Tax Day is upon us once again, a timely reminder that for co-op and condo boards there are three eternal verities: death, taxes and noise complaints. This was brought home by a woman with allergies so severe that she had to remove the carpets from her apartment years ago. In an effort to downsize, she […]
Understanding the Responsibilities of Your Property Manager (NY)
If you own or serve on the board of a cooperative or condominium in NYC, you might feel unsure about what each person’s roles and responsibilities are. This includes your staff, board members, and especially your property manager. Knowing who does what is really important for being a good neighbor and for boards to keep […]
Holding Condominium Developers and Their Principals Liable (NY)
In Board of Managers of the Brighton Tower II Condominium v. Brighton Builder, LLC, the Second Department which overseas Brooklyn and Long Island lower courts, issued a decision which clarifies what condo boards and owners have to establish in order to succeed against sponsors and their principals in construction defect cases. The court offered important […]
Flip Taxes: Co-Op & Condo Boards’ Tool for Boosting Reserve Funds (NY)
It began back in the 1970s as a tool to discourage real estate speculators and to avoid assessments and increases in monthly charges. Today it is primarily a tool for co-op and condo boards to keep their reserve funds robust. And when it comes to setting one — and determining who pays it — there’s […]
MHH Condo/Co-op Digest Vol. VI, April 2024 (NY)
Court Of Appeals Decision Threatens To Upend NYC Property Tax System: On March 19, 2024, the New York State Court of Appeals issued a decision in Tax Equity Now NY, LLC v. City of New York et al., Index No. 153759/2017 (Sup. Ct. N.Y. Co.), opening up a path forward to challenging New York City’s […]
Corporate Transparency Act (CTA) Compliance Condos, Co-ops, HOAs Likely Must Register—or Face Steep Fines (NY)
Back in 2021, Congress passed the Corporate Transparency Act (CTA), a federal law requiring most corporations, LLCs, and other such entities to register with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The function of the Act—which went into effect on January 1 of this year—was to fortify laws around money laundering, corruption, tax […]
When Negotiations Fail: Forcing Your Association’s Neighbor to Grant a License for Protection May Be the Only Way (NY)
Property managers, take heed! A recent court case highlights the power you have to protect your associations when a neighboring building owner does not cooperate in giving a license for protection on their property so that the association can perform its work . In this case, the court awarded a license fee and mandated typical […]
Condo Boards: Know Your Responsibilities to Avoid Liability (NY)
Condominiums have a contractual duty to maintain common elements. While the business judgment rule normally protects condo board members from personal liability if their choices seem unwise, it won’t shield the condo if the board breaches its contractual obligations to owners. Boards who neglect these responsibilities could open the condominium up to significant liability. Read […]
How to Address Resident Hoarding in Co-Op and Condo Boards: Strategies for Safety (NY)
Hoarding is becoming a major problem in many of our communities. This complex issue spans demographics, affecting both older and younger individuals. For co-op and condo boards, dealing with a resident who is hoarding requires compassionate intervention, prompt action and often strategic collaboration with the courts. The priority is resident safety, making sure the hoarding […]
State Court Ruling Opens Door for Major Changes to NYC Property Tax System (NY)
A recent state court ruling has created a path toward major changes to New York City’s property tax system — albeit one that could have mixed consequences for co-ops and condos owners. In a 4-3 ruling, the New York Court of Appeals allowed a lawsuit alleging the city’s property tax system is unfair and illegal […]
Emotional Support Animals Must Obey a Co-op’s House Rules (NY)
Q: We live in a small, no-pets Westchester County co-op. Our upstairs neighbors were recently allowed to acquire an emotional support dog. The dog runs back and forth for 30 minutes at a time, and it frequently scratches a bedroom rug, waking us up throughout the night. We have shared our concerns with the neighbors, […]
Electronic Voting takes the Burden Off of Management Companies (NY)
There are several reasons why property management companies in NY should want to have their condos equipped with electronic voting systems: Read the article…………………………….
