Sponsor Unit Renovation

My husband and I bought a unit in a newly converted condo 3 years ago in Park Slope. There are 4 units in total within the brownstone, the sponsor kept one unit. Since then we’ve established a condo board and each unit owns 25% of the building. We’ve recently run into some problems with the sponsor unit and I would love some advice and knowledge sharing from the community.

The sponsor had first let relatives live in the unit for a year, then rented it out for another 6 months. After that, the unit was empty for a good 1.5 years. Recently, she decided to renovate the unit so she could rent it out in the near future.

The renovation work include:
– Adding air ducts all over the ceiling and our joint air shaft to accommodate new central AC
– Dropping the ceiling for about 15 inches to accommodate the duct work
– Opening up a hole to connect air duct into the basement where the AC condenser will sit
– Gut and renovate entire kitchen and bathroom
– Sanding and refinishing all the wood floors
– Dry waling over exposed brick
– Putting up two new walls to make bedrooms
– Addin g new washer/dryer

Now, the sponsor informed us that they were going to be doing some “update” within the unit that would be quick. Then, they dropped an email the day before renovation started and gave the building no choice to prepare for the noise and dust.

After we inquire nicely for a schedule of the renovation, the sponsor refused to give us an answer and said it would be impossible to predict. The “quick” renovation started back in October and after speaking with the contractor personally (since the sponsor still refuses to give us an estimate), the work will probably be ongoing until the end of February.

The work the sponsor is doing is creating tremendous noise and dust. There is actually a condenser in the basement now, which they told us about after it was installed. The sponsor insists that they can do whatever they want since they are the sponsor, and that the other 75% of the building owners cannot request or review a plan of their renovation.

I am not well-versed with real estate law and legality, we’re also a first time home-owner. So I’m curious, is this true? As co-owners of the condo building, do we really have no rights to request renovation information/plans from the sponsor? Can a sponsor unit do what they feel like whenever they want to renovate? Just because they are the sponsor, do they get to do whatever they want to their unit or even the public space? Can the renovation be of any length of time and the other owners should just put up with it?

Please help, this is my first time posting and I welcome any input, thank you so much!

.

sarahk19

in General Discussion 8 years and 6 months ago

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nick521 | 8 years and 6 months ago

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Also, is their contractor licensed? I doubt that he is, if he is doing work without permits. I would insist on a stop work order until permits and legal issues are resolved. SInce the contractor has done work in the basement, ensure that he has some sort of insurance, he is liable for any unauthorized work. If he does have a licence, I would filled a complaint if he is indeed doing work without permits…Contractor should be able to produce a certificate of insurance upon request. COOP Boards and Condo boards always request that information prior to work being done.

shahnandersen

in General Discussion 8 years and 6 months ago

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It doesn’t matter if they own the whole house. If the work requires permits and they don’t have any, then it is illegal. Make sure your lawyer knows that there are no permits filed.

sarahk19 | 8 years and 6 months ago

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@slopefarm @resident2 @castaflore002 Thank you guys for your input!

I don’t think they applied for any building permit for any of the work, again, they kept saying they could do whatever they need and want to since they’re the sponsor.

We checked the offering plan and legal documents, while we’re certain the initial control period of the sponsor has ended 3 years ago, we’re not sure if as a sponsor unit they still reserve the right to any alteration. So we contacted the attorney that helped us close on the unit 3 years ago ( like you guys suggested, thank you) today. I think right now we just want to understand why after the termination of initial control period, the sponsor still claims they have all the special rights.

The offering plan is dense and filled with legal jargons, so there could be something we’re missing as well. We’re going to have the attorney advice us on the right way to approach the relationship between sponsor and condo board from now on. I’ll come back with an update (if you guys are interested) in a few days!

nick521 | 8 years and 6 months ago

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Is this work being done permitted, one would assume that installing a condenser in the basement would require the consent of the whole building, and probably requires a permit to install this new HVAC . If not permits exists, I would call the city (DoB- department of Buildings) and have a stop work order placed. One would assume that renovation work be limited to the unit and not common spaces. So I agree with slopefarm and check all legal documents and engage with an attorney.

resident2 | 8 years and 6 months ago

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The Sponsor still has to comply with DOB requirements and from what you are describing they should have applied for an alteration & got building permits. Have they?
But no the sponsor cannot take over common space or do whatever they want. Without looking at the original plan it is difficult to give you a complete answer as to how to respond, but you must consult an Attorney and preferably one that is already familiar with your building and condo plan. Have you asked the Attorney that represented you with the purchase?

slopefarm | 8 years and 6 months ago

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You have to consult the by-laws, offering plan, rules, etc., or whatever the governing docs are, and you may want to have an attorney look at them. I don’t know what is common with a condo, but with a co-op, there is typically one set of rules when it is being developed by a sponsor and another once a certain percentage of units sell and it converts to a real coop. I believe, but don’t hold me to this, once the building converts to the condominium form of organization, sponsor no longer would have any special rights that the other units do not have unless expressly reserved in writing in one of those docs. Advice you get here will be general — you need to look at the specific documents that establish and cabin each unit’s rights in your building to find the answers you seek.

This might be a good time to establish a relationship with an attorney to provide occasional advice to your condo association, and that person should not be an attorney the sponsor previously used. I suspect this will not be the last issue like this that arises.