Page 1 - CooperatorNews New York August 2021
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August 2021                               COOPERATORNEWS.COM  This is my story about becoming a New Kid on the Board that   I hope will offer some advice and resources that might be useful   to others who are new to their own co-op, condo, or HOA board;   those who are considering board service; or existing board mem-  bers and their support professionals looking to help educate   newer members—or themselves.   Step By Step  Once our co-op’s board election was certified, one of the vet-  NEW YORK  THE CO-OP & CONDO RESOURCE  COOPERATORNEWS  205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED  Even among otherwise conscientious,   community-minded co-op and condo   residents,  the  idea of running  for  and   serving on their board often ranks some-  where between taxes and dental work. It   conjures thoughts of endless meetings...  arguing about the minutiae of vendor   bids...confrontations with neighbors   unhappy with board decisions...gossipy   remarks in the elevator...the list goes on.   More often, however, the issue is sim-  ply apathy. Many if not most co-op and   condo owners just don’t care enough to   take on the responsibility and challeng-  es of board service—they’d rather their   neighbor do it. Consequently, those who   are willing to serve often hold the same   position for years—sometimes  for de-  cades—and that can bring its own set of   problems.   The Roots of Apathy  Aside from the thanklessness (both   real and perceived) of serving on the   board, there are other reasons owners   and shareholders shy away from partici-  pation.  They range from lack of knowl-  edge and experience to what’s sometimes   referred to as a ‘renter mentality.’    ‘Renter mentality’ is a common phe-  nomenon in co-op and condominium   communities. Owners of co-op and   condominium apartments are typically   entering the ownership market from the   Across the country, one of the biggest challenges to governing co-ops, condomini-  ums, and homeowners associations is finding new members who are willing to vol-  unteer their time and energy to serve on their community’s board of directors. In   addition to a time commitment that can seem onerous to those whose lives are already   packed with work, families, hobbies, households, and more, board service comes with   myriad tasks, responsibilities, and politicking. After all, who would want to take an   unpaid gig that potentially makes you the recipient of all your neighbors’ grievances?   Oh, right—  did. Seven years ago, in an effort to help a small cohort of relatively   I  new shareholders redirect a long pattern of what we saw as dysfunctionality, financial   mismanagement, and abdication of fiduciary duty among previous boards, I ran for a   seat on the board of the co-op where I live in Lower Manhattan. In a 1,700-unit com-  munity where around half of the shareholders acquired their units during the decades   when the corporation operated under Title I of the Federal Housing Act of 1949 (inel-  egantly titled “Slum Clearance and Community Development and Redevelopment”),   getting new members elected was not an easy feat. It entailed weeks of campaigning,   printing and distributing fliers about my qualification and intentions, and even posi-  tioning myself in the lobbies with my two toddlers and free lemonade.   Paper, or electronic? It’s now a choice   for everything, from the books we read   for pleasure to the books we keep on   our associations and corporations. Even   restaurant menus are digital today in   the wake of the need for ‘touch-free’ en-  vironments amid the COVID-19 pan-  demic. With that said, co-op and condo   communities generate volumes of infor-  mation and data every year, from min-  utes of meetings to receipts for expenses   and payments to financial information   on unit and share buyers. But how much   of all that really needs to be kept, and   for how long? And is there anything   that should be kept specifically in paper   form, as well as digitized?  What Does the Law Say?  Mark Hakim, an attorney with the   firm Schwartz Sladkus Reich Greenberg   Atlas, is of counsel to numerous co-op   and condo buildings in the greater New   York area.  According to him, “Under   Section 624(a) of the Business Corpora-  tion Law of the State of New York (BCL),   corporations  are  required to  maintain   ‘correct and complete books and records   of account and shall keep minutes of the   proceedings of its shareholders, board,   and executive committee, if any, and   shall keep at the office of the corporation   in this state or at the office of its transfer   agent or registrar in this state, a record   containing the names and addresses of   all shareholders, the number and class of   shares held by each and the dates when   they respectively  became the owners   of record thereof. Any of the foregoing   books, minutes, or records may be in   written form or in any other form capa-  ble of being converted into written form   within a reasonable time.’    “In essence,” Hakim continues, “there   is nothing in the BCL that mandates a   paper format. We often counsel our cli-  New Kids on the Board  First-Person Advice for Newly Elected Directors  BY DARCEY GERSTEIN  Improving Board   Involvement  Combating Apathy    Among Residents   BY A. J. SIDRANSKY  Digital Documents   Balancing Safe Storage    with Accessibility  BY A. J. SIDRANSKY  continued on page 9   continued on page 8   continued on page 11   NEW YORK’S BIGGEST & BEST CO-OP,   CONDO & APT EXPO!  NEW YORK HILTON MIDTOWN — THURSDAY, OCTOBER 28, 9-4:30  FREE REGISTRATION: COOPEXPO.COM  LIVE AND IN PERSON


































































































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