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Good article on Ombudsman Bill...but arguments illogical.Dec 14, 2010


The Habitat article about the Ombudsman Bill is here: http://bit.ly/gAugzt

It's a good piece, but the stated arguments against the bill are illogical. The need is real, & the bill makes sense.

I don’t know Warren Schrieber, & make no assumptions about how well he runs his co-op…but he’s a “poster child” for this legislation.

The Ombudsman’s office would allow co-op shareholders (or condo owners) to call for monitors if they felt it necessary to ensure a fair & effective election. This provision could not be used by a disgruntled owner to create a nuisance, due to the minimum threshold of 15%; this ensures that monitors are brought in only if there’s widespread concern.

Yet, Schreiber disdains the use of monitors; his solution is for unhappy shareholders to simply “vote out the board or run for the board themselves." Right. If your problem is undemocratic elections, or if your building doesn’t bother to hold elections at all, you just need to get yourself elected so you can fix things.

Think about this classic chicken-&-egg problem: you need fair elections to get a seat on the board, & you need to be on the board in order to ensure that fair elections are held. Exactly how, absent outside influence, will you ever bring about constructive change? The answer is, you won’t.

Dianne Stromfeld spent money, time & energy pursuing election records. By the time the courts gave her access to the info she needed, it was time for another election anyway. The only winners of this game are the lawyers. It shouldn’t be this costly…or this hard.

Schreiber’s attorney, Geoffrey Mazel, is speaking from the same fantasy world when he says all you need to do to resolve disputes is “contact your board or your managing agent and ask to be heard." Of course, there are many boards, & many agents, that respond to owner/shareholder concerns in a timely & equitable fashion. (It should be noted that such boards & agents will barely notice that the ombudsman office exists.)

But when the board stonewalls, & the agent doesn’t respond to your calls, emails & certified letters, what are your options as an owner? You can’t use mediation, because it’s voluntary—& boards nearly always decline to participate (remember that you & your neighbors are paying their legal costs, & ratcheting up costs for individual owners is a common board tactic). Too often, the choice is between hiring an attorney to bring an action…& finding a new place to live.

There’s a better way. Having an ombudsman will level the playing field for apartment owners statewide.

I’m a past board president. I’ve discussed this legislation with many, many co-op & condo owners, & also with current & past board members. The board members have been split, with some strongly in favor, some strongly opposed, & most tentative—they think it could be a good thing, but they’re (understandably) a bit nervous.

I have yet to encounter an individual owner or shareholder who doesn’t favor the ombudsman bill.

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