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February 15, 2008
Coop Board Probs - Attorney Rec?
It seems as if we need some changes on our coop board - our maintenance has gone up again and again (the board claims heat bills and taxes, yet none of the other buildings on the street have gone up), the work we had done on a hall reno looks substandard and took WAY too long - I'm pretty sure the contractor was the team the sponsor uses for all his properties - doubt we even got other bids, and now they're trying to vote in a flip tax offering the shareholders a % of gross sales price as the only option - when we agreed in a meeting it would be a % of net less agent's fee (the coop's lawyer - also the sponsor's lawyer (?!) drafted it "wrong"). I (the new secretary) offered to type up an info sheet explaining the diff types of flip taxes - flat per share, % of sales price, percentage of net, etc...and I was told by the president (who has been since inception - 8-10yrs?) that it would be "inappropriate for me to lobby the shareholders". What?! I think we need an audit and perhaps a change of the guard - can anyone rec a good coop atty who can help straighten this out, and get everything going in a direction that seems more above-board? Please help!!
Comments
My buiding is a condo with the same problems.
Some owners set up an owners committee but here is the problem they want owners to participate by sending money into committee bank account to hire a separate lawyer.
To me this is really a stupid idea but yet profitable for them. It also might be illegal.
Owners common charges
went up with no prior notice to anyone plus we are getting another assessment for more bullshit work that might not be necessary.
Someone is making money illegally at our expense.
The condo also has a screwed up accounting system which they refuse to fix.
The condo units are very expensive and people want to buy here all the time.
Go figure.
You have my full sympathy on this one.
The more building wide lawsuits the more the maintenance fees go up for everybody.
Posted by: Ysabelle at February 15, 2008 12:03 PM
Being a long-standing coop board member, I canot understand why you, as the Board Secretary do not simply look at the budget and bills (heat and taxes impact everyone -- a lot of buildings put in special assessments for these operating expenses -- not a good thng).
We had people who just bought in our building think that mandated work was not necessary -- and we spent (wasted) another $20K that showed they were wrong.
Bids? the Board (you) should be seeing all bids for all major work. You can still see them -- YOU ARE ON THE BOARD!
A change of guard? -- you are the guard -- get the facts before you accuse others. Do you really believe that your colleagues on the Board want to waste their own money?
Posted by: guest at February 15, 2008 12:20 PM
Even if your President and some other board members are worthless, it seems to me that rather than an attorney, what you need is to organize to vote in more open dealing board members. If you can't do that to a sufficient degree due to the sponsor controlling too many votes, then you need to start working with however many like-mided board members you currently have or manage to get elected - and start working WITH the sponsor to get stuff you want. You can have more impact through organizing often than through lawsuits or attorney demands. Of course, if once you've organized and you need some more help, then by all means talk to an attorney.
Posted by: guest at February 15, 2008 1:34 PM
I am 12:20 and if the sponsor controls the Board, you are stuck for awhile (we went through that). Until the sponsor is out of the picture, you are screwed. However, if the sponsor is gone -- you are now in control of your destiny: review the budget and bills and make sure that the sponsor did not underestimate what the maintenance should be (they always do). Make a forecast for the next 1-3 years of operating AND capital expenses (your building manger may do that but the Board -- particularly the Treasurer -- should be on top of it).
Posted by: guest at February 15, 2008 3:07 PM
I've spent the last year and a half in a lawsuit against the board of my co-op and with the city of new york. we have a fabulous attorney that has done an amazing job. Michael Pensebene at Rosenberg & Estis. the contact info is on their website. good luck!
Posted by: guest at February 15, 2008 4:03 PM
Also as a long-standing board member, I agree with 12:20, 1:34, and 3:07.
In fact I agree with the president, as a board member, it IS inappropriate to lobby the shareholders. The board acts as a group and you are part of that group. (Having said that, it seemed like what you were trying to do was to inform, not lobby).
Seems like you need to be patient and be part of the process, as you are, else quit the board and lobby to change it.
Posted by: denton at February 15, 2008 4:13 PM
How did you get elected if you did not labby other owners? Seems weird that you could get elected as treasurer and not have broad support.
Posted by: guest at February 15, 2008 4:23 PM
You might want to head over to habitatmag.com and check out their message boards, "Board Talk". Lots of good advice on co-op management and legal issues.
Posted by: bklyn_girl at February 15, 2008 9:42 PM
Here is another resource.......cooperator.com
free subscription. every thing about coops and condos.
informative website with archives.
I suggest you try them all to see which one fits your needs.
Posted by: Ysabelle at February 15, 2008 11:40 PM
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