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TimW5 (New York)
Posts: 6
Posted:
Hi,

The New York City Condo Board and Management Company at my building has been incompetent and incapable of addressing building issues. This has led to many examples when a temporary fix/patch was made, but the real problem remain. Over time, the working capital has been exhausted because of more re-patching and temporary fixes. The common charges has been increased to help replenish it when the working capital get too low.

In a recent example, there has been water leaks from the roof located above the 7th floor and adjourning 7th floor unit's balcony. This has resulted in water leaks since 2010 to the units below including my unit. This has resulted in me and subsequent tenants moving out. Currently, my unit has a water bucket to catch some of the water leaks and is no longer able to be rented out since there are holes and water damages in the unit's ceiling, walls, and wooden floor.

The current water leak discovered this past Spring has also affect my unit plus 2 other nearby units. The Management Company thought it was the roof and patched it in the Summer. But that did not fix the water leak issue. Now they think it is the 7th floor balcony from the unit above. The progress to fix this is very slow and at the moment, there is no target date to have the balcony fix completed.

For the last 3 weeks, the Condo Board and Management Company has ignored our (3 units) emails and phone calls for any updates. Based on this lack of response, it seems potentially, there may be no more further action to fix. This would mean more rain water will leak into building and these affected units. In the past, when snow melted, the ceiling and drywalls also got wet and leaked water.

Meanwhile, we have all been paying the monthly common charges on time even with a recent increases. Anyone has any suggestions on what can be done to help.

Thank you.
SheliaH (Indiana)
Posts: 6,964
Posted:
You might want to start with you and your neighbors going to the next board meeting and talking to the board, if you haven't done so already. If the 7th floor is the issue, it may take a little time before the problem is discovered and then the contractor will have to determine exactly what needs to be done and how much all of this will cost.

If you've had temporary fixes, but nothing permanent, I suspect the budget is the issue, so you need to take a close look at it. Is there a reserve fund? Is it being funded properly? Do you have a problem with delinquencies? When was the last time you had a reserve study? What the board do with its recommendations (assuming you had one).

You also say there's been a recent increase in assessments - if it's been a while since you've had them, you may be seeing underfunding at work. People always want things done, but squawk when it comes to paying for the work. If assessments don't keep up with inflation, the association may find itself facing lots of expensive repairs and not enough money to take care of them and everything else, and that may lead to a loan or special assessment - perhaps both. Those in turn will lead to higher assessments - you may not like paying them, but it may come down to that vs. the roof caving in.

And ask the board if they got any warranties on the work that was done - if those are still in effect, it's time to have the contractors return and take another look at the problem.

Oh, in case you're thinking about withholding your assessments until the work is done, forget about it. Repairs and paying assessments are different issues and if you withhold your money, the Association will have even less to address the problem and you'll only set yourself up for being sued for non-payment and could lose your unit. I wish I had better news for you, but I smell an expensive fix that all the unit owners will have to address. Once that happens, it may be time for you to consider if that board should still be in control - and then you'll need people willing to step up to serve in their place.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posted:
Tim,

Have you looked at financials of the Association?

Perhaps the issue is mis-management (which can only be fixed by putting better qualified people in place (perhaps you).

Perhaps the issue is the number of delinquent accounts. This can only get fixed by becoming tough and willing to foreclose on your neighbor if necessary.

Perhaps the issue is limitations on the amount assessments can be raised or the unwillingness of the membership to raise assessments to the amount necessary (this will require an education campaign to overcome).

As for the leak, has anyone done demolition to try and discover the true source of the leak? This is often necessary to find the actual cause. Of course, this also requires the willingness to have them do some demolition within your unit to locate the leak?
KerryL1 (California)
Posts: 14,550
Posted:
I cannot imagine an HOA board allowing constant moisture to penetrate owners units and your HOA's common areas too. Demo should have been done to source the leak or leaks immediately!

You three owners certainly need to get together and apply pressure on the MC & on the board. All three of you attend a board meeting if your board HAS open meetings, which are not required in NY.

