Articles

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.

When a member experiences a fire loss, whether it be a partial or total loss, the member may request that the cooperative grant him/her access to his/her dwelling unit to retrieve personal items, if any personal items can be safely retrieved. The concern here is that as a result of the fire, the unit is uninhabitable and structurally unsound and access should only be granted on a case by case basis. It is vital that in these unfortunate events the safety of the member is protected and the dwelling unit is preserved at all times until the unit can be repaired.

Faced with the increasing cost of housing, many people see housing cooperatives as an alternative to traditional home ownership, and as housing cooperatives see an increase in membership applications, they need to ensure that these applications follow state and federal guidelines. Having attorneys who specialize in housing cooperatives draft membership applications may help cooperatives avoid potential legal issues down the road. Although cooperatives may have some differences in their membership applications, they do share some commonalities.

The fundamental organizational structure of Cooperative living is founded on the tenets of self-communal governance. As the membership depends on its elected Board Members to effectively oversee the conduct and affairs of the Cooperative, it is unfathomable to think that a Board Member would do anything during the course of his/her duties as a Board Member that would jeopardize the Cooperative and its Members. However, it is unfortunately becoming more common to hear about a Board Member going “rogue.”