, in accordance with the bylaws, to vote them out. However a few members convinced the other board members to collectively refuse to resign. We petitioned the board again, and still they have ignored us. Our management sided with the board and hired an attorney to represent themselves and the board to resist their removal. Our unit owners are not a wealthy group and can’t afford to get a lawyer to help us. What are our options to try and get the board to abide by the bylaws and accept that the majority of residents want them out? Read More
Q&A: Charging For Common Space Storage?
I am the president of a 60-unit condominium in Brooklyn. Years ago, the board created some bicycle storage space (a room with some bicycle racks) in the basement and allocated the two spaces to owners on a first-come, first-served basis. A couple of years ago, the board wanted to start charging owners $50 per annum for each bicycle they have stored in the bicycle storage. Despite the high value of their apartments, owners expressed their displeasure at this minimal charge. Some owners banded together and indicated that this is common space, and the board has no right to charge for it. Not all the board members were willing to proceed with the charge, and the issue was placed on the “back burner.” Now the issue of charging has arisen again amongst my board members, and I am in favor of it. We may also charge for baby carriage storage. The condo has barely any sources of income other than fines and laundry. I am concerned, however, about the response I may get this time. Read More
Q&A: Right to Inherit
What are the laws in New York City regarding domestic partners who are technically the tenants of a co-op owner? My domestic partner and I have been living in my Jackson Heights co-op for over five-years. He contributes to our monthly maintenance fees, but I can’t add him to the stock certificate because we are unable to get legally married. If anything should happen to me, could he simply inherit the co-op or would he face difficulties because of our unrecognized legal status? Read More
Q&A: Seniors and Increased Maintenance
I live in a co-op in the Lower East of Manhattan. We have an entrenched board, which is under the control of our building manager. Over the past few years, our building has made some ‘improvements’ to the tiles, windows, lobby, etc. that have all been very costly. There are many seniors in the co-op, and we suspect that the board and our manager are planning large increases in maintenance fees. Being on fixed incomes, any large increases will probably end up in our eviction. Is there anything we can do to protect ourselves? Read More
Q&A: Sponsor's Role in Board Voting
My question is about the co-op’s building sponsor. I understand the building is owned by each shareholder and that they vote in a board to run the corporation. How does the sponsor factor into all of this? Is the sponsor part owner apart from the shareholder? Read More
Q&A: Board Ignoring Quorum
Our co-op has not had an election for the board since 2004. Many shareholders rent their units and are concerned that the sponsor has two seats on the board and owns/runs the management company and rental office from here. The problem is that we no longer have a quorum since the sponsor sold his shares to investors. I researched Business Corporation Law, and found Section 603 about the right of shareholders to call a special meeting. I therefore informed the lawyer that I would use this section if in fact we did not have a quorum. The board appointed someone to the board vacancy, in a rush, without the benefit of a quorum. I then asked the lawyer about this, and expressed concern that it was improper to have an election without a quorum. He replied that it was being investigated. Read More
Q&A: Entitled to Tabulated Election Results?
Do the shareholders in a New York City co-op have the right to obtain the tabulated results of a board of director’s election, rather than simply the names of the shareholders that won? If you are a shareholder who is running for the board, are you entitled to know how many votes (shares) you received? Are you entitled to know how many votes (shares) your opponents’ received? Read More
Q&A: Absentee Owners Not Pulling Weight
We are in a small condo building of 3 units, hence we do not have (quite frankly, can’t afford) a management company, with the intention that the 3 owners share in building upkeep and responsibilities. One owner has since moved out and away and that unit is now rented. Hence the two on-site owners do it all—all the time. The absentee owner’s tenants don’t participate—I wouldn’t either in their shoes. Read More
Q&A: One Name or Two?
