Nassau Gardens Cooperative Housing Association is a 204 garden-style apartment co-op with an Olympic-size swimming pool, a clubhouse, children’s playground, and basketball court on 18 acres of rolling hillside in Norwood, Massachusetts. After 11 years as a rental, Nassau Gardens went bankrupt in 1978, so HUD put the development into receivership. After most of the residents signed and submitted a petition to HUD asking they be given an opportunity to buy and own the property, HUD agreed to a conversion under provisions of Section 213 of the National Housing Act. Eight months later, title passed to the new tenant sponsored Nassau Gardens Cooperative on October 1, 1979. Roger Willcox and James Dancy helped write the necessary documents and assisted in getting us organized. Jim Dancy’s TechniCo-op, of Connecticut, became our management company for the next two decades. During that time, Nassau Gardens was kept very affordable, with only minimal occupancy charge increases and limited capital improvements.
Turmoil and divisiveness hit our community in the mid 1980s because several members wanted to convert to condominiums. HUD pointed out that we were bound by a Housing Assistance Program (HAP) contract with HUD, and we were obligated to fill 51 of our apartments with Section 8 members before we would be free to “go condominium.” That contract was part of the original mortgage with the builder of Nassau Gardens and was transferred as part of the conversion to a cooperative, but not actively implemented by the new cooperative, although 20 of our members were subsidized by Section 8. The HAP contract with HUD ended in 1996. We did not choose to renew it.
At the same time the membership voted to remove the limited equity status, and created a committee to study market rate options, but discovered that the vote required approval of the Secretary of the Commonwealth of Massachusetts. If we want to revisit this issue, we would have to have another membership vote. That has not been done as of 2010 and we remain a limited equity cooperative.
In 1998, the Board wanted a management company located closer to the Co-op, and we chose a Boston-based firm. Over the next three and a half years the membership became increasingly discontented, complaining about management, and attending Board meetings to express their dissatisfaction, but the Board continued to support the management company. Some members sought Roger Willcox’s counsel and were given the following advice: “To effect change you need to become a Director on the Board.” Instead in February the dissidents submitted a petition to the Board requesting the Board fire the management company. In July, the Board conducted a survey of members’ opinions, producing responses from one hundred and forty-eight members, all but one demanded the expulsion of the management company. The only result was that the property manager resigned and the Board continued to support the company and ignore the membership. Members were still unhappy.
Finally we took Roger Willcox’s advice and several of us ran for the Board, and won! Not enough new directors won to change the vote on management. However, when the management company hired a consultant to replace the Property Manager, they billed Nassau Gardens for her salary and travel expense, contrary to our management contract. This violation was brought to our attention by a newly elected Director. We apprised HUD of the violation, and following some exchange of correspondence, the company gave us their three month resignation notice.
At the end of their tenure, that management company left our property in very poor condition both physically and financially.
New Management
The next management company was headquartered close by and assured us in interviews that they worked with cooperatives all the time and knew exactly what was needed. This company and its personnel were insensitive, incompetent, and arrogant. All work on the property was done by “favored” contractors whose work was shoddy at best. The two-person maintenance staff drove around drinking coffee and making a mess of whatever they touched. The primary goal of the majority of the Board and the new management was to negotiate a six million dollar mortgage, the terms of which were untenable. Had we not had one thinking person on the Board—a long-time Clerk, Carolyn Thompson—who insisted on conditions being attached to the activating of the “approved” contract—we would no longer be an affordable cooperative. Actually, we probably would no longer be a cooperative. The primary condition that put us all on alert was not that our $3.1 Million dollar mortgage would be paid off and we would no longer be HUD insured. The shocker was that the $3 Million dollars in Capital Improvements had to be spent within an 18-month period. Our complex would have become a construction site and based on the present management company then, the contractors would not be 5-star companies. The conditions attached to the Board’s motion were not met. The management company gave us a 30-day notice and the Board President resigned in June 2004. We were saved by an old friend, Techni-Coop!
