shareholder rights and responsibilities
what it means to own in a co-op in NYC
If you live in a cooperative (also known as “co-op”) apartment, you are the owner (shareholder) and a tenant at the same time. You own shares in the corporation which owns the building, but you are also a tenant who rents an apartment from the corporation. You are considered as a tenant/shareholder. The lease between you and the building is called a “proprietary lease.”
You pay a monthly maintenance fee to the corporation to cover the expenses of maintaining and operating the building, the property taxes and for the underlying mortgage on the building.
Co-ops are managed by a board of directors. The board of directors is elected by and made up of shareholders. The corporation board must follow the rules in the bylaws of the co-op and also the proprietary lease. The bylaws, proprietary lease and house rules state the rights and responsibilities of the corporate building owner and the shareholder/tenants.
shareholder rights in general
As owners, your legal relationship with the co-op is bound by two key co-op legal documents, the bylaws and proprietary lease, as well as state law. The house rules establish building and behavior standards that all shareholders are expected to observe.
the bylaws
The co-op’s bylaws define the terms of the relationship among the owners and with the board:
the required co-op meetings
the board’s powers and responsibilities
the eligibility to serve on the board
how the board is elected
what information the board must provide owners, in what format (e.g., reports, meetings, etc.) and how often
how owners can request co-op information from the board
the board’s obligation to provide this information
how to remove board members
the proprietary lease
The proprietary lease establishes the terms by which the co-op allows an owner to live in a unit of the building it owns by virtue of being an owner. These terms include -
paying maintenance fees
special assessments to pay for significant physical improvements to the building
conditions upon which the lease can be transferred (apartment sale)
house rules
At the time a building goes co-op, the original sponsor's lawyer attaches a set of boilerplate house rules to the proprietary lease to layout the code of conduct and behavior expected by the shareholders in the building to optimize everyone’s quality of life. The board can change them as required by the building’s needs. Inconveniently, they are not required to all be in one document, so they may be contained in a variety of notices in addition to the original set with the lease.
new york state law
State law always supersedes the bylaws and proprietary lease.
The Business Corporation Law — or BCL, for short — primarily governs how housing co-ops, must be run. The BCL provides specific rules regulating the corporate governance practices of co-ops, including the manner in which boards and shareholders conduct meetings, amend bylaws, and vote, and the BCL prescribes the rights and responsibilities of boards and shareholders.
There are two sections of the BCL for boards and shareholders to pay close attention to:
Article 6, which deals with shareholder rights
Article 7, which deals with how the corporation is managed, explaining the rights and responsibilities of directors and officers
Under the BCL, any shareholder has rights:
to review certain important building documents — such as financial statements, shareholder lists, or the minutes from shareholder meetings
make extracts from said documents, provided the review be for ‘any purpose reasonably related to such person’s interest as a shareholder’
to have shareholder meetings conducted annually (including by phone) to elect directors and conduct business
to ensure that their board is performing lawfully
Shareholders also have the right under case law -
to review the corporation’s other books and records, so long as the inspection is sought in good faith and for a purpose consistent with the shareholders’ right to monitor their investment in the corporation.
rights and responsibilities of Riverbank South’s shareholders
The following summary of our specific rights and responsibilities under the Lease and House Rules of Riverbank South are provided as a helpful guideline but in no way take place of or precedence over the terms of the actual documents, which are all accessible in the Documents section of this website and via links below. Please always refer to these legal documents when you need to know the full reach of your rights and responsibilities.
This page contains two ways the read the responsibilities: 1. according to the lease/rules breakout, and 2. by topic. Topic breakout is at the bottom of the page and is a little easier to navigate.
our rights
To quiet enjoyment
If apartment has a portion of the roof above an apartment, the owner has exclusive use of the roof, subject to regulations set by the Board
To expect that the Co-op will perform its responsibilities:
To keep building and sidewalks in good repair
For gas, steam water or other pipes or conduits within walls, ceilings or floors
To perform roof repairs not caused by negligent or intentional act of a shareholder with roof rights
To repair and restore the apartments in the event of fire or other cause covered by multi-peril insurance policy (excluding décor or personal possessions)
our responsibilities
under the lease
Obey the House Rules
Obey the Proprietary Lease
Pay your maintenance, and on time
Only use your apartment as a private dwelling for you, your family, domestic employees, and guests up to one month, providing you are also present. Guests can only stay longer or if you are away, if approved in writing by Co-op. No two married couples can live in the apartment without Co-op consent.
