Taylor, Eldridge & Endres PC | Blog | Long Island Co-Op Lawyers

A Board’s Map To Successful Collection Of Common Charges And Assessments In Condominiums And Homeowners Associations

COLLECTIONS OVERVIEW

In order to successfully operate a planned community, payment of certain expenses associated with the operation, maintenance, and control of the association are required. The Board creates a budget for these expenses, including proper reserve funding, and thereafter assesses the owners. The obligation of the owners to make payment of these assessments and the liability for non-payment is found in the association’s governing documents.

If too many owners fail to make payment of their common charges and assessments, the association may be unable to pay its bills and keep the community running in the fashion and at the level the owners expect. Whenever an owner fails to make payment, all other owners must pay that delinquent owner’s share. As a result, Boards have little choice but to move forward against delinquent owners. Failure to do so can be seen as a Board not satisfying its fiduciary obligation and affirmative duty to the community. Continue reading “A Board’s Map To Successful Collection Of Common Charges And Assessments In Condominiums And Homeowners Associations”

New Conflict of Interest Law

The NYS Legislature recently passed a new law, signed by the Governor in September 2017, which purports to impose conflict-of-interest reporting requirements upon condominiums and cooperative housing corporations.

The law requires, first of all, that at least once each year, each “director” of a condominium or co-op board receive a copy of the Related Party Transactions section from the NYS Not-for-Profit Corporation Law (Section 715) or, for a co-op board, a copy of the Interested Directors section from the Business Corporation Law (Section 713). These provisions are similar to each other and prohibit boards from entering into contracts where a conflict of interest exists, unless the conflict has been disclosed by the interested director. Continue reading “New Conflict of Interest Law”

Smoking In The Boardroom

In recent years, municipalities have banned cigarette smoking in government offices and places of public accommodation. Many private entities also prohibit cigarette smoking in office buildings, factories and warehouses.

Even facilities that originally established designated smoking areas have been gradually doing away with them. While cigarette smoking has long been considered dangerous to the user, the relatively recent prohibitions against smoking are largely designed to protect non-smokers from the ill effects of second-hand smoke. Continue reading “Smoking In The Boardroom”

How to Choose a Property Management Company

Management companies come in all sizes and shapes, as do community associations and their boards, and there is no clear answer to the question of how to choose the company best suited for your Board and your community.

Like most things in life, there can be advantages and disadvantages to everything. A small company may be able to provide more personal attention, but are they small because the service they provide is not in demand? An established company may tout its years of experience, but will a newer company try harder to please? A less expensive company will be easier on your budget, but will their service be low in quality as well? A more expensive company may provide top quality service, but will you need to raise assessments to pay their fees – and is that necessarily a bad thing?

A management company may want to take over responsibility for the day to day affairs in running your community – which may be a good thing – but is your Board too “hands on” to allow that to happen – which could result in endless conflict? All of these questions can only be answered by you and your Board as you interview different companies and survey their offers. Continue reading “How to Choose a Property Management Company”

A Community Association Ombudsman in New York

You may have read the recent article in CAI’s Common Ground magazine entitled “Man in the Middle” about community association ombudsmen in Nevada, Florida, Virginia and Colorado.[i]

An ombudsman is defined as “a public official appointed to investigate citizens’ complaints against local or national government agencies that may be infringing on the rights of individuals.”[ii] In the community association context, an ombudsman is frequently called on to help resolve disputes between irate homeowners and community Boards of Directors/Managers. The Common Ground article depicted the mixed reviews that the ombudsman office has received in these four states. Continue reading “A Community Association Ombudsman in New York”

Absence of Malice

A Comparative Analysis between the Torts of “Abuse of Process” and “Malicious Prosecution” in civil litigation

Misuse of the legal system and its processes by litigants is nothing new; for centuries, individuals have improperly used the threat and/or commencement of legal action, both criminal and civil, as a sword against an adversary or potential victim. In fact, the use of process for the purpose of oppression or injustice was once punishable as contempt, and at times rose to an action for injury to reputation.[1] Continue reading “Absence of Malice”

Individual Board Member Liability After Fletcher v. Dakota

The Dakota, one of the legendary co-operative apartment buildings in Manhattan, has long shunned attention.

Its Board of Directors has allegedly even denied the purchase applications of celebrities in order to avoid the publicity that accompanies high profile residents. Ironically, instead of fame, the Dakota has been plagued by infamy, most notably by the murder of John Lennon at its doorstep, and most recently by a discrimination law suit brought by a former Board president against the Board of Directors and two individual Board members.[i] Continue reading “Individual Board Member Liability After Fletcher v. Dakota”

Restrictions on Leasing in Condominiums and Homeowner Associations

Governing boards of condominiums and homeowner associations often have concerns about the number of rental units within their communities.

Tenants are perceived to be less concerned about the community, less likely to observe the community’s rules and regulations and less concerned about the preservation of the community’s common elements than unit owners who reside within the community. Continue reading “Restrictions on Leasing in Condominiums and Homeowner Associations”

Amending the By-Laws, Declaration, Rules and Regulations

The Board of a community association we represent is thinking of reviewing and updating the rules governing the community.

The question has arisen as to whether changes in the rules can be made by a vote of the Board or whether it would require an amendment to the By-Laws or Declaration.

Following in classic legal tradition, the answer to the question is… “It depends.” Continue reading “Amending the By-Laws, Declaration, Rules and Regulations”

Fairness in Cooperative Home Ownership

The Suffolk County Legislature recently passed a new Local Law entitled “A Local Law Requiring Fairness in Cooperative Home Ownership” that took effect on September 15, 2009 and was later amended, which amendment became effective on November 10, 2009.

A more appropriate name for the law would have been “Fairness in Purchasing a Cooperative Home” since the law deals with the application process. Most significantly, in the event a co-op Board of Directors denies an application to purchase a unit, the law requires the Board to notify the applicant, in writing, of the specific reason for the denial. Continue reading “Fairness in Cooperative Home Ownership”