Association of Cooperative and Condominium Managers formed.

Over 40 cooperative and condominium management company principals have formed a professional group to address the concerns of their clients and their industry, as well as to promulgate performance standards and a code of ethics.

"The aim of the Association of Cooperative and Condominium Managers is to enhance professional management standards, address the specific needs of the cooperative and condominium community, and educate and foster better communication between managers and their clients," explained Andrea Schell, president of NRK Management Corp. and co-chair of the ACCM's Public Relations/Education Committee.

The Association of Cooperative and Condominium Managers (ACCM) was founded by a small group of management professionals less than a year ago. An introductory reception on January 12, 1995, attended by about 80 management company principals, resulted in more than 40 joining the new organization. The ACCM held its first annual meeting on June 20, and elected its first Board of Directors.

Five-Point Plan of Action Developed

The organization has a five-point plan of action:

* To bring together cooperative and condominium professionals and to protect and promote their mutual interests.

* To formulate and maintain ethical standards to guide member firms in their relations with each other, their clients and the general public.

* To educate the public, clients and member firms in matters of interest to the property management industry.

* To speak on behalf of member firms and their clients on significant issues, and represent them in public forums and before legislative bodies.

* To develop and promote the highest professional standards among cooperative and condominium management firms.

New Breed of Managers

The increase in cooperatives and condominiums over the last decade has seen the rapid emergence of professionals who bring a wide range of academic and professional experience to property management. No uniform education requirement exists for property managers; their backgrounds are more diverse than in any other field. Property managers must be knowledgeable in a number of related disciplines, including law, finance, engineering, and construction. An extensive background in all aspects of the physical operation of a property, such as building and mechanical systems repair, renovation, and construction management, is necessary as well. Lastly, property managers must have exemplary interpersonal and written communication skills, and the business acumen to bring these varied abilities together in the proper management of multi-million dollar assets.

"Former teachers, attorneys, accountants and engineers all comprise the professional group of cooperative and condominium managers," said Leslie Winkler, Director of Management, Penmark Realty Corp. and ACCM President.

"We are concerned about the lack of uniformity in our ranks," noted Richard Barry, CEO of Century, and ACCM Treasurer. "The ACCM is the first real estate organization in New York City to focus its attention solely on the requirements of cooperative and condominium management. Members will share their programs, procedures, and policies. We will collectively assess which of our systems work better and which do not work as effectively as we would like."

Challenges to Integrity

The formation of the ACCM has occurred, in part, as a result of recent challenges to the integrity of cooperative and condominium managers. Recently the residential property management industry was the focus of intense scrutiny as a result of the Manhattan District Attorney's investigation of illegal practices. Although the number of individuals accused of improprieties was tiny relative to the total number of professionals active in the industry, the perception remains that unethical conduct is widespread.

Ethics Policies Underscored

According to Oskar Brecher, managing director of American Landmark Corp. and ACCM Secretary, "A major ACCM goal is to establish norms of ethical conduct in our industry. We are determined to re-establish public confidence in our integrity. The vast majority of our clients are volunteers without professional property management experience. Because of this, as well as our fiduciary responsibility, adherence to a Code of Ethics is fundamental to our business practice."

The ACCM's Code of Ethics is elaborated in 13 articles that deal with conduct between clients and employees of member firms, and between vendors and employees of member firms. It addresses fiduciary obligation to clients, disclosure, accounting and reporting, protection of funds, contracts, employee education, compliance with laws and regulations, and equal opportunity.

ACCM Calls for Participation

The Code of Ethics is only the first step in protecting client interests. The ACCM's future plans include the establishment of rules and standards of professional business practice. To ensure that cooperative and condominium managers maintain appropriate standards of ethical behavior, the ACCM will work toward developing into a powerful force representing the majority of management firms serving the cooperative and condominium community.