NEGLIGENT SPONSORS AND THE AG, P.2

 

Life is slowly starting to look up for the unit-owners at a 39-unit condo on West 117th Street. Built in 2002, the building has been plagued with problems — a leaking roof, windows that won't open, and an HVAC system that hasn't worked. A board member who requested anonymity says that in the past two months, the AG's office has been much more responsive, sending out an engineer to review problems that unit-owners have struggled with for six years. What's more, until the builder fixes the problems, the AG's office has taken them off a list of approved builders for the city. Things have sped up, and if all goes well, work to fix the building's problems will start in April.

Not everyone believes that the REFB is moving fast enough. The office, located at 120 Broadway in lower Manhattan, is still spread too thin, according to one attorney who deals with the AG on a regular basis, and complaints still aren't being addressed promptly enough. "I still don't think they are doing what they need to be doing, to deal with the issues of faulty construction," says the attorney. The office remains reluctant to use the power of the Martin Act, and without the threat of litigation, many sponsors are happy to drag their heels on repairs.

But Stuart Saft, an attorney and partner with Dewey & LeBouef, defended the REFB. When delays occur, "They arise from the fact that these issues are never black-and-white," says Saft. "The AG's position is that the sponsor has to meet three standards: Was the building built in compliance with the plans submitted, was it built in compliance with local construction codes and was it built in compliance with local practices? There is then a wide variance of what the sponsor is required to do."

To ascertain whether these standards are met, the AG must send engineers to review the alleged defects, make a report, have the report reviewed and then meet with all the parties involved. Even so, the office moves much more quickly now than it did in the past. All things being equal, "I think [cases] are being handled far more aggressively now," says Saft.

The board member at West 117th Street has two parting words of advice: Don't wait. "You need to be very aggressive" when problems arise, says the board member. Go through the building with an engineer, make a list of the problems and present that list to the sponsor. If the sponsor doesn't respond, the board should then file a formal complaint with the REFB.

Be sure to get in contact with the AG's office, says the board member. And like the old saying location, follow up, follow up and follow up.

 

Adapted from Habitat March 2009. For the complete article and more, join our Archive >>

Additional reporting by Frank Lovece