You can only use the apartment for a purpose permitted by the applicable zoning.
Don’t sublet your apartment without written permission of 75% of Board members and then, on any conditions imposed, including payment of additional rent. There is no limitation on the Board’s right to grant or withhold consent
You can only assign your lease on strict terms
Keep interior of the apartment including interior walls, floors and ceilings in good repair
Scope of shareholders’ responsibility includes windows, window panes, window frames, sashes, sills, entrance and terrace doors, frames and saddles
All painting, decorating, including interior of window frames, sashes and sills
visible air-conditioners or ventilators to be painted in color designated by co-op
Solely responsible for the maintenance repair and replacement of
plumbing, gas and heating fixtures and equipment, including exposed gas, steam and water pipes
equipment such as fridges, dishwashers, in-wall air-conditioners, washing machines, ranges etc.
lighting and electrical fixtures, appliances and equipment
meters, fuse boxes or junction box at the riser into and through the apartment
Repair of any damage caused to any roof area allocated for the exclusive use of an apartment through negligent or intentional act of shareholder, family, staff or guest. Use of roof area without installation of protective surface is definitionally negligent use.
Don’t allow odors, including unreasonable cooking smells, to escape into the building.
Don’t make or permit unreasonable noise
Don’t interfere with rights of other shareholders or unreasonably annoy them
Don’t obstruct public halls or stairways
If shareholder’s equipment or appliances damage the building, or overload or interrupt service in the building for water, gas or electricity; or look rusty/discolored, must cease using and remedy
Comply with all requirements of underwriters, insurance, governmental authorities or mortgagors in occupying and using apartment
Repair or remediate as required above or failing to do so within 30 days of receiving notice from Co-op, the Co-op itself can do so as agent of shareholder, including entering the apartment and recovering expenses from the shareholder
Don’t do or allow anything to increase rate of fire insurance on the building. If insurance goes up, shareholder is liable for the additional premiums of building or other residents
Don’t make any alteration, roof deck enclosure, or addition or alteration to pipes, risers, heating, AC, wiring, plumbing fixtures, intercoms, alarms without first obtaining written consent of Co-op, not unreasonably withheld, and performing all work in accordance with applicable rules and regulations of government
Don’t remove any fixtures, appliances, additions or improvements from an apartment unless it can be removed without structural alterations or permanent damage to the apartment or if it belongs to the co-op.
Must allow Co-op agents (Board, Super, ABC) to enter an apartment or roof area with notice, or in an emergency. Co-op will be responsible for restoring the apartment to its original condition if any repairs are the obligation of the Co-op, otherwise the Shareholder has to pay
Shareholders must give Co-op/ABC keys to permit access to apartment or roof areas under the terms of the lease
Must reimburse Co-op for any expense due to shareholder not conforming to the lease
Don’t clean the outside windows unless in compliance with safety and labor law
Owners with rights to use the roof must keep their area clean, free from snow, ice, leaves and debris. No plants or structures without prior written consent of Co-op. No cooking on the roof or painting of walls on roof without Co-op approval.
under the house rules
Note: as House Rules do not have be collected in one document there are more than in the original list annexed to our Proprietary Lease. The current Board has identified some, dated 1988 and 8/11/91. Any others which the Managing Agent locates will be added to the list below and attached in the Documents section of this site.
Note also that any consent under the House Rules can be revoked at any time and House Rules can be added to, changed or repealed at any time by the Board. House Rules provide that shareholders are responsible for being aware of and keeping House Rules with their Lease.
