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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
Q&A: Commercial into Residential
We have a two-building, 146-unit cooperative that has a five-hundred-square-foot ground floor of commercial rental space. It has been vacant for about a month now. We, the board of directors, would like to know: Can this space be converted into another cooperative apartment unit? Who would we have to contact to make [sure] it is done legally? Read More
Q&A: Corrupt Management
We’ve had problems with a corrupt management in the past. I’m suspicious of our current management and several board members receiving kickbacks from vendors. Are there any steps that I can take to find out if this is repetition of our previous managing company and possibly board members participating in kickbacks? Read More
Q&A: Shareholder vs. Shareholder
In the event that a shareholder has a “dispute” with another shareholder—and claims that many other residents of the building have complained regarding the same issue—but refuses to provide the names of other complainants—how should this be handled? In a co-op aren’t you legally entitled to discuss complaints with other shareholders in order to mediate any problems? Read More
Q&A: Unfair Transfer Fees
Some members of my co-op board want to change our transfer fees upon sale to assign a lower per share fee for those shareholders who purchased after the year 2000. Their reasoning is that real estate values decreased after 2000. Others on the board argue this is unfair because all the continual fluctuations of real estate through past years and of future years to come can’t possibly be addressed. Also, those who’ve been here the longest to pay off the mortgage, and have invested and waited the longest for our new capital improvements, can’t be told our shares have lesser value than those of newer shareholders do. Is what they are proposing legal? How can we dissuade them from changing the transfer fees? What course of action can opposing shareholders take if those members of the board decide to implement their ideas? Read More
Q&A: Renovation Fee Woes
I live in a co-op in Manhattan and am planning to renovate my bathroom. My managing agent has informed me that I must pay a $500 fee to file my application for the renovation, which seems unusual. The renovation is simple—to replace tile and install a new toilet and sink. There is no structural work being performed, and there are no architect’s plans. In addition, the co-op wants to hold a check of $6,000 in case of damages, which seems very high. Finally, the managing agent who owns remaining unsold shares sits on the coop board which seems to be a conflict of interest and unethical. My questions are: 1) Is it typical that a fee is imposed by the managing agent, and if so is $500 typical? 2) Is this $6,000 for damages a typical amount? 3) Is it permissible by law and/or is it a conflict of interest for a non-owner managing agent (who owns unsold shares) to sit on the board? Read More
Q&A: Financial Document Drama
Is a condominium required to produce an annual financial report? If they don’t, what is the recourse? If the management company doesn’t allow me, an owner, to review the finances under the New York State Real Property Law, what is my recourse? Is the management required to show a copy of the contract to a board member or owner? If they don’t what is the recourse for them? This is not a sponsor-owned condo. Read More
Q&A: Risky Business
Currently, I am on a board that is involved in litigation brought about because of a resale denial. I was recently told by a lawyer that if a co-op board is sued “personally and as board members” the following is true: Read More
Q&A: Wall-to-Wall Noise Solution?
A couple of our co-op tenants are complaining of noisy neighbors. There is an issue of some residents not adhering to the 80 percent carpeting rule. As a result, the board voted that any new occupants be required to get wall-to-wall carpeting in all rooms, excluding the kitchen, bathroom and closets. The shareholders are very upset over this. They say a resale highlight is “hardwood floors” which are very popular nowadays. Read More
Q&A: Too Many Pets
I live in a 100 percent owner-occupied condominium. Our bylaws and house rules very clearly state that unit owners may have no more than two pets, only one of which may be a dog. One of the unit owners (who is also a board member) keeps four dogs in her unit as her pets. Since she is a board member, the board will not take any action against her. Do you think her menagerie could have a negative impact on the value of the property? What is a unit owner to do? Read More
Q&A: Cumulative Voting?
My co-op has not had elections in many years, as the number of candidates always equals the number of seats on the board. This year, however, there will be more candidates than seats. Someone mentioned that we are supposed to have cumulative voting. The bylaws say that all voting shall be based on shareholders having one vote for each share and the majority decides any corporate action? Is this cumulative voting? What is cumulative voting? Read More
Q&A: Conflicting Interests?
