Launching a successful business requires talent, the commitment of many people, dedication and of course, a clear cut plan and strategy. Just like launching a business, a co-op or condo needs this kind of support when it makes the transition from sponsor-run to board run.
Of course, like any new business there are going to be pitfalls and unforeseen difficulties...the transition is rarely smooth. At times it may seem daunting if not impossible to take the foundation of a co-op or condo and build a solid, stalwart, fully-functioning community—especially if the sponsor and the board in question have differing ideas of how to accomplish it.
One thing is clear though, if the sponsor and the new board remain focused, communicate clearly, stick to a strategy and bear in mind the greater good of the community, it can be accomplished and all the hard work will be rewarded.
The United States has the Constitution and the City of New York has its Charter—these documents are the framework that detail how government works, a set of operating instructions if you will. In the same sense, your co-op or condo will have a set of governing documents, which will spell out in detail how your community will be run. These are the bylaws and they determine how your board or association will function, and how the transition of power will take place: from the sponsor who created the development to the residential board members, who will now take over the day-to-day operations and responsibilities.
Attorney Leonard H. Ritz, of the Manhattan law offices of Adam Leitman Bailey P.C., explains that, “The transition is laid out in the bylaws.” He explains that, in most situations, the board will be comprised initially of friends, employees, or other designates of the sponsor. As more units are sold within the building that number will slowly shift.”