Stark & Stark Attorney to Moderate and Present Seminar on Building Site Safety Regulations at January NYARM Meeting

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David J. Byrne, Chair of Stark & Stark's Condominium & Co-Op Law Group, will moderate and present materials related to Site Safety Regulations and New York City’s Condominiums and Co-ops at the January 18, 2012, NYARM Meeting. The presentation will be held in the Ground Floor Library Pavilion at the General Society of Mechanics & Tradesmen, Manhattan.

Mr. Byrne will focus his presentation on the fiduciary duties of condominiums and co-ops as those duties relate to New York City’s site safety regulations. He will also moderate the entire presentation which will include John Chiusano, R.A., NYC Dept. of Buildings, James Fenniman, Bollinger Insurance and Scott Silberman, P.C., SMS Engineering. 
 

Can Your Condo Board Prevent You From Keeping Your Dog?

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It’s never clear whether your dog, who you consider to be a part of your family, will be able to move in with you when you fully transition into that swanky new condominium building or cooperative in the heart of New York City. Recent years has seen an influx in dog disputes and litigation arising from a condominium or cooperative’s policy on pets. In New York, however, one thing seems to be clear - the Association’s Governing Documents, meaning its Declaration, controls whether your pet will be allowed into your building. This extends even to certain breeds of dogs. It is not uncommon for Condominium or Cooperative Board of Managers to prohibit pets altogether, restrict pets by size, or simply restrict an aggressive breed of dogs.

 

While Condominium Boards can take some solace in the fact that New York has given them the liberty to enforce the terms of the Associations’ Governing Documents, New York City’s locals laws require a Board to be more aggressive in enforcing the Association’s policies. Two types of laws essentially give an individual tenant, renter or cooperative shareholder the right to keep a pet, even if there is a "no pet" provision in the lease, Declaration, rules, and regulations.

 

In New York City (Administrative Code of the City of New York Section 27-2009.1) and Westchester County (Laws of Westchester County Section 694), statutes commonly known as the "Pet Law,” give tenants in cooperatives and most condominiums, as well as other types of dwellings, the right to keep a pet, even if there is an applicable "no pet" clause in the Association’s rules and regulations and Governing Documents. The same applies for restrictions to certain types of pets or certain breeds.

 

Under the "Pet Law", if a landlord or Association fails to enforce the provisions of their restrictive provisions within three months of its knowledge of a Unit Owner’s open and notorious harboring of a pet, then the restrictive provision is deemed null and void. The Association may no longer enforce that particular provision.

 

Condominium Boards must also be sure to balance their restrictive provisions with applicable federal and state laws against discrimination. Just as a landlord must accommodate a disabled tenant or Unit Owner who requires a wheelchair, a companion animal must similarly be permitted, even if it goes against the Association’s pet policy. The federal Fair Housing Act and the New York City Civil Rights Law require that a housing provider give a "reasonable accommodation" to a disabled individual to use and enjoy his or her home by keeping a medically necessary companion animal. Failure to provide this “reasonable accommodation” in the form of a companion animal could expose the Association to severe penalties including the assessment of fines, compensatory and punitive damages in state or federal court, as well as fines which may be levied by such New York State regulatory agencies.

 

In sum, a Cooperative or Condominium Board in New York State is free to adopt a pet policy as they see fit, even those restricting and prohibiting certain dog breeds. However, when it comes to New York City and Westchester, Associations must be sure to comply with the “Pet Law” which requires the Association to take action within three months of discovering a Unit Owner has a pet/dog in violation of the Association’s rules. Failure to take action renders that policy void. Furthermore, Associations must always be sure to comply with all Federal and State anti-discrimination laws. Where a companion pet is needed to treat a disability, an Association’s denial of that companion pet could lead to severe consequences.

 

If you would like to discuss this client alert in more detail or how it may affect your community association, please contact Zain Naqvi at 609-895-7288 or by email at znaqvi@stark-stark.com

Financial Best Practices for Condominiums, Cooperatives and Homeowners Associations

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David J. Byrne, Co-Chair of Stark & Stark's Condominium & Co-Op and Community Association Groups, will participate in a lunch & learn webinar seeking to aid communities and buildings with Financial Best Practices for 2012. 

