There's a hole in the bucket, Dear Liza, a hole....

 

In a little over a year, my co-op has gone from a place where I'd be glad to own an apartment to one where I wish I could sell the place and be done with it.  Being on the board of directors, I am not able to talk about any of the details why I feel this way.  But I can say that I (and other shareholders) have received letters from one outraged shareholder complaining about how things have been managed.

Why is this an issue?

Being on the board puts me at financial risk if we were held liable for the problems the co-op is facing.  Right now, I think we'd win our case if ever brought to court.  But I'm very concerned about my financial future, given that I'd have an extremely hard time recovering (if possible) from any judgements.  Luckily, our lawyer is on the case, and we are taking proactive steps to resolve our issues.

- - - - - -

Our problem is one that I can see us finding a way to resolve.  But there are many other condos and co-ops in this country which have problems worse than ours.  For example, the collapse of an apartment tower in Florida caused the state to enact legislation to deal with Home Owner Associations (HOAs) who have kicked the can down the road, deferring essential maintenance that would keep their buildings safe for residency.  Due to this law, many condos in Florida are effectively worthless, given the rise of HOA fees and assessments needed to bring their properties up to snuff.  (My co-op has continually maintained our property, and was in excellent shape until the beginning of 2024.)

Right now, I am very concerned that things will keep getting worse all over.  Last night (as I write this), one of the ladies in our zoom meeting mentioned that her firm just laid off a significant number of employees.  Given her skill set, she feels safe.  But in her shoes, I'd still keep my resume updated and my fingers tightly crossed.

We're starting to see the effects of the Orange Snowflake's trade war.  He's pissed off our friends, only to get an occasional "win" he can brag about in his propaganda.  Canada has sworn off US goods, and largely avoided the US for its "Snowbird" vacations.  I'm not sure that there's anything that can be done to win back Canadian business until the Snowflake is long gone from office - and that will take years, at best.

So what does this all mean?

I feel that on a macro level, America is heading towards a depression.  Both our short-term and long-term policies have been geared to dealing with today's issues instead of heading off those that will happen tomorrow.  In Florida, inadequate regulation has destroyed the value of a large sector of its real estate market.  In the US, ballooning federal debt will destroy the value of the US Dollar as well as our economy.  Hopefully, we will be able to ride out the troubles I expect to see and come out relatively whole 4 years from now.