THE FEDERATION OPENS AN INTERNET CO-OP
FORUM
The Federation has started a list server forum. This is
a place were you can go on the Internet and exchange ideas
experiences and to gather information for you cooperative.
It's the Federation's "Co-op Forum" and it's free to join.
To subscribe to the "Forum" simply go to the Federation's
web site (WWW.FNYHC.ORG); you will see a box about joining.
Just follow the instructions and you are part of the "Forum".
When someone writes to the forum, you get an email to all
those who subscribe. You can answer, give your opinion,
or just read the email. The Federation will oversee the
"Forum" to ensure that correct answers are being given and
the emails are about cooperatives and condominiums. Please
join now - and be part of this new exciting experience.
TRADE SHOW AND SEMINAR 2000 TAPES ARE AVAILABLE
Did you come to the Federation's Annual Trade Show and
Seminar and missed a session? The Federation has prepared
audiocassettes for the seminars listed below. If you want
to order a session and your building attended the Federation's
Show, you can order any of the seminars listed below for
a cost of $60.00 per session. Please note, these audiocassettes
are available only to attendees of the show.
THE FOLLOWING ARE AVAILABLE FROM THE FEDERATION:
ATTORNEYS' ROUND TABLE - Federation Executive Vice President,
Al Pennisi.
PROFESSIONAL ROUND TABLE - Our panel of experts, consisting
of attorneys, managing agents, accountants, refinancing experts
and engineers moderated by Federation president, Greg Carlson.
YOUR CORPORATE DOCUMENTS - Federation Executive Vice
President, Al Pennisi.
MANAGEMENT/BOARD RELATIONS - Management Representatives
from the Association of Co-op and Condo Managers (ACCM) -
Kenneth B. Lovett, Gerard J. Picaso and Michael Jay Wolfe.
BOARD RESPONSIBILITIES - Attorney Stan Dreyer
DISCRIMINATION: WHERE YOU LEAST EXPECT IT - Attorney
Howard Schechter
SAFEGUARDING YOUR ASSETS - Accountant Rick Montanye
NATIONAL & LOCAL LEGISLATION - WHAT NATIONAL MEMBERSHIP
MEANS TO YOU - National Association of Housing Cooperative's
Executive Director, Doug Klein and the Council of New York
Cooperatives and Condominium's Executive Director, Mary Ann
Rothman.
PET LAW
One of most asked questions to the Federation is regarding
the pet law. The Federation's Executive Vice President,
Al Pennisi, Esq, has written the following piece to bring
our membership up to date.
The pet law expressly covers a tenant who openly and notoriously
has harbored a household pet for a period of at least three
months following taking possession of a unit, where landlord,
who has knowledge of the pet, has failed, within the three
month period of harboring, to begin a summary proceeding
or action to enforce the lease provision that prohibits
the keeping of such a pet.
The pet law was upheld as constitutional in Megalopolis
Property Association v. Claude Buvron, AD2d 232, 494 NYS2d
14 (1985). If the landlord does not commence a proceeding
to evict within the three month period, the right to do
so is deemed waived, Starrett City, Inc. v. Maureen Jace,
137 Misc. 2d 328, 524 NYS2d 130 (1987).
The relevant issue that needs to be addressed here is: What
constitutes knowledge of the pet by the landlord?
The most recent case on point is Seward Park Housing Corp.
v. Cohen. Defendant was a tenant in an apartment complex
containing over 1700 units.
In early September 1996, tenant acquired a dog. Tenant
would walk the dog in and out of the building on a regular
basis. This was witnessed by building security guards, porters
and maintenance staff, and also by neighbors. Landlord did
not commence a holdover proceeding until February 1997.
The Civil Court found that the testimony of the tenants
and their witness established that the landlord's on-site
employees knew of the tenant's open harboring of a dog for
over four months prior to the commencement of the holdover
proceeding. This was considered to have put landlord on
notice of the dog. Because landlord did not commence the
proceeding within the three month time period, the trial
court found landlord waived the A"no pets"covenant in the
lease.
