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Harlem Condo Board Files Suit Against Former Sponsor

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When last we heard from The Lenox—one of Harlem's first market-rate condos when it launched sales way back in 2006—the residents were kvetching about the possibility of a Pioneer opening on the ground floor. Now, they're going to war with former sponsor Lewis Futterman , alleging a list of building code violations, construction defects, and fraud in a suit filed in the state Supreme Court on December 31st.

The Lenox's condo board claims that the building has "fundamental structural flaws, a defective roof and pervasive leakage," and that the units bought by residents in 2006 did not match the original offering plan. Futterman's sponsorship entity Residents have paid $260,000 for repairs, but are seeking at least $4 million in damages.

Since Futterman's sponsorship entity filed for bankruptcy protection in 2010, the board also claims that Futterman defrauded residents by transferring ownership of unsold sponsor units to his own company Uptown Partners, in order to avoid paying for repairs.

"Uptown Partners and the sponsor is one and the same," said the attorney for the board. "This is a scheme to make sure that the condo unit owners are going to have to pay for these repairs when, in fact, it's the responsibility of the sponsor."
· "Harlem condo board takes developer to task over alleged construction gaffes" [TRD]
· Previous Lenox coverage [Curbed]