I'm afraid that it's gonna take legal action by you three to get this board & MC to do the right repairs. There IS no excuse for them to permit these conditions to persist.

TimW5 (New York)
Posts: 6
Posted:
Hi,

Thank you all for your suggestions and reply.

The Condo Management Board had not held meetings for over 5 years. It is unclear where our financial situation is with the building. All we saw was that we all got a notice that our new common charges will be increase to $$ as of date. The Board tend to ignore any inquires about building issues made to them. If they respond at all, they indicate to contact the Management Company whom also will tend not to respond promptly. If they even respond, then the response can be incorrect information or very vague responses which does not always answer the questions.

We are left wondering what is going on ? how to make things better ? It seems we have to do things ourselves which does not make sense since these things should be handled by the Management Company with approvals made with the Condo Management Board. We wonder what is being spend for the common charges that we are paying each month.

We (affected unit owners) have been patient and still trying to work things out. But it is getting to point where we do something different to get things fix correctly. If this mean legal actions, then we will have no choice but to proceed with it.

Hence, if anyone is familiar with how this is handled for Condos in New York City area, please chime in and provide your suggestions. What actions we can do without a lawyer and what we must do with a lawyer in New York ?

We are all hard-working families with kids and just trying to provide a safe livable environment for them.

Thank you again.
SheliaH (Indiana)
Posts: 6,964
Posted:
No meetings in 5 years and you don't know what the state of the association's finances? This is what happens when homeowners don't keep an eye on what's going on and hold their HOA board and management company accountable. A hard lesson to learn, but better late than never.

Now, hang on to your knickers - you and like-minded homeowners need to get control of your association, and you have A LOT of hard work ahead of you to turn things around. The work requires lots of patience, time, attention to detail, and yes, money. Some of this will likely require an attorney so man/woman up, hire the best one you can find and go on from there.

1. Check your documents to see what they say about recalling the board - you will need to rally as many homeowners as possible to do that. Usually, a petition is prepared and presented to the board, which must call a special meeting within X number of days. If the board hasn't met in five years, copies of the petition need to be sent to all of them.

2. Once you get rid of the board, the next step will be to get a handle on the finances - you'll need to blast records out of the old Board AND management company. While you're at it, get a full audit to see where the problems are and if anyone's hands are playing around in the cookie jar.

3. Check the contract with the management company and have a come to Jesus meeting with the head of the company and property manager. Be prepared to boot them out as well - the new board may want to set up a special committee to look for candidates. If you don't know what to look for, you may want to search this website for previous conversations on what to look for and how to work with them. You can also check the Community Association Institute website (CAI), which has a number of books on the subject.

4. Regarding an attorney, you may want to check if the association has one - perhaps he/she doesn't know what's going on because no one's spoken to him/her. If you have one, sit down with him and her as to what to do next. If there's been negligence on his/her part, you'll need to get some referrals to hire another one, because you may need to threaten (and perhaps pursue) legal action against the management company and maybe individual board members.

5. Which brings us to the roof leak - be prepared to hire a good contractor who can find the source of the problem once and for all. You'll then need to get repair estimates and if there isn't enough money in the budget, brace yourself for a special assessment. In fact, depending on how dismal your finances are, you may need several.

6. If you don't know much about the finances, you probably don't have a reserve study - get one post haste, as it will help with long term budget planning. You should update it at least every 5 years.

7. Finally, check the CAI website to see if there's a local chapter in your area where the new board can attend classes on how to run an association effectively. Apparently the current bunch doesn't know or care and after this is cleaned up, you'll need to ensure the folks in charge know what they're doing.

Good luck - you're going to need it!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
TimW

How long did it take to decide something was not right after not having any meetings or financial statements? Did someone do a Rip Van Winkle?
TimW5 (New York)
Posts: 6
Posted:
SheliaH and JohnC46,

Both of you are right. All the unit owners including myself did not keep en eye on this. Unfortunately, we tend to keep to ourselves "mind our own business" and did not get involved.

