Page 14 - New England Condominium February 2020

14 NEW ENGLAND CONDOMINIUM -FEBRUARY 2020 NEWENGLANDCONDO.COM For almost 30 years, RISE Engineering has helped multifamily owners and managers make comprehensive energy ef ciency improvements. Now, RISE is working on behalf of National Grid and Eversource to prepare your sites for the coming electric vehicle revolution. We’re with you every step of the way, from site analysis and design, to installation and warranty protection. We’ll help you take advantage of the most signi cant EV charging station incentives in the country. Contact us today for a free site evaluation. ELECTRIC VEHICLES ARE HERE! GET YOUR PROPERTY EV-READY WITH ATTRACTIVE UTILITY INCENTIVES. To learn more visit www.RISEengineering.com/EV , call (800) 422-5365 or email EVcharging@RISEengineering.com . C M Y CM MY CY CMY K RISE_NewEnglandCondoAd_2.pdf 1 1/2/20 4:25 PM Julie Schechter is an associate with Arm- strong Teasdale, a law fi rm based in New York City. She explains that a condominium association, unlike its cooperative corpo- ration cousin, has recourse against a unit owner only for monetary default issues – which in turn almost exclusively refers to non-payment of common charges. Unlike in a co-op, condo owners cannot be re- moved for bad behavior. Schechter outlines the process as follows: “When a condominium is owed com- mon charges \[from a unit owner\], the board can fi le a lien against the unit. Once the lien has been fi led, the board has two op- tions: it can bring an action to recover the money due, or it can foreclose on the lien. A lawsuit to recover the money due is less expensive and faster than a lawsuit to fore- close the lien, but neither is very fast. If the board is successful in a lawsuit to recover the money due, it will obtain a money judg- ment that can be enforced against the unit owner’s bank accounts or other assets. Th e assistance of an enforcement offi cial, such as a City Marshal or Sheriff , is required to enforce the judgment.” Alternatively, Schechter continues, “An action can be brought to foreclose the lien that is similar to a mortgage foreclosure ac- tion. If the action is successful, the result is a judgment to sell the unit and apply the pro- ceeds to payment of the debt. It’s important ciation the right to take back possession of “If the tenant violates the rules and regula- to note that in the event there is a fi rst mort- gage on the unit, the bank’s lien is superior owner’s equity position. Th at said, execu- to the condominium’s. Th ere may be one tion for possession isn’t a common action; other step that can be taken to encourage Th ulin has them brought before the court, best leverage under most governing docu- the unit owner to pay the money due: de- pending on the community’s bylaws and rules and regulations, it may be possible to suspend certain non-essential services that but evicting a tenant from an investor unit doesn’t take action. Many times, an asso- the unit owner receives.” According to Scott Piekarsky, a principal Schechter, “Condominium boards lack le- with the law fi rm of Piekarsky & Associates, gal standing to remove unit owners’ tenant, take the necessary action. Th at’s the best located in Wyckoff , New Jersey, “In terms regardless of how off ensive their behavior leverage over a renter.” of getting a condo owner out of their unit, may be. Even if the tenant were to be in it’s not like a landlord/tenant situation. Th e constant violation of a provision of the con- only way to remove an owner is if he or she dominium’s bylaws or rules and regulations, process in condominium disputes: alterna- defaults and you can get a lien, foreclose the the condominium is still unable to remove tive dispute resolution, or ADR, which re- lien, get a sheriff ’s sale, and dispose of the the tenant because the condominium is not fers to a formalized mediation and/or arbi- unit.” And he echoes the previous caveat: it in privity with tenant. Th e condominium tration process that disputing parties must has to be for monetary default. “If It’s non- monetary, you can get sanctions and fees, tenant and can take action to evict the ten- and maybe some monetary relief, but it’s ant.” ( virtually impossible to remove someone if parties that is recognized by law, such as or arbitration before escalating their case they own the unit.” Th e statutes governing this in Massachu- setts are pretty much identical. Eric Th u- lin, an associate with the fi rm of Goldman set forth in the governing documents, be- & Pease, based in Needham, Massachusetts cause presumably they read and agreed to a danger to themselves, others, or the prop- notes that “First and foremost, the associa- tion would have to establish a lien against can’t say they didn’t know. A reasonable ex- the unit.” However, “Th e board isn’t left without remedy though.” He explains that will comply with those rules and regula- in the event of non-monetary default, an tions.” Despite that, “Th ere is very little that Boston Municipal Court involving a con- association can seek what’s called an ‘execu- tion for possession,’ which gives the asso- the unit, though it would not wipe out the tions, the unit owner has an obligation to but says hes’ never brought one himself. Removing an Owner’s Tenant Removing an owner is extremely tough – er, the renter is a problem, but the owner is not particularly easy either. According to ciation’s governing documents say the asso- unit owner, however, is in privity with its go through before resorting to litigation. In Privity is a relationship between two ers in condominiums be off ered mediation blood, lease, or service. - Ed .) Th ulin does point out that unit owners tive relief,” Piekarsky says. “I’ve never seen are “Locked into the rules and regulations anyone forced out of a condo association them when they bought their unit. Th ey erty, you can get a civil commitment, which pectation is that they and/or their tenants can be done by an association to remove a dominium owner in an association in sub- tenant from a unit leased out by its owner. begin proceedings,” to remove the tenant. In New Jersey, explains Piekarsky, “the ments is when an association stands in the shoes of the owner. Th e owner has a rent- ciation may step into the owner’s shoes and Some states – like New Jersey, for ex- ample – add another layer to the resolution New Jersey, state law requires that all own- to court. “Th e association can seek injunc- through injunctive relief though. If they are would get the resident out.” A Real Life Example Th ulin recalls a case that went before CONDOMINIUM... continued from page 1