Page 13 - New York Cooperator January 2020

COOPERATOR.COM THE COOPERATOR — JANUARY 2020 13 Cesarano & Khan, PC Certified Public Accountants PROVIDING PROFESSIONAL SERVICES TO THE COOPERATIVE AND CONDOMINIUM COMMUNITY Reporting on Financial Statements • Tax Services Budgeting & Consulting • Election Tabulation Services For additional information, contact Carl M. Cesarano, CPA 199 JERICHO TURNPIKE, SUITE 400 • FLORAL PARK, NY 11001 (516) 437-8200 and 718-478-7400 • info@ck-cpas.com cesarano &khan1_8 use this_:cesarano &khan 4 7/22/15 4:59 PM Page 1 100+ Years / 380+ Buildings / 1000s of Satisfied Owners, Residents and Boards l State-of-the-Art Financial Reporting l Responsiveness & Communication are Our Top Priorities l Leader in Technology & Compliance Tracking l Energy Auctions & Volume Purchasing to Reduce Building Costs l Long-Term Continuity of Managers & Systems l Greening NYC One Building at a Time Management for the Ages 675 Third Ave. New York, NY 10017 212-370-9200 ellimanpm.com info@ellimanpm.com RANKED #1 RESIDENTIAL MANAGEMENT COMPANY IN NYC EllimanRethink_NEW_DEPM ad_V1.indd 1 4/18/19 11:46 AM A “In response to your inquiry,” says Alex Seaman, senior vice president at insurance fi rm Hub International in New York, “there is no assurance that board members have the nec- essary technical background to review insur- ance documents provided by individual unit owners. As a practical matter, it would be wise to have this information reviewed by qualifi ed property managers. Th e property managers in turn would be wise to work with insurance brokers to provide specifi c recommendations on terms and conditions of homeowners cov- erage to be required. Th ere are specifi c home- owners policies provided to renters, owners of cooperative units, and owners of condo- minium units. Homeowners insurance poli- cies should be coordinated with the govern- ing documents of the respective association including the bylaws or proprietary lease. “Typically for Manhattan co-op or condo unit owners we recommend the following: Contents—Minimum of $50,000. Limits should oft en be far higher depending on the estimated replacement cost of clothing, fur- niture, electronics, personal belongings of all occupants, etc. Personal Liability Insurance—Minimum of $500,000. Most unit owners should also se- cure Umbrella Liability coverage at limits of at least $1,000,000—preferably higher. Additions and Alterations or A&A (also referred to as Improvements and Betterments or I&B)—Th is is the most common misun- derstanding by unit owners and boards. A&A provides coverage for structural modifi ca- tions or improvements to a unit done by the current occupant or any occupant since the original construction of the unit. Th is can in- clude hardwood fl oors, cabinetry in kitchens or bathrooms, new walls, lighting, plumbing, etc. Insurance for these modifi cations is typi- cally not provided by the policies written for the co-op or condo associations. As it is of- ten diffi cult to determine what is original and what work was done by prior occupants, in- surance carriers oft en recommend coverage based on square footage of the unit. For high- er-end apartments, Chubb and AIG typically recommend limits based on $450 to $600 per square foot. For a 1,000-square-foot unit, the coverage should be provided at limits of about $500,000.” My Rights Are Up in Smoke Q Th e 40-year-old, chain smoking, son of a shareholder lives with his parents and is not allowed to smoke in his apartment or in our co-op. In- stead, he loiters directly below my apartment windows, and only below my window, and smokes almost continuously, except for reg- ular 30 to 60 minute intervals when he goes inside or leaves the building. Th us, from early in the morning to late at night, my home is almost constantly fi lled with the smoke from his cigarettes! He does this knowing how up- setting it is, since my father recently died hor- ribly because of cigarette smoke. Th ough it is easy to walk up or down the block, away from my windows, he vehement- ly refuses to do so. Whenever I have asked him to do so, he manifests a big grin, making it clear he enjoys deliberately bullying me. Th e co-op says it is powerless, despite an article from a publication saying a board can legally prevent harassment, bullying, and inappropriate behavior by shareholders in, around, and nearby the homes of the others who live in the building. Th e police refuse to stop the loitering (which is illegal). What can I do to assert my right to quiet enjoyment of my home without noxious and harmful toxins that directly, and avoidably, result from the behavior of another share- holder? What legal rights do I have to stop this bullying? And what are the co-op’s legal responsibilities to cure this abusive conduct by one of its shareholders? —At My Wit’s End A “In response to your inquiry, a few things,” says attorney Richard Klein of the New York City fi rm Romer Debbas, LLP. “First, as a practical matter, I would recommend that the writer try to reach out to the smoker’s parents and discuss with them what is going on with their son and the constant smoking outside the window. Th e parents might not be aware of the problem and hopefully can talk some sense with their son and get him to move to another outdoor spot to smoke that is not directly under the writer’s window. “Th e writer indicates that the son ‘is not allowed to smoke in his apartment or in our co-op.’ I would be curious to see why that is and to what language the writer is referring. Most co-op proprietary leases have language that a shareholder is prohibited from allowing off ensive odors to emanate from the apart- ment into other apartments or the building. If that is the governing language in this situa- tion, it might not cover smoking on the side- walk outside the building since that is not an odor emanating from an apartment. “Many co-ops, with the assistance of coun- sel, have updated the language in the propri- etary lease to specifi cally prohibit smoking in an individual unit and in all of the common areas of the building. Some even go so far as to prohibit smoking outdoors in any area around the building, such as the sidewalk ad- jacent to the building and/or in front of the entrance way. Clearly, such language in this situation would force the board to take action against the off ending smoker since he would be in violation of the lease provision. \\\[Subse- quent to receipt of attorney response, a smok- Q&A continued from page 5 ing policy disclosure law went into eff ect ing the shareholder’s right to quiet enjoyment that obligates boards of co-ops and condos of his apartment. to distribute a written smoking policy to all shareholders. Mr. Klein advises the writer to tion to the nuisance of the smoke, that he review that policy, of which he or she should feels threatened by the son. If such actions are now be in receipt, to see if the son’s actions are clearly threatening and happen repeatedly, in breach of it.– Ed .\\\] “Without such language in the lease, then to establish a written record of this behavior, I would recommend to the writer that he put so that the board can act upon the alleged his complaints in writing and demand that threat.” the board take steps to stop this nuisance. I would also have him talk to his neighbors to see if anybody else is being bothered by the cigarette smoke since there is always strength in numbers. If the board refuses to act, then I would recommend suing the off ending share- holder for nuisance and the board for breach- “Th e writer also mentions that in addi- then the writer should be calling the police n 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.