Page 32 - New England Condominium May EXPO 2019

32 NEW ENGLAND CONDOMINIUM —MAY 2019 NEWENGLANDCONDO.COM TRENDS What Does the Rest of 2019 Hold? Industry Experts Weigh In BY MIKE ODENTHAL 2 018 – and the first half of 2019 – have would effectively reduce the impact of the been anything but dull, from the Business Judgment Rule. They’ve also dis- global level all the way down to co-op, cussed term limits and other related mat- condo and community association com- munities. While it’s somewhat beyond New England Condominium’ s scope to opine on the concern, in my mind effecting legisla- geopolitical currents or the latest round of tion of this nature could undermine the congressional testimony, we reached out ability of a board to effectively function. In to an array of real estate and legal profes- sionals across several different markets to ficult to get people willing to serve on the discuss how the events of 2018 spilled into board out of fear of exposure to liability, 2019, as well as what they think the second and out of fear of second-guessing good half of 2019 may bring to the multifamily faith decisions that these people —who are housing industry. The Law Thomas O. Mo- riarty, Principal at law firm Moriarty Troyer & Malloy LLC in Braintree, Massachusetts “I think that there will be litigation over short-term rent- als. Condominiums have been attempt- ing to limit the pres- ence of rental ser- vices such as Airbnb in their associations. The proliferation of such services and the frequency of association efforts to prevent islative powers to understand how good co- it is likely to lead to disputes. It is impos- sible to frame a specific issue, because the that are focused on the small percentage of approaches taken by boards to address the boards that are problematic inhibits the ac- problem—as well as the language of the tivities of all those good boards. amendments adopted as a result -- vary from association to association. But I think relevancy is reverse mortgages for co-op that the industry should expect that chal- lenges are on the horizon.” David A. Brauner, Counsel with Wind- els Marx Lane & Mittenford, LLP in New York City “Over the past few years, the New York value of reverse mortgages—particularly as City Council and New York State Legisla- ture have been attempting to restrict co- op board action via legislation, stemming current value of their apartments -- comes from arguments about transparency, and through retaining a diversity of economic that boards should be mandated to provide status among co-op membership; they en- reasons for all their decisions. I think that able older shareholders to tap into the equi- ters. And while I recognize that there were a handful of bad instances which triggered particular, it would make it increasingly dif- essentially volunteers—make. “What overregulation can do is foster a landlord/ten- ant mentality between board members and shareholders, which co-ops were originally formed to try and overcome. I’m not claim- ing that’s the intended goal, but it may be an unintended con- sequence. Some- times the failure of those with leg- op boards work, and then establishing rules “The other issue I see having increased shares, which have been largely unavailable despite proposed legislation kicking around for awhile. I’m not sure exactly what the goal of that proposed legislation was, but the is- sue itself I think is an important one. The more and more co-ops have long-time resi- dents whose economics are unequal to the “I think that there will be litigation over short- term rentals...the prolifer- ation of such services and the frequency of associa- tion efforts to prevent it is likely to lead to disputes.” — Thomas O. Moriarty Mercantile Property Management Corp. __________________________________________________________ Accredited Association Management Company, AAMC® Since 1987, we have built a strong reputation in providing exceptional service to our clients throughout Southeastern Massachusetts and Eastern Rhode Island. Our nationally certified portfolio managers and professional team work with associations to ensure that your community is well managed, financially sound, and a place you are proud to call home. Specializing in: - Condominium Management - Homeowner Association Management - 55+ Condominium Management - Commercial Real Estate Management “Personalize Service of the Highest Quality” For more detail on the services we provide, visit our website or call us today! ( 800) 696-9449 Offices located at: mpm@mercantileproperty.com 18 Waterhouse Rd, Bourne, MA www.MercantileProperty.com 160 Old Derby St., Hingham, MA See us at Booth 341