The court of the Appellate Term reversed, finding that the
security personnel and maintenance personnel should not
be viewed as agents of the landlord. The court stated that
the fact that the building staff may have observed the tenant
with the dog on premises did not establish that the landlord
had knowledge or was on notice. The court also held that
the pet law did not cover the tenants in this case, since
they harbored the dog for only a short period of time.
What is interesting to note in the above case is the fact
that the security and maintenance personnel were independently
contracted, and the size of the apartment complex were seen
as important factors by the court. I believe if the housing
community had been a more closed community, the court may
have ruled differently. This issue will no doubt be further
litigated in the future.
BOARD MEMBER AND PERSONAL LIABILITY
Recently, the daily newspapers ran an article about a Board
President who lost an appeal to have his cooperative indemnify
his punitive damages. Punitive damages are rewarded as a punishment
for acting in BAD FAITH. Punitive damages are very rare, especially
in a cooperative housing environment. In the case Broome v.
Biondi, et al, the court founded that the Board President, Biondi,
of Beekman Hill House Apartment Corp, acted "intentionally,
maliciously, and willfully in violating the civil rights of
the Broomes". Thus, the court ordered to have Board President
Biondi pay $200,000 in punitive damages. Mr. Biondi commenced
an action against the Apartment Corporation seeking indemnification
for the punitive damages award. In this case, the court found
that, under the Business Corporation Law, Indemnification couldn't
be made to a director for their actions.
Remember, this was a punitive damages case. Punitive damages
are awarded as a punishment for wrongdoing. Please keep in mind
and review with your cooperative attorney, your by-laws about
indemnification, your directors liability insurance, and applications
not accepted. Again punitive damages are for acting in BAD FAITH,
make sure you do not.
NEW MEMBERSHIP SERVICES
A BULK OF THE FEDERATION'S TIME HAS BEEN DEDICATED TO OFFERING
OUR MEMBERSHIP SERVICES THAT MAY HELP TO SAVE YOU MONEY OR HELP
YOUR BUILDING.
THESE SERVICES ARE AS FOLLOWS:
The Federation's web site is now online in its infancy stage.
We will be mailing to all our members, an opportunity to list
their building's information at our web site. Right now, the
site provides a legal corner, event list with links to other
cooperative sites, legislative issues, a question and answer
page where you can ask your questions directly to the Federation
and the Federation Newsletter. Please visit our site at "FNYHC.ORG",
let us know what you think and don't hesitate to ask us questions.
The Federation has signed on to the Durnan Group Managers
Workers Compensation Safety Group. One of the line items'
on all of our member buildings with staffs is workers compensation
insurance. The Federation has been studying different workers
compensation insurance providers and has concluded that the
Durnan Group best fits the needs of our membership. With discounted
premiums up-front and a substantial dividend at the end of
the year, this makes the safety group the best deal around.
Each claim is investigated thoroughly, which is why this group
can offer the best workers compensation package in the state.
To find out more information or to sign up, please call the
Durnan Group Managers at 1-212-768-9191 and make sure to tell
them you are a Federation member.
ELECTRIC DEREGULATION
With all the confusion concerning electric deregulation,
a new Energy Service Company (ESCO) is consumer oriented.
1st Rochdale Cooperative is an energy company that is owned
by buildings who belong to 1st Rochdale. They are not just
an energy provider, as the other ESCO's. Similar to what happens
when you belong to a cooperative, there are no investors,
so the consumers are the owners. In addition, they will do
energy audits on your building to see what can be done to
diminish or reduce your demand side electric bill, which will
save you kilowatts and money. Now is the time to think about
this phase in the deregulation process, which started in April
2000. Start now in preparing your building, talk to all the
"ESCO's" and talk to 1st Rochdale, you will be surprised in
what you hear. For further information, please call 1st Rochdale
at 1-212-673-3900.
DATES TO REMEMBER
Visit the Federation booth at the New York Builder Show June
21 and 22 at the Jacob Javits Center. (See enclosed VIP pass
- will let you in for free - please send the form in)
Look for a Town meeting in September in Queens - Special Guests
- Details will follow!
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