However, it is now time to try to change this and make things better. As Shelia pointed out very nicely, there are many items that must be done and yes we will need help and luck to help us accomplish them.

Thank you and if there is any more such good suggestions, please chime in.
KerryL1 (California)
Posts: 14,550
Posted:
Sheila's advice mainly makes sense, TimW, but we don't know the Laws in NY, i.e., what documents you may legally review. Anyway, there's a lot of work ahead.

But your immediate concern, I should think is the roof leak(s). You want that fixed.

We only have one regular poster from NY and he may even be in NYC, Jon, who's very knowledgeable--hope he checks in.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
TimW

I have never seen any associations docs (in the Covenants, Articles of Incorporation, etc.) that did not call for at least an Annual Meeting with a budget being presented.

This would be your first step. Find out what your docs say and simply request they do so.

JonD1
Posts: 2,350
Posted:
Tim to be kind seems someone has been asleep at the wheel on your property.

This leak has been allowed to continue for 5 years? Seriously?

Sounds like this leak is the least of your problems.

How long have you owned your unit?
How many units in your association?
Do you have a copy of the governing documents? By-laws, declaration, rules and regulations anything?
Do you know who serves on your board?
Is this building still under the control of the developer who built the place?
Is there an elected board of property owners in place?
Have you received any annual reports, audits, or newsletters from the HOA since you bought in.

Just how do you continue to pay dues for at least 5 years without any explanation of what was collected and how it was spent?
What is your current monthly dues?

Shiela gave you a valuable list of items you and the other owners need to work on just to begin cleaning up what appears to be quite a mess.

There is a NYS Condominium Act which offers basic guidelines as to how condo associations are supposed to operate.
There is however no condo police that enforce these guidelines. That is left up to the owners of the property.

My suggestion obtain a copy of your governing documents.
You can request a copy from the MC.
You can also request a budget, any audits or reserve studies that might have been performed, a list of the board members and their contact information,
A copy of the financial records of the association anything and everything to provide you with information regarding your property.

You can also seek these same documents from the other owners. The By-Laws should be on file with the state.

I am curious, just how do you know this is a condo? Have you seen the deed? Were you provided documentation to that affect when you closed?

Ignorance is bliss but it can also be very costly.

You have a lot of work to do. The first step is to gain a minimum amount of knowledge regarding how your property is run, who is running it, where the money you pay is going, why this leak has not been addressed, and most importantly why no one owning property in this building has seen. Fit to question for at least 5 years what the hell is going on here......
TimW5 (New York)
Posts: 6
Posted:
Jon,

We do have the some documents from this Condo such as Offering plan with the Bylaws. Initially, there was also some financials send out. But that has become infrequent and does not reflect what is current. Yes, there are many wrong here including most unit owners not paying attention, do not know what to do or simply do not care.

As for this ongoing water leak, the Management Company had tried to fix/patch the roof thinking that is the cause. Perhaps, it was part of the cause, but it did not stop the current leaks.

Based on last Wednesday rain, all 3 unit got more water inside their unit (ceiling, drywalls and floor). As mentioned, the Management Company and Condo Board is now being unresponsive to this leaking issue.

What suggestions would you make to help us to get this current leak fix asap before it get cold. We certainly do not want melting snow leaking into the units over the winter. Anything we can do now ?

Unfortunately, it seems in NY, there is a lot to help tenants against landlords. But not much for Condo Unit Owner against Condo Board and Management other than hiring private lawyer. If you are aware of other options, please suggest.

Thank you.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By TimW5 on 11/04/2015 6:45 PM
Jon,

We do have the some documents from this Condo such as Offering plan with the Bylaws. Initially, there was also some financials send out. But that has become infrequent and does not reflect what is current. Yes, there are many wrong here including most unit owners not paying attention, do not know what to do or simply do not care.

As for this ongoing water leak, the Management Company had tried to fix/patch the roof thinking that is the cause. Perhaps, it was part of the cause, but it did not stop the current leaks.

