The Number One responsibility of a director on any board is to maximize shareholder value. Here are my uppermost concerns about our Board's actions in regards to it's prime directive:
Market Rate Amendment
In 1996 the owners voted to change our form of membership from Limited Equity to Market Rate. This was done with HUD's approval and carefully managed by our attorney so the results would be binding. Yet 15 years later, it still has not happened. And considering the following from a recent article written by our current president, it appears she and other Board members have no intention of ever making it happen.
“In 1996 the HAP contract ended and was not renewed. Members voted to remove the restriction of “Limited Equity” status from the articles of organisation. It was felt that HUD’s approval was sufficient for this amendment. Only 8 years later it was learned that the change required the approval of the Secretary of the Commonwealth of Massachusetts. That action has not been sought and, therefore, Nassau Gardens remains a limited equity cooperative.”
It takes eight years to discover there is another step to take? And then it is not sought?
You can read the entire article here: http://www.ica.coop/al-housing/attachments/Case%2021%20USA.pdf
I called the office of the Secretary of the Commonwealth and spoke with an adviser there to find out what the problem could be. She told me all that needs to be done is to file an amendment, a four page document that has a $15 filing fee. The state, she said, only checks to assure the information is correct and they will approve; they do not perform any value judgment on the change.
You can see the form here: http://www.sec.state.ma.us/cor/corpdf/180amen.pdf
I also consulted with a real estate attorney about whether the 1996 vote is still in effect and binding. He said it is.
FICO Credit Rating
As owners of the cooperative paying off a 40-year mortgage, members should be able to receive credit for their financial performance on their credit ratings. In 2007 when reviewing my FICO scores with Experian, Equifax and TransUnion, I noticed I have no mortgage information with any of the credit services and FICO; two of them still had me listed as an apartment renter. I sent an email in March 2007 to the office asking the coop to see what could be done to get all the owners properly listed with FICO. The property manager responded he would follow up with the Board.
I am still waiting for a reply, four years later.
Diminished Stock Values
Overall, here are several other indicators Nassau Gardens is nowhere near the value property it once was.
Lack of Waiting List – we used to have a waiting list years long to move here, just from word of mouth recommendations. A couple of years ago the Board had to spend $7,000 in advertising to rebuild the list. And now they are already advertising again.
First thing you see when driving in is that Bahama Drive is unsightly. Seal coating and crack filling is not an answer. Are there any other streets in town with 200 homes that have not been repaved in 40 years?
Windows are unsightly and not energy efficient. Like Bahama Drive, there is no firm schedule to repair/replace.
Second thing you see entering our home is all the dumpsters and trash barrels, equally unattractive. Why aren't they back on the pads behind wood fencing of some kind as they once were? Trash trucks could still get at them for pickup. And maintenance employees need to manually put out the recycling bins anyway. There are lots of alternatives to screen them. Plus we'd get back a lot of parking spaces on Bahama Drive for visitors and to use during snowstorms when we have to empty the courtyards for plowing.
14 comments:
Wow! I never thought that NG could up my credit score! I need to buy a new car soon, so please make this happen ASAP!
Doesn't seem to be a consistent policy on the dumpsters and recycle bins. And it they are really ugly. 500 block dumpster seemed fine where it was on its original pad. But it was moved right after the woman next to it got elected to the board.
We so need to get market rate done. Or condos would be better. I feel trapped here; can't afford to buy my own home without the equity I have built up.
one mistake i think the board makes when evaluating the value of nassau gardens is constantly comparing our monthly carryng charges fee to apartments in town. we are significantly less because there is no private owner turning a profit like there is with apartment buildings. We are our own owners just without any real equity - its comparing apples and oranges
Windows: As everyone knows, in order to clean the outside glass for the second floor units, the whole unit has to be taken out. I tried this (over 20 years ago) and a plastic piece broke on the runner. Maintenance came by and fixed. I haven't cleaned the outside since then. With the push on energy savings, the window replacement project should be given priority. Hope this happens soon.
I personally find driving down Bahama Drive is fun. Dodging the sink holes reminds me of schussing down Attatash.
Management of Nassau Gardens is pleased to announce an important new safety benefit for residents:
If your vehicle bottoms out driving on Bahama Dr, check your shocks and struts immediately.
I would love new windows, the current windows are old and could really use some updating.
When they did the copalum wiring job they needed to replace a couple of the two plug kitchen wall outlets with four plug upgrades. When the place was built in the 60s we had no microwaves, coffee makers, toaster ovens, etc. We have only four usable plugs (two are committed to the refrigerator and stove) which is not enough for a kitchen today. More bad planning by the board and property manager!
Xcellent point! Instead we got unnecessary new lights. Not to my taste! My son saw them and axed me if I was going Italian!
The Italian comment was quite a predudiced comment to make! Did he really ax you??
I wish someone had suggested the four plug outlet in the kitchen; boy it sure would have helped me! But no one did, and it could have been done so easy - shareholders - open your mouths! The board can't think of everything!
Switching to four plug outlets was suggested. I got no response (as usual). Then when they came to do the work they told me it would cost $50 more for each outlet that I would have to pay because the cooperative decided not to do the updating.
This is the fix for not blowing fuses in the kitchen (according to management)-- don't run appliances at the same time. So when I operate the microwave, I can't operate the toaster oven which is on the same wall. And this is after the electric wiring was replaced!
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