Coop board dispute in Queens (Franklin: subletting, apartment, lawyer)

[geos]

My friend is having a dispute with his coop board. First, a management company stole $4k from each unit which the board will not reimburse. Second, he has 2 roommates and they're claiming he's subletting even tho he lives there too. Third, they're claiming a divider he installed is a fire hazard. He spoke to the Buildings Dept and they say it's not a hazard. What recourse does he have aside from hiring a lawyer which will probably run into the $thousands? Thanks.

[Kefir King]

geos,

Not much to be said about a croooked management company. THe co-op usually gets screwed.


In the second matter, the people living in the coop either have theie names on the stock certificates or they don't. If they don't they are no co-operators but subtenants.

Let the board decide whether the by-laws determine the allowability of room dividers. But even if they allow them AND the City allows them, if the person whose name is on the stock certificate does NOT allow them, then down they come.

[crescent22]

OK, this is an odd one.

1) Unless you are saying the management company methodically used keys to take $4,000 in Franklins from every apartment, you mean that the management company stole money from an account in the name of the cooperative corporation.

Why would you expect that the corporation would reimburse its shareholders? It's the corporation that was stolen from. The corporation wouldn't have a whole lot of money I would guess to do any of that. It's up to the corporation to sue the management company- owner gets reimbursed through his shareholding in the corporation.

2) The co-op probably has rules governing who can live with the shareholder- in many co-ops, it is declared in the initial board application and I believe its generally understood to mean family members are allowed without future declaration. The roommates were neither, so they are breaking that rule and failed to make a tenancy application commonly required by co-op Boards.

3) Send a letter to the Board and management company stating the findings with the DOB and add something to the effect of if the Board cannot cite a specific regulation being violated, that you consider the matter closed.

[Cida]

Originally Posted by geos

My friend is having a dispute with his coop board. First, a management company stole $4k from each unit which the board will not reimburse. Second, he has 2 roommates and they're claiming he's subletting even tho he lives there too. Third, they're claiming a divider he installed is a fire hazard. He spoke to the Buildings Dept and they say it's not a hazard. What recourse does he have aside from hiring a lawyer which will probably run into the $thousands? Thanks.

Some of that makes no sense. "Stole"? Why isn't the board doing something about that? "Claiming he's subletting?" Isn't there paperwork on that?

He needs to keep calling around - assuming there's documentation. Call the NYS Real Esate department to see if they have any suggestions about the management company. See if the Bar Association still provides free mini-appointments one night a month.

[Kefir King]

If I had a dollar for every management company that regularly stole from a co-op I would be a lot richer than I am today.