Page 9 - New England Condominium June 2021

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM -JUNE 2021 9 continued on page 12 1449, 2846, and 2874, which deal with boards disclosing a reason for rejecting a co-op or condo purchase applicant, and the timing for doing so. Weinstein says that these types of bills have reached the legislature every couple of years for the last decade or so, “and they usually just don’t go anywhere. … \[but\] this year, there are three of these bills in the Senate that seem to show some movement.” With the ostensible purpose of providing transparency and eliminating the potential for discrimination, the bills would require boards of co-ops to provide a written expla- nation for their rejection of a prospective buyer, rather than the current leeway boards have to reject an applicant “for any reason, or for no reason.” But Philip Simpson, an attorney with Rob- inson Brog, a firm also based in New York, points out that “New York City presently has the broadest scope of protection for groups of people against whom co-op boards might discriminate. If a prospective purchaser in a protected class is turned down and sues, the co-op board may well have to articulate a rea- son in response to the lawsuit.” Aside from that apparent redundancy of the bill, boards have the fiduciary responsi- bility to protect the assets of their commu- nity and the investments of their individual cern to community and homeowners associ- shareholders. In fact, attorneys representing ations “died” before reaching Governor Steve both co-op corporations and prospective Sisolak’s desk. This is good news for unit shareholders advise that the most common owners and boards who feared the financial reason for denial is the financial position of ramifications of the proposed laws, suggests the applicant. Since cooperators in a hous- ing corporation share financial responsibility and columnist for the for the operation and upkeep of the prop- erty, it is particularly important for incoming would have eliminated non-judicial foreclo- shareholders to be able to contribute propor- tionally now and for the foreseeable future. proved by the state, and mandated that every Similarly, Simpson also says that he has “seen homeowners association have a website that denials, or issues raised, when the board it maintains. Other killed bills include As- views the purchase price as too low. A low sembly Bill 295, on the availability of records; purchase price will affect values throughout Senate Bill 257, which would have eliminated the building, because it will become a compa- rable sale the next time an apartment comes tain property insurance for certain condos/ on the market, or someone wants to refinance townhomes; and Senate Bill 339, which their unit’s mortgage.” One of these bills that Weinstein sees doned properties. as particularly problematic says that if the board doesn’t act within a certain period of emails and calls from association constituents time, the board is deemed to have consented in the state. So keep contacting your local, to the applicant. She points to the effect this state, and federal legislators to voice your sup- would have on financing, questioning wheth- er mortgage lenders would accept such tacit that affects you as a co-op shareholder, condo consent without seeing it in writing. Similarly unit owner, or association homeowner! As for the issuance of a cooperative’s title insur- ance. “Yeah,” says Weinstein, “I think both continue their way through legislatures and title policies and lenders are going to want the judiciaries, affirmative consent. And the board might re- fuse to issue that affirmative consent. So then where are we?” Kill Bill Out in Nevada, a number of bills of con- Barbara Holland, certified property manager Las Vegas Review-Jour- nal. Among these are Senate Bill 144, which sure, required assessment increases to be ap- the requirement that the association main- would have allowed an HOA to lease aban- Holland attributes the bills’ “deaths” to port for or opposition to proposed legislation laws related to co-ops, condos, and HOAs New England Condominium will continue to keep you informed. n Darcey Gerstein is Associate Editor and Staff Writer for New England Condominium. LEGAL & LEGISLATIVE... continued from page 8 an exhaustive list; it’s our responsibility to attend to all of their legal needs and concerns.” “We are required to give advice — nothing more,” adds Ellen Shapiro, an attorney with Marcus Errico Emmer & Brooks, located in Braintree, Massachu- setts. “If a board doesn’t choose to ac- cept our recommendations or to enforce rules, etc., you, as their counsel, can’t force them. You give them information, and they then choose whether to move on it.” “The relationship between a board and their attorney should be professional and cordial,” says Scott Piekarsky, an at- torney with Phillips Nizer in Hacken- sack, New Jersey. “The relationship is for the benefit of the association, not the personal self-interest of board members. Sometimes board members don’t under- stand this relationship and how it func- tions. If they haven’t served on a board before or they haven’t worked in a cor- porate setting with an attorney, they may not know this.” This relationship should be explained to all new board members when elected. Sima Kirsch, an attorney specializ- ing in community law in Chicago, sums WORKING WITH... continued from page 1 continued on page 13