Page 17 - New York Cooperator January 2019
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COOPERATOR.COM THE COOPERATOR — JANUARY 2019 17 Providing a Full Range of Architectural & Engineering Services In-house professional expertise in: Exterior Restoration & Historic Preservation Construction Inspection Alteration Review Architectural Design Engineering: n Mechanica l n Electrical n Plumbing n Structural Energy Audits Forensic Investigation Façade Safety Inspection Program Reporting Green Design – LEED Professionals Client satisfaction assured by the active daily involvement of the firm’s principals www.lawlessmangione.com info@lawlessmangione.com 914.423.8844 normally would, such as working on the there is an obvious commonality there annual budget before those snowbirds de- part for the winter. So the timing of when keep the property at maximum value. So things get done is what is most affected – it’s not an automatic conflict of interest. not the substantive decisions, so much as But disputes can arise, because someone when those decisions are made.” The full-time non-resident board improve the building in a way by which member presents a different dynamic they can’t immediately ascertain value, than the seasonal absconder. “They typi- cally reside locally, but just not on the in common charges or maintenance. But property,” Slowikowski continues. “Strict- ly speaking from a legal perspective, all on a board, you’re supposed to take your board members have the same duty to act ‘I’ cap off and put your ‘We’ cap on, and in the best interests of the association, make decisions in the best interests of the and residency should not matter. But entire building.” from a practical perspective, we do see some differences as to how they approach their duties. “In my experience, the non-resident board members tend to approach the op- eration of the asso- ciation as a business; they are protecting an investment. And that business should be financially stable and sustaining. This type of board mem- ber is typically not as concerned about funding reserves, paying or adopting special assessments, or borrowing funds meeting,” she recalls. “He was a great as- as needed. They will want the parking set because his comments and decisions lot repaved, rather than simply patching were not emotionally triggered, but busi- potholes; while resident board members, ness based. After a couple of meetings, on the other hand, may have more con- cern for day-to-day operations, and how of the board became more likely to put the enforcement of rules and regulations their emotions aside and operate the as- affect residents’ daily lives. They tend to sociation like a fine-tuned machine.” be more in touch with smaller mainte- nance projects that can have immediate effect on those at the property, and are to join the board based purely on neces- more likely to want to keep assessments sity. lower – even when assessments should be raised – as they may not possess that in- vestor mentality.” Ain’t Nothin’ Goin’ on But the Rent Non-resident board members may Breedlove. see their units as assets to be monetized. These individuals are likely to want to where there are ample volunteers to serve rent their apartments to maximize their on the board, non-residents are likely not investment. “Many associations prefer owner-oc- cupid units, so in instances where conflict they do conceptually” when it comes to arises, it’s typically between those who non-resident board members, he says. “In live there and those who do not, but who instances where there are problems, the want to rent,” notes Marc H. Schneider, bad actor normally just gets voted out. a partner with Schneider Buchel LLP, a And the community is going to be aware law firm in Garden City, New York. “But as well, as they presumably all want to who rents their unit out may not want to and they feel will only cost them more they have to remember that when you sit Of course, renters are entirely ca- pable of making viable contribu- tions to the com- munity themselves, as Mary Breed- love, Manager of the Augusta Vil- lage Homeown- ers Association in Plainfield, Illinois, observes. “We had a renter in a com- munity who want- ed to get involved, and was appointed to the board – not elected, as we did not reach quorum to run an election due to his methodical approach, the rest Further Inspection Occasionally, a non-resident steps up “In today’s age and time, we can’t get homeowners to complete their proxies to even hold an annual election meet- ing, much less run for the board,” laments And Schneider notes that, in instances going to express interest. “The problems occur on a case-by-case basis more than “Many associations prefer owner-occupied units, so in instances where confl ict arises, it’s typically between those who live there and those who do not, but who want to rent.” — Marc Schneider continued on page 23