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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: Calculating Maintenance Costs
Do you have any advice as to how co-op maintenance is calculated per unit? I am on the market for a co-op apartment and I would like to know how the corporation arrives or calculates the maintenance that a unit must pay per month. I asked this question to several brokers and they don't seem to know. Read More
Q&A: A Board Member's Self-Interest
What do you do when a board/board member rejects you as a prospective buyer for self-serving gain? My husband and I were in contract on an apartment where we were paying in cash, had no mortgage, could easily pay the maintenance even if we both lost our jobs. We both have fantastic references and have easily passed boards before in much "tonier" buildings. However, the board in our recent situation had a member who was angry because she had wanted to buy this apartment, but lost out to us because she didn't have her finances in order. 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: Limited Information
Our co-op board has begun a policy of forbidding individual members to communicate with other shareholders about any issues in the building, not just legal matters. Any queries are answered with a stock reply. This board did not run as a slate so one hopes they have varied opinions. Is this done in other buildings, and is it recommended? Read More
Q&A: Annual Meeting Procedures
At our last annual meeting, the president, vice president and all other members of the board were present. However, without any explanation to the shareholders present, the corporation’s counsel proceeded to conduct the meeting by first doing the role call and then conducting votes for election of members to serve on the board. Read More
Q&A: A Downward Modification Adjustment?
My question is, since Co-op City (in the Bronx) determines carrying charges based on household income, if there's a change in the household income whereby one of the occupants is unemployed shouldn't there be a downward modification adjustment? Riverbay states that the downward modification would only apply if the cooperator was paying a surcharge. Is this true? Read More
Q&A: Refinancing and Board Rejection
Is it true that the board can deny a refinancing application and not give a reason? Does a reason need to be provided on request? Read More
Q&A: Adding Relative's Names to Stock Certificate
Recently shareholders have asked to have family names added to proprietary stock certificates (I was told to avoid estate “problems” in the future.) I balked (I'm on the board) stating the legal rights of ownership, and liabilities, then also transfer. Thus, these relatives can insist on occupying the space in the event of death of occupant without being interviewed by the board, which in my opinion is not advisable. Additionally, these relatives can have financial problems that could possibly then attach to the property. My question: am I correct in these two assumptions—the relatives of the original stockholder (who did apply, giving all financials and interview) can occupy without board interview/consent; or, any financial problems the relatives may have can have a direct impact on said co-op through the requested transfer of stock Read More
Q&A:Can Co-ops Allow Roommates?
I live in a self-managed co-op and we are getting conflicting information about whether co-ops can disallow roommates or not. We've heard that the board of directors has absolute decision making power over whether or not to allow roommates to move into a co-op. Others say it should be voted on by the shareholders and become part of the house rules. Then again, we've heard that it's illegal to forbid or interview roommates. Please advise us as to the legality around this issue. Read More
Q&A: Denied Shares by Co-op Board
“I have been dealing with a co-op board that appears to have denied a transfer of shares to me in a bad faith manner. The proprietary lease states that the board will transfer shares to a spouse or a "financially responsible member" of a deceased shareholder's family. I inherited the shares to the apartment (where my mother and I had been living in for a long time prior to the purchase) by will bequest. The apartment went from rent-stabilized to co-op and the mortgage started in the same month that my mother died and I inherited the shares. I am also the executor of the estate of my mother, so I am both beneficial owner of the shares and the executor. The shares are still in my mother's name, not in mine or the estate's. Read More
Q&A: Oh, The Pressure?
I'm having an ongoing problem with the water pressure in my co-op apartment and the board's response (or lack thereof) to it. I'm on the top floor of a 25-story building, and water pressure became an issue after I did a full bathroom renovation in February 2007, which included the replacement of the old, two-handle shower body with a single-handle faucet, in accordance with building code. The older faucets do not increase pressure, but compensate for it by allowing five gallons per minute (gpm) water flow, versus 2.5 gpm with the newer faucets. The reduced flow intensifies the lack of pressure on higher floors and results in an extremely poor shower. Read More
Q&A: No Quorum?
