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Laws Versus Rules: You Need to Know the Difference

  • About Mitchell-Lama/ Housing Development Fund Corporation (HDFC) & Third Party Transfer Representation, Adam Leitman Bailey, Condominium & Cooperative Board & Building Representation, Condominium & Cooperative Litigation, Condominium & Cooperative Owner & Shareholder Representation, Condominium & Cooperative Representation

Contents

  1. Avoiding Conflict

New York’s co-ops and condos are both governed by a multitude of laws and rules…

Sometimes, laws that are enacted that mandate change can cause conflict with  co-ops and condos that are used to doing things a certain way. For example, the  Fair Housing Amendments Act mandates that a multiple dwelling with a parking  lot must provide reasonable accommodations for disabled people who drive, and  not to do so entails discrimination.

This was the background for the Shapiro vs. Cadman Towers (in Brooklyn) case, in which the building’s management had argued that “reasonable accommodations” should not include taking away parking spaces from those residents who already  have them. In the end, according to attorney Adam Leitman Bailey of Adam  Leitman Bailey PC, the court ruled that although Ms. Shapiro needed a space  near her apartment or else he wouldn’t be able to park at all, she could be given such a space currently used by one  of the building workers, and that worker could park in a nearby commercial  garage without any hardship.

As if these conflicts were not enough, there are also conflicts between state,  city, and federal laws or mandates, says Bailey. “The biggest challenge to housing laws from a federal perspective in the last two  decades,” he says, “are the green laws, or federal credits for building green, and the compliance  with the lead paint law and building disability-friendly units.” Coming in the future, he says, are regulations requiring more buildings to have  federal flood insurance to refinance and get a mortgage…  

 

Avoiding Conflict

Getting back to the “rules” side of things, house rules, as we’ve mentioned above, are typically decided by the board. The board’s governing documents, such as a proprietary lease, offering plan and bylaws, “were based on old residential lease forms and are decades old, so progressive  buildings have been amending these so that the hand fits the glove of these  buildings,” says Bailey.  

So what precautions should boards take to make sure that their house rules aren’t going to come in conflict with the law, and to keep up with changes in the  law? First. they can consult with their managing agent, and/or an attorney familiar with co-op and condo law, and ask a lot of questions. Other sources of  information are publications like this one, seminars given by co-op and condo organizations (as well as The Cooperator’sannual Co-op & Condo Expo), and newsletters and websites put out by attorneys that give  updates on the law…

Bailey says battles over second-hand smoke are among the most hotly contested  items in today’s condo and co-op world. “The law is still being developed respecting second-hand smoke,” he says. “At present, there are few recorded cases but, given the amount of poor new and  renovated construction that occurred over the past decade, it is likely there  will be a significant amount of litigation over smoke issues in the near  future.”

In an article on his website called “Advising Condominiums, Cooperatives and Landlords on Smoking Issues Affecting Buildings,” he outlines the issue and gives sample lease amendments and sample letters from  the board to an individual owner. He also summarizes specific cases dealing  with the issue.

Does the whole topic of rules and laws corresponding with each other sound  confusing? It certainly can be. In general, before boards enact changes to  house rules or policies, they should consult their attorneys to make sure  everything’s legal.

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