Q: The board of directors at my Brooklyn condominium has not held an election in over four years, and we are concerned about the financial management of the building. We have sent several emails to the board members promising to set a date for the next election. But the management company is seeking candidates to replace a member elected by the board at its meeting. This appears to violate our condominium's bylaws, which state that a majority of the owners must be present at the meeting and elect all three board members. We don't want to give our building a bad name, but we also want it to be run legally. What legal recourse do we have?
A: There are ways to force the election of a board member in your condominium.
In the meantime, you can apply to be a candidate for the position. If you are elected, you will immediately gain access to all of the building's financial records.
It's possible for the board to select a member to temporarily fill a vacancy — most charters allow this, said Bruce A. Cholst, a partner who specializes in real estate law at Herrick — but it should also call an annual meeting at which an election of full-term board members can be held.
Get all other affected owners on board and write a collective letter to the board, managing agent and construction attorney requesting that they schedule an annual meeting and elections. State that the board is in violation of the bylaws because no elections have been held for four years. Identify the relevant bylaws in your letter and request a response by a specific date.
If the letter doesn't produce results, you can hire a lawyer to write a letter demanding compliance and threatening legal action. “As always, litigation is the weapon of last resort,” says Debra J. Guzov, a real estate attorney in Manhattan.
Such litigation can be initiated through an Article 78 procedure, which takes place when a governing body fails to comply with its own internal documents, but the procedure must be carried out within four months of the body's refusal to take action, Ms Guzov said.
Consider developing a slate of candidates for board leadership so you can ensure proper financial management of your building. In any case, however, condominium owners can always inspect a building's financial statements, which are required under the New York State Condominium Act.
Sign up here for weekly email updates on residential real estate news.