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How do I take over a small condo association board?

Posted on Fri, Jun 10, 2011 @ 08:53 AM
  
  
  
  
  
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I got displaced from my condo unit due to a very bad house fire, which occurred on May 10th 2011 in Fairfield, CT. The fire caused major structural damage in and outside of my unit. This is a 4-unit condo where the builder is the principal of the condo. The damage is primarily to my unit and some to my neighbor's unit. The builder owns the other 2 units that he has rented out (no fire damage to those units). The builder has not returned any phone call and can not be found at his house/business address since the fire. I called the insurance agent holding the master condo property insurance and they tell me that the policy was cancelled on Jan 31st 2009 due to lack of payment. The builder has been collecting common charges meanwhile which include condo master policy insurance premium. Clearly, the builder has misappropriated used those funds. Now, my family and I've a burned down house, we're living in an apartment and paying a mortgage and a rent. The building is uninsured as of now. I'd like to understand the process of taking over the condo board so I can at least get insurance on the building. My neighbor and I combined have 50% ownership of the condo. My neighbor is also shocked due to this but is unable to help much because of poor health.

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Comments

I don't taking over the board will help you with your current situation. I think your only option is to seek legal recourse from the builder. Since they have assets (at least two units in the building) it might be worth pursuing.  
 
To get on the board for the future you'd have to have normal elections according your Bylaws and state laws. The problem in your case that the builder owns 50% of units and unless your Bylaws state that the builder can't vote - you'll never get a majority needed to win.
Posted @ Friday, June 10, 2011 9:49 AM by Zhenya Rozinskiy
I agree with Zhenya. Your home is already burned - you can't get insurance on it, Although the builder probably has little or no equity in the other units, a lawyer might pounce on this case. Your mortgager should have been notified when the policy was cancelled and acquired new insurance. Have you checked with them?  
This proves it's a good idea to keep an eye open for what's going on, before the disaster strikes Complacency kills. 
One owner cannot "take over" the board in any event. You can get elected and be one vote. Good luck. 
Posted @ Friday, June 10, 2011 10:19 AM by Jim
I'd suggest you make an appointment and talk to your District Attorney. Thhe situation you find yourself in is the result of a civil crime. Taking "controll" of the board will be ineffective since you cannot contact the developer.
Posted @ Friday, June 10, 2011 10:44 AM by Charles Adler
I would do a search on this man to see what other properties he owns and put liens on all of them. That may help you recover some of your loss. I am sorry that this happened to you.
Posted @ Friday, June 10, 2011 12:45 PM by Patti
Your description of the actions of your developer should be of interest to your district attorney. Go see him and file a criminal complaint.
Posted @ Friday, June 10, 2011 1:22 PM by Charles Adler
Thank you all for your comments.  
 
I've contacted District Attorney and they said by law they can not do anything when condos are involved. 
 
The insurance agency's certificate of insurance (based on which I got my loan) says that they are not liable if they do not inform me or my lender about the cancellation of the policy. Neither me nor my lender were informed. 
 
Given this situation, my lender is suggesting that they can place a backdated lender placed insurance on my unit. However, that process does not seem to be going anywhere. It's stuck in their research department. They seem to want to locate the original policy to match the coverage. 
 
The building has no insurance as of now and obviously that's a big risk. I figured if either I or my neighbor can be on the board and be the president then we can buy the insurance for the building.  
 
If my lender placed policy works out then as president of the condo board we can authorize rebuilding of my unit. 
Posted @ Friday, June 10, 2011 1:41 PM by Raj
In what state are you located?? I ask because every state has a Condominium Act-wgich is state law. The provisions of that law aygnment and in cases of conflict supercede the bylaws of the individual condominium. You can find that document by pittong 
(Name of Stae@condominium Act into your browser. 
In so far as your district attorney is concerned I find the answer he gave you to be less than understandabel. Am I to understand that in your state if a crime is dcommited in a condominium that the law meaning District Attorney- will not act to uphold the law. Perhaps you should think anout filing a complaint with the local police.That action might force the DA to get involved.
Posted @ Friday, June 10, 2011 3:06 PM by Charles Adler
Thank you Charles for your comments.  
 
I live in CT. I've complained to the police about the condo builder. The police is now in contact with the him and his lawyer. The builder has pending foreclosures, liens on his house etc. There is probably no money there. The legal process will be expensive and the outcome will take years. 
 
Below is the district attorney's written response: 
 
“While we are sympathetic to the circumstances of this individual, our office does not have authority to intervene in what appears to be a private legal dispute,” the Attorney General’s office said. 
 
“We suggested, as we do in all private disputes, that the individual consider consulting a personal attorney to determine his legal rights. In addition, we advised him to contact his homeowner’s insurance provider and any other third-party insurance provider to begin the claims process. To the extent that he suspects any type of misconduct involving the misrepresentation of insurance and payment of such monies to the principal/builder, we have suggested that he consider contacting the Insurance Department, and have provided him the contact information.”
Posted @ Friday, June 10, 2011 3:25 PM by Raj
The backdated lender placed insurance policy is now in place. It covers my loan amount. This should be sufficient to reconstruct the house. 
 
My question now is what legal procedure needs to be followed to throw the builder out as condo principal so my neighbor and I can buy master insurance and start the reconstruction.
Posted @ Saturday, June 25, 2011 1:23 PM by Raj
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