TESTIMONY OF DOUGLAS M. NEWMAN REGARDING HOUSE BILL 6620
AN ACT ESTABLISHING AN OFFICE OF CONDOMINUM OMBUDSMAN

March 25, 2011

I am a Property Manager with Westport based, Consolidated Management Group.  Consolidatec Management Group manages approximately 130 condominium associations in Fairfield, New Haven and Hartford Counties which comprise of some 5,000 individual units.  I estimate that our property management services impact approximately 10,000 condominium owners and occupants. 

I’m here today to testify in favor of the House Bill No. 6620 and specifically the first section of the act establishing an Office of Condominium Ombudsman to provide a means of resolving disputes between condominium owners and condominium associations. 

Consolidated Management Group unfortunately has first-hand experience witnessing less then professional and transparent activities by condominium boards and management companies.  In my personal opinion, what we have witnessed is an appalling and unchecked, abuse of power.  

We could provide a list of property management companies, a few who promote themselves as upstanding members of the Better Business Bureau too, with knowledge of highly unethical, self-serving practices.

Another example is the condominium board that terminated our firm as property manger simply because we advised that their Association’s reserve account must be included on the balance sheet and we would not waiver on that position.  This run-a-way Board lost sight of their fiduciary responsibility to the Association they were elected to serve. 

The current legal system does provide a course of action to combat such abuse of power however it is an extremely costly option and a very uncomfortable one too; to accuse and seek resolution with respect to corrupt and other illegal activities against fellow, common ownership neighbors. 

Unit owners today are faced with a herculean task when trying to combat the runaway board or a less than professional management firm.  To that end, Consolidated Management Group supports the creation of a Condominium Ombudsman or other Accelerated Dispute Resolution process providing a swift means of resolving disputes between condominium owners and condominium associations. 

Thank you for allowing me to provide this testimony to you today.
 
Douglas M. Newman
Property Manager, Consolidated Management Group
Vice President, CMG Commercial
Direct Dial: (203) 307-3286 | Cell: (203) 516-1006 | Email: dnewman@c-mgi.com