Based on last Wednesday rain, all 3 unit got more water inside their unit (ceiling, drywalls and floor). As mentioned, the Management Company and Condo Board is now being unresponsive to this leaking issue.

What suggestions would you make to help us to get this current leak fix asap before it get cold. We certainly do not want melting snow leaking into the units over the winter. Anything we can do now ?

Unfortunately, it seems in NY, there is a lot to help tenants against landlords. But not much for Condo Unit Owner against Condo Board and Management other than hiring private lawyer. If you are aware of other options, please suggest.

Thank you.

Tim the MC is supposed to work for the HOA and the HOA board. Not act in an unresponsive manner to property owners.

Somehow and for some reason your MC is permitted to ignore your requests for a resolution.

There is no simple or fast solution to your issue. In order to bring about change you might need to force people to act.

In most cases that requires legal action. The bottom line either you act or wait for some mystery entity to act in your interest.

I had asked you some simple questions I guess for some reason you didn't feel the need to respond. Difficult to judge any situation when you don't have many details.

TimW5 (New York)
Posts: 6
Posted:
Jon and all,

If this helps, here are the responses. Are there any suggestions where we can contact any NYC agency and also request help with this ? For example, Attorney General RE Division for investigation into MC/Board as suggested by 311 (NYC Helpline). Please provide any insight. Thank you again.

This leak has been allowed to continue for 5 years? Seriously? This leaking has be on and off for that long. The MC has tried to fix this issue many times in the past including various patching of different section of the roof. Their approach was to select the cheapest vendor to address this leaking issue. Obviously, this approach has not worked. As of last week's rain, there is still rain water leaking into the building and into these condo units.

How long have you owned your unit? About 6 years.

How many units in your association? 45 units

Do you have a copy of the governing documents? By-laws, declaration, rules and regulations anything? We have the governing documents, By-laws and addendum which were made in the past. The last such documents is about 5 years old. It is also clear after a recent review of these documents, there are items that are not being follow especially by the board. For example, no annual meeting, new election for Board members replacement after 3 years.

Do you know who serves on your board? Yes, we do and when contacting them, they are unresponsive.

Is this building still under the control of the developer who built the place? No longer.

Is there an elected board of property owners in place? Yes, they were elected about 6 years ago and have been the same Board members even though By-laws indicated they should be replaced after 3 years.

Have you received any annual reports, audits, or newsletters from the HOA since you bought in. In the past, we ere getting financial statements distributed in the past, but this has stop in the past few years.

Just how do you continue to pay dues for at least 5 years without any explanation of what was collected and how it was spent? We were getting this detail in the past, but this has stop in the past few years.

What is your current monthly dues? Mine is about $ 400/month. Other units varies based on their share of the building.

Yes, we understand legal actions may be necessary, but that can takes a long time and may not result in the current leaks being fixed before it get too cold to fix and winter snow comes.
If you are aware of quicker way to get the MC/Board to response to help to fix the current leaking, please suggest.

Thank you all.
SheliaH (Indiana)
Posts: 6,964
Posted:
Sorry, but there isn’t and won’t be a quick fix to your problems – it took 5 years to get to this point and may take another 5 or 10 to turn everything around because you have a lot of work to do. And you need to get started RIGHT NOW.

You have 45 units – subtract the 6 do-nothing homeowner/board members, you’re left with at least 39 – are you telling me 39 people have no control over 6? If so, all of you get what you deserve. As Jon said, the management company works for the association, not the other way around – if you want copies of the financials, you should get them quickly and they should be complete and accurate.

To get things going, start with the three homeowners who have the same leakage problem as you. Pool your resources together and get an attorney who can help you plan a step by step strategy to address the problem, starting with a very strong letter to the board and management company demanding action on the leak. If you don’t get a response, all of you will have no choice but to file a lawsuit. Alternative dispute resolution is another option (may be cheaper and faster than a lawsuit), but it would be best if both sides agree in advance to comply with the arbitrator or mediator’s decision.

