ASSEMBLYMAN SEPÚLVEDA AND SENATOR DIAZ SUE PARKCHESTER SOUTH MANAGEMENT OVER ‘DRACONIAN’ INCREASES IN COMMON CHARGES
Bronx Assemblyman Luis Sepúlveda and State Senator Rev. Ruben Diaz Sr. announced today they have filed a lawsuit against the management of Parkchester South over the recent imposition of what they call a “draconian,” and “unsubstantiated” 15.19 percent common charges increase to all unit owners.
The increase was purportedly determined based on unknown computations relating to unverified costs incurred for complex-wide repairs.
The suit, filed in Bronx state Supreme Court on Wednesday, March 23, charges that management has failed
to provide an accounting and backup documentation of the bidding process used
to select the contractor(s) who performed the repairs
to demonstrate to individual unit owners that management utilized the most cost-effective course for the repairs
to honor its fiduciary duty to give individual owners a way to readily review the condominium’ s books
to provide an independently audited review of the relevant financial records
to provide a full explanation of and justification for the computations employed and their underlying methodology in determining the increases imposed on owners, or
to utilize an objective and independent accounting firm to ensure that the individual owners can review a proper audit for the last three years, including revenues and expenditures relevant to the increases in question.
The lawsuit requests that a judge issue a temporary restraining order against the increase until a full court hearing on the issues can be held.
Assemblyman Sepúlveda emphasized that an independent forensic audit of the condominium’s books was essential. “The fact that vital repairs were required throughout the complex does not give management the right to violate its fiduciary duty to owners and hide behind a shroud of secrecy, particularly when owners have been assessed outrageously high increases,” Sepúlveda said.
“The increases are certainly unaffordable, particularly to seniors, to those on fixed incomes, and to others struggling in the current climate to make ends meet,” he added.
Senator Diaz, who owns a condominium in Parkchester South and is the named lead plaintiff in the lawsuit, said, “We will be vigilant in defending the hardworking owner-residents from these astronomical monthly increases, ones they not only cannot afford, but which are mired in secrecy. Management must be held accountable,” he continued. “Only through an independent forensic audit of the condominium’s books can we know what the real numbers will indicate.”
The senator and assemblyman were joined by scores of Parkchester South Condominium owners and tenants on Feb. 10 outside management’s office to protest the charges. The two state legislators also announced plans to file the injunction to block imposition of the monthly hike, with owners asked to contribute $15 each for legal costs.
Among the protesters at the rally was Dr. Mazeda Uddin, president of the South Asian Fund for Education Scholarship Training, who is representing over 2,000 Parkchester South Condominium owners who signed a petition against the increase. Uddin noted that after years of annual maintenance fee increases of 3 to 4 percent, this year’s raise is “a record- breaking amount.”
Built by MetLife from 1939 to 1942 with middle class rentals, a third of the sprawling complex was converted to condominiums in 1974, with what is now Parkchester South Condominium converted in 1986.
Both complexes are now home to a large South Asian and Asian population, including Pakistani, Bangladeshi, and Indian, as well as a number of European residents. African-Americans and Latinos comprise more than 20 percent of the population.
Assemblyman Sepúlveda represents New York’s 87th Assembly District, which along with Parkchester includes Stratton Park, Castle Hill, West Farms, Van Nest, and Unionport.
Senator Diaz represents the 32nd Senate District, which includes Parkchester.
Follow Us