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Condo Owners Need To Be Saved From Themselves


by turfgrrl


March 7th, 2008 · 16 Comments

So, someone plunks down $400k on a condo and doesn’t check to see whether the condo association communicates what it does in writing? State Senator Bob Duff D-Norwalk and State Rep Mike Lawlor D-East Haven would like you to believe there’s a huge problem out there because condo owners might have to hire a lawyer to settle disputes. From the Advocate:

About five years ago, McGinness formed a coalition of fellow condominium owners from Norwalk and Stamford to push lawmakers to provide them more rights.

Typically, a condo owner with a grievance has no recourse but to hire a lawyer, she said.

A bill pending before the state legislature would create an eight-member Connecticut Community Association Commission within the state Department of Consumer Protection.

Appointed by the governor, the group would have the authority to investigate and resolve complaints lodged against condominium associations and their governing boards.

The commission would have subpoena power and the ability to impose civil penalties.

The bill has the backing of state Attorney General Richard Blumenthal, who testified in favor of the legislation yesterday before the General Law Committee.

Blumenthal said yesterday the rights of condominium owners are “all too frequently disregarded.”

Chuck McConnell, president of the Lansing Meadows Condominium Association in Greenwich, said he liked the idea.

“I think it could be helpful to have some kind of situation where (a dispute) could be reviewed short of going to litigation,” McConnell said. “When you have disparate people and the only thing that connects them is they have property with a common area, there’s plenty of room for misunderstanding and argumentation.”

State Rep. Michael Lawlor, D-East Haven, is a condominium resident and co-chairman of the legislature’s Judiciary Committee.

Lawlor said the idea of a Community Association Commission is not a bad one as long as it can field plenty of complaints.

“Theoretically, if you don’t do it right they’re going to be swamped on Day One,” Lawlor said. “You’ve got to structure it so they’re not completely overwhelmed.”

Lawlor plans to present other oversight options at a March 19 meeting of the Judiciary Committee, including reviving last year’s proposal to license property managers; establish an office of state condominium ombudsman; and grant Blumenthal’s office greater authority over condominium associations.

Lawlor said state government has a responsibility to become more involved in monitoring condominium associations.

“In a lot of ways the condo association is like a city council, and the property manager is like the mayor. . . . They assess taxes and have elections. . . . And if you really aren’t paying attention a lot of bad things can happen in your little community, secretly and fraudulently,” Lawlor said. “If it is like a government, they ought to play by the same rules.”

Last year, the General Assembly expanded the rights of condominium owners and renters. Association boards must provide written copies of proposed budgets before a vote and notify residents two weeks in advance of the details any proposed loan agreements.

Condo owners or renters also would have the right to examine and copy any records kept by their associations.

State Sen. Bob Duff, D-Norwalk, who helped shepherd the laws through the General Assembly last year, said there is plenty to do.

Duff said when he distributed a mailing to area condo owners, “it just opened up a floodgate of frustration.”

The problem is that condo associations are a creature of the people who live in the developments. And people who choose that form of housing are responsible for not only the condo association, but also for the decision they made to move into a form of housing where they own only their unit and not the land, or the exterior of the buildings. With many condo developments approaching that magical age of 30 years in use, repairs, maintenance and improvements can be costly. Which is leading to some rather interesting problems.

For example, should a new buyer be on the hook for a full share of replacing the roof on an entire development? Should upcoming maintenance or repairs be disclosed to potential buyers? The answer to those questions should be asked long before someone makes a decision on purchasing a condo, since it is a different financial decision than purchasing a single family home.

I’m all for more openness, reporting requirements, transparency etc. But to set up a governmental entity to review condo association complaints, that seems excessive. That’s what civil litigation is for.

source: Advocate, Condo owners seek more power, By Brian Lockhart, March 7 2008

Tags: Connecticut · Norwalk

16 Responses so far “Condo Owners Need To Be Saved From Themselves”



  • 1 former condo owner // Mar 7, 2008 at 12:08 pm

    This is a good idea, to regulate more closely a rapidly growing form of home ownership. As former president of a condo association, I found the lack of power for the homeowners to be a significant problem. Lack of interest on the part of the homeowners, as Turfgirl points out, is also a problem.
    The legislature can greatly help the homeowners by giving them the right to vote on the annual budget, to obtain information easily from the property manager, etc.
    It is their individual responsibility, however, to participate in the decision-making, and serve on Board committees. Too many homeowners think they’re moving into a hotel, and face a rude awakening when problems arise.

  • 2 Anonymous // Mar 7, 2008 at 1:00 pm

    One area of concern that should be addressed by this legislation is fines levied by the association. I was on a condo board and the previously elected members had an unwritten S**t List of owners who were not liked and who were more readily fined for missteps than others. There was no appeal process or review committee. De minimis fines were then liened and foreclosed to harass the owner.

