ON THE BRINK: DEVELOPER GOES BROKE AND LEAVES THE BUILDING INCOMPLETE AND THE UNIT OWNERS STRANDED
- Posted on: May 26 2016
Our client, the unit owners of a condominium, were facing a serious problem – the unit owners were living in a condominium building in Manhattan whereby the Sponsor had ran out of money, failed to finish construction, raided the reserve fund account and left the operating account of the building without any monies to pay for the salary of its’ employees, oil to heat the building or monies to continue to operate the building for the coming week.
Held & Hines LLP worked alongside their client to put a plan together to literally “save” the building. This plan included going public with their grim plight, working alongside an appointed receiver, getting the sponsor’s bank to create an emergency fund to pay the expenses of the building and commencing a lawsuit against the sponsor and other related parties who contributed to the plight of the unit owners.
The Plan worked extraordinarily well. The Condominium was saved. The Sponsor was banned from selling real estate again in the State of New York and the building established the largest reserve fund of any condomnium in New York State thereby securing its’ financial future.
To see the case, click on the links below.