Is there a law allowing us to conduct a meeting without a quorum reached? We need more than 50 percent of the vote and certain shareholders refuse to attend the meetings. We don’t have a co-op board and can not elect one. The old board members, still in place, have moved out of state, and we can not hold elections. Housing court ruled that we were to get a new board in place by the beginning of the year. 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: Shareholders' Rights to See Financial Information
“I know you probably get tons of questions—I have combed through your site and am looking for information regarding the rights of shareholders to see books. Our managing agent and board are refusing to allow viewing of anything but minutes and an annual report. We have a commercial tenant who has not paid rent in 8 months, and an assessment foisted on us with two weeks notice has increased our maintenance about 33 percent. What recourse do we have? Read More
Q&A: Determining Guidelines to Limit Liability
Our condo building has a lot attached with parking for six cars. On the far side of the lot there is a garden and a playground. We have a member who has requested to use the garden, playground and parking lot for a party. Cars will be coming in and out during the party, so while I don't want to be unreasonable, I feel it's dangerous to have people in the same area. Are there any guidelines about this issue that might help our association come to an agreement? Read More
Q&A: Dealing with an Intimidating Board President
We have a president in a cooperative building that has secret meetings and does everything possible to force his ideas on the membership. He is seemingly vindictive and tells owners if they don’t like it they can move. What can we do? Read More
Q&A: Can Management Prevent You From Running For the Board?
Our Queens co-op recently had elections. I wanted to run for the board, however management stepped in and told me that I was unable to run for the board since I am months in arrears. Is the management company allowed to tell me not to run? Read More
Q&A: Unfair Dog Rules
My husband and I are moving into a community that doesn't allow dogs. However there are people who do have dogs because they said that the law passed 12 years ago and people who had dogs then could keep their dogs and if their dog died, they could get a new one. I believe this to be unfair. How come they can get a new dog but people who are just moving in can't? Can my husband and I do anything to change this?” Read More
Q&A: Must I Get Homeowner's Insurance?
The board of directors at my co-op recently mandated that every apartment must carry homeowner’s insurance and list the complex as “additionally insured.” My insurance agent says that by listing them as “additionally insured” on the policy, the complex has the right to change particulars to carry homeowner’s insurance, and also to list them specifically on the policy? Read More
Q&A: Breaking Up is Hard to Do
My boyfriend and I live in a co-op apartment. The mortgage is in my name but he is listed as a co-resident of the apt. If we break up, is there a chance that we would have to sell the co-op to split the ownership of shares? What legal rights does he have with the co-op? We are not engaged or married and we've lived in the co-op for approximately two months. Read More
Q&A: An Unresponsive Board
“What recourse do unit owners have when a board is negligent of their duties? For example, a violation of the bylaws occurs when the board does not inspect common areas for safety and aesthetics when it specifically states in the bylaws that it is one of their responsibilities. And what about when a board member himself is in violation of a rule and regulation of the association? When does negligence cross the border into illegality?” Read More
Q&A: The Shining
I live in a high-rise co-op on the Upper East Side and have a situation where my neighbor two floors down built a terrace and installed six string up-lights, for "landscape" lighting, which shine up into my windows. They leave the lights on all night and day. Prior to the light installation, the exterior area was pitch black at night. I am constantly awakened at 3 a.m. thinking it's morning. Is there any local ordinance which prevents them from keeping their lights on all night long? My co-op board and management company have had a difficult time dealing with these shareholders, who claim that they need the lights for 'safety'—although their apartment is not at ground level and faces the rear of the building. The co-op board suggested that they install a timer, and almost eight months later they have yet to install one. Read More
Q&A: Right to the Deceases's Estate
“If a unit owner is deceased, what are the inheritance rights of a relative, for example, let's say, siblings, to moving in and taking possession of an apartment?” Read More
Q&A: Noisy Problems
“I have been a shareholder and board member in my building for the past 20 years. A year ago a new shareholder with two small children moved in above me, and since then noise has been a constant, serious problem as the kids’ room is directly over my bedroom. The house rules explicitly require apartments to be 80 percent carpeted, and the room overhead is clearly not. I have complained time and time again about the situation, but to no resolution. I have on occasion tried to speak to the upstairs residents, who seem to think that there is no problem, and have even gone as far as stomping their feet heavily across the room and dropping heavy materials on the floor in retaliation. I am at my wit’s end—what are my options?” Read More
Q&A: Condo Foreclosure
I am three months behind in my homeowner’s association payments. Can the condominium foreclose on my unit? My mortgage payments are up to date, and I called my lender who said, ‘no, they cannot foreclose.’ What do you say? I wrote a letter to the board asking for a payment plan in January of this year, but I have not received a response as of yet. I know I owe the money, but I was sick for a period of time. I am planning to pay the back fees with my taxes. 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