A Glimmer of Hope for Co-ops and Condos Struggling with LL97 (NY)
A bill giving tax breaks to co-ops and condos in return for energy efficiency upgrades has a strong chance of passing in the State Senate, thanks to support from a majority of New York City Council members. If enacted, the Green Buildings Act would offer a lifeline to apartment buildings struggling to meet Local Law […]
Uncertainty Reigns as Corporate Transparency Act Declared Unconstitutional (NY)
The Corporate Transparency Act (CTA), the new disclosure law that, as detailed in Habitat Magazine’s March 2024 cover story, threatens to upend corporate governance practices for millions of entities, has itself been upended. At least, that is one possible outcome of the surprising — and surprisingly sweeping — decision from the Northern District of Alabama […]
Co-Op and Condo Boards Face Challenges Accommodating Emotional Support Animals (NY)
The demand for emotional support animals (ESAs) can present challenges for co-op and condo boards, particularly in buildings with strict no-pet policies. The key to addressing ESA requests lies in recognizing the distinction between an ESA and a pet. Unlike pets, ESAs serve as therapeutic companions for individuals with disabilities and are protected under the […]
Addressing the Hard Insurance Market: Strategies for Boards (NY)
Rising insurance premiums and dwindling coverage have co-op and condo boards at the mercy of what’s called a “hard insurance market.” This is largely because insurers’ are trying to offset billion-dollar losses with higher premiums, lower coverage and exclusions. In the face of escalating costs, boards are forced to explore different ways to reduce liability […]
Condo Boards and Managers Beware: Ignoring Complaints of Rule Violations Lands You in Court (NY)
A brand new Appellate Court decision underscores condo boards’ duty to act in good faith when residents report violations of building rules and regulations. In the case of Bacharach v. Board of Managers of the Brooks-Van Horn Condominium, the board faced legal action after years of alleged inaction regarding excessive noise complaints. The New York […]
The Ariel West’s Terra Cotta Troubles (NY)
Ariel West has found that when it rains, it indeed pours. The 32-story luxury condo on Manhattan’s Upper West Side has been forced to take on the lengthy and expensive process of replacing its terra cotta rainscreen after dangerous defects appeared less than 10 years after the building’s construction. The alarm was raised in 2015, […]
Condo/HOA Boards – Don’t Let Lenders Block Your Collections (NY)
Condominium and HOA boards in New York have lien foreclosure rights against delinquent properties. But, when the primary mortgage lender isn’t qualified to do business in New York, delays and complications can arise. Here’s what you need to know: Read the article…………………………….
How Strong Is Your Liability Shield? Understanding Bylaws & Board Actions (NY)
Could your condo bylaws save you from a costly lawsuit? A recent Brooklyn court decision highlights the critical role bylaws play when unit owners and their Board of Managers clash. Read the article…………………………….
Business Judgment Rule: How to Protect Your Board (NY)
The recent case of Levy v. 103-25 68th Ave. Owners, Inc. offers some valuable insights for property managers and board members within cooperative housing communities. In June 2018, the Levys commenced this action against the co-op defendants and the occupants of the neighboring apartment, alleging, inter alia, that the co-op defendants exceeded the scope of […]
New York Court Decision Highlights the Importance of Corporate Guidance for Board Member Protection (NY)
A recent New York Appellate Division decision (Cortlandt Street Recovery Corp. v. Bonderman) underscores the significance of retaining experienced corporate counsel to protect both corporations and their board members from potential liability. The court rejected the plaintiff’s attempt to hold various related entities collectively liable for the actions of one, highlighting the complex challenges in […]
New York Class Action Settlement Impacts Foreclosure Proceedings: What Condo and HOA Boards and Management Need to Know
A recent class-action settlement addressing foreclosure procedures in New York State has significant implications for condominium and homeowners’ associations (HOAs) that have owners in arrears. The law involved only applies to foreclosures of home loans, and not condo and HOA foreclosure of common charge liens and experienced counsel need to make this clear at the […]
Mastering NYC Building Codes and FISP
Welcome, Manhattan Coop and Condo Board Members! In the sphere of urban architecture and safety regulations, New York City sets the standard with its stringent building codes and standards. As stewards of your community’s safety and integrity, understanding these regulations, particularly the Façade Inspection Safety Program (FISP), is paramount. Let’s dive into this informative explainer […]
Is “Mediated Resolution” a Free Pass for Local Law 97 Deadbeats? (NY)
When it comes to New York City’s landmark climate legislation, Local Law 97, it seems that every push results in a vigorous pushback. For instance, when many building owners, including co-op and condo boards, howled that they could not possibly afford retrofits that would bring their buildings’ carbon emissions in line with the law, the […]
Federal Corporate Transparency Act: Alabama Case Creates Confusion, But Compliance Still Likely Required (NY)
A recent Alabama court decision ruled the Corporate Transparency Act (CTA) unconstitutional, creating uncertainty for businesses nationwide. While the case may be appealed, here’s what boards of coops, condos, HOAs, and LLC members in New York, Connecticut and other states need to know right now. Read the article…………………………….
