HV Iss. 5, 2018 (w)

www.AssociationHelpNow.com the funds are ultimately used. As far as accounting is con- cerned, an assessment is not deemed income to the associ- ation if it is identified, segre- gated and used for a specified capital project. Otherwise you need to consult with your accountant as to how it is al- located. Kenneth Jacobs, Esq. Spolzino Smith Buss & Jacobs LLP Yonkers, NY ••• Q: May we ban or put restric- tions on guests? In particular, the time of night guests come and go? We have security and a front desk, so we have the mechanism to do so. A: Certainly restraining someone from leaving the building is problematic. You cannot keep people in the building against their will. As to entry, if you have security and a front desk manned 24/7, it is difficult to justify a “curfew”. I suspect that there is some- thing going on, such as drunk visitors wandering the build- ing late at night. If this is the case, you might think about imposing a rule that the unit owner or tenant has to come to the front desk after a certain time to get his/ her guest or to let the guest out. The problem with such a rule is that since you have security and a front desk, it is hard to justify such a rule simply because of one or two drunk visitors, as it imposes a substantial inconvenience to the rest of the unit owners and tenants. “...it is hard to justify such a rule simply because of one or two drunk visitors...”

4 AssociationHelpNow ™ • Hudson Valley New York: Issue 5, 2018

HOA Q&A... continued from page 2.

••• Q: We’ve been told that funds collected for special assess- ments can be used only for the specific purpose for which they were passed and approved, and that we need to give writ- ten notice of the specific pur- pose to all members and then can use the money only for that purpose. Can the board change the purpose of the spe- cial assessment and add it as a part of an increased fee? Are there any special accounting requirements? A: What do your govern- ing documents say? Does a particular type of spe- cial assessment need to be approved by the owners? Usually special assessments to meet operating deficits are not subject to owner ap- proval. Sometimes special assessments for “alterations, additions or improvements” over a certain amount re- quire owner approval. Occasionally “repairs” are included in that category as well. If it needed to be ap- proved and in fact was ap- proved, then the board is bound by the stated purpose of the assessment that it pre- sented to the owners for a vote. If the assessment did not need owner approval, then presumably the board’s notice was informational. In that case the board was not bound and it could send a notice that it had changed the proposed use of the as- sessment. Some boards argue that they do not have to state the purpose of the assessment to raise funds, but require a unit owner vote to disburse those funds. That is a speculative distinction. Your documents should clarify whether that is a board right. Likewise, if a board simply adds the amount of the assessment to its “repair and maintenance” budget for common charges, it runs the risk of a challenge from owners based on how


INSURANCE Community Association Underwriters Robert A. Travis, CIRMS, CPIA Director of Marketing 2 Caufield Place Newtown, PA 18940 Phone: 800-228-1930 ext. 7105 rtravis@cauinsure.com www.cauinsure.com Gerelli Insurance Agency, Inc. Gregg V. Gerelli P.O. Box 362, Cold Spring, NY 10516 Phone: 845-265-2220 Gregg@Gerelli-Insurance.com www.Gerelli-Insurance.com LENDERS/FINANCIAL SVC. Mutual of Omaha Bank, Community Association Banking Contact: Erin Kremser, CMCA, VP / Regional Account Executive P.O. Box 105 West Chatham, MA 02669 Phone: 860-459-4713 erin.kremser@mutualofomahabank.com www.mutualofomahabank.com MANAGEMENT COMPANIES J&J Management Services, LLC

——— A: An association’s gov- erning documents will state the requirements a mem- ber must meet to run for a position on the board or a committee. Most associa- tions’ governing documents do not prohibit a member, who is suing the association, from running for or serving on the board or a committee. However, board members le- gally have a fiduciary duty to act in the best interests of the association and its members. A potential conflict of interest and potential breach of fiducia- ry duty automatically arises if a member is suing the associa- tion and is also serving on the board or a committee because the association’s best interests will generally be adverse to the suing member’s self-inter- est. Therefore, even if an asso- ciation’s governing documents do not prohibit a suing mem- ber from running for a board or committee position, some precautions should be taken to address this inherent potential conflict of interest. Prior to the election, the potential conflict of interest should be disclosed as it is important for the mem- bers to take this into account when voting. Then, if the su- ing member is actually elected to the board or a committee, he or she should recuse him- self or herself, or be excluded, from any discussion, vote or communication concerning the lawsuit.

