NYC Co-op Boards Should Consider Adopting a Summer Recess Policy NOW
By Beth M. Gazes, Esq. & David L. Berkey, Esq.
With summer just around the corner, Boards of Cooperatives in New York City should consider adopting a Summer Recess Period pursuant to the Cooperative Application Timeline Law. Under the new Law, Boards must adhere to strict timelines when presented with a purchase application.
The Law provides a small number of extensions, including a Summer Recess Period, but only if the Board formally adopts such a policy.
Since lawsuits by purchasers and sellers are typically grounded in claims of discrimination and breach of fiduciary duty, Boards should be diligent in ensuring that their Summer Recess Period is properly adopted at a meeting and memorialized by a writing that can sufficiently withstand judicial scrutiny.
While a seemingly mundane task, some Boards may want to plan now, especially if they do not hold regular meetings. Liability can turn on whether the Board's action was authorized, warranting special attention to ensure that the resolution was properly adopted.
If you have questions about your Board's methods of governance, or whether your notice of Summer Recess is sufficient, please feel free to reach out to Beth at bmg@gdblaw.com or 212-935-3131.
Beth M. Gazes
Beth M. Gazes is an associate at Gallet Dreyer & Berkey, LLP. She guides her Co-op, Condominium, and HOA clients through all aspects of corporate governance including enforcement of and amendments to governing documents, negotiations with vendors, collection of unpaid maintenance and assessments, resolution of conflicts with shareholders and unit owners, drafting access agreements, and the defense of discrimination claims, to name a few. Beth also represents individuals and companies in other real estate matters involving partitions, foreclosures, and mechanics’ liens.
David L. Berkey
For more than thirty years, Mr. Berkey has been a trusted advisor to numerous cooperative and condominium boards, banks, insurance companies and individuals. Mr. Berkey counsels his loyal clients regarding all issues pertaining to co-op and condo law, prepares their various contracts, handles their transactions and litigates their claims.