Page 9 - CooperatorNews NY July 2022

COOPERATORNEWS.COM COOPERATORNEWS — JULY 2022 9 www.allconcontracting.com Contact: 66 Brooklyn Avenue Westbury, NY 11590 1.516.333.3339 info@allconcontracting.com Since our founding in 2001, ALLCON Contracting has built a solid reputation and proven track record of producing and delivering high quality construction solutions consistently, on time and within budget. Where Quality Comes First RESIDENTIAL & COMMERCIAL We handle all sprinkler system inspections and violations. • Sprinkler System Design and Installation • Maintenance, repair and service • Flow and Pressure tests • Violation Removals • Monthly Inspections • Stand Pipes and Fire Pumps Big Apple Fire Sprinkler Co. Inc. 64-20 Laurel Hill Blvd. Woodside NY 11377 • 718-205-8580 • Fax 718-205-4590 Email: alevitt@bigapplesprinkler.com = Big Apple Fire Sprinkler_Oct2011.qxp:Layout 1 9/20/11 2:07 PM Page 1 they’re even considering a second full maintenance increase, mid-year. To do that is not always popular.” Prisand suggests that a one-time as- sessment may correct a current cash flow problem, or act as a stopgap measure. “For 2023 though,” he says, “we are ob- serving how this year plays out.” If infla- tionary pressures continue as they have, co-op corporations and condominium associations may have no choice but to level high single-digit or even double- digit increases. “It’s about monitoring things,” says Prisand. “Most buildings have this year’s results through May. It’s still too early for budget planning for 2023, but we recommend boards keep on top of it.” “Although we are seeing increases overall,” says Kurian, “it will be difficult to pinpoint precisely which goods or service areas will be impacted by higher pricing and availability in the near fu- ture.” That lack of precision and certainty about how things may trend going for- ward also applies to reserve funding, says Levy. “Reserve funding is more complicated, because not only are prices going up, labor and supplies are harder to purchase with current supply chain issues. You might have the funds for a new HVAC system, but the unit might be backlogged for six to ten months. This needs to be addressed in the reserve fund budget analysis.” Wolf and his colleagues recommend transparency as the best policy for ex- plaining to shareholders and owners what is happening and what may well happen in the coming year(s). “If the association is over budget,” says Wolf, “the board should let the community know, and why. If they budgeted for ‘X’ last year for a project or line item, they have to come clean and say that costs, etc., have risen.” In terms of affordability and the ability of association members and corporation shareholders to absorb higher monthly costs, Wolf adds that “the association must collect what it needs. If there is a one-time assessment, payment plans are an option, but ultimately the community needs the funds.” Ultimately, there is little to nothing co- op and condominium boards and man- agers can do to control inflation, supply chain issues, and labor shortages that are plaguing the economy now, as we emerge from the worst global health crisis in a century. We will have to ride this out. But good management and attention to detail can help to defray some of the costs. No matter the circumstances, vigilance and planning are your best tools. n A J Sidransky is a staff writer/reporter for CooperatorNews, and a published novelist. He can be reached at alan@yrinc.com. op discovered that the defendant (having since closed title on the shares) was rent- ing his unit out on Airbnb, both in viola- tion of the proprietary lease and in refuta- tion of his application representations. Rather than seeking to terminate the proprietary lease and recover possession of the defendant’s apartment in a landlord- tenant proceeding, the co-op sought mon- etary damages and rescission of its waiver to right of first refusal. Even though lower courts denied the defendant’s motion to dismiss, citing the misrepresentations the defendant made in his purchase applica- tion that caused the co-op to waive its right of first refusal, Justice Joseph found for the defendant, concluding that the co- op didn’t show sufficient proof of damages relative to its waiver of its right of first re- fusal, and that the rescission claim was not legally viable. As Koplovitz and Freedland contend, Trump Village Section No. 4’s “choice to request rescission of the occupancy agree- ment instead of pursuing a holdover case appears to have been a time-consuming and likely costly one, since Justice Joseph also awarded legal fees to Mr. Vilensky as the prevailing party.” Sponsor Board Representation Limited in Nolita Condo Attorney Peter Mahler of law firm Far- rell Fritz, P.C. in Uniondale, New York writes about a First Department decision in Tsui v Chou that enjoined the sponsor- defendant from controlling the board of directors of her six-story downtown Manhattan condo formed in 1986. The case asserts that the sponsor and several of her family members who own units in the building made up the six-member board, even though the offering plan and bylaws require the sponsor to relinquish board control five years after the first closing or after 75% of the units close, whichever happened first. The governing documents also prohibit the sponsor from casting votes to elect a board majority. The plaintiffs additionally challenged the de- fendants’ engagement of a property man- agement company owned by the sponsor’s husband. After a bench trial, writes Mahler, Manhattan Commercial Division Justice Joel M. Cohen found that the sponsor and her family improperly maintained board control by failing to conduct board elec- tions when required for seats held by the sponsor’s family members, and otherwise failing to conduct staggered board elec- tions in compliance with the procedures set forth in the offering plan and bylaws. In his judgment, Justice Cohen en- joined the sponsor from casting votes for board seats representing the interest THE YEAR IN... continued from page 1 continued on page 10