Mr. Byrne will focus his presentation on alternative, creative and smart common charge recovery and management strategies, using technology and teamwork to improve collections, creating a “Culture of Payment” in your building, handling abandoned units via rent receiverships, rentals and other solutions, and finding the positives in an owner/shareholder bankruptcy. Mr. Byrne will be joined by Annette Murray, CPA, CVA, Wilkin & Guttenplan, P.C. The webinar takes place on Thursday, December 8, 2011, from 12:30 p.m. to 1:30 p.m.  Additional information can be found online here. (PDF)
 

Stark & Stark Attorney to Present Seminar on Ethics for Condominiums and Co-Ops at November NYARM Dinner

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David J. Byrne, Co-Chair of Stark & Stark's Condominium & Co-Op Law Group, will present materials related to New York Condominiums and Co-ops ethical issues, standards and considerations at the November 14, 2011 NYARM Monthly Meeting and Dinner. The presentation will be held at the Jade Lounge, Forest Hills, Queens.

Mr. Byrne will focus his presentation on relevant New York ethics-related definitions, guidelines, laws and authorities. He will also discuss various trade organization and other relevant ethical guidelines and standards. Mr. Byrne will be joined by Irwin Cohen, A. Michael Tyler Realty Corp., Peter Von Simon, New Bedford Management, and Stephen Beer, CPA, Czarnoski & Beer. This presentation follows Mr. Byrne’s similar presentation at NYARM’s 2011 Real Estate Expo in September.

Stark & Stark Attorney to Present Seminar at the Council of New York Cooperatives and Condominium's 2011 31st Annual Conference & Expo

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David J. Byrne, Co-Chair of Stark & Stark's Condominium & Co-Op Law Group, will present materials related to New York’s Condominiums and Co-ops and ever-important noise and other conduct issues and considerations at the Council of New York Cooperatives and Condominium’s 2011 31st Annual Conference & Expo. The Expo will be held on November 13, 201l at Baruch College, Manhattan.

Mr. Byrne will focus his presentation on relevant New York noise-related definitions, guidelines, laws and authorities.  He will also discuss strategies and approaches to various noise-related problems and/or conflicts. Together with Irwin Cohen, principal of A. Michael Tyler Realty Corp., Mr. Byrne will discuss the role and importance of management in identifying and carrying out solutions to these types of problems.
 

Stark & Stark Attorney Presents Seminar on Ethics for Condominiums and Co-Ops at the 2011 NYARM Real Estate Expo

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David J. Byrne, Co-Chair of Stark & Stark's Condominium & Co-Op Law Group, presented a seminar entitled Ethics: Cooperatives & Condominiums as part of the 2011 NYARM Real Estate Expo. The presentation was held in New York, New York, Wednesday, September 21, 2011.

Mr. Byrne focused his presentation on relevant ethics-related definitions, guidelines, laws and authorities.  He also discussed various trade organization and other relevant ethical guidelines and standards.  Mr. Byrne was joined in the presentation by Irwin Cohen, A. Michael Tyler Realty Corp., Peter Von Simon, New Beford Management, and Stephen Beer, CPA, Czarnoski & Beer.

 

Quick & Easy Guide to New York City Window Guards

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After high profile accidents, cities and states all across the country attempt to protect building occupants by using window guards. New York City is one of those cities. In New York, there are specific laws related to window guards and cooperatives and condominiums.  A cooperative in New York City is treated in relation to the law as a landlord, such that the landlord/tenant-related obligations apply. A cooperative with three or more apartments must install window guards on each window of that apartment except windows leading to fire escapes.

First floor apartments are not necessarily exempt. In buildings with fire escapes, a window guard must be left off one window in each ground-floor apartment. All common area hallways must have window guards. If an occupant of an apartment in, or a shareholder of, a cooperative with three or more apartments would like window guards, the cooperative must install them. In all such instances, the window guards must be fixed if they are in need of repairs.

As the condominium form of ownership is different from the cooperative form of ownership, so are New York City’s window guard-related rules as they relate to condominiums. A condominium is not obligated to install window guards on any unit- or apartment-related windows. If an owner of a condominium unit would like to have window guards, the board of managers should allow it, and that owner will be the party responsible to have them installed, and repaired if necessary. A condominium and/or its board of managers may have the discretion to utilize common charges and/or expenses to install unit-related window guards. A condominium though is the party responsible to install window guards connected with the common element/area hallways. 