Complaints regarding service of the building must be made in writing to the Managing Agent
Don’t obstruct hallways and stairs
Don’t allow children to play in public areas
Don’t allow children on the roof without a responsible adult
Don’t put up decoration in the public halls without consent of all Shareholders that use that hall
Don’t make or permit noises
Cover at least 70% of your floors with carpets
Don’t do anything which interferes with the rights, comforts or convenience of other residents
Don’t play an instrument or music or tv between 11pm and 8am if neighbors are disturbed
No construction or repair work except on weekdays (except legal holidays) between 8:30am and 5:00pm
Nothing placed in the halls or staircase landing or hung or shaken from doors, windows or window sills
No window awnings, AC units/ventilators except as approved by Co-op or managing agent and with a signed indemnification
No projections out of any windows except as approved by Co-op or managing agent
No window signs or notices or illuminations at any windows except as approved by Co-op or managing agent
No bicycles, baby carriages, shopping carts, scooters etc in public halls, passageways, or areas of the building
Messengers and tradespeople must come in and out as designated by Co-op, e.g. cover public floors
Garbage from apartments must be disposed of as directed by Super or Managing agent; penalties may be imposed for trash etc. left in hallways or stairs
Foodstuffs in chute properly bagged
No bottles in chute
Applicable recycling bins for all recyclables
Breakdown cardboard boxes
No rubbish, rags or articles not intended, in toilets or sinks. Cost of repairing falls to Shareholder
Don’t give Mario personal jobs that take him out of the building; any personal work must be done outside weekly work hours
No pets in the building without express permission in writing (guess we need to change this one!)
No dogs in elevators or public areas unless carried or on a leash
No aerials outside the building without written permission
Co-op can curtail or relocate any space devoted to storage or laundry
No group tour or exhibition of any apartment or contents, or auction sale, permitted without consent
Keep your windows clean. If Co-op has to do it for you (after giving you 10 days notice), they can gain access and you pay
Any agents of co-op may enter any apartment at any reasonable time to exterminate or control vermin and pests
When moving in or out, tenant must:
be present to supervise
pay a $500 refundable deposit pending damage
cannot use elevators between 5:30 and 6:30pm on weekdays
cover the hallway floors from front door to apartment
notify Board at least 48 hours in advance or be fined a minimum of $500
take responsibility of all damage to building or property
Pay for repairs which co-op makes inside an apartment
Keys to be left with Super for emergency purposes only
Keys advised to be left with neighbors for lost or forgotten
No alteration or installation of locks without notifying Board and providing new keys
Notify Management Agent in case of an emergency
Must shut all doors going in and out of the building and ensure guests do so
All visitors must be identified before giving building access
Tenant is responsible for all deliveries and delivery people
No business can be conducted out of apartments unless Board is notified. If business interferes with quiet enjoyment, Board will review
Maintain heat in apartment at a minimum of 55 degrees
No pets on the roof except within confines of area assigned to a penthouse; poop must be removed immediately or $100 fine
All tenants installing air conditioners must provide a letter of indemnification for building damage
Cooperate with exterminator and allow access if required
For Penthouse owners with roof rights:
No fires on roof
Penthouse owners are totally responsible for roof above their apartment including maintenance and legal compliance
There is no common space on the roof and no right of access for non-penthouse tenants
Can’t use roof unless covered with acceptable surface
All decking or construction must be legal and approved by Board approval
Construction
Plans for construction/renovation must be submitted to Board and approved by co-op architect and city/state, at shareholders cost
Only licensed contractors are permitted and COI must be provided
Shareholder is responsible for any damage to building or other shareholders
Contractor must leave building clean and safe
no materials in halls or stairways
all floors to be protected from front door to apartment
construction hours are 8:30am to 5:00pm, Monday through Saturday. No Sundays
shareholder must pay a construction bond - $500 for minor; $1000 for major scope
materials and debris must be removed by contractor and note left outside. Tenant subject to fine. If left outside and building is fined, tenant must pay fine.