We immediately contacted TechniCo-op (TCI) in Connecticut and they responded at once, providing support and assistance with the transition. The exiting big management company left our property in deplorable condition; left our reserve account at about $100K; and left us with $130K in unpaid bills. The first important hurdle we faced was how to pay our bills. Our dedicated Finance Committee— headed by the very talented Kent Lawson—prepared our budget. Unfortunately, our only choice was to increase the carrying charges by $100 a month, fully supported by the membership. We had kept our membership informed of everything that was happening through notices and newsletter. When it finally came down to this very large increase, they knew it was the right thing to do to save our cooperative and to put it back on the road to financial health.
We were lucky; two of our current employees stepped into our lives. TCI interviewed and negotiated contracts with Robert Egan, our current Property Manager, and James Dickson, our Superintendent of Maintenance. The remainder of the staff has taken us awhile to develop but, again, we hit pay dirt with our latest maintenance mechanics (2) and our Senior Administrative Assistant.
During TCI’s time (June 2004 – September 2005), several things were taking place. Our Capital Needs Assessment Committee (CNA) met and decided that their committee members’ experience and background could, in fact, enable them to put together their own Capital Needs Assessment Plan without the expense of hiring an engineering company and we did just that.
Our CNA Plan has proven to be the backbone of our capital improvements and financial planning. We continually update this report based on whatever issues have arisen since the previous version. For instance, In November of 2006, we had to face the harsh reality that in order to get property insurance at an affordable rate, we would have to address the aluminum wiring. This meant that we had to reprioritize our Capital Improvements and amend our CNA Plan.
After investigating our options, we prepared specifications, issued requests for proposals— RFPs—and reviewed the responses. In the end, we chose an electrical company that was knowledgeable and certified to retrofit our aluminum wiring with the Consumer Product Safety Commission approved method of cold welding copper wire to aluminum wire at outlets and switches in order to reduce the risk of fire. That project would be completed in phases over a three (3) year period; i.e., two buildings a year. This plan was acceptable to the insurance company and in 2007 we completed Phase I. We also faced the fact that the possibility of TCI being approved by HUD Boston was not going to happen. Therefore, we had to move forward without them. TCI did not leave us high and dry but rather promised to stay with us until we found another company.
During this time, the Board talked about being self-managed. The general consensus was that it would not and could not happen. After much discussion, we decided to try this approach. What could we lose? All that could happen was that HUD would say “no.” On the other hand, if we really did a good job, they may very well say “yes.”
Self-Management as Our Goal. . .
We prepared an RFP, sent it out to six management/ financial organizations, and received four responses. All four basically said “We are willing to give it a try but we are not sure that it will be accepted because as far as they knew it had not been done before.” We assured them that we too had the same feelings but since our intrepid attitude had gotten us this far, we were willing to go right through that “No Admittance” door. What we were asking these organizations to do was to provide oversight and reporting of our finances, as well as giving us professional advice when requested. From our side, all financial work would be done in our office (Accounts Receivables, Accounts Payable, signing of checks, management of bank accounts, etc.) and that data would be sent to their office via whatever computer software (email and fax) that they were presently using. All decisions concerning the management of the cooperative would be done by the nine-person Board of Directors.
It was a difficult choice because all candidates were excellent. We chose Maloney Properties out of Wellesley, Massachusetts. It has proven to be a very good choice.
In September of 2005, TCI said goodbye to Nassau Gardens Cooperative, Maloney Properties came on board, and we began in earnest to pursue self-management. Immediately, together we prepared a letter to HUD for approval of the Financial/Advisory contract, along with our “plea” for self-management. HUD responded by requesting a list of documents. That “3-ring 3-inch binder” of documents was assembled with the assistance of Maloney and was submitted to HUD.
In January of 2006, HUD gave us a one-year temporary approval to self-manage with Maloney as our financial/advisory partner.
