Page 1 - CooperatorNews Chicagoland Winter 2022

Winter 2022 CHICAGO.COOPERATORNEWS.COM CHICAGOLAND THE CONDO, HOA & CO-OP RESOURCE COOPERATORNEWS continued on page 13 205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED continued on page 10 Fans of the TV show “Seinfeld” may recall an episode in which the character Kramer posts the names and photos of all the residents in his building in the lobby so everybody can get to know each other better—maybe even ( gasp ) say “hello” to each other in the lobby or elevator. Kramer’s neighborly initiative didn’t work out too well for Jerry, who didn’t want to participate and was then ostracized by his neighbors for being a curmudgeon. Turns out that “Seinfeld” episode, satirical though it may have been, is a pretty good summation of why most co-op and condo communities don’t maintain a presence on so- cial media platforms like Facebook, Instagram, TikTok, or Twitter, preferring other tools for building cohesion and camaraderie between neighbors. The Tried-and-True While there are some communities that have tried social media as a means of commu- nity communication, most have remained ‘old-school.’ “We have a Facebook page that was started by one of my neighbors,” says Dana Greco, a longtime resident of a large, active co-op community in Riverdale in the Bronx, New York, but “nobody posts anything. There’s just not a lot of newsworthy events. We have a brief newsletter perhaps twice a year, and we also have a bulletin board for those in need of assistance from neighbors, or who want to sell something.” In the age-old tradition of many multifamily buildings, she says, “most of our news comes from gossiping with the doormen.” According to Gayle Goodman, director of communications for New York-based manage- ment firm Gumley Haft, managers have many channels of communication through which to reach their client communities. “As managers, we are proactive in our communications with shareholders and unit owners. Not everyone in our buildings uses social media, \[so\] we dis- seminate information by multiple methods so residents can get their building news in the way they prefer. When there is news—whether it’s regarding COVID regulations, water shutdowns, or notice of an- nual meetings—we use email notifications, BuildingLink (more on that below - Ed. ) and snail mail, as well as signage and distributing materials in the lobby, when appropriate. Residents are always in- vited to communicate with their property management team about issues or questions of concern. When these issues are not already Conflicts of Interest Recognize Them Now to Avoid Problems Later BY A. J. SIDRANSKY Co-ops, Condos, HOAs & Social Media Many Communities Say “No Thanks” BY A. J. SIDRANSKY If you live in a condo or a co-op, you most likely have heard the term fidu- ciary duty , usually in reference to the responsibilities and obligations of board members and management. But what is a fiduciary duty? In essence, it’s a legal relationship between two parties that gives one party the right to act and make important decisions on behalf of the other. Fiduciary responsibility is a cor- nerstone of both board and management service. Board members and managers alike must put their obligation to the corporation or association over personal gain—which means avoiding situations that could present a conflict of interest. Simply put, a conflict of interest is a situation in which the concerns or aims of two different parties are incompat- ible. In a business environment such as a condo association or cooperative cor- poration, it’s a situation in which some- one—like a board member or property manager—is in a position to benefit per- sonally from actions or decisions made in their official capacity. Honesty = Best Policy “An individual involved in decision making as a board member has a unique personal material financial stake in the transaction being considered,” says Mi- chael C. Kim, an attorney with Schoen- berg Finkel Beederman Bell & Glazer, a law firm located in Chicago. “Suppose a board is considering a budget increase. Some are opposed, some in favor. Their \[position\] may reflect their personal fi- nancial situation. Just because a director has a personal interest in the decision doesn’t necessarily disqualify him or her \[from voting\]. However, if a situation or consideration is unique to the direc- tor, he or she doesn’t share the general consideration with other owners, and it Digital Documents Balancing Safe Storage With Accessibility BY A J SIDRANSKY Paper, or electronic? It’s now a choice for everything, from the books we read for pleasure to the books we keep on our associations and corporations. Even restaurant menus are digital today in the wake of the need for ‘touch-free’ en- vironments amid the COVID-19 pan- demic. With that said, co-op and condo communities generate volumes of infor- mation and data every year, from min- utes of meetings to receipts for expenses and payments to financial information on unit and share buyers. But how much of all that really needs to be kept, and for how long? And is there anything that should be kept specifically in paper form, as well as digitized? What Does the Law Say? “In Illinois, condominium associa- tions are subject to the Illinois Condo- minium Property Act, Section 19 of which requires the association to main- tain and make available certain specified books and records,” explains Michael C. Kim, an attorney specializing in con- dominium law with Schoenberg Finkel Beederman Bell & Glazer. “That section does not expressly address records be- ing kept and produced in digital format, but Section 18.8(b) of the Act provides that ‘the association, unit owners, and other persons entitled to occupy a unit may perform any obligation or exercise any right under any condominium in- strument or any provision of this Act by use of acceptable technological means,’ which would authorize keeping digital records to satisfy Section 19 rights and obligations. Therefore, Illinois condo- minium associations may digitize their books and records and make them avail- able in that format. “With regard to residential coopera- tives,” Kim continues, “there is no spe- cific statute governing their operations; however, most cooperatives are orga- nized as not-for-profit corporations. In that regard, the Illinois General Not for Profit Act of 1986 generally permits the use of electronic means for various types of corporate actions and conduct, unless the articles of incorporation or bylaws continued on page 11