To the extent any of your shareholders and/or owners have questions and/or have made demands related to window guards, consult experienced management and/or your legal counsel. 
 

Stark & Stark Shareholder Presents Seminar on Condominium and Co-Op Governance, Rules, Alternative Dispute Resolution and Harmonious and Orderly Buildings at the 2011 NYC Cooperator Expo

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David J. Byrne, Co-Chair of Stark & Stark's Condominium & Co-Op Group, presented materials related to mediation, arbitration and alternative dispute resolution, in relation to New York's condominiums and co-ops at the 2011 NYC Cooperator Expo. The presentation was entitled Legal Briefs for Boards: Tips for Rulemaking and Resolving Building Conflicts

 

The presentation was held in New York City, Tuesday, April 12, 2011. Mr. Byrne focused his presentation on how condominiums and cooperatives can avoid and/or resolve conflicts through alternative dispute resolution, as well as be spared the acrimony of litigation. He discussed mediation, arbitration and ADR.

 

You can listen to the full presentation online here

Bankruptcy Court Rules that "Absent" Owner in Chapter 7 Must Pay, So Long as They Remain Owner

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In a recent decision, our firm successfully defended an Association’s ability to collect post-petition assessments in a Chapter 7 bankruptcy case. The decision reaffirmed the 2005 amendments to the Bankruptcy Code. Following these Amendments, a debtor remains liable for post-petition assessments, so long as he or she holds “mere” legal title ownership.  
 


In In re Brown, Bankruptcy Judge Donald Steckroth held that a debtor remained liable for post-petition association assessments in a Chapter 7 proceeding. This liability remained, even after the unit was abandoned by the Trustee and the debtor did not live at the unit, so long as the debtor held legal title. 
 


The matter was brought before the Court on the debtor’s motion to compel the Association to release monies levied in a bank account, post-petition, after the bankruptcy case was closed. As background, the Association had received a state court judgment for only post-petition amounts, and subsequently levied on the debtor’s bank account. Prior to filing the motion, the debtor requested the bankruptcy case be reopened so that she could list the Association as a creditor, since she had failed to provide initial notice to the Association. After the bankruptcy case was reopened, the debtor then filed the motion against the Association, claiming that the subsequent levy was improper.

 

2005 Amendments to the Bankruptcy Code
After extensive oral argument, the Court found that the 2005 Amendments to the Bankruptcy Code clearly widened the scope of non-dischargeability under § 523(a)(16). The statute provides that a chapter 7 discharge:                       

“...does not discharge an individual debtor from any debt...for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor's interest in a unit that has condominium ownership...for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot...” (Emph. added).

As such, the Court ruled that the debtor remained liable for post-petition assessments.

 

Know Your Collection Rights in a Bankruptcy Case
Unit owners often feel that once they file a chapter 7 bankruptcy case and vacate the unit that they are free from the duty to pay their assessments to the Association. This decision validates and supports an Association’s efforts to ensure owner payment of these assessments.

 

Associations should not “give up” when bankruptcy is filed. When an Association knows its rights, and has counsel experienced in representing Associations vis-à-vis bankrupt owners, it can successfully navigate an owner’s bankruptcy and recover unpaid assessments.

Federal Housing Finance Agency Publishes Rule Regarding Capital Contributions, Membership Fees, Flip Taxes, Transfer Fees, etc.

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The Federal Housing Finance Agency ("FHFA") recently published a Notice of Proposed Rulemaking  directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System to regulate transfer fees paid to community associations. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees (i.e., capital contributions, membership fees, flip taxes, etc.) to fund association operations, the rule would still allow  FHFA to limit how associations use the funding raised by such fees. FHFA's rule would ban transfer fees paid to investors, but will allow transfer fees payable to a community association. This would apply to investors only prospectively, which should mean that any existing transfer fee paid to an investor or used by an association or any purpose is still valid and enforceable.

