Some Hoboken tenants remain cold

Letter: Hoboken Management company freezing us out post-Sandy

Below is an interesting story from a resident on the west side of town – whose property management company is allegedly holding back on repairs until tenants pay – rather than making the work priority, and waiting on reimbursement from the insurance company:

“I currently live near 7th & Jefferson and our furnace and hot water heater was damaged because of Hurricane Sandy. We have been without heat since the storm.

Our furnace heats our building and the one next door, I believe there are 11 units in all.

Our management company (Sacci Management) decided they wanted to charge each unit $1,000 each then install the new heat and hot water heater instead of fronting the money and waiting for the insurance check. Sacci Management company already has the new furnace and water heater ready to be installed but they refuse to because they haven’t received all of the checks from the owners of the condos.

Can they legally do this? Today is day 30 without heat. I just found this out today and have contacted the city of Hoboken.”

Do you think that’s right for a condo management company to play around like that?

12 Responses

  1. Stabone130 says:

    I am a unit owner in the bldg. managed by Sacci and this post is not accurate. They are not holding the heat + hot water hostage. They were waiting to purchase the heater + hot water because our building condo association didn’t have enough money in our account to cover the repairs (almost $11,000), along with a $10,000 deductible. Someone on our condo board asked tenants to front $1,000 per unit to get the ball moving so we weren’t waiting for insurance checks. There are 5 units in our building — so with only $5000, they can’t acquire the appliances and pay the plumber. Sacci asked the owners to come up with additional money + once they did so, they could start the repairs. I am just as frustrated as every day without heat + hot water, tenants can’t live in their homes….but its not fair or accurate to paint Sacci Management as trying to take advantage of tenants in a situation that is more involved than “just install a heater.”

    • hoboken411 says:

      Thanks for adding to the other tenant’s letter. Not sure where they got the info that the equipment was acquired already – but you seem to know for sure.

      However, what management company doesn’t keep enough funds to do emergency repairs like this? What’s the point in paying monthly dues if additional out of pocket is required? How much are your dues? How big is your apartment?

      • Stabone130 says:

        The management company merely does the repairs for our building, they don’t fund them. Each unit owner is responsible based on how large their unit is. There are only 5 units and was just converted to condos a few years back — after Irene flooding last year, taxes, repairs, flood insurance, etc. — there isn’t some magical pile of money not being used. There could be, but rents would be higher to cover that extra padding. Just wanted to clarify things as the original information seemed to be incorrect.[quote comment=”218424″]Thanks for adding to the other tenant’s letter. Not sure where they got the info that the equipment was acquired already – but you seem to know for sure.However, what management company doesn’t keep enough funds to do emergency repairs like this? What’s the point in paying monthly dues if additional out of pocket is required? How much are your dues? How big is your apartment?[/quote]

      • homeworld says:

        Same here.

        In my building we had to have an accessment and everyone had to kick in an extra $1,000 this month to pay for our Sandy repairs since flood insurance and FEMA won’t.

        [quote comment=”218425″]The management company merely does the repairs for our building, they don’t fund them. Each unit owner is responsible based on how large their unit is. There are only 5 units and was just converted to condos a few years back — after Irene flooding last year, taxes, repairs, flood insurance, etc. — there isn’t some magical pile of money not being used. There could be, but rents would be higher to cover that extra padding. Just wanted to clarify things as the original information seemed to be incorrect.[/quote]

      • Craig-D says:

        $1000 per unit is what everyone in my building kicked in too. We have $10k in reserves, but we expect much of that to be exhausted. So the $1k per unit will replenish the reserve if it isn’t needed for repairs.[quote comment=”218436″]Same here.In my building we had to have an accessment and everyone had to kick in an extra $1,000 this month to pay for our Sandy repairs since flood insurance and FEMA won’t.[/quote]

      • Craig-D says:

        That’s not how condos operate. Management companies do not fund repairs – the owners do. The management company merely facilitates making it happen. If the condo association doesn’t have enough in their reserve account to fund whatever is needed, then they have to issue a special assessment. The point of monthly dues is to pay for whatever the day-to-day common needs of the building are, not a huge unexpected expense. If you have typical Hoboken monthly dues of around $300 and you have to suddenly replace a $30k roof, the dues an’t covering that. It’s special assessment time. My management company services 90 buildings in Hoboken – do you seriously believe any company with such a large client base would have enough cash on hand to front tens of thousands of dollars to all the properties they service for emergency flood repairs all at the same time?[quote comment=”218424″]Thanks for adding to the other tenant’s letter. Not sure where they got the info that the equipment was acquired already – but you seem to know for sure.However, what management company doesn’t keep enough funds to do emergency repairs like this? What’s the point in paying monthly dues if additional out of pocket is required? How much are your dues? How big is your apartment?[/quote]

  2. Chow says:

    Condo owners are responsible for payments. Not management company. That is why buildings need a reserve.

  3. Chow says:

    Buildings need to build reserves instead of maintaining artificially low monthly maintenance to keep it attractive to buyers.

  4. amh2 says:

    Anthony Sacci of Sacci management is a thief and a dirt bag. Fire him. It seems like you are new to his services. He will delay doing work and then try to rip you off in the end. Trust me – I found out the hard way.

    • Stabone130 says:

      I’ve dealt with Sacci Management for the last few years and have found him to be a genuinely nice guy, willing to help whenever he can and honest. We check expenditures and bills every year and have never come across anything that would deem him a thief or dirt bag.[quote comment=”218448″]Anthony Sacci of Sacci management is a thief and a dirt bag. Fire him. It seems like you are new to his services. He will delay doing work and then try to rip you off in the end. Trust me – I found out the hard way.[/quote]

  5. eleenyc says:

    I agree with most here about reserves and what they are for. Our repairs have to be paid for up front and we did not have the 20k or so in reserves. If you wait for insurance it could be weeks. We actually filed the flood claim ourselves. Coordinating funds from each tenant is giant, tiring task in itself. I now realize why Co-Ops exist with their strict guidelines.

    It’s been a month and our electric repair is almost done and all the furnaces are replaced as well as hot water. That’s all out of pocket. There is still cleaning services to get done, wiring in basement, replacing the washer dryer, replacing sump pumps, etc. If insurance reimburses even half of the cost i will be happy. It is going to take a long time to get back to routine.

    If i’ve learned anything from this storm is that you should never count on anyone except friends and family to get things done. Facilitate it yourself. FEMA is for extreme cases like Rockaway

    Anyway good luck and I hope you are back up and running toot sweet

  6. Gmoney55 says:

    Lets get a few facts straight. The building in question is extremely old. When you have an older building like this, you should have at least 2K per unit in reserve for replacement costs. Even without a superstorm, the condo associations should have been prepared for the necessary replacement of a boiler or a furnace.

    In this case, the association did not have a large enough reserve so they had to bill a special assessment to obtain the funds. The timing on this was entirely too slow. The deadline should be within 15 days of the assessment. It seems like they dragged their feet in this scenario.

    No unit owner should be charging rent to their tenant in this situation. If they have proper insurance, then they will receive business interruption proceeds to cover their loss of rent. If they collect business interruption proceeds and still charge rent, then they are committing fraud.

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