Is Your Board Making These Critical Mistakes? Essential Risk Management Tips
In a recent New York case, 72 Poplar Townhouse, LLC v Board of Managers of the 72 Poplar Street Condominium, a series of critical issues arose that have wide-reaching implications for condo, coop, and HOA boards. This case highlights the potential consequences of unclear bylaws, the importance of meticulous records, and the complex power dynamics […]
Northport 4-Unit Condo Catches Fire, Firefighter Injured (NY)
A Northport condominium went ablaze on Wednesday afternoon, causing a firefighter to suffer a minor injury, Northport Police Department Chief Chris Hughes said. Read the article…………………………….
Why Condo, Cooperative, and HOA Boards Need a Legal Eye on Their Documents
As a board member or property manager for a condominium, cooperative or HOA, you shoulder significant responsibility. You make decisions impacting the finances, safety, and quality of life for a whole community. Your actions are, of course, guided by your entity’s governing documents – but were these documents designed to protect the association and its […]
NYC Condo Boards: Know When Unit Owner Approval is Required
Last year, the Circa Central Park condominium decided to spend $60,000 to make the building’s many windows more visible to birds. The board decided to add translucent dots to the windows so the birds would see them and not crash. If this was your condo board, would you get unit owner approval before doing that […]
Hoarding in Condominiums: When Individual Rights Clash with Community Concerns
The recent case of Board of Managers of the 48-54 West 138th Street Condominium v. Flora Burdock highlights the complexities that arise when an individual unit owner’s behavior impacts the health, safety, and well-being of a condominium community. In this case, the condominium board sought legal intervention to address a severe hoarding situation within Ms. […]
Threat of Litigation Not a Good Idea when it comes to Housing Discrimination Complaints (NY)
New York’s highest court decided that the threat of litigation may support a retaliation claim under the New York State Human Rights Law. The Human Rights Law prohibits retaliation against those who make discrimination complaints or engage in other protected activity. The New York Court of Appeals definitively decided that the threat of litigation itself […]
Enhancing Governance: Lessons from a Recent Condo Board and Property Management Company Lawsuit (NY)
Condo Boards and their Property Management Companies play a crucial role in maintaining harmony within residential communities. A recent legal battle involving the Sky House Condominium sheds light on the importance of meticulous governance to avoid potential pitfalls. Read the article…………………………….
Navigating Sidewalk Shed Disputes: Insights for Condo or Coop Boards (NY)
The court’s decision in 157 W 18 OWNER, LLC v. THE BOARD OF MANAGERS OF THE SLATE CONDOMINIUMS provides clarity on the interpretation of RPAPL 871 and the enforcement of Building Code requirements in construction-related disputes. The ruling underscores the importance of demonstrating a substantial encroachment and balancing equities when seeking injunctive relief for property […]
Community Association Board Members can be Sued for Breach of Fiduciary Duty (NY)
The Board of Managers of the 72 Poplar Street Condominium and individual board members were sued by a unit owner who was overcharged common charges. The Board allegedly knew about the overcharge and eventually refunded the overpayments to the owner, and then called a unit owner vote to amend the Condominium’s bylaws to change the […]
Here Are the Top Reasons Why People Run for Co-op and Condo Boards (NY)
Serving on a co-op or condo board is nice work if you can get it. The pay is terrible (that is, nonexistent). The hours can be long. The level of satisfaction among shareholders or unit-owners can range from sky-high to the bottom of the basement. When things go wrong, it’s the board’s fault; when things […]
Unique Challenges for Condo and Coop Boards Facing Local Law 97 Requirements (NY)
New York City’s Local Law 97, passed in 2019, aims to drastically reduce greenhouse gas emissions from large buildings. By 2024, condominium and cooperative buildings over 25,000 square feet must meet strict emissions limits or face heavy fines. While the law’s environmental goals are laudable, the legislation poses unique financing challenges for condo and co-op […]
Condo, Coop, HOA Board vs. Dissidents – Navigating Contentious Times
In the intricate realm of community associations, addressing the process of compelling a vote to remove a board is a crucial but often overlooked aspect. One of the primary challenges arises when the sitting board refrains from calling a special meeting, necessitating potential litigation funded personally by the owners or shareholders. Read the article…………………………….
