Articles

As most cooperatives reach the point where their original mortgages are paid off, and the HUD Regulatory Agreement ends, a debate occurs on whether they should remain as a form of housing cooperative, or convert to condominiums. We have written an article on this debate and will not reiterate it here; rather this article will present some strategies to help those boards that want to remain as a cooperative by taking steps to prevent future boards or memberships from undoing the decision.

With the unprecedented and sustained drop in interest rates, a growing number of cooperatives are examining the possibility of refinancing their original mortgages. Many of our clients have found mortgages which cost the same or less than the existing mortgage. This makes it a popular option, since it allows for an infusion of capital that not only retires the old debt but also funds capital improvements to upgrade the property.

Sexual harassment is an issue which every housing cooperative or managing agent should have a basic familiarity. As an employer, the cooperative or managing agent is obliged to refrain from discrimination on the basis of sex in their employment relationships. This article briefly discusses the evolving state of sexual harassment law.

Cooperative Boards, in discharging their fiduciary duties, usually award contracts to low bids. They also try to cut corners in entering into contracts with bidders. Obviously, the motivation is to keep costs down for the benefit of their members. That is what they perceive as their job, and they are correct – in part.

As states begin to slowly reopen, the question as to whether pools will open for the summer has become a hot topic. For states that have been hit hard with COVID-19, it is likely that public pools will remain closed for the rest of the summer. However, some states are permitting public and private pools to open/reopen for the summer months with strict guidelines.

Housing cooperatives do not fit into a one size fits all category. Not only may cooperatives’ governing documents be organized differently, but they also vary as to their structures. Typically speaking, cooperatives are comprised of multifamily townhomes or apartment style dwelling units. However, some cooperatives are high rise style living or are even comprised of detached single dwelling properties.

Rain barrels are becoming a popular way to collect and store rainwater for lawn and garden watering. However, such installation and use of rain barrels does not come without issues for cooperatives. A cooperative Board of Directors must consider the following prior to permitting the installation of rain barrels on cooperative property:

A vast majority of Governors have mandated shelter-in-place orders for their residents to ease the spread of COVID-19. While we are all adapting to our temporary “new normal” it is important to remember to take time for yourself to help reduce the stress and anxiety that a pandemic can cause. Social distancing can take a toll on our emotional and mental states.

As COVID-19 cases are on the rise, many states have again mandated stay-at-home orders or have pulled back on reopening plans. Some states have even tightened restrictions on businesses that must remain closed and/or have ordered that all employees that can work remotely, must do so. With any state, local or county government law, order, guidance, or directive that provides for COVID-19 restrictions and/or requirements in the workplace, a cooperative Board of Directors must contact its cooperative attorney to not only interpret the restrictions and/or requirements but to assist the Board of Directors with the implementation of restrictions.