240 E. 46TH STREET

The engineer's 10-year plan for 240 East 46th Street called for virtually a total makeover — renovating the lobby and replacing the roof, boiler, both elevators, water tank and all hallway carpeting and wallpaper. The cost would come to about $1.7 million. Now the big question: How would the condominium association pay for it?

Hank Haynes bought an apartment at 240 East 46th Street in 1990, four years after the building was converted from a rental to a condominium. It didn't take him long to realize he'd bought into a world of woe. Phone calls were not returned, problems were left to fester and rancor was the rule of the day.

"When I moved in, there was a tremendous amount of animosity between the sponsor and the people who had bought apartments," recalls Haynes, 67. "People were unhappy with the management company, which was owned by the sponsor." To further increase the discontent of the unit-owners: The property manager and the accountant also worked for the sponsor. Times were tough at the 100-unit building.