Page 12 - CooperatorNews New York 2022

12 COOPERATORNEWS —
AUGUST 2022
COOPERATORNEWS.COM
tive in its decision making,” she says, “so a the property, and the condition of the prop-
proactive board can potentially reduce the erty and the value of the property. Those are
chance for special assessments.”
The Right Reasons
Jeff Roude, partner with Sax LLP, an ac-
counting and tax advisory firm with offices
in New York City as well as Parsippany and
Pennington, New Jersey, has worked with co-op, condo, or HOA is really a business—a
boards who didn’t raise common charges for fact that board members and shareholders/
years—even decades. He contends that many unit owners should keep in mind when vol-
of those directors might have been on their unteering for their building or community
boards for the wrong reasons.
“A lot of people run for the board for accomplish. “It’s not about them as individu-
personal, self-satisfying reasons,” he says. “I als,” says Roude, “it’s about operating a busi-
think that’s one of the problems with some ness. So you’ve got to do what’s right for the
boards—they’re in it for themselves and not business and not for yourself. If you can’t do
for the building. They forget that they have a that, you shouldn’t be on the board.”
fiduciary responsibility to do what’s best for
the building. When I meet with a board or sit
down with a client that’s interviewing me, I’d
like to hear that they’re in it for the right rea-
sons. And if they need to raise maintenance,
they raise maintenance—because it’s needed,
not because they don’t feel like paying any
more maintenance.”
Eric Mullendore, an architect and interior
designer in Chicago who works with co-ops
and condos, has seen his share of selfish or
ill-motivated boards. He notes that another
practical implication of such situations is that
projects tend to go awry or get unnecessar-
ily delayed; egos, stubbornness, and poor
judgment can lead to increased costs and
extended inconvenience for these multifam-
ily communities. “I’ve had experiences over
the years where people are more interested in
having their way seen than trying to find the
common good,” Mullendore continues. “It
should always be about the common good.
That—and good teamwork—make for the
most successful projects.”
Joseph Balzamo, COO of AR Manage-
ment Company in Morristown, New Jersey,
also has experience with board members
who have ulterior motives. “[Say there is] a
board member who is an investor,” he relates,
“and wants to rent one of his properties out,
so he is on the board to keep the maintenance
fees low so he can keep the rent high. He’s not
really interested in the building. He’s really
just interested in his personal agenda and his
pocket.”
A good board is one that keeps its focus
and adheres to its business, says Balzamo.
“What also makes a board work well is that
they all have the same goal,” he continues.
“They all recognize that what’s paramount is
three things that are most important: what
the value is, what the condition is, and what
your agenda is with it.”
Business Up Front
When it comes down to it, say the pros, a
and setting expectations for what a board can
n
Darcey Gerstein is Associate Editor and a
Staff Writer for CooperatorNews.
“You’re not expected
to be an expert, so
your role is to seek the
expertise and guidance
of your professionals.”
—Ben Kirschenbaum
WHO’S A GOOD...
continued from page 11
and requirements of each member based
upon how that particular board operates.
This includes topics such as regular board
meeting attendance, board committee
memberships, participation in the budget-
ing process, capital projects, interviewing
prospective shareholders (for co-ops), and
the review of applications and board pack-
ages, etc.”
Dan Wollman, CEO of Gumley Haft, a
management firm also based in Manhattan,
says that while onboarding “is a very good
idea, there is generally not a formal process.
In fact, there isn’t any formal process in any
of the buildings we manage.” That said, he
does add that “one of the things we like to
see is in buildings where there is a good level
of involvement and people want to serve, the
board takes on one or two volunteer, non-
voting members each year. They participate
in deliberations and debate, and when a seat
opens on the board, they can step right in,
because they’re familiar with building is-
sues, etc. This is a great way to integrate new
people into the governance of the building.
As new members come on, we recommend
they read the bylaws and documents, etc.
and that they come to our offices to read the
board minutes at least from the past several
months to get up to speed.”
Resume, Anyone?
Considering that board service is volun-
tary, and nearly every community struggles
to find residents willing to make the com-
mitment to serve, what if any documen-
tation and experience should be recom-
mended—or even required—for new board
members seeking a seat?
According to Marks, “To be considered
by either the sitting board or by the share-
holders or unit owners, anyone running for
a seat or being considered for a mid-year ap-
pointment to the board should be required
ONBOARDING...
continued from page 1
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