Page 6 - New England Condominium August 2021

6 NEW ENGLAND CONDOMINIUM -AUGUST 2021 NEWENGLANDCONDO.COM utes, board resolutions, financial statements, bers. management reports, and communications to shareholders; copies of the corporation’s gov- erning documents; and printouts of various ar- ticles—some straight from this publication!— about legal precedents, board governance, and dustry, and sat in on seminars about reserve tion and restraint with any assumptions. Their other matters related to multifamily living and planning, problem residents, and energy effi- the history of co-ops. While legal and manage- ment professionals universally agree that new and New England Condominium’s in-person just exiting a global pandemic. People in our board members should read and understand Expos are back this fall, giving you the oppor- this information, that’s admittedly easier said tunity to learn straight from the experts in all all, boards were faced with very difficult de- than done. In hindsight, it would have helped aspects of multifamily living and administra- to have a current, knowledgeable board mem- ber walk me through some of the more salient www.expos.yrpubs.com) items. Alas, I had no such guide. At our first meeting, during which we elect- ed officers, it was clear that I was not the only England, says that large, national management of intentions. Further, the consequences of one who needed a refresher on parliamentary firms like FirstService offer many resources to the pandemic are not over as can be seen with procedure. We had to redo several of the votes boards themselves through their website and shortages in labor from lifeguards to trade- because one member had written “sustained” associated events, including pre-recorded we- rather than “abstain” on their secret ballot. It binars covering general board topics as well backlogs of work for many of the vendors that also became clear that this member was part as ones specific to financials and treasurer service the association industry.” of a majority faction of long-standing direc- tors who were guided largely by fallacy, deferral, and nepotism. And since I was the only new member that year, discus- sions and voting proceeded without ex- planation or background information, using esoteric industry terminology and in-house shorthand that had been established als and walk-throughs similar to those I had to other homeowners or shareholders. “If an long ago. “All in favor of option C for the lentil upon joining my board; of note, says Hughes, association is composed of owners on limited \[sic\] replacement?”—Huh? In spite of all that, no one stepped up to of these resources. fill the open position of secretary, so I became an officer right off the bat. This allowed me (www.communityassociations.net) is an on- to gain extra insight and education from our line resource that aggregates news and infor- extremely competent and seasoned general mation related to condos, HOAs, and co-ops. owners, and should be pursued.” manager, Frank Durant of Charles H. Green- thal & Co. He took me on a tour of the co-op’s access the latest on legislation, events, and is- four buildings, showing me everything from sues pertaining to association living and gov- the boilers to the roofs. I was able to learn ernance throughout the U.S. and Canada. about the 13-acre property’s systems, compo- nents, projects, and the correct terminology (CAI), with 63 chapters worldwide (www. and meanings (FYI, lintels —not ‘lentils’—are caionline.org), provides information, re- the support beams above openings like doors sources, and advocacy to its more than 40,000 participation in elections, has led to an even- and windows), allowing me not only to engage members. Marilyn Brainard, member of the tual shift in the makeup of the board to one more confidently in the boardroom, but also CAI Government & Public Affairs Commit- to translate and more clearly communicate tee, expresses the importance of orienting new sible members who represent the community board actions and decisions to the co-op’s board members to the critical role they play wholly and dutifully. As far as anyone can re- 5,000 tenant-shareholders in monthly reports. Hang Tough What I’ve learned over the years is that even beyond the community in which you live is a broader community dedicated to serving the multifamily industry. In addition to the resources this publication provides in print, online, and at its annual trade shows, there are other organizations and associations through- out the nation and beyond that give support and guidance to boards and homeowners in condo, HOA, and co-op communities. In my first board year, Durant gave me information to sign up for the Council of New York Cooperatives and Condomini- ums (CNYC) Housing Conference (http:// www.cnyc.com/housing.htm), where I took classes on understanding budgets and finan- cial statements, topics and terms pertaining to figuration and the natural degrading of some co-ops and condos, and emergency prepared- ness. CNYC also offers courses and seminars throughout the year; many are free to mem- Durant also informed me about the Co- operatorEvents Expos at the NY Hilton and board seats specifically because they are look- Javits Center, where I met more of our service ing for change, or because they are upset about providers and vendors, learned about the in- ciency. (Readers take note: CooperatorEvents’ but they should also keep in mind that we are tion. Register for free in your region today! not control. New members wanting change Bryan Hughes, president of property man- agement firm FirstService Residential New and to assume that all was done with the best duties. They also offer onboarding materi- is that not all board members avail themselves income,” continues Brainard, “the board needs The Community Associations