Articles

Many of us have recently spent time cleaning and organizing our homes during the shelter in place/stay at home orders. This may have even included organizing your most vital documents. Members living in a cooperative have an extra vital document to keep in a safe place and that is his/her membership or stock certificate.

With the warmer weather upon us, some cooperatives may consider permitting its members to install awnings on their back patios. Cooperative boards must be mindful that the installation of awnings does come with drawbacks that must be resolved prior any member installing an awning. If a board was desirous to permit its members to install awnings, then the board should contact its cooperative attorney to draft an awning installation policy as well as an installation/alteration form to help mitigate the drawbacks.

Last spring, we provided ideas to Board of Directors on how to keep engaged with your membership during the first wave of COVID-19 cases. As we are navigating through another COVID-19 surge, we would like to provide you with another fun guide of ideas to help your membership continue to stay connected. As a Board of Directors, it is important that you not only keep your membership abreast of cooperative issues, but also continue to keep the morale of the membership up.

The Management Agreement between a cooperative and a management agent outlines the contractual obligations and expectations between the cooperative and the management agent. These contractual obligations define the duties and responsibilities of the management agent for the management and operation of the cooperative. It also provides for the duties and responsibilities of the cooperative corporation, as effectuated through its Board of Directors Equally as important to the management duties and operational provisions in the Management Agreement, so too are the insurance and indemnification provisions.

Many of us already know that housing cooperatives are made up of the entire membership. By this token, cooperatives are inherently diverse. Since a cooperative’s Board of Directors typically consists of a group of members elected by the entire membership, its Directors are usually equally diverse and important as the entire membership that makes up the cooperative. There are several important characteristics, traits, and duties that each director holds as a position of trust and fiduciary to the corporations they serve. It is important for Cooperatives to understand these duties and the extent upon which they bestow obligations to each director. A good approach to doing this is for a cooperative to adopt certain ethics, conduct and confidentiality policies, and for their Directors to execute agreements avowing their fiduciary duties and obligations to the cooperative. These policies and agreements should strengthen the sense of loyalty and ethical conduct of the Directors, and add a sense of transparency. In addition, they may also insulate the Cooperative from potential liability from legal claims and challenges to official Board actions.

Working From Home and Residential Use Restrictions: How Effects from the Covid-19/Coronavirus and Resulting Changes in Industry May Require Housing Cooperatives to Re-Assess their “Residential Purposes Only” Use Restrictions.

With discrimination claims on the rise and the possible expansion of protected classes (i.e., sexual orientation or transgender status) from a recent United States Supreme Court opinion in Bostock v. Clayton Cty, Georgia, Nos. 17-1617 et. al., 590 U.S. ___ , (more) 140 S. Ct. 1731 (2020), in which the court held that under Title VII, it is unlawful discrimination for employers “to fail or refuse to hire, or to discharge any individual, or otherwise discriminate against any individual” because of their sexual orientation or transgender status, there is never a better time for housing cooperatives to refresh their knowledge of fair housing and employment issues. The law pertaining to fair housing, discrimination and sexual harassment claims are ever evolving and a complex field, so knowledge of key factors and best practices will put cooperatives in a better position to avoid unwarranted discrimination lawsuits. First, a recap of some fundamental laws, concepts and illegal conduct.