  • 3 Mike Lawlor // Mar 7, 2008 at 4:14 pm

    Hey, Tuffgrrl, I think you are missing the larger point. Condo Associations are, in many ways, mini city councils and property managers are very much like mayor’s, or at least town managers. Unit owners live in the complex, vote for the association members, pay assessments [taxes] and abide by rules [laws/ordinances] adopted by the condo association. But, there is nothing even close to the type of transparency and procedural safeguards, not to mention remedies for unlawful conduct, which apply to local government. There are many aging condo complexes and there have been a fair number of scandals involving negligence or worse on the part of both associations and managers which have led to extraordinary hardships for unit owners who had been left in the dark throughout.

    Our proposals will add more sunlight to this process and provide sensible remedies to unit owners who have been victimized by unlawful conduct, and will provide the same type of state government oversight of property managers that we have for accountants and lawyers and engineers: professional standards, testing, licensing and accountability.

    I hope you and your readers will participate in our discussions. The hearing on the Judiciary Committee bills is next Wednesday, March 19.

  • 4 Anonymous // Mar 7, 2008 at 4:48 pm

    where I’m not sure of the laws in ct but in most states when you buy a condo you have it inspected at the same time they look at the rest of the complex telling you if the rest of the property needs work that untimately will be your responsible for in part.

    For what ever its worth condo’s are like cities on a lot of things,bids go out, limited knowledge on certain items are left to those with sometimes hidden interests or no experience taking the word of others. Where you have elected officials who have told you your best interest is at stake you generaly get screwed years down the road from lack of involvemnet or simply trusting a handful with your money.

    You think Norwalk has problems with roofs I can show you condos with much larger problems including radon where everyone pays whether you have a problem or not.Living in a condo once was more work than if i had had my own place. I still removed snow, still took care of my own bushes and plantings and endured trash the size of existing condo’s becuase we lived near the dumpsters the smell even in the winter was like the Norwalk river. So buying a home in Norwalk gave me more control over my parking and who I hired for contractors the smell simply got worse.

    Your also right Mike on your account condos are like cities in many ways.

  • 5 turfgrrl // Mar 7, 2008 at 8:09 pm

    Mike Lawlor: I disagree with your premise that condo associations are like mini city councils. Cities are public, and the legislation they create govern all people, regardless of ownership or residential status within the boundaries of the municipality. A condo association, is a private entity. It’s more like a club, whether country club or social that governs the conduct of its membership exclusively.

    I agree that governance should be transparent to its membership, and support legislation that would regulate the types of reporting requirements to condo association members. Similar to how public companies must file 10ks and annual reports along standard formats.

    Where I disagree with the direction your legislation is going is the idea that you are conferring governmental status to essentially a private organizations.

    There are existing remedies for condo owners to seek. I don’t believe that there is any more significant an issue with a condo associations than with any other type of investment that is structured along member ownership. This would also include groups of medical practices that own office buildings, or any sub chapter-S LLC.

    As for property managers requiring oversight or licensing, I strongly disagree. Once again, you are putting the government in the place decisions that should be made by the members of the association.

  • 6 Anonymous // Mar 8, 2008 at 12:00 am

    But if the members make a bad decision against a few with more common sense who then steps in and controls the board from running the enterprise into the ground?

    Now if one person owns more than one unit where does it say he cannot simply run the complex with mulitple votes and have the monoply after you have bought and invested money into what you would expect be a democracy?

    To fight a condo assoc one must expect to pay both sides of the legal fees in some states , how does that work in Ct?

  • 7 Adam Blank // Mar 8, 2008 at 2:31 pm

    As an attorney who represents condo associations (and occassionally unit owners) and currently a resident in a condo in Norwalk and formerly of a condo in Monroe, I have a few opinions on this subject, which are admittedly biased.

    Most condo associations run relatively smoothly by boards looking to do the right thing (and CT recently passed a law requiring training for those that run condo associations). However, there are occassions where unscrupulous boards take improper actions and unit owners should have protection from this.

    Unit owners already have a right to review condo financial documents and in the event of most condo litigation, under CT statute a court can award attorney’s fees to the unit owner if he/she prevails.

    I don’t completely agree with Turfgrrl or Mike Lawlor.

    Turfgrrl, condo owners generally fall into one of two categories: (1) seniors looking for low maintenance living and (2) those that can’t afford a single family home in the town that they wish to reside in. Both of these groups are more prone to be taken advantage of than business men opening up a LLC or partnership and therefore there should be protections for them greater than LLC members and partners.

    As to Rep. Lawlor, admittedly I have not reviewed in any detail your proposal; however, I would look to modify the existing law on Condos (particularly the Common Interest Ownership Act - which the Uniform Law Commissioners are in the process of doing and Connecticut’s own Bill Breetz at Uconn Law is helping draft) to make it easier for unit owners to have access to meetings and records and to recover their costs and attorney’s fees in enforcing their rights. I would rather have the cost of condo reforms bourne by rogue boards in litigation rather than by taxpayers through a commission.

    Just my two cents

  • 8 1 of the SMD 3 // Mar 8, 2008 at 4:24 pm

    I wish attorney Blank was on the condo board when I had my unit here in Norwalk.

    His comment “I would rather have the cost of condo reforms bourne by rogue boards in litigation rather than by taxpayers through a commission.” should be looked at as a very viable solution to the problems facing condo owners.

