Connecticut Condominiums

February 22, 2010
Matt Isleib

 

For the first time since the financial crisis has left the housing market in turmoil I have come across one of the scarce ideas and proposals from an elected government official that makes a world of sense.

I an article in the Commercial Record the State of Connecticut Attorney General Richard Blumenthal proposed a self funded state position to oversee condominium owner complaints with their condo association boards or property managers.

You can chalk one up for the “little” guy or in this case the homeowner if this goes through. In the original article below it goes into detail how this proposal will certainly help condominium owners.

 

Blumenthal Proposes State Condo Dispute

Resolution Board

Today

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Attorney General Richard Blumenthal has proposed the creation of a self-funded state Office of Condominium Ombudsman to review condo owner complaints concerning violations of state condominium laws by an association’s board of directors, officers or professional managers.

Blumenthal alleges that the current system of dispute resolution is unfair and hypocritical to unit owners, as it imposes significant costs on individuals forced to hire counsel from their own pockets while condo boards can turn to often hefty association funds.

“The current law is unfair to unit owners,” Blumenthal said in a statement. “The law imposes certain responsibilities on condominium association boards of directors and establishes certain rights for unit owners. The unit owners must hire - at their own expense - a lawyer to enforce those rights and responsibilities while the association boards of directors can defend themselves using association funds, raised through assessments on the unit owners. Thus, unit owner funds are used to defend lawsuits brought by unit owners themselves. A Condominium Ombudsman will provide much-needed assistance to unit owners and provide an important enforcement tool for our condominium laws.”

The office would be funded through a combination of new and increased fees on condo associations and condo managers that could be worth as much as $1.09 million annually.

Associations would face a $4 per unit annual assessment. There are approximately 240,000 condominium units in Connecticut, so the $4 charge will yield $960,000, Blumenthal’s office said.

Additionally, the proposal requires a filing fee of $35 paid by the complainant and another $35 filing fee paid by the association. The fee on the association also encourages the association to resolve the matter prior to intervention by the ombudsman, Blumenthal said. If there are 1,000 complaints filed, this fee will yield $70,000.

Finally, the proposal increases the condominium manager’s filing fee from $100 annually to $400 biennially. There are 300 registered condominium managers, so the fee will generate $120,000 in revenue every two years.

Blumenthal’s office said it has received hundreds of complaints from condominium unit owners regarding violations of state condominium laws or condominium bylaws by their association board of directors.

Under this proposal, the Attorney General, upon referral by the ombudsman, may bring a civil action to enforce the provisions of the condominium bylaws or state statutes regarding condominiums. A provision of the legislation would allow the ombudsman to impose a civil penalty of not more than $200 for any knowing violation.

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