A condominium in Queens faces governance challenges after its board was left vacant, raising concerns about the building’s management and future upkeep. The condo’s board comprised two owner-members, one of whom resigned while the other passed away, leaving no representatives willing to serve. With roughly 17 of the 20 units rented out and multiple language barriers among owners, the situation has created obstacles in maintaining an effective leadership structure.
Although a managing agent currently oversees some day-to-day operational tasks, the building requires additional maintenance and has limited funds available in its reserve account. Experts caution that operating a condominium without a functioning board is legally untenable and carries financial risks for owners.
“A small building can be quiet and have very few day-to-day issues, but that doesn’t mean it can legally operate indefinitely without a functioning board,” said Laura Mehl Sugarman, a real estate attorney at Benesch Law. Without a board, the building may face frozen bank accounts, canceled vendor contracts, utility service interruptions, and insurance cancellations. Furthermore, the inability to produce necessary documentation can impede apartment sales and refinancing efforts.
Property owners are encouraged to remain engaged despite potential language difficulties. Notices outlining the consequences of inaction should be distributed in owners’ native languages, with the managing agent facilitating communication. Reviewing the condominium’s bylaws is essential to determine eligibility requirements for board membership and procedures for holding meetings.
If allowed, virtual meetings could enable absentee owners to participate in governance remotely. Owners might also consider convening a special meeting to amend bylaws to widen eligibility criteria for board candidates. Steven D. Sladkus, a partner at Schwartz Sladkus Reich Greenberg Atlas, suggested that renters may be the most accessible candidates willing to serve if owners decline the responsibility, noting this as the most cost-effective option.
Should all efforts fail, the owners can petition a court to appoint a receiver, an impartial third party authorized to manage the building’s affairs on behalf of the condominium, with the associated costs charged to unit owners.
The situation underscores the importance of active participation from all stakeholders to ensure the long-term viability and proper management of condominium communities.
