Should condo and co-op board members receive compensation?

TRD New York /
Jul.July 18, 2011 03:01 PM

With many New Yorkers no longer wanting to serve on co-op or condominium boards without compensation, the question of whether or not these positions should be salaried is becoming a contentious issue, Habitat Magazine reported.

Mark Hankin, the attorney for a Queens co-op was appalled, he said, when the co-op’s board members invited him to their annual weekend getaway, or “thank you retreat,” and the directors rewarded themselves there for their work at a $5,000 price tag each. “We earned it,” the president told the attorney. Hankin remembers telling the president that the behavior was unacceptable. “Serving on a board,” he remembered saying, “is a volunteer position, as in ‘no pay’ and ‘no thank yous.’”

Arthur Weinstein, a longtime co-op and condo attorney, said he finds the notion of compensation inappropriate. “It might create the wrong incentive,” he said. “They’d be serving for the money rather than for the good of the building.”

Reluctance to offer these roles as salaried positions dates back to the 1940s, Habitat said, when the Federal Housing Association issued “Model By Laws” requiring the consent of shareholders in order to pay board members. However, there do not appear to be any city, state or federal laws prohibiting the payment of board members with consent from unit owners.

In fact, there is a nine-unit Manhattan co-op in Midtown East that pays $515 per month to board members as the building does not have the cash to hire an outside management company. The exact address of the building was not available. [Habitat Magazine]


Related Articles

arrow_forward_ios
Former Bear Stearns CEO Jimmy Cayne and 510 Park Avenue (Credit: Getty Images and Google Maps)

Ex-Bear Stearns CEO James Cayne demands co-op records after board rejects 3 buyers

(Credit: Seward Park Co-op, Pixabay)

Missed opportunity: LES co-op wants to re-vote on air rights sale but developers say they’ve moved on

The Dakota and Brisbane House at 1215 Fifth (Credit: CityRealty)

Co-op board battles are dragging out renovations and repairs for years

Keeping up appearances: Co-op boards are using this trick to beef up comps

Keeping up appearances: Co-op boards are using this trick to beef up comps

Condo manager who displayed Nazi posters is forced out

Condo manager who displayed Nazi posters is forced out

Condo board sues over SoulCycle’s “earsplitting” music, positivity

Condo board sues over SoulCycle’s “earsplitting” music, positivity

“I can feel the burn on my cheek from the slap on the face”: Buyers sound off on co-op rejections

“I can feel the burn on my cheek from the slap on the face”: Buyers sound off on co-op rejections

Erez Itzhaki

Chelsea condo developers may be liable for board’s claims

arrow_forward_ios
Loading...