When we prepared the budget for 2006-2007, it became clear that we needed to find a solution to the cost of capital improvements needed at our 35 year old property. How could we pay for these upgrades and rehabs? The Finance Committee decided to explore the refinance option. Investigating both HUD insured mortgages and conventional mortgages, we determined that the requirements were too confining and there was a strong possibility that our carrying charges would increase substantially. Again, our intrepid spirit said “there has got to be a better way” that will keep us affordable, viable and a happy cooperative.
We created THE TEN YEAR PLAN! Our Treasurer and Chair of the Finance Committee, Kent Lawson, submitted a ten-year plan that would address our capital improvements, the CNA plan, and our continuation as an “affordable cooperative.” That Ten-Year Plan calls for increasing the carrying charges at the rate of $30 a month each October 1st for the next ten years; completion of major renovations and replacements in accordance with our short-term and long-range plans. The Board approved the Ten-Year Plan as part of the 2006-2007 Budget and we submitted both to HUD.
By the time we completed our second year of that increase, our membership was satisfied that this was the right approach to improving and maintaining Nassau Gardens Cooperative.
In January of 2007, HUD gave its approval for permanent self-management with the caveat that we continue to meet all requirements.
Progress
As of October, 2007, we had met all the requirements and more. Our property has never looked so good. We had . . .
a) replaced boilers in 90 apartments;
b) completed Phase I of the electrical retrofitting;
c) installed smoke/carbon monoxide alarms in all apartments;
d) restored our landscape (grass, trees, bushes, etc.) to better than it has ever been;
e) inspected all apartments and created a maintenance database to contain information gathered;
f) established a Standards & Inspections Committee that will oversee all inspections (annual, exit and entry, and in-house transfers), as well as recommend standards to the BOD for maintaining conditions of apartments, etc.
g) Rehab piping and equipment at pool (done by our own maintenance staff) and adding another five to ten years of life to our aging pool;
h) Seal coated all road and parking lot surfaces and painted lines and designations;
i) Refreshed all common hallways;
j) Extensive drain work completed in four areas;
k) And made many more improvements.
Throughout the entire period 2004 to 2007 we faced several challenges with regard to the administrative side of managing our property. We lost several of our administrative assistants, either to moving on or removal. During one of these transition periods, we decided to try a job share plan. This would give us two part-timers and we could get between 44 and 48 hours of coverage. To make a long story short, so far we have not been successful. The two people we hired to complement our computer literate part-time administrator have been a failure. We were hoping to have a qualified, experienced, secretarial trained person who could organize the office, answer correspondence and put our files in order. In the meantime, we have been fortunate to obtain the services of our former Clerk of 12 years who is working two days a week to put our membership files in order. When she is finished with this project, all 204 of our member files will be in A-1 condition. In addition, she is proving to be a wonderful resource for our office staff in answering questions that arise.
Some of the administrative tasks that we have accomplished since 2004 are:
a) preparation of an Office Manual;
b) preparation of notebooks containing:
1. contracts
2. electrical project documents
3. time sheets for employees (5 binders)
4. property insurance
5. staff meeting documents
6. townhouse Transfer List and Applications
7. policies & procedures of the cooperative
8. minutes of Open Board Meetings
Up through 2007, we had made good progress in the administrative area but there remained some major tasks not yet accomplished.
Our staff is becoming more familiar with the property management software. The property manager is holding weekly staff meetings where maintenance and capital improvement projects are discussed with the maintenance staff. A list of administrative tasks is on the agenda. An Action List is maintained on both maintenance and administrative tasks. One or two of the Board members attend the weekly staff meeting and keep the other Board members informed. Our property manager submits a weekly report via email to all members of the Board. Keeping the lines of communication open and on a frequent basis, benefits Board, management, and maintenance and, of course, the members. Many innovative ideas have come from these staff meetings.
By the time we reached 2009, we knew that self management was working well. Is it hard work? Absolutely. Is that hard work worth it? Positively!
