CONDO ISSUES-Oak Park

[Natasha Randolph]

Good Evening!!! I haven't joined discussions recently as I am working a deal and trying to complete the extensive renovations. I got word from my property manager today about the issue below. I submitted this letter to the ATTORNEY GENERAL and my legal advisor in Michigan in the hopes of getting some advice. Perhaps some of the very seasoned investors have some insight and can offer some help! This is the first time I've had to deal with such an issue. Tell me what you think!

Sirs,

I am contacting you regarding an issue I have for a condominium I own in Oak Park Michigan, XXXXXX XXXXXXX, XXXXX X Mile Road.

My property manager has submitted to me notes from the Condo Association regarding my association fees. According to my last recorded entry to my account the last dues in the amount of $500.00 were paid in May 2011. This would have covered the month of May AND June. The amount of $9000.00+ as stated in these notes is a definite error and as no official notices or certified letters have been sent to me as the owner of the unit nor have any official property liens or records of errors been presented. I have bank records of my year of past payments and will gladly provide them as proof.

Currently the gas that services the community boiler has been turned off by the city due to significant arrears in payment of utilities. The water will probably follow soon after since the bill is in excess of $50,000 for the complex. Obviously with the turn off of the gas that serves the boiler for the water and heat to the units the complex is and has been in dire straits since I purchased the unit July 2008. I have made numerous attempts to contact Mr. XXXXX XXXXXX (also an owner and self designated representative for the units) to work out a solution not only for my tenants, but for the benefit of the entire complex. I have photos from the early days of my condo purchase. The building was in disrepair then and is much worse now. Mr. XXXXXXX made numerous empty promises of services and repairs. I have current photos of a downed tree, dangerous roof conditions and substantial disrepair. The current roof situation is creating a haven for mold (currently present throughout the complex) and there is a significant potential for a roof collapse when the snows of Michigan winters arrive. The wood is rotting around the door frames and are about to fall in. The laundry rooms in the facility have never worked or been accessible due to disrepair, mold and flooding. The parking lots are full of holes and car damaging disrepair. Even the exterior lights which illuminate walk paths and ensure safety of its residents have not worked since I've owned the unit.

The members acting on behalf of the tenants of XXXXXX XXXXXX obviously had YEARS of funds mismanagement to try to recover from. Unfortunately they have proven to be ill equipped to recover from the depth of the financial needs of its owners. There is no basic Condominium insurance to cover the dwelling in the event of catastrophe (required by condo docs and State law). According to the official Condominium Association documents any association members/ representatives are elected publicly and annually to ensure the best interest of the condominium owners. This has not taken place since I've owned the unit
.
Currently I do not have a renter for my unit. Last month a notice was published by the representatives that water shut off was imminent unless it's tenants come up with additional funds to pay the bill. Current owners should not have to be made to fill in financial gaps where mismanagement has occurred. My tenant was forced to move out to ensure her family was not inconvenienced. With the gas boiler and heat turned off and a significant water bill ($50,000+) looming and the city ready to turn the basic utilities off it wont be long before all the residents for the XXXXXX XXXXXXX Condominium Complex will all be pushed out.

I currently admittedly have not paid my association dues from May until present. This is due to the fact that the representatives have failed to provide fiduciary responsibilities to its tenants and apparently the mismanagement of funds continues. In my brief conversations with Mr. XXXX XXXXXXX (president-though position has not been made clear to the owners nor the names of any of the other “reps”), I have stated I would be willing to assist in trying to turn things around. Through his lack of response has made it very clear he does not want the assistance. I had offered to pay a few bills in exchange for a few of the units through quit claim deed currently owned under the association name. I would make significant repairs to roofs and the received units to upgrade and repair the severely neglected surroundings. I would also sit as a board member to assist with ensuring the association becomes and STAYS financially sound. Understandably these current members are working to operate on a shoe string with the few tenants who actually live in the units full time and still pay their dues (despite the disrepair), but this is just a trite few and enormous bills from the past.

Research on the XXXXXX XXXXXXX Condominium Complex show taxes for association owned units are up to date yet the utilities for its owners are significantly behind. Additionally according to Condominium bylaws, members who sit on the board or its acting representatives are not required to pay condo fee's. However the owners and tenants are at the mercy of their inadequate and unnamed designees without a public vote for change in representation, quarterly published budgets (required at least annually along with open attendance meetings), or attention to basic services and repairs.

Based upon the current state of our national economy and local hardships in and around Detroit and its outlying areas I'm sure there are similar stories all across the state if not the country. I, however am trying to assist. Oak Park, Michigan is a nice suburban community with residents who care. I am willing and interested in trying to make this work for all parties concerned. I request your assistance or advise to make a bad situation better not only for the sake of my unit and potential renters, but for the residents of XXXXX XXXXXX who obviously lack leadership that works in their best interests.

I appreciate your assistance, any feedback is appreciated.

Natasha Jameson-Randolph

++++++++++++++++++++++++++++++++++++++++++++
End of letter
FYI-I only paid 9,000 for the unit and have made my $$$ back on my investment. I'd really like to own additional units and take over the association since Oak Park is nice metropolitan/suburban community.