I’m the president of our building’s board. One of our directors has recently become a licensed real estate broker, and has recused himself from interviewing any potential buyers. At first, that seemed to ward off the semblance of any conflict of interest, but the issue has become a bit more complicated recently. Read More
Q&A: Smokin' Mad
I have a young toddler at home and my wife is a breast cancer survivor. For several years, our next-door neighbor’s chain-smoking home health nurse has filled up the hallway outside our apartment with smoke. The smell is so strong that it has activated the fire alarm behind our door. Our building’s rules clearly state that “unreasonable odors” are not permitted in the hallways, but our board president won’t enforce this house rule since this shareholder votes for him. Read More
Q&A: Foaming Over Washing Machines
In our Queens co-op (containing 68 apartments) we do not allow laundry washing machines. A few owners have had them from years back, others have recently renovated and installed washing machines in their apartments. Read More
Q&A: Co-op Rules v. Sponsor Units
Our building is 75 percent shareholders, 25 percent sponsor units (renters). The sponsor units fall under the Emergency Tenant Protection Act (ETPA) of 1974. My question is, doesn’t everyone in the building, shareholders and sponsor units alike have to adhere to the house rules and any fair and reasonable decision of the Board of Directors? Do you have any case law that addresses this issue, as well as statutory law? Read More
Q&A: Altering Meeting Minutes
I would like to know if the board has the right to alter minutes given to the shareholders, because there were questions raised at meetings that they would not answer and are left out of the minutes. Are there any regulations governing meeting minutes? Read More
Q&A: Asset Transfer on Death
For estate planning purposes, my wife is the sole owner of our co-op. A recent change to the New York State law permits assets to be transferred on death by use of a “Transfer on Death” designation. Like a trust, this avoids probate, but incurs little or no cost to prepare. Can I use such a method to transfer co-op ownership? Read More
Q&A: Dual Role as Director & Broker
I am the president of a co-op board in Gramercy Park. One of our directors has recently become a licensed salesperson. When announcing this to the board, he indicated that he would recuse himself going forward from interviewing any potential buyers. Read More
Q&A: Right To See Project Documents
My co-op is about to engage in a multi-million dollar upgrade energy project. The board president has decided to not let myself (a newly elected member of the board) and any shareholder access to review the documents on this project. However, the Board has given one shareholder complete access to all documents pertaining to this project. This individual has all the documents and is privately meeting with the contractors on this project. Read More
Q&A: One More Unit Co-op Conversion
I am the vice president of a board in a 10-unit co-op located in Queens with an unoccupied residential basement apartment that was originally a live-in super’s apartment. We, the board, are exploring the possibility of renovating it and selling it as an 11th unit. Read More
Q&A: Developer-Led Construction Projects?
Should a real estate developer be involved in construction projects in his or her building or is it more feasible to let an independent general contractor with no ties to the developer do the actual construction works? Read More
Q&A: Right to See Project Documents
My co-op is about to engage in a multi-million dollar energy upgrade project. The board president has decided to not allow me—a newly elected member of the board— and any shareholders access to review the documents on this project. However, the board has given one shareholder complete access to all documents pertaining to this project. This individual has all the documents and is privately meeting with the contractors on this project. What can the other interested shareholders and I do to obtain this information? Read More
Q&A: Transfer on Inside Sales
If a building decides to adopt a transfer tax, can they impose a tax when an apartment is sold to an outsider but exempt from the tax when selling to an insider? The apartments that have been combined with other apartments, (three bedrooms or more), are those which are most likely to be sold to insiders. Virtually all combined apartments are currently, or have been in the past, owned by members of the Board of Directors. Read More
Q&A: Without Board Consent
Three shareholders organized the development of 861 square feet of unused courtyard space behind their building, after having surveyed the building for interest (57 percent of shareholders responded—of which 70 percent were in favor). Read More
Q&A: Vendors Only Policy
I currently run my family’s construction business and have been doing so since I left management business over four years ago. Recently, I was asked to renovate an apartment for a client in a luxurious East Side apartment building. The building is a cooperative and the renovation entailed the complete remodeling of a bathroom and a kitchen. Upon receiving the alteration agreement from the resident we prepared all of the required paperwork, i.e. permits, licenses and insurance. We were advised to bring our paperwork to a meeting in the management office where a board member—a member of the management team and a representative from the building staff—would be there to review the paperwork and go over the plans and discuss the project with us. Read More
Q&A: Corporate Conflicts?