Non-family members are limited to 1 month occupancy unless approved by Board. Conditions for approval:
Sublets:
not more than 1 year unless hardship case put to Board for approval
fee is one month’s rent
copy of lease to be provided to co-op
subtenants must go through credit check, interview by Board, $500 processing fee
House rules to be initialed and accepted by subtenant
Roommates, Houseguests, Housesitters:
proposed people must be interviewed by Board unless waived
not more than 1 year without Board approval, annually, in writing, unless waived
fee is one month’s rent unless waived or reduced
House rules to be initialed and accepted by guest
Maintenance late fees
after 10th of month due, $100
additional months, $220/month
Parties in excess of 20 people require a person to monitor front door
Flip Fee of 1% of gross sale is payable on sale of shares. Not transfer certificate before collected
Fines and penalties are imposed at Board discretion for violation of House Rules
shareholder responsibilities by topic
To better help understand the combined responsibilities under the Proprietary Lease and aggregated House Rules, the following chart arranges our responsibilities by topic, alphabetically.
Again, this list provided as a helpful guideline but in no way take place of or precedence over the terms of the actual documents, which are all accessible in the Documents section of this website and via links below. Please always refer to these legal documents when you need to know the full reach of your rights and responsibilities.
-
• No window awnings, AC units/ventilators except as approved by Co-op or managing agent and with a signed indemnification
• All tenants installing air conditioners must provide a letter of indemnification for building damage
-
• Don’t interfere with rights of other shareholders or unreasonably annoy them
• Don’t do anything which interferes with the rights, comforts or convenience of other residents
-
• Keep interior of the apartment including interior walls, floors and ceilings in good repair
o Scope of shareholders responsibility excludes: … Originally excluding windows, window panes, window frames, sashes, sills, entrance and terrace doors, frames and saddles. Since amendment… need to add in new provision
o All painting, decorating, including interior of window frames, sashes and sills
visible air-conditioners or ventilators to be painted in color designated by co-op
o Solely responsible for the maintenance repair and replacement of
plumbing, gas and heating fixtures and equipment, including exposed gas, steam and water pipes
equipment such as fridges, dishwashers, in-wall air-conditioners, washing machines, ranges etc.
lighting and electrical fixtures, appliances and equipment
meters, fuse boxes or junction box at the riser into and through the apartment
• No construction or repair work except on weekdays (except legal holidays) between 8:30am and 5:00pm
• Pay for repairs which co-op makes inside an apartment
-
• No group tour or exhibition of any apartment or contents, or auction sale, permitted without consent
• Flip Fee of 1% of gross sale is payable on sale of shares. Not transfer certificate before collected
-
• Don’t put up decoration in the public halls without consent of all Shareholders that use that hall
• Nothing placed in the halls or staircase landing or hung or shaken from doors, windows or window sills
• No window awnings, AC units/ventilators except as approved by Co-op or managing agent and with a signed indemnification
• No projections out of any windows except as approved by Co-op or managing agent
• No window signs or notices or illuminations at any windows except as approved by Co-op or managing agent
• No aerials outside the building without written permission
-
• If shareholder’s equipment or appliances damage the building, or overload or interrupt service in the building for water, gas or electricity; or look rusty/discolored, must cease using and remedy
• Repair or remediate as required above or failing to do so within 30 days of receiving notice from Co-op, the Co-op itself can do so as agent of shareholder, including entering the apartment and recovering expenses from the shareholder
-
• Don’t allow children to play in public areas
• Don’t allow children on the roof without a responsible adult
-
• No construction or repair work except on weekdays (except legal holidays) between 8:30am and 5:00pm
o Plans for construction/renovation must be submitted to Board and approved by co-op architect and city/state, at shareholders cost
o Only licensed contractors are permitted and COI must be provided
o Shareholder is responsible for any damage to building or other shareholders
o Contractor must leave building clean and safe
o no materials in halls or stairways
o all floors to be protected from front door to apartment
o construction hours are 8:30am to 5:00pm, Monday through Saturday. No Sundays
o shareholder must pay a construction bond - $500 for minor; $1000 for major scope
o materials and debris must be removed by contractor and note left outside. Tenant subject to fine. If left outside and building is fined, tenant must pay fine.
