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With spring just around the corner, Goldstein Hall would like to provide a checklist to HDFCs to help guide a thorough, annual “cleaning” of all matters related to HDFC governance and supportive of HDFC best practices.
- What is your HDFC’s current sublet policy? If it’s outdated or nonexistent, Goldstein Hall attorneys can help you develop one.
- What is the current resale policy? If it’s outdated or nonexistent, Goldstein Hall attorneys can help you develop one.
- What is the current flip tax?
- Has there been an annual shareholders’ meeting or Board election in the last twelve months?
- When is the last time the shareholders discussed the house rules?
- Where are Board documents and files being stored, including shareholders’ confidential financial records?
- Is there a list of all HDFC occupants and contact info for each household, for the Board to use in the event of an emergency?
- Has each shareholder provided contact information for next of kin, for the Board to use in the event of an emergency?
- Have all shareholders done basic estate planning? While Goldstein Hall does not do estate planning for individuals, we do help our HDFC clients when a shareholder dies. We encourage all HDFCs to discuss the importance of basic estate planning with the shareholders now to avoid costly and time-consuming transfer issues later.
- What is your HDFC’s current insurance coverage? Insurance premiums and policy exclusions are increasing while policy limits are decreasing. When is the last time you reviewed your HDFC’s insurance? Consider: (i) asking your insurer to see loss runs (reports from your insurance provider that detail the past claims you've filed), (ii) selecting a new insurance broker if you question the pricing or coverage you’re currently getting, and (iii) obtaining bids from new insurance carriers to compare pricing.
- Is your HDFC compliant with Local Law 97? The law was included in the Climate Mobilization Act, passed by the New York City Council in April 2019 as part of the Mayor’s New York City Green New Deal. Local Law 97 applies to certain sized HDFCs and requires the buildings to meet new energy efficiency and greenhouse gas emissions limits as of 2024, with stricter limits coming into effect in 2030. If you’re not certain if this requirement applies to your HDFC, contact Goldstein Hall to discuss further so that you’re not out of compliance.
- Does your HDFC have open building violations?
- Does your HDFC have capital needs that necessitate hiring a general contractor?
If any of these checklist items are raising questions or concerns for your HDFC, please reach out to discuss with a Goldstein Hall attorney. We look forward to working with you.
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