Can a designated trustee of a co-op apartment serve as a member of a co-op board in any role? Read More
Q&A: Escrow Account
I’m a condo owner in New York City. I have written to the management company of our condo regarding some issues I have been having, but the management company has not taken any action to remedy the situation. I would like to make my maintenance payment into an escrow account until the issue is resolved or until the management company starts to attempt to remedy the situation. My question is, can I just set up an escrow account? Read More
Q&A: In the Swim
I am president of a co-op, which has a swimming pool. The question has come up as to whether or not a lifeguard is required by law. I am writing because I found an article on the Internet on cooperator.com found at (cooperator.com/articles/534/1/ Swimming-Pool-Management/ Page1.html), which says that “New York City law requires that a lifeguard be present during all hours of pool operation.” I am trying to find out about that law as one of our shareholders is insisting that as a private entity we do not require a lifeguard. Read More
Q&A: Cost Responsibilities
Who is responsible for chimney maintenance in a New York City co-op? (Not all the apartments have fireplaces.) Also, who is responsible for repairing/replacing windows? My apartment is a loft with unique windows that are not easily repaired or replaced. Read More
Q&A: Conservation Easements
What is a conservation easement? What are the tax advantages to a conservation easement? Can a condo or co-op vote to place a conservation easement? Read More
Q&A: Replacing Shrubs
We are an 11-unit condo. association. In May 2006 two board members decided to remove our 19-year-old mature beautiful shrubs (azaleas & rhododendrons) from in front of our units. They promised to replace them by September 2006. It has not been done, so we have had weeds since then. They have devalued our property. Should I contact an attorney? Can I replace them myself and deduct from my monthly maintenance fees? Read More
Q&A: Setting Up Shop
I manage a small Mitchell-Lama co-op. Our local grocery store, which has served as an important resource for our senior residents who can’t go too far, is closing down. We were wondering what we would have to do to set up a little store in our co-op’s community room. We would sell a limited number of essential items (ie. milk, butter, bread, paper products) so that the seniors would still have that convenience. Read More
Q&A: Taping Board Meetings
Some shareholders of our cooperative wish to record board meetings as the minutes do not always accurately reflect what was said during open sessions of board meetings. One of 12 board members objected to the taping of a recent session and stated that the shareholder needed permission (I assume, from all board members as it was not specified) to record. There is no rule or bylaw prohibiting the taping of meetings currently. Read More
Q&A: Open Election Period
Our co-op elected its new officers, as usual. However, this year, there were two amendments to the proprietary lease, one for staggered board terms and the other to change our transfer fee, or flip tax, from one month’s maintenance to two percent. Our lease requires at least 2/3 or 66 percent of the shareholders to pass amendments. It’s very much a standard 1989 document. The flip tax was defeated last year, but the board insisted on trying again and launched a major offense to get it passed. As such, they are keeping the voting open, although the new officers for 2007 were duly elected and are now attending to their appropriate duties. Read More
Q&A: Hallway Clutter
Certain shareholders in our building keep some personal belongings (i.e., bikes, baby strollers, skates) in the hallways next to their apartments. Sometimes we have to squeeze by their hallway clutter to get to our own units. Is there any legislation about personal belongings in stairwells or hallways? If not, what can I do to fix this problem? Read More