You may also need a plan B ready to go if it becomes necessary for you to move if the leak causes a safety/health risk – check with your homeowner’s insurance to see if your policy would pay your living expenses for a certain period if you had to move out while your roof was being repaired. Perhaps your insurance company can also give suggestions on contractors you might contact as well.

I already mentioned tossing the management company and Board, but for that you'll need a new Board, so send another letter (signed by you and all the affected homeowners) to your fellow homeowners (including the do nothing 6) calling for a special meeting to discuss the problems of the Association (no financials, meetings or elections in the last 5 years). If the Board can’t/won’t call the meeting, that shouldn’t stop you from doing it yourselves. This is where things will need to come to a head – your fellow condo owners need to understand that if they don’t pay attention now, what will they do if the building develops another problem that affects THEIR units? They need to understand that if a special assessment becomes necessary to fix expensive repairs, EVERYONE will have to pay it, whether the problem affects their unit or not.

I’m not sure, but doesn’t New York have some sort of HOA ombudsman program like Florida? Do some research (a simple Google search should do) and contact that office to see if any assistance might be available. Or contact the state attorney general’s consumer protection division.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
PitA
Posts: 1,416
Posted:
I have read this post carefully.

You will be in for a 3-8 year BATTLE.

You must decide if you can tolerate and fund said BATTLE.

Myself, I would cut my losses (there WILL be losses) and move.

Next residence: NO HOA, NO WAY

Even if it means RENTING (in a commercial building, not a private home) - MOVE OUT and live your life WITHOUT a leaking roof.

Remember:

CAVEAT EMPTOR
TimW5 (New York)
Posts: 6
Posted:
Shelia,

No need to be sorry. You and everyone here are only trying to help and I greatly appreciate this.

Unfortunately, New York currently does Not have HOA ombudsman program. Currently, these are the states that have them, (Delaware, Illinois Colorado, Florida, Nevada and Virginia).

According to the Community Associations Institute, or CAI:

"Ombudsman bills were introduced this year (2015) in six states — Connecticut, Hawaii, Massachusetts, Minnesota, New Hampshire and New York — but none passed."

There is the Attorney General R.E division which may offer some assistance on this.

Believe it or not, the other 2 unit owners still do not fully understand that things needs to change in order to get this current rain water leak fix. I've suggested jointly to take legal action to help us and they are not interested to the idea. They still trying to contact the MC and wondering why the detail to getting this fix. Apparently, most unit owners has this same mind-set.

As you nicely stated, "...your fellow condo owners need to understand that if they don’t pay attention now, what will they do if the building develops another problem that affects THEIR units? They need to understand that if a special assessment becomes necessary to fix expensive repairs, EVERYONE will have to pay it, whether the problem affects their unit or not. " Again, apparently, most unit owners in this Condo building currently do not understand this.

As for funding, based on past documentation, there is supposed to be a Reserve Fund that may also be used before a special assessment would be considered. Wondering if anyone has any insight on this ?

Thank you again.
KerryL1 (California)
Posts: 14,550
Posted:
Well, TimW, you need to find out IF there is a reserve fund and how much is in it. Do you get an annual statement from your Board via your MC. It would (or should!) state how much is in your reserves accounts. Generally, reserves are set aside to do major repairs and replacements of roofs. But as sloppy as your board and MC sound, I worry that reserves haven't been contributed to like they should be

But the balcony that might be leaking might be the unit owner's responsibility, not your HOA's. I'm sorry that I can't offer more hope. In some ways, PitA might be right, cut your losses and move. But I understand that might be finically impossible.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By TimW5 on 11/05/2015 10:02 AM
Unfortunately, New York currently does Not have HOA ombudsman program. Currently, these are the states that have them, (Delaware, Illinois Colorado, Florida, Nevada and Virginia).

Tim, Florida has an ombudsman for Condominium associations but there is not one for Homeowners associations.
MichelleK5 (New York)
Posts: 161
Posted:
I owned an apartment in NYC for about 10 years before finally having enough and selling.

Like you, I had water damage, mine was in the bathroom the entire time. Whenever I contacted the MC, they would send the super or one of his staff. They would clean it up, and repaint.