Bogush & Grady CPAs LLP John A. Grady, CPA

48 West Market Street Rhinebeck, NY 12572

Phone: 845-876-4911, ext. 23 jgrady@bogushgradycpas.com www.bogushgradycpas.com ATTORNEYS Ansell Grimm & Aaron, P.C. David Byrne, Esq. 140 Grand Street, Suite 501

White Plains, NY 10601 Phone: 800-569-3886 djb@ansellgrimm.com Griffin Alexander, PC Robert C. Griffin, Esq. 11 Broadway, Suite 615 New York, NY 10004 Phone: 212-374-9790 Fax: 646-998-8029 attorneys@lawgapc.com www.lawgapc.com

The LaGumina Law Firm, PLLC John J. LaGumina, Esq. 2500 Westchester Avenue

Purchase, NY 10577 Phone: 914-253-6554 www.laguminalaw.com jlagumina@gmail.com

James Vitanza 1961 Route 6 Carmel, NY 10512 Phone: 914-646-5108

Lasser Law Group, PLLC Stephen M. Lasser, Esq. 10 East 39th Street, 12th Floor New York, NY 10016 Phone: 212-292-3075 SLasser@LasserLG.com www.lasserlawgroup.com

Info@jjmanagementservices.com www.jnjmanagementservices.com

Scalzo Property Management Inc. Jason R. Keller, CMCA, AMS 2 Stony Hill Road, Suite 201 Bethel, CT 06801 Phone: 203-790-6888, ext. 689 jkeller@scalzoproperty.com www.scalzoproperty.com Spinnaker Management, Inc. Doris Steele 3104 State Route 208 Wallkill, NY 12589 Phone: 845-895-8122

Shapiro Gettinger & Waldinger, LLP John Gettinger, Esq.

118 North Bedford Road Mount Kisco, NY 10549 Phone: 914-666-8033 jgettinger@kiscolaw.com www.kiscolawfirm.com

Spolzino, Smith, Buss & Jacobs LLP Kenneth Jacobs, Esq. 60 East 42nd Street, Suite 4600 New York, NY 10165 Phone: 212-688-2400, ext. 4102 733 Yonkers Avenue Yonkers, NY 10704 Phone: 914-476-0600, ext. 4102 kjacobs@sbjlaw.com www.sbjlaw.com BUILDERS Add-Ventures Restorations, Inc. Todd Vignola P.O. Box 977 Hillburn, NY 10931 Phone(s): 800-905-7551 • 845-357-7134 mailbox@addventuresinc.com www.addventuresinc.com ENGINEERS The Falcon Group – Engineering, Architecture and Reserve Specialists Dave Chesky, RS 682 Highway 202/206 North Bridgewater, NJ 08807 Phone:908-595-0050 DChesky@falconengineering.com

Doris@Spinnakerusa.com www.Spinnakerusa.com

Taylor Management Company, AAMC, AMO Paul Santoriello, PCAM 80 South Jefferson Road, 2nd Floor

Whippany, NJ 07981 Phone: (973) 267-9000 Fax: (973) 267-0943 Paul@taylormgt.com taylormgt.com

Gaetano L. Bizzoco, Esq. Lasser Law Group, PLLC New York, NY

Robert C. Griffin, Esq. Griffin Alexander, P.C. Randolph, NJ

To Advertise Email: info@brainerdcommunications.com






See More Q&A www.AssociationHelpNow.com

SHAPIRO GETTINGER & WALDINGER, LLP Attorneys at Law 118 North Bedford Road Mount Kisco, New York 10598 (914) 666-8033 www.kiscolawfirm.com

Not a Member? JOIN TODAY!

Visit www.caionline.org

HVNY.Iss. #5, 2018.indd 4

11/14/18 6:35 AM

Made with FlippingBook Online newsletter