The three-phase/three-year electrical retrofitting project was completed in May of 2009. The total cost of that project was approximately $475,000.00. The team work of our members, our staff and the electricians was most impressive. In addition to our insurance premium for 2007 and 2008 being reduced approximately $15,000.00 annually, the light fixtures and supplies for those lights have been standardized, and all common area fixtures have energy-saving bulbs. Many members took this opportunity to upgrade units at their own expense with additional plugs, new fixtures and fans. The long-range benefits to our cooperative will be seen in lower electric bills, savings when purchasing inventory, the option of shopping for better and cheaper insurance coverage, not to mention the improved safety of our complex and our members.
The job-share project was not so successful. We were unable to find a workable team. What we did find, instead, is an outstanding, efficient, intelligent and hard-working woman who came on board in January of 2008 as the junior member of the job-share team. For the first half of the year Veronica Johnson had to work through a period of uncertainty while we learned that jobsharing was not to be at Nassau Gardens. Since September of 2008 when she became a full-time Administrative Assistant, she has worked alone and has been successful facing the many and varied responsibilities of the job.
There have been many improvements in our office procedures and efficiency over the past two years. A new deposit system has been established with our primary bank. Since we deposit over 200 checks each month, this new process has saved time and improved accuracy.
A special project to put all of our member files (and other files) in good/excellent order has been completed. That project included a documented filing system for all member files so in the future the process will be continued. We were very fortunate to have the services of our long-time Clerk, Carolyn Thompson. Carolyn moved from Nassau Gardens but was willing to drive from her home on the Cape to take on this major task. It was her unique background, experience and expertise that took a filing system from chaotic to efficient and orderly. We have begun a project to establish appropriate and legal file storage policies that includes examining and updating current stored files to be sure we are in compliance with current regulations, as well as creating an index identifying where specific files are located. This project will take several years to complete.
Late April of 2009 we had our first major fire. Over the years we have had only a couple of fires that damaged part of a unit and that impacted the other units and hallways of quads. However, this was the first one that completely destroyed an entire apartment and caused significant smoke damage in the hallway and the other three apartments. No lives were lost thanks to the quick action of the members in that quad, and the professional response of the Norwood Fire Department that contained the fire and smoke damage to one quad. We were pleased to learn that all of our fire and smoke alarms were working. The three units damaged by smoke were completely refurbished by June, 2009. The damaged unit will be completely restored by the end of July. We have learned a great deal from this experience and will apply that knowledge to many of our daily and annual tasks going forward.
We continue to benefit from weekly staff meetings, monthly newsletters, an active and involved Board of Directors, a talented maintenance staff, and a well-run office.
There has been a substantial impact made by the establishment of a Standards & Inspection Policy & Procedure and a committee of the same name. That hard-working committee has been responsible for overseeing our new policy that includes the refurbishing of apartments vacated by outgoing members. Based on our new policy, no apartment is shown to a prospective member-shareholder before it has been restored to meet our new standards. Over the past eighteen months, twenty-five apartments have been completely refurbished. Many of our members (hundreds actually) take very good care of the apartments they live in. Many have spent thousands of dollars to improve and upgrade kitchens, bathrooms, etc. Overall we have a very involved membership. They volunteer, they care for the hallways and apartments where they live, and they save everyone (including themselves) thousands of dollars a year. In 2009 we decided to temporarily suspend the 10-year plan because of the economic downturn and did not increase the carrying charges by thirty dollars ($30) per month. Our membership was most appreciative.
This historical update cannot end without acknowledging the financial skill and hard-work of our Treasurer, Kent Lawson. His expertise and advice since 2004 has brought us from financial disaster to strong financial stability. Kent’s work with the Property Manager, Bob Egan, HUD, the Finance Committee, the Capital Needs Assessment Committee and the Board of Directors has put us back on the road of solid financial health and long-range capital planning that has improved our property immeasurably.
Now in 2010 we will be tackling new roofing, moving forward with our boiler replacements (now at 122 completed), streamlining administrative tasks, reaching out and working with the Town of Norwood and its service organizations, and making plans for the time when our mortgage is paid in full (2019). This story does not include all of the extraordinary things we have accomplished since 2004, nor does it include the names of all those persons who have given of themselves and their talents to make our home a better and more beautiful place.
We are definitely A COOPERATIVE and very proud of it.