Page 21 - New York Cooperator February 2019

COOPERATOR.COM THE COOPERATOR — FEBRUARY 2019 21 Formerly known as Lipner, Sofferman & Co., LLP and Katz Viola Lebenhart & Mauro, LLP Over 50 Years Serving the NY Coop/Condo Community KVLSM LLP is a full-service accounting firm with a staff of professionals available to guide its clients through every facet of business and personal tax processing. The firm has been providing the highest level of professionalism and guidance to the New York coop/condo community for over 50 years. The firm’s services include, but are not limited to: Contact Ken Lipner: klipner@kvlsmcpa.com • 516-294-0400 • Financial Statement Preparation • Audits, Reviews, and Compilations • Mergers and Acquisitions • Tax Preparation • Cash Flow and Budget Analysis • Financial and Retirement Planning • CFO Services 415 Crossways Park Drive, Suite C Woodbury, NY 11797 Phone: 516-294-0400 • Fax: 516-938-0491 kvlsmcpa.com COMMUNICATIONS SYSTEM SPECIALISTS • PICKUP AND DELIVERY • 48 HOUR TURNAROUND ON REPAIRS • EMERGENCY SERVICE • SHORT AND LONG TERM RENTALS The Largest Motorola Dealer in New York State 250 West 40th St., 4th Floor New York, NY 10018 212-532-7400 www.metrocomradio.com lives in a 67-unit condominium com- munity in Johnston, Rhode Island, which is self-managed and has been for the 19 years that she has lived there. She has also sat on the board for 16 of those 19 years. The board has seven members and meets once a month. At that meet- ing they handle the day-to-day business of the association, as well as dealing with any complaints from unit owners. Com- plaints and comments are left in a “black box” by residents. All monthly bills are reviewed and paid by the treasurer. The treasurer also completes the annual taxes, so there’s no need for a bookkeeper. There are no in- terior common areas, so there’s no need for a paid cleaning staff. The common areas consist of the lawns and parking lots, for which the association contracts a landscaper and a guy with a snowplow. In this version of bedrock New England democracy, the board calls a meeting of unit holders when a major decision has to be made, and a vote is taken to deter- mine how to proceed. And, according to Ryan, the unit owners actually show up! Making the decision to self-manage your co-op corporation or condominium association is a big one, and one not made lightly. Much depends on the complexity of the individual situation. Large, ameni- ty-laden properties might find it difficult to do. There also has to be a willingness on the part of the residents to assume the responsibilities generally associated with a managing agent. There’s no magic wand to be waved. The decision, though, does not appear to rest on the perceived sav- ings in purchasing goods and services that many owners attribute to having good management. Instead, the financial decision should rest on a comparison of what the cost of management is on a per- unit basis, and whether that cost is equal to, greater or lesser than a do-it-yourself approach. In the end, going it alone also requires the commitment to actually do it yourself – the flip side of the same coin. n A.J. Sidransky is a staff writer/reporter for The Cooperator, and a published novel- ist. SELF-MANAGEMENT... continued from page 15 that it interferes with the function of the association, there may be a political ef- fort waged to have that member recalled by membership through a statutory pro- cess. If the board is split by faction, it will be up to the political savvy of willing di- rectors to form coalitions of support in order to get things done by majority.” Key to communication is listening. And if board members are not listening to each other, bringing in a neutral party may help to open their ears. “When board members are diametrically opposed, it may be time to call in a professional from a field related to the argument at hand,” advises Straits. “Even if that professional is saying the same thing as a particular board member, the others may be more open to hearing the message if articulat- ed by an experienced outsider. “And,” Straits continues, “many argu- ments come down to the individual com- munication styles of specific board mem- bers. It can be helpful for each member to reiterate what they ‘heard’ another mem- ber say, as it can be surprising to hear members repeat what they thought they had just heard. If differing members can realize their differences in communica- tion styles, it can help push through and resolve issues. But, at certain times, there is no resolution that is satisfactory to ev- eryone. When that happens, the board members need to understand that it is their fiduciary responsibility to support the decision of the majority.” While mediation can occasionally be helpful in placating feuding residents, it’s rarely useful in the board context, ac- cording to Fleiss. “Formal mediation by an independent third-party facilitator may even result in agreement purely for the sake of agreeing; that is, an agree- ment that is not necessarily in the best interests of the building and its residents. Plus, formal mediation typically involves financial costs – including to compen- sate the mediator – which boards may be hesitant to incur. But informal ‘media- tion’ by fellow board members, relevant professionals – architects, accountants, attorneys, for example – or managing agent can assist in arriving at a biparti- san solution to an issue on which certain board members are in disagreement. “In some circumstances,” Fleiss con- tinues, “such ‘mediation’ may involve little more than other board members discussing an issue with two diametrical- ly-opposed colleagues at a meeting of the board, using the available information – including expert recommendations – to try and bring the views of those disagree- ing members closer together. “In other circumstances, the relevant professionals may try to bridge gaps be- tween board members’ positions by an- swering questions and discussing options regarding the matter at issue. Where the other board members or the expert cannot or will not ‘mediate’ a resolution between two stridently-opposed board members in this manner, it often falls to the managing agent to do so.” n Mike Odenthal is a staff writer/reporter for Th e Cooperator. MANAGING... continued from page 17 “In this case, the board should either ask their current insurance broker whether they feel the building is adequately insured – or even possibly hire an independent ap- praisal company to come in and do a valua- tion of the building. Th at is the most accu- rate way to determine the replacement cost. If it turns out they are adequately insured, they can show the insurance company the report, which will deter the company from trying to increase the limit. If it turns out that they are under-insured, the board should really consider increasing the limit to make sure they have proper coverage. “Most bylaws indicate the building should be insured to 100 percent of its re- placement value, so the board has a duty to make sure they do. In the event of a total di- saster where they didn’t have enough insur- ance coverage to rebuild the building, you can be certain there would be a number of lawsuits lodged against the board.” n Q&A continued from page 5 Disclaimer: Th e answers provided in this Q&A column are of a general nature and cannot substitute for professional advice regarding your specifi c circumstances. Always seek the advice of competent legal counsel or other qualifi ed profes- sionals with any questions you may have regard- ing technical or legal issues.