-
• Messengers and tradespeople must come in and out as designated by Co-op, e.g. cover public floors
• Tenant is responsible for all deliveries and delivery people
• All visitors must be identified before giving building access
-
• Notify Management Agent in case of an emergency
• Must allow Co-op agents (Board, Super, ABC) to enter an apartment or roof area with notice, or in an emergency. Co-op will be responsible for restoring the apartment to its original condition if any repairs are the obligation of the Co-op, otherwise the Shareholder has to pay
-
• Must reimburse Co-op for any expense due to shareholder not conforming to the lease
• Maintenance late fees
o after 10th of month due, $100
o additional months, $220/month
• Fines and penalties are imposed at Board discretion for violation of House Rules
-
• Must shut all doors going in and out of the building and ensure guests do so
• All visitors must be identified before giving building access
• Tenant is responsible for all deliveries and delivery people
• Parties in excess of 20 people require a person to monitor front door
-
• Garbage from apartments must be disposed of as directed by Super or Managing agent; penalties may be imposed for trash etc. left in hallways or stairs
o Foodstuffs in chute properly bagged
o No bottles in chute
o Applicable recycling bins for all recyclables
o Breakdown cardboard boxes
• No rubbish, rags or articles not intended, in toilets or sinks. Cost of repairing falls to Shareholder
• All construction materials and debris must be removed by contractor and note left outside. Tenant subject to fine. If left outside and building is fined, tenant must pay fine.
-
• Don’t obstruct public halls or stairways
• Nothing placed in the halls or staircase landing or hung or shaken from doors, windows or window sills
• No bicycles, baby carriages, shopping carts, scooters etc in public halls, passageways, or areas of the building
-
• Maintain heat in apartment at a minimum of 55 degrees
-
• Don’t do or allow anything to increase rate of fire insurance on the building. If insurance goes up, shareholder is liable for the additional premiums of building or other residents
-
• Must allow Co-op agents (Board, Super, ABC) to enter an apartment or roof area with notice, or in an emergency. Co-op will be responsible for restoring the apartment to its original condition if any repairs are the obligation of the Co-op, otherwise the Shareholder has to pay
• Shareholders must give Co-op/ABC keys to permit access to apartment or roof areas under the terms of the lease
• Keys to be left with Super for emergency purposes only
o Keys advised to be left with neighbors for lost or forgotten
o No alteration or installation of locks without notifying Board and providing new keys
-
• Pay your maintenance, and on time
• Maintenance late fees
o after 10th of month due, $100
o additional months, $220/month
-
• When moving in or out, tenant must:
o be present to supervise
o pay a $500 refundable deposit pending damage
o cannot use elevators between 5:30 and 6:30pm on weekdays
o cover the hallway floors from front door to apartment
o notify Board at least 48 hours in advance or be fined a minimum of $500
o take responsibility of all damage to building or property
-
• Don’t make or permit unreasonable noise
• Don’t make or permit noises
• Cover at least 70% of your floors with carpets
• Don’t do anything which interferes with the rights, comforts or convenience of other residents
• Don’t play an instrument or music or tv between 11pm and 8am if neighbors are disturbed
-
• Repair of any damage caused to any roof area allocated for the exclusive use of an apartment through negligent or intentional act of shareholder, family, staff or guest. Use of roof area without installation of protective surface is definitionally negligent use.
• Owners with rights to use the roof must keep their area clean, free from snow, ice, leaves and debris. No plants or structures without prior written consent of Co-op. No cooking on the roof or painting of walls on roof without Co-op approval.
• For Penthouse owners with roof rights:
o No fires on roof
o Penthouse owners are totally responsible for roof above their apartment including maintenance and legal compliance
o There is no common space on the roof and no right of access for non-penthouse tenants
o Can’t use roof unless covered with acceptable surface
o All decking or construction must be legal and approved by Board approval
-
• No pets in the building without express permission in writing (guess we need to change this one!)
• No dogs in elevators or public areas unless carried or on a leash
• No pets on the roof except within confines of area assigned to a penthouse; poop must be removed immediately or $100 fine
-
• Don’t make any alteration, roof deck enclosure, or addition or alteration to pipes, risers, heating, AC, wiring, plumbing fixtures, intercoms, alarms without first obtaining written consent of Co-op, not unreasonably withheld, and performing all work in accordance with applicable rules and regulations of government
• Don’t remove any fixtures, appliances, additions or improvements from an apartment unless it can be removed without structural alterations or permanent damage to the apartment or if it belongs to the co-op.