I’d like to ask about the transfer tax in co-ops. I have been living in a co-op unit with my brother for 11 years. It is currently under both of our names, but now I want to change it to my name only. How does the transfer tax figure in? What does the law say about transfer tax? Do I still have to pay the transfer taxes? Read More
Q&A: Board Refusing to Fix Leaky Roof
I am a shareholder in an eight-unit co-op in Brooklyn. The board is composed of all eight owners, of which there are four officers. My apartment is on the top floor, and over the past few years I have sustained over one dozen water leaks due to a faulty roof. In the past, the board did quick repairing and flashed the roof to prevent leaking. But, now it appears that there is serious buckling and a large portion of the roof may need to be replaced. The association does not have the funds to repair it, and the owners will not vote to make an assessment to repair it. In addition, the rest of the board challenges me when I have asked for reimbursement for internal damages due to their negligence. The board has spent a lot of money on hiring others to clean the building and empty the garbage, and I feel that this money could have been put to better use. The rest of the board will not listen to my financial suggestions, and since the leaking roof has not effected their units, they do not care about it. The board president actually referred to the roof as my issue. Read More
Q&A: When Unit Owners Fail to Pay
Our 200-unit condo association has seven delinquencies. Six of these cases have been delinquent for over a year. Liens are in place, and all are in the hands of our attorney for collection. Most are mortgaged past fair market value, so foreclosure is out of the question. Last year we wrote off a significant amount but settled for six-months in fees from the mortgage company as per state statute. The court awarded some attorney fees, but the cost of collection exceeds the amount awarded. We moved our collections from a large regional firm to a local attorney in an attempt to cut costs. What more can we do to cut the collection costs and yet collect what is due? Read More
Q&A: Purchasing Co-op Shares Under Holding Company
Our co-op has a prospective purchaser who refuses to buy the shares in his own name. He wants the shares to be purchased by a holding company or limited liability corporation (LLC) that was created specifically for that purpose. How can a board approve the sale of shares to a corporation? We thought the whole idea of co-ops was to keep apartments out of the hands of companies. Read More
Q&A: Minuteless in Manhattan
“I am newly elected to the board of a small (32-unit), self-managed condominium, where traditionally there has been little transparency between the board of trustees and the unit owners. I have asked the board president several times over the past three months, publicly and privately, (as well as the board secretary) to provide me with the minutes of the last three years so that I can better acquaint myself with board decisions, the history of repairs, capital improvements, etc. I would have thought that my interest would be regarded as positive, but instead I was given the run-around. As a board member, don’t I have a legal right to inspect all corporate documents? What more should I do to access these minutes?” Read More
Q&A: Terrace Replacement Without Consent
Our board of managers want to replace the terraces in our condominium without the consent of the unit owners that have them. If you look at Real Property Law, Article 9-b of the Condominium Act, Section 339-i, Common Elements, under subsection 2, “the common interest appurtenant to each unit as expressed in the declaration shall have a permanent character and shall not be altered without the consent of all unit owners affected, expressed in an amended declaration.” Can they legally do this? Read More
Q&A: Superintendent's Salary
My question concerns the various forms of compensation our building’s super receives and the shareholders’ right to know the exact sum of his monthly income, as an exact cost to the building. Our super has a fixed salary, which is disclosed to the shareholders in the yearly financial statement. However, there are several other extras that have never been calculated, such as: a free apartment, a free inside parking space, a free landline, cell phone services and free electricity. The electricity bill covered includes his apartment, a private washer and dryer (given to him by the co-op) and a huge, second refrigerator. The washing machine, dryer, and second refrigerator are kept in a storage space, and this electricity bill is paid by the corporation. Since the shareholders are not allowed to keep washers and dryers in their units and use coin operated machines, the private washing machine and dryer constitute an additional expense and are not part of the free apartment. The super received a considerable bonus at Christmas as well. My concern is that none of these expenses were added to his income, as shown in the financial statement, yet they make up a substantial part of the compensation paid to him by the corporation. Do we as the shareholders have the right to know these figures?” Read More
Q&A: Marijuana Smoking Shareholder?
I am a member on the board of directors of a co-op in Nassau County, New York. We are experiencing a problem with a shareholder, who we believe regularly smokes “pot” and also entertains fellow smokers in his apartment. The odor permeates through a large portion of the building, and the shareholders above have a difficult time trying to keep the odor out of the their living quarters. Efforts to speak to this person have fallen on deaf ears. We were told that the police could not be called because the matter is occurring behind closed doors. Could you provide us with insight, as to what can be done to combat this problem without putting us into a position which could possibly lead to a lawsuit? Read More
Q&A: Removing Names on Stock Certificate
I live in a 15-unit co-op in Queens. A single tenant owner lives in one of the apartments. She has requested, while still living here, to remove her name from the stock certificate, and replace it with her daughter’s name. Is this legal? Also, is adding another name along with her name on the stock certificate legal? This added person will most likely not reside in the apartment. Read More
Q&A: Tenant Lockout?
We have a number of apartments in our condominium where owners have not paid maintenance for a few months. As our condo is in the process of legal action and collection against these owners, can we stop their access to the apartment until the delinquencies are paid? The owners in question come and go freely and often have friends and others staying in their units. What are the rights of the condo until we can get a court order or begin foreclosure proceedings? Read More
Q&A: Can Minority Shareholders Force an Election?