When the tenant downstairs (who was still renting from the sponsor) complained of water damage in his apartment, the property manager was very quick to send me a letter forcing me to re-grout or
I'd be fined. I patiently explained that the water issue has been going on forever and it's not coming from my tub. They wouldn't hear it. Refused to break the walls and check the pipes as the cost was apparently too much.

So I re-did my bathroom and sold. The bureaucracy that goes in in NYC condos/coops is like no other in the country. I remember wanting to sue at one point, just to force them to fix the issue. Consulted an attorney who said it can go up to 50k if it goes to litigation, PLUS, I'd pay twice since they'd add an assessment fee to the CC eventually.

I hate to say this but.. sell.. sell and run.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By TimW5 on 11/05/2015 10:02 AM
Shelia,

No need to be sorry. You and everyone here are only trying to help and I greatly appreciate this.

Unfortunately, New York currently does Not have HOA ombudsman program. Currently, these are the states that have them, (Delaware, Illinois Colorado, Florida, Nevada and Virginia).

According to the Community Associations Institute, or CAI:

"Ombudsman bills were introduced this year (2015) in six states — Connecticut, Hawaii, Massachusetts, Minnesota, New Hampshire and New York — but none passed."

There is the Attorney General R.E division which may offer some assistance on this.

Believe it or not, the other 2 unit owners still do not fully understand that things needs to change in order to get this current rain water leak fix. I've suggested jointly to take legal action to help us and they are not interested to the idea. They still trying to contact the MC and wondering why the detail to getting this fix. Apparently, most unit owners has this same mind-set.

As you nicely stated, "...your fellow condo owners need to understand that if they don’t pay attention now, what will they do if the building develops another problem that affects THEIR units? They need to understand that if a special assessment becomes necessary to fix expensive repairs, EVERYONE will have to pay it, whether the problem affects their unit or not. " Again, apparently, most unit owners in this Condo building currently do not understand this.

As for funding, based on past documentation, there is supposed to be a Reserve Fund that may also be used before a special assessment would be considered. Wondering if anyone has any insight on this ?

Thank you again.

In that case, I'm with Pita, Kerry and Michelle - sell your place as quickly as you can. You'll likely take a financial bath, but you'd be in for a bigger on if you stay with people who are stuck on stupid when it comes to the management company. The other owners who have the same problem as you might be too cheap to get a lawyer and let's face it, it takes a lot more time and effort to get out and talk to other homeowners, visit the management company offices and demand answers. After all, they were told "just pay your assessments and the Association will take care of maintenance" not understanding THEY are the association and no one will ever care about their homes more than they will, therefore, they have to take the initiative to keep an eye on the people running things.

I see that a lot on this site - people ask how to deal with A, B and C, and they're told (1) read your documents (2) go to the board and demand answers (3) document your problems to create a paper trail and so on, and then you don't hear from them again. Sometimes the solution is staring them in the face (this owner won't pay his assessments - whatever should we do? Uh, get your association lawyer to sue them???) No, they're hoping for a quick and painless solution where they don't have to put in much effort - and then get mad when regular posters tell them otherwise.

Hm, that's an idea - go to the management offices with photos (time and date stamped) of the problem. It's easy to ignore a phone call, not so much someone sitting in the front office lobby. It would be better if all of you showed up, but if not, go by yourself. If that doesn't work, a call to some sort of consumer reporter at the local TV station could spark some action (people HATE when a reporter shows up 60 minutes style and plasters the lack of action all over the 6pm news)


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GlenL (Ohio)
Posts: 5,491
Posted:
File a claim with your insurance for the damage, they in turn will file against the condo's insurance. Sit back and watch the fun.

Studies show that 5 out of 4 people have problems with fractions
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By GlenL on 11/07/2015 10:23 AM
File a claim with your insurance for the damage, they in turn will file against the condo's insurance. Sit back and watch the fun.

Sound advice.
PitA
Posts: 1,416
Posted:
assuming there actually IS insurance

i would pay for a ticket

sounds like fun



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