 

Per the rule, community associations could use revenue raised by new transfer fees for very narrow purposes, and would be regulated in how those with new transfer fees manage non-resident use of common property or elements. The rule has not yet been finalized or put in place, such that the public can still comment on it. This proposed rule, to the extent that it restricts how funds from new transfer fees can be used, does not likely adhere to established property law. Generally speaking, community associations have the right to raise revenue and use this revenue the way their owners and leadership determine. Until April 11, 2011, citizens are permitted to submit comments to the Federal Housing Finance Agency as follows:

- E-mail: Use the address, regcomments@fhfa.gov, and include the following in the subject line of the e-mail: FHFA Proposed Rule on Certain Private Transfer Fee Covenants, (RIN) 2590-AA41
- U.S. Mail: Use the following address to send comments by U.S. Mail:
     Mr. Alfred Pollard
     General Counsel
     Federal Housing Finance Agency
     1700 G Street, NW
     Washington DC 20552
     ATTN: Public Comments: FHFA Proposed Rule on Certain Private Transfer Fee Covenants, (RIN) 2590-AA41
- Federal E-Rulemaking Portal: Go to www.regulations.gov and follow the instructions provided to submit your comments electronically.

Older Entries

February 24, 2011 — Community Associations & the United States Red Flag Rule

November 24, 2010 — Stark & Stark Shareholder Presents Seminar on "Noise" Issues With Respect to New York City's Co-ops and Condominums

October 1, 2010 — Stark & Stark Shareholders Present Seminar With Respect to Community Associations & Current Legal Issues

June 16, 2010 — Stark & Stark Shareholder Presents Seminar With Respect to Community Associations, Reserves and Loans

May 3, 2010 — Post Required Federal Signs for Association Employees

April 1, 2010 — Handling and Protecting the Association, With Respect to an Owner's Bankruptcy

March 25, 2010 — Handling and Protecting the Association, With Respect to the Mortgage Company Foreclosure

March 16, 2010 — Nassau County Homeowners Association Fails in its Attempt to Stop Wireless Network Company From Installing Equipment on Existing Utility Poles in the Public Right of Way

December 1, 2009 — Pending Federal Regulations and the Residential Mortgage Market

July 30, 2009 — Possible Certification & Registration Requirement For Cooperative & Condominium Property Managers

July 2, 2009 — Recent Fannie Mae and Freddie Mac Regulations Impact the Sale of Condominiums

June 18, 2009 — What Associations Need To Know When Considering Requests By Disabled Owners For A "Reasonable Accommodation"

June 2, 2009 — Appellate Court Validates Condominium Board's Interpretation of "Repairs" & "Maintenance"

May 21, 2009 — Stark & Stark Partner Presents Seminar on Internal Collections Remedies and Community Association-Related Federal and New York Laws at the ASSOCIA/River Management Board Member Program

April 16, 2009 — Stark & Stark Shareholder Presents Mediation, Arbitration and Alternative Dispute Resolution Seminar at the New York Cooperator's Expo

March 12, 2009 — If You Snooze It Is Harder to Lose: Property Boundary Disputes and the Evolution of the Doctrine of Adverse Possession in New York

February 12, 2009 — Stark & Stark Shareholder Presents Seminar to Aid Co-ops and Condominiums in Managing Costs & Risks in Challenging & Uncertain Economic Times - Part 1

January 6, 2009 — New York City's Cooperatives React To The Current Economy & Real Estate Market

October 8, 2008 — Collection of Condominium Common Charges in New York Revisited

October 3, 2008 — New York City Pet Laws Affect Boards And Dog Owners In Cooperatives And Condominiums

September 15, 2008 — Stark & Stark Opens an Office in Westchester County and Expands its New York City Operation, Adding a New Lawyer to its Manhattan Office

April 30, 2008 — Avoiding Litigation In A Complex World

April 22, 2008 — David Byrne to Present at 2008 Cooperator Expo

March 11, 2008 — Collecting Unpaid Common Charges in New York

March 4, 2008 — Eliminating the 80/20 Rule Offers Tax Relief to New York City Co-ops

February 12, 2008 — New York Condominiums Sue Town Over Municipal Services

December 13, 2007 — Pending Litigation Impacting NY Condominiums and Cooperatives

September 20, 2007 — New York Cooperatives and Condominiums - Judicial Review of Board Decisions

July 10, 2007 — Shining a Light on the Co-Op Approval Process

May 8, 2007 — Rights and Responsibilities of Condo and Co-op Boards in New York

May 4, 2007 — New Jersey Legal Update - Podcast # 65

April 11, 2007 — Co-op v. Condo - What's Right For You?