  • 9 anonymous // Mar 8, 2008 at 4:31 pm

    Condos are like contracts and should be handled in a civil court. Government should not get involved at taxpayer expense to resolve civil disputes. That’s what civil courts are for.

  • 10 turfgrrl // Mar 8, 2008 at 10:41 pm

    Adam: Are you so sure about who condo owners are? I think you’ll find in different parts of the state you get different demographics. I also disagree with you characterization of the financial sophistication of people who choose to live in condos. I don’t think age or income level are reliable indicators of financial astuteness.

    My point about LLCs was more along the lines of if you confer special status for private organizations who own property you set up a precedent for other similar organizations. Actually though, when you examine the relationship of condo owners to associations, is is very much a business relationship. Do people understand that? Probably not.

  • 11 Democrat // Mar 10, 2008 at 3:37 pm

    Wow, Mike LAwlor reads your blog-Turgirl, that’s impressive! He is co-chair of the Judiciary committee and a great guy. I don’t think you understand what goes on in a condo association however. Having been a condo owner and served on the Board, I found it a problem situation.Most condo owners have little recourse to address the powers of their Boards, who usually prevail in lawsuits.
    It is NOT a business relationship, and the Property Manager is not like a mayor. The manager is more like an all powerful vendor, and there is a great shortage of good ones in CT. There are no “similar situations” -you are talking about people’s homes, and usually their one major asset. Oftentimes, the property managers do as little as possible unless the Board monitors them relentlessly. Many of these 30 year old condo associations are going downhill rapidly due to neglect and mismanagement. I was lucky to sell mine last year, and moved back to a single home.

  • 12 anonymous // Mar 10, 2008 at 5:03 pm

    Nice to see Mr. Lawlor here. A shame our own state people do not even post on such a wonderful forum in their own city.

  • 13 Cappuccino // Mar 14, 2008 at 4:52 pm

    Condo associations and property management companies are a huge issue in the state that needs to be addressed!! Currently, in my association, the board is controlled by two men–a father and son. Both of them control my association and TWO other associations in the state!! Plus, they spend money friviously ($1000 christmas bonus for the property manager). By the way, that was not disclosed to any owners.

  • 14 s - listee // Mar 19, 2008 at 9:38 pm

    As a 20 year owner of a condominium unit and member of the s___t list, I no longer receive statements of charges from my association only foreclosure notices forcing me to pay the association and management Co. additional sums of money each year even though I pay my common fee monthly.

    I am, in a way, the perfect owner. Most management companies manage hundreds or thousands of units. If a management Co. can impose an additional charge at any time without notifying an owner (which is allowable according to current laws) They can run up a bill of several hundred dollars of accruing late and statement charges before notifying an owner. Then, if the owner doesn’t pay up, the management suggests, to the board of directors, foreclosure proceedings.

    If the management Co. can pool several hundred of us “s-listees ” (who surprisingly are current with all other utility, Mort., etc. bills) they can provide themselves with a hefty yearly bonus and put a big smile on the faces of their investors!

    In regard to my experiences, I have written to the attorney general department receiving no response to the issues. I have also gone to small claims suing for overcharges where it was suggested I bring in a lawyer.

    It is well known to management companies and some condo boards of directors that there is no one to hold them accountable for respecting the rights of owners written into condo. by laws and thus, for years, they have been fleecing countless numbers of hard working home owners.

    My particular management company will send a foreclosure notice one day then a friendly offer to sell my unit through their Real Estate Co. the next. - Go figure.

  • 15 s - listee // Mar 19, 2008 at 9:46 pm

    As a 20 + year owner of a condominium unit and member of the s___t list, I no longer receive statements of charges from my association only foreclosure notices forcing me to pay the association and management Co. additional sums of money each year even though I pay my common fee monthly.

    I am, in a way, the perfect owner. Most management companies manage hundreds or thousands of units. If a management Co. can impose an additional charge at any time without notifying an owner (which is allowable according to current laws) They can run up a bill of several hundred dollars of accruing late and statement charges before notifying an owner. Then, if the owner doesn’t pay up, the management suggests, to the board of directors, foreclosure proceedings.

    If the management Co. can pool several hundred of us “s-listees ” (who surprisingly are current with all other utility, Mort., etc. bills) they can provide themselves with a hefty yearly bonus and put a big smile on the faces of their investors!

    In regard to my experiences, I have written to the attorney general department receiving no response to the issues. I have also gone to small claims suing for overcharges where it was suggested I bring in a lawyer.

    It is well known to management companies and some condo boards of directors that there is no one to hold them accountable for respecting the rights of owners written into condo. by laws and thus, for years, they have been fleecing countless numbers of hard working home owners.

    My particular management company will send a foreclosure notice one day then a friendly offer to sell my unit through their Real Estate Co. the next. - Go figure.

  • 16 Anonymous // Apr 6, 2008 at 1:31 am

    Real estate agents in the news. We will pass over the obvious ones who are connected to Norwalk and simply send congrats to Bob Duff.Now maybe its another Bob Duff so lets not jump or shoot the gun. The Bob Duff that was awarded #2 in units. This was tucked away in the advocate on fridays paper on C5 according to the article this Bob Duff is with William Pitt.

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