Page 9 - New England Condominium September 2019

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM -SEPTEMBER 2019 9 es, there are tactics that can be utilized by condo boards to accomplish the same result. For example, during a foreclosure action, a condominium can request the court appoint a receiver to collect rent from the unit. If the unit owner is still liv- ing in the unit and refuses to pay the rent ordered by the receiver, the condominium board can bring an action to remove the unit owner for failure to comply with the receiver’s order. If the action is successful, the unit owner can be removed.” Overall, the power of a condominium association is limited when it comes to re- moving troublesome or non-paying own- ers and/or their tenants. Because of those limitations – and because the available legal remedies are so slow going – asso- ciations should act quickly, turning over potential problem situations to their attor- ney for resolution as soon as they’re aware there’s an issue. Dawdling will only cause unpaid charges or offensive incidents to pile up. Ownership comes with rights and responsibilities – as does the stewardship of board members. Both should be taken seriously and acted on with alacrity. n A J Sidransky is a staff writer/reporter for New England Condominium, and a pub- lished novelist. done. As management we also provide a tidy synopsis covering what’s currently underway, what projects we’re involved in, etc.” While term limits for board members are not universal by any means, they are becoming increasingly common within the governing documents of associations, according to Philip Renzi, Principal with property management firm Renzi Bulger Group in Arlington, Massachusetts. He also recommends staggered terms: “This allows some continuity on the board each year, and allows the board to keep momentum on projects or initiatives. If there are not staggered terms in place, the board should speak to its lawyer about the amendment process and alter their documents to include them.” Of course, management companies exist to help guide the board around any bumps in the road. “Ultimately the man- ager should have a list of action items and progress reports on what the previous board was discussing, voting on, or had already approved,” says Renzi. “The man- ager should also ensure that the incoming board and management are on the same page, so the manager can be productive and not focus on tasks in which the in- coming board has no interest. Manage- ment is also encouraged to bring up any building. This must be done via majority previously-presented recommendations vote of the board, and that’s a process that or goals where no action was taken, to has to be shepherded over, because all make sure that the new board is up-to- date on any matters that the management bank accounts must be transferred to the company believes to be important.” Square One When a building is being converted er to take a forensic examination of the to a condo or co-op, or has been newly books and records of the entity to see constructed explicitly as a condo or co- op property, operations are initially un- der the control of the owner or devel- oper, and are eventually passed along to priate repairs, rather than solely for up- a board of owners or shareholders after grades or repairs to sponsored units. a certain percentage of units have been sold. According to attorney David Berkey to obtain independent counsel to repre- of New York City law firm Gallet Drey- er & Berkey: “Once a sponsor no longer ers, because in many areas there could be has majority ownership of a building, it conflicts between the sponsor/sponsor’s is obliged to give up majority control of representatives and the condo or co-op.” the board. Usually they will wait until the next annual meeting. “When a shareholder- or ownership- majority board is in place, it must first simple as staggering terms and catching deal with several immediate practical up with a property manager. Complica- issues,” Berkey continues. “The first is tions can and often will ensue, so board whether to retain management. In most members both old and new should be buildings, the sponsor will have a rela- tionship with a management company, so succession. it’s often a good idea for the association board to get an independent management organization to take over managing the of the corporate books and records and new management. “Then the board has to decide wheth- whether the sponsor, while it held con- trol, had been above-board and had only spent condo or co-op monies for appro- “Finally,” adds Berkey, “the board has sent \[the\] interests of the resident own- Challenging Transfers Of course, achieving a seamless transi- tion from one board to the next isn’t as prepared to navigate a less-than-smooth BOARD.... continued from page 1 continued on page 16