Property Tales

The judge was yelling at us. She thought it was absurd that we were two rich parties fighting over a couple thousand dollars, and I agreed. We had no business being there, and she had more serious cases to hear. I was the victim of a cavalier coop board who think they're so powerful they can do anything with impunity. While I waited for them to decide on a proposed settlement, I watched the judge hear another case, one where an indigent man was being evicted because he couldn't pay his rent. The judge took a completely different tone with him, treating him with respect, dignity and kindness. I volunteer for Coalition for the Homeless, and respected that she stayed his eviction for a few weeks, giving him a chance to get himself together. He was one paycheck away from homelessness.

-Victor Ozeri, 51,businessman and philanthropist

On Dec. 30, multimillionaire Victor Ozeri found himself in Housing Court, defending himself against eviction. At issue: approximately $20,000 in maintenance charges, late-payment fees and co op-imposed surcharges for his subleasing of the park-view one-bedroom apartment he owned in a building on Central Park West. Furthermore, his $670,000 sale of the unit was being delayed by the lawsuit.

"It wasn't about money; it was about principle. The coop board was wrongly wielding its power," says Ozeri. "I had to oppose them."

Ozeri first rented the one-bedroom unit in 1978 for $575 per month. At the time, the building was a residential hotel with a huge lobby and hotel services. Most of the apartments were studios and one-bedrooms occupied by elderly women or single young professionals.

In 1986, the building went coop and Ozeri bought the apartment for $86,000. Then, while living abroad for several years, he used it as a pied à terre. He loved the building, thought of it as a wonderful New York microcosm community.

In 2001, while legally subletting his one- bedroom, Ozeri paid $1.5 million for a second apartment-a two-bedroom plus studio-in the Alden.

"Soon after I moved in, a new coop board took over. Their policy changes created dissention in the building. I gave a party to reunite everyone, but it didn't work-the new board president stopped talking to me, and life at the building became difficult. The board issued a five-year assessment for improvements-that's unheard of! Assessments are usually for one or two years. Then, they decided to charge owners for subletting, imposing surcharges of $15 per share, equaling about 25 percent of their rental income. Except, preferential lower surcharges were imposed for owners intending to combine two small apartments into one large unit."

Ozeri thought that was an unfair move intended to squeeze out smaller-unit owners.

"I wanted a larger apartment, but decided against reinvesting in that building. In 2003, I found a buyer for my two-bedroom-a perfectly respectable single woman, a childless widow with $15,000,000 in the bank and a seven-figure annual income who was paying cash for the apartment. The board rejected her without even granting her an interview, but wouldn't tell me why. I was furious. Several weeks later, the board reluctantly approved another buyer-who actually had fewer credentials. I sold for $1,550,000-a $50,000 profit-and moved to a three-bedroom penthouse on East End Ave."

Ozeri still owned the one-bedroom, hoping to keep it for his children's eventual use, but the coop's new sublet surcharges convinced him to sell. He gave his tenant notice to move, but the board billed him for subletting. He refused to pay. The board returned his maintenance checks and added late fees.

"We wound up in court. The board, indemnified by the building, doesn't mind wasting resources on legal fees," says Ozeri, who represented himself. "Adamant that we settle, Judge Laurie Lau suggested we donate the difference-some $6000 in surcharges, late and legal fees-to tsunami-victim relief. I agreed? The one-bedroom is sold, and I am happy to have moved on."