Legal Question in Landlord & Tenant Law in Michigan

I live in a multi-family housing cooperative, currently the 5 board members fractured, so the community is fractured, trying to petition to remove the VP and the property management agency sent a copy of the 47 signatures to the board and the attorney and now the VP is seeking harassment, intimidation, threatening to evict members. The problem is the Pres and VP have been in total control for over 25 years, they hold illegal elections to keep voting themselves in. They have complete control over all income, disbursements, and maintenance and upkeep. 4 years ago they took out a loan of over 2 million dollars from Countrywide and they built faulty garages, siding, etc. They showed us a blank excel spreadsheet as to where the 2 million was spent, no letterhead, not from a CPA, no supporting documents and by my calculations they only spent 750,000 so where is the rest of the 1.25 million. They will not let us look at the books and have only let us view documents in the office by appointment. I think the VP and the Property management company were in collusion and have siphoned funds from the cooperative. Where would the 130 stockholder/members start to investigate?


Asked on 11/24/10, 12:43 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Your question makes the point that the fox is guarding the hen house, when it comes to co-op management. Your are smart to consider the possiblity that someone has been lining their pockets with your money. Either get a majority of the property owners to consolidate and hire a lawyer to file a suit for a forensic accounting, OR get out, get out fast.....you may be the first rat off a rapidly sinking ship. Sell your interest in this property, and buy a single family home.

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Answered on 11/29/10, 1:23 pm


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