• No construction or repair work except on weekdays (except legal holidays) between 8:30am and 5:00pm
o Plans for construction/renovation must be submitted to Board and approved by co-op architect and city/state, at shareholders cost
o Only licensed contractors are permitted and COI must be provided
o Shareholder is responsible for any damage to building or other shareholders
o Contractor must leave building clean and safe
o no materials in halls or stairways
o all floors to be protected from front door to apartment
o construction hours are 8:30am to 5:00pm, Monday through Saturday. No Sundays
o shareholder must pay a construction bond - $500 for minor; $1000 for major scope
o materials and debris must be removed by contractor and note left outside. Tenant subject to fine. If left outside and building is fined, tenant must pay fine.
-
• Don’t allow odors, including unreasonable cooking smells, to escape into the building.
-
• Co-op can curtail or relocate any space devoted to storage or laundry
• No bicycles, baby carriages, shopping carts, scooters etc in public halls, passageways, or areas of the building
-
• Don’t sublet your apartment without written permission of 75% of Board members and then, on any conditions imposed, including payment of additional rent. There is no limitation on the Board’s right to grant or withhold consent
• You can only assign your lease on strict terms
• Non-family members are limited to 1 month occupancy unless approved by Board. Conditions for approval:
o Sublets:
not more than 1 year unless hardship case put to Board for approval
fee is one month’s rent
copy of lease to be provided to co-op
subtenants must go through credit check, interview by Board, $500 processing fee
House rules to be initialed and accepted by subtenant
o Roommates, Houseguests, Housesitters:
proposed people must be interviewed by Board unless waived
not more than 1 year without Board approval, annually, in writing, unless waived
fee is one month’s rent unless waived or reduced
House rules to be initialed and accepted by guest
-
• Only use your apartment as a private dwelling for you, your family, domestic employees, and guests up to one month, providing you are also present. Guests can only stay longer or if you are away, if approved in writing by Co-op. No two married couples can live in the apartment without Co-op consent.
• No business can be conducted out of apartments unless Board is notified. If business interferes with quiet enjoyment, Board will review
• You can only use the apartment for a purpose permitted by the applicable zoning.
• Comply with all requirements of underwriters, insurance, governmental authorities or mortgagors in occupying and using apartment.
• Don’t do or allow anything to increase rate of fire insurance on the building. If insurance goes up, shareholder is liable for the additional premiums of building or other residents
• Repair or remediate as required above or failing to do so within 30 days of receiving notice from Co-op, the Co-op itself can do so as agent of shareholder, including entering the apartment and recovering expenses from the shareholder
• Don’t do or allow anything to increase rate of fire insurance on the building. If insurance goes up, shareholder is liable for the additional premiums of building or other residents
-
• Don’t give Mario personal jobs that take him out of the building; any personal work must be done outside weekly work hours
-
• Any agents of co-op may enter any apartment at any reasonable time to exterminate or control vermin and pests
• Cooperate with exterminator and allow access if required
-
• All visitors must be identified before giving building access
• Must shut all doors going in and out of the building and ensure guests do so
• Parties in excess of 20 people require a person to monitor front door
• Only use your apartment as a private dwelling for you, your family, domestic employees, and guests up to one month, providing you are also present. Guests can only stay longer or if you are away, if approved in writing by Co-op. No two married couples can live in the apartment without Co-op consent.
• Non-family members are limited to 1 month occupancy unless approved by Board. Conditions for approval:
o Roommates, Houseguests, Housesitters:
proposed people must be interviewed by Board unless waived
not more than 1 year without Board approval, annually, in writing, unless waived
fee is one month’s rent unless waived or reduced
House rules to be initialed and accepted by guest
-
• Don’t clean the outside windows unless in compliance with safety and labor law
• Keep your windows clean. If Co-op has to do it for you (after giving you 10 days notice), they can gain access and you pay
• No window awnings, AC units/ventilators except as approved by Co-op or managing agent and with a signed indemnification
• All tenants installing air conditioners must provide a letter of indemnification for building damage