City Has a Skeleton Staff to Enforce Compliance With Local Law 97 (NY)
Some 50,000 large New York City buildings, including thousands of co-ops and condos, will be required to comply with the city’s sweeping climate law, Local Law 97, which went into effect on Jan. 1 of this year. And how many inspectors does the Department of Buildings (DOB) have on staff to make sure those buildings […]
Business Judgment Rule: Lessons for Co-op and Condo Boards (NY)
The business judgment rule often serves as a perceived safety net for boards, shielding them from legal scrutiny. However, this rule is not an impenetrable shield and boards should be aware of the nuances. Simply put, the business judgment rule states that, with four exceptions, a court cannot overrule a co-op, condo or HOA board-issued […]
Co-op Boards’ Broad Powers Do Not Include the Right to Discriminate (NY)
Q: A shareholder in a co-op in Jackson Heights, Queens, is trying to sell her apartment — but the co-op board has used its considerable powers to reject a series of potential buyers. One sale was blocked because the board said the co-op’s financial information was unavailable while the co-op was undergoing an audit. Read […]
Dealing with Marijuana Complaints in NYC Co-ops and Condos
The pervasive smell of marijuana in New York City is presenting challenges for co-op and condo buildings as residents complain about smoke and odors. Since August 2018, a mandate has required all residential buildings to establish a smoking policy and inform residents on the details. Read the article……………………………..
New Law Affects Contractor Retainage for Co-ops & Condos: Add Another Item to Boards’ List of Things to Worry About (NY)
As if New York co-op and condo communities weren’t under enough pressure from sluggish sales, high interest rates, and the ever-increasing volume of work required to comply with environmental requirements like Local Law 97, Governor Kathy Hochul signed a bill into law on November 17 amending Sections 756-a and 756-c of the New York State […]
Navigating the Complex Landscape of E-Bike Bans or Restrictions in Condos, Coops and HOAs (NY)
In recent times, the proliferation of E-Bikes, coupled with concerns about their combustible batteries, has thrust the issue into the spotlight. Nowhere is this more apparent than on the bustling streets of New York City, where E-Bikes seem ubiquitous. The potential dangers, including fire risks, property damage, and casualties, have prompted association boards to grapple […]
Co-ops and HOAs Are Democracies. They Run on Laws
The board at a homeowners’ association (HOA) on Long Island has mandated that residents allow an outside inspector onto their properties to determine the condition of building exteriors and windows. If deficiencies are found, owners will be given time to correct them — then fined if they fail to do so. Read the article…………………………..
Elevate Your Co-op Board Game (NY)
Ever found yourself navigating the tricky waters of a coop board with that one steadfast but hesitant volunteer? Picture this: a decision hangs in the balance, and despite the collective will of the board, this one individual assumes/ possesses the power to halt, delay, or even stop progress. Read the article…………………………….
Holding Elections – Every Board’s Duty (NY)
Shared residential communities such as co-ops, condos, and HOAs are modern examples of classic Athenian democracy: citizens governing themselves through active participation in governance. The key to that governance is the regularity of elections to the community’s leadership—which in this case is the board of directors. Read the article……………………………..
For Co-op and Condo Boards, Electrification Looks Better and Better (NY)
A growing number of co-op and condo boards are buying into the gospel of electrification — switching from fossil fuel-powered buildings systems to electric-powered ones as the electric grid gets greener and cleaner. This, they believe, is the best way to cut their buildings’ carbon emissions enough to comply with Local Law 97, which goes […]
Condos and Coops are Impacted by Fannie Mae and Freddie Mac Changes
Government backed mortgage lenders, Fannie Mae and Freddie Mac, issued temporary project review requirements relating to significant deferred maintenance in condominiums, co-ops, and similar developments. To assess a project’s eligibility, Fannie Mae and Freddie Mac each promulgated a standardized “Condo Project Questionnaire Form” to obtain information related to significant deferred maintenance, the plan for addressing […]