Our president resigned before the board appointed officer positions, but he showed up at the meeting in which a new officer was appointed to the board. Read More
Q&A: Unexplained Maintenance Increases
I’ve lived in my Manhattan co-op for nearly 20 years. We elected a new board president a little over a year ago, and in that short time our board has raised the monthly maintenance three times. Can a board just keep raising our maintenance without consulting shareholders? What protects us as shareholders? Shouldn’t the shareholder be given a certain amount of time and prior notice before implementing these increases? Read More
Q&A: Minute-less in Manhattan
I am newly elected to the board of a small (32-unit), self-managed condominium, where traditionally there has been little transparency between the board of trustees and the unit owners. The board has been stingy with information and oftentimes, focused on making decisions from a social point of view rather than a business point of view. I have asked the board president several times over the past three months, publicly and privately, (as well as the board secretary) to provide me with the minutes of the last three years—so that I can better acquaint myself with board decisions, the history of repairs, capital improvements, etc. I would have thought that my interest in being informed would be regarded as positive, but instead I have been given the run-around. As a board member, don’t I have a legal right to inspect all corporate documents? What more should I do to access these minutes? Read More
Q&A: Board Negligence on Leak
I reside in a co-op apartment in the Bronx. For one year I incurred damages to my bathroom and kitchen ceilings from a washing machine above. The damage allegedly came from a negligent tenant of the shareholder. Each time the leak occurred the co-op board was notified. However, nothing was done to rectify the situation. I want to sue the shareholder for the damages. Under the proprietary lease can the co-op board be held responsible as well? Read More
Q&A: Certain Dogs Banned from Co-op
Our co-op board issued a list of breeds of dogs they considered “aggressive,” which will no longer be permitted, other than those already grandfathered in. I can’t remember them all, but it must have been close to 30 breeds. They claim they got this list from the American Society for the Prevention of Cruelty to Animals (ASPCA) and the Center for Animal Care and Control (CACC). The residents in our building are sophisticated people, not people who abuse their pets causing them to be “aggressive” and “hostile.” Read More
Q&A: Home Equity Loan Requests
I am on the board of a cooperative building in New York City. We have recently received two requests from shareholders looking to borrow additional funds by taking out a second loan, (in each case an equity line of credit arrangement) to be secured by a second lien on the apartment and its shares. In each instance we have been asked to provide a recognition agreement in the standard Aztech form to the holder of the second lien. Read More
Q&A: Replacing Terraces
Our condominium board of managers is planning to replace all the terraces in our condo, claiming they are common elements. Is that correct, or is each terrace the property of the unit owner? Should all the unit owners be assessed or only the ones with terraces? Read More
Q&A: Additional Maintenance for Excessive Water Use
I live in a 47-unit building and many of my neighbors have two or three children living with either one or two parents in the one-bedroom apartments. I believe that those apartments should be paying additional maintenance to cover the cost of our building’s water bills. Has this question been raised before for another building? What did they do? Read More
Q&A: Whose Cable Now?
Our building is seriously considering replacing our present cable television with a satellite dish system. Cablevision installed TV cables and equipment in our hi-rise residential condo building several years ago, and has continued to be our cable provider. We need to know who is presently the lawful owner of the TV cables and equipment in our building. Do we have to ask permission from Cablevision to remove, replace or use the existing TV cable for our own purposes? Read More
Q&A: Family Trust
My parents are both in their seventies and have begun setting their financial affairs in order. They have put whatever assets they own, such as cars, stocks and bonds, into their family trust in order to simplify their estate and avoid probate. Read More
Q&A: To Flip, or Not to Flip the Tax
Our 60-unit, self-managed co-op changed its bylaws about ten years ago to allow parents to sublet from their children and vice versa. The bylaws were changed with the condition that the flip tax would continue with any transfer of the apartment. The owners are claiming there is no change in ownership or tax status since the apartment is staying in the hands of a member of the same family. Is this legal and should we continue to require a flip tax transfer for the subtenants even if they are related? Any advice would be most appreciated. Read More
Q&A: Sole Access, Sole Responsibility!
I live in an older co-op that has eight large roof-terraces from 300 to 500 square feet. We have experienced leaks emanating from these terraces, over the years, to the apartments below. No one is able to use the terraces except the shareholder that has sole access to them. The square footage of the terrace is included in the shareholder’s monthly maintenance fee at a reduced rate since the terrace is only used for part of the year. This reduced maintenance fee was decided on years ago by the board at the time. Because of the difficulty in finding the leak, repairing it and then removing most if not all the tiles to replace them with new ones, we have found the costs to be outstanding. Read More
Q&A: Surpassing the Shareholders?
Several others and I are shareholders in a co-op on the East Side of Manhattan. Our board and management company are putting through Local Law 11 repairs. This is not a problem. However, they have refused for any of the shareholders to see the architect’s plans and have refused to get more than one bid. At a recent informational meeting we were told what was going to happen without having given our input. On top of that the management company is charging a hefty fee for this and we have not been allowed to see the contracts that authorize the project. Read More
Q&A: A Receipt for Maintenance
Do we, as a co-op collecting maintenance, need to comply with a shareholder’s written request, pursuant to RPL: Article 7 Section 235-e for written receipts for maintenance paid by personal check? Does this section even apply to maintenance? Would the same be true for assessments? Read More