Network tegrity of their units. Recent programs by the There, boards and service professionals can The Community Associations Institute intervening years, there has been more inter- in the health and safety of their community’s member, this year’s election was the first un- structures and residents. The recent tragedy in contested one in the co-op’s 60-year history— Surfside, Florida, underscores just how impor- tant vigilance and action are on any board. “Board members—in all associations—are think it is the latter! expected to use recognized experts to examine the integrity of the physical property as one of boards and managers turn to for information the most important responsibilities of a direc- tor, especially when lives may be involved,” says lated to condos, HOAs, and co-ops, perhaps Brainard. “This usually means hiring qualified this article will serve as a primer for other business partners to report to the board and board newcomers—or for existing boards and members of the association the soundness management companies seeking to create new of structures providing housing. Not only “board on-boarding” materials themselves. \[should boards\] accept the report’s recom- mendations, but \[they should\] commence ac- tion for corrections in a timely manner. Aging high-rise condominium associations are es- pecially vulnerable due to the buildings’ con- original construction products over time.” “As for a thought for new board members,” adds Hughes, “I would suggest a mantra we hold at FirstService Residential, which is to ‘as- sume best intentions.’ Individuals may run for a past decision, but we suggest exercising cau- observations may be 100% accurate in the end, communities lost loved ones; and on top of it cisions and a host of realities that they could fully have that right, but perhaps seek to un- derstand why certain decisions were made, workers, exponential costs in materials, and You Got the Right Stuff Thorough and transparent communica- tion is also essential to a healthy communi- ty. Boards should not hold back or “sugar- coat” a building’s or association’s financial or physical status, even—perhaps espe- cially—if the news might seem unfavorable to express the importance of keeping the in- federal government may be accessed to help meet this financial obligation for individual Indeed, I personally believe that putting forth robust, accurate, timely information was what turned the tide in my community to a more progressive and proactive board. In the est from newer shareholders in serving on the board and its committees. That, and a higher that consists of 11 professional, astute, respon- whether that speaks to community apathy or contentment remains unknown, but I’d like to Now that I write for the publication that about needs, processes, services, and laws re- n Darcey Gerstein is Associate Editor and Staff Writer for New England Condominium. NEW KIDS ON THE... continued from page 1 there’s no landlord. For instance, repairs with- in one’s unit must be completed—and paid for—by the unit owner or shareholder. New owners/shareholders might also lack aware- ness that they must be involved to some de- gree in managing and maintaining the com- mon areas of their property. Jack (not his real name) is president of a 212-unit co-op in Greenwich Village. He has led his building through Hurricane Sandy and a fire on the property. He gives a good example of the mindset held by many of the shareholders: “Many residents look at it as the co-op should do this, or the co-op should do that, but they don’t want to take ownership. They’re full of ideas, as long as someone else will execute it. They want the board to do ev- erything—people don’t understand that it’s a volunteer position.” Another factor in the hesitance and misun- derstanding around community participation is residents’ belief that they lack the knowledge or experience needed to sit on a board. Many believe that only those in the building with direct experience in related fields—attorneys, accountants, real estate professionals, and ar- chitects, for example—are qualified to serve and make decisions on behalf of the commu- nity. It’s not an unreasonable thing to think— but what if none of your neighbors fits into any of those categories? The simple truth is that when one buys into a residential community, one should go in with the understanding that it is exactly that: a community, and that participating in gover- nance is a part of what you are buying into. Like Small Town Living Andy Marks has served as the president of his New York City co-op for five years. The property is a post-war high rise on the Up- per East Side of Manhattan containing ap- proximately 210 units. He is also senior vice president for business development for Max- well Kates, a real estate management firm in the city. “Our building is kind of like a small town, and I’m like the mayor,” he says. “First of all, everybody is well-intentioned. Our apartments are our highest value asset. But people are busy, and they have a misconcep- tion about board service being thankless and time consuming. Why would you want to put yourself in that position, and potentially at risk in terms of insurance and liability? People are reticent of being involved without an idea of how much work it will be. It’s a fear of the un- known.” However, Marks continues, “When boards are very transparent, I find there is less resis- tance. Ninety percent of good governance is good communication. Once people realize that they have certain skills that can be put to use, it becomes time invested in adding value to their own units, as well as that of the build- ing. And those skills are broader than experi- ence in the law, or in accounting. The apathy is continued on page 8 IMPROVING... continued from page 1 “Assume best intentions.” —Bryan Hughes