Mortgage declined due to inadequate collateral???
Anyone know what's wrong with the building?

Chase set up a new rule for Condos without telling them. The condos need a certain line item voted in to the budget. If they don't have it they are put on a condo declined list that is communicated out to other banks.
If the building fixes the issue which is the case for the Gotham apparently then you would expect Chase to update their now wrong information.
Chase won't do anything unless they get a loan application for the building ($395) and go through underwriting.
Consequence certain other banks that blindly trust in Chase decline loans for no reason...

The board is being sued by the owner of W21B for "abhorrent living conditions." One board member claims he couldn't refinance because of the suit. The court shot down his case against W21B: http://decisions.courts.state.ny.us/fcas/fcas_docs/2011DEC/3001154042010002SCIV.pdf

In another decision, the court dismissed the case against all but two of the board members as individuals. Their "individual tortious acts" kept them in the ring as defendants, along with the board as an entity: http://decisions.courts.state.ny.us/fcas/fcas_docs/2011DEC/3001154042010001SCIV.pdf

Seems like there has been quite a bit of mortgage activity in the building this Year, plenty of which is from Chase...good sign. With mortgage rates at this all time low, it's a great time to take advantage of the market.

It's unfortunate that the board members were kept on the hook. Most likely they individually have their sides of the story, which may never hit these posts. Unfortunately, we come across similar situations often, where scuffles are blown out of proportion and it's difficult to obtain the facts. The down side to this, is that some banks or even end buyers would "stay away" from the "problem" as opposed to researching it further.

Technology is definitely on our sides with open information sharing. This building has taken a hit due to this sue, but is on the way back to the glory it warrants and deserves...

The case has been dragging on, as they do. The condo just won one, though, as the court agreed that the dispute should go to arbitration, as per the by-laws. http://decisions.courts.state.ny.us/fcas/fcas_docs/2012JUL/3001154042010003SCIV.pdf

Talked to 2 brokers, one that lives in the building, and because of the lawsuit financing seems to have been recently declined by majors banks. Who knows what's the real deal and potential increase of CC in the future.
The broker that lives there said only cash deals can be done and sellers won't accept a financing clause in the contract.