Q: A resident owning 10% of condo has proposed redevelopment. Residents don't want it, but he won't back off.
A foreign investor owning 9.64% of condo interests proposed redevelopment of the condominium in which he will be co-developer. The plan has been met with great resistance, but he indicated that he is willing to work on securing interests for years, if not decades, and will call for termination of condominium when he gets the necessary number. This has effectively eliminated the RE market for sellers.
Complicating matters further is the fact that he is on the Board of Directors. He refuses to back down as he doesn't see a conflict of interest, despite the fact that he was pitching the idea to the zoning board and setting up the LLC for the takeover simultaneously. As a member of the BOD, he opposes a property appraisal (7acres, 600ft ocean frontage). He intends to offer FMV for units and I think he'd hoped to capture the spread between the units' FMV and a land appraisal.
What legal means do owners have to shut this down? It's causing owners immediate financial harm & unrest.
A: You would need to review the Condo Docs and Bylaws to see what the legal requirements are to terminate the condominium association. The fact that he is an owner and on the BOD is self-dealing and there may be a provision prohibiting his action. You may also need to get an injunction until things get sorted out.
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