Self Management Resolution

Last Updated: August 24, 2020

This is a sample self-management agreement created by UHAB. Self-managed HDFCs may find this agreement useful to clarify duties, compensation, and more. Please modify this agreement to meet your own building’s needs.

The _____________________________________ Housing Development Fund Corporation (“the HDFC”), which owns the building at____________________

New York (“the Building”) hereby resolves that:

  1. An Executive Committee of the Board will be established to handle day-to-

day matters and to make certain decisions for the HDFC which arise in between meetings of the Board of Directors and cannot or should not wait until the next Board of Directors meeting.  The Executive Committee will consist of ___officers: specifically ____________________, __________________ and __________________. 

Meeting of the Executive Committee will be held as needed.  A quorum will be a majority of the Committee.

      B. The HDFC will not hire an outside company that specializes in building management to help operate the Building.  Instead, management duties in the Building will be allocated as follows.

  1. Hiring.  The Board of Directors will hire all persons necessary to be employed on a regular basis to properly maintain and operate the Building.  The Board of Directors will fire all persons who are unnecessary or undesirable.

       2.  Supervising employees.    ________________________________will supervise and issue pay checks to all employees and make sure that all necessary forms are prepared and filed for unemployment insurance, withholding and social security taxes and all other taxes relating to employment required by federal , state or municipal authorities.

       3. Repairs and Maintenance.  The Board of the Directors will maintain the Building in good condition and cause repairs and alterations of the Building to be made, including but not limited to, electrical, plumbing, steam fitting, carpentry, masonry,  elevator, decorating, and other incidental alterations or changes; however _____________________________will  have the authority to attend to repairs requiring expenditures of less than $_______ and the Executive Committee will have the authority to undertake emergency repairs (that is, those immediately necessary for preservation or safety of the Building or for the safety of residents, or required to avoid the suspension of any necessary service in the building).  __________________________ will be responsible for interior and exterior cleaning which will include ___________________ to be completed _____ per month and ______________________ to be completed _____ per week. 

4.   Violations.   ________________________________ will recommend, and with approval of the Board of Directors, do what is necessary to comply with all orders or violations placed on the Building by any federal, state or municipal authority.  If failure to promptly comply with any such order or violation would or might expose the HDFC to criminal liability, the Executive Committee may cause compliance with such order or violation.

  • Contracts. _________________________________ may, with approval of the Executive Committee, enter into contracts for electricity, gas, steam, air-conditioning, water treatment, elevator, telephone, rubbish removal, fuel oil, security, vermin extermination and other services.
  • Supplies. ___________________________________ will purchase all supplies up to $_______ per month necessary to properly maintain and operate the Building at the best price and on the best terms; larger amounts spent on supplies must be approved by the Executive Committee.

      7.  Insurance.  ________________________________________ will research and advise the Board of Directors regarding proper insurance coverage for the Building, its employees and tenants and, if requested by the Board of Directors, obtain, maintain and/or renew fire, rent, plate glass, boiler, water damage, liability, workmen’s compensation, employer’s liability, disability, fidelity bonding, and any other insurance the Board  of Directors may elect to carry.

      8.  Paying Bills.  _______________________________________ will check all bills received for services, work, and supplies ordered in connection with maintaining and operating the Building, and will pay or cause to be paid all such bills and water charges, sewer rent, assessments, real state taxes, and corporate income and other taxes assessed against the HDFC or the Building.

       9.   Collecting Rent/Maintenance.  ___________________________________ will bill residents for rent and other charges and use his/her best efforts to collect such rent/maintenance and other charges and deposit same in the HDFC’s bank account.  When directed by   the Board of Directors, __________________________ will serve eviction notices on residents and will cooperate with contact, supervise and assist the HDFC’s attorney in all suits or proceedings brought to recover possession of space in the Building or rent and other charges which are due to the HDFC.  ___________________ will supervise the moving in and out of residents. 

       10.  Financial Records.

            a.   ___________________________ will maintain accurate and complete accounting records for the HDFC, including the check book for the HDFC’s bank account, and maintain orderly files containing rent records, insurance policies, proprietary and other leases and subleases, correspondence, receipted bills and vouchers, and all other documents and papers pertaining to the building or the operation thereof, and the same shall remain the property of the HDFC and the Executive Committee make same available to the Board, its accountants, attorneys or advisors.

            b.  _________________________________will prepare monthly statements for the preceding month no later than the twenty-fifth day of each month, supported by disbursement vouchers, and present them to the Board of Directors.

      c.   The Executive Committee will cooperate with the HDFC’s accountant in regard to the annual audit of the HDFC’s books, including the annual report of the operations of the HDFC for the year then ended.  A Copy of each such annual report shall be sent or given by the Executive Committee to the Board of Directors.

       d.   The Board of Directors will annually prepare and submit a proposed operating budget forth the anticipated income of the HDFC with proposed maintenance charges as well as the expenses for the upcoming year.  A comparison of said budget to the expenses and income of the preceding and current years and any required explanations will accompany the proposed budget.

        11.  Changing/Terminating These Duties. The individuals who have been given responsibilities in this resolution may resign from their duties by giving the Board of Directors 30 days written notice.  This will not necessarily constitute resignation from the Board of Directors but merely resignation from the specific management duties.  The Board of Directors may terminate any individual who has been given management duties by a majority vote and thirty days notice to the individual.  Any payment to the individual will terminate when the thirty days expires. 

       12.  Compensation.  Directors are not being paid to do their director jobs.  They are being paid to do the day-to-day work of a building manager.   Individuals given management duties in this resolution will be paid a total of 8% of rent collected each month   This amount will be divided as follows:

________________________________________ – _____________________

________________________________________ – _____________________

________________________________________ – _____________________

This amount may not be deducted from rent/maintenance payments owed by the director.  Maintenance/rent must be paid and management tasks will be compensated with a separate check.   

CERTIFICATION

         I, _______________________________, Secretary of the ___________________

Housing Development Fund Corporation, hereby certify that the above resolution was passed by a ____________ vote of the Board of Directors at a duly called meeting on _______________________, 20__. 

                                                                 __________________________________

Secretary