Condo/Townhouse question?
For ten years my c/t community was mis managed(I arrived on 12/10). As a result, needed repairs were not made on some buildings(ie roofs), and the general fund is now insufficient to meet what is required. Townhouse owners currently pay 135HOA fees/mo, and the condo board wants to raise HOA fees on condo owners(currently 105.00), to 135/mo, to cover costs. Beginning this January, a new Board, and Management team was installed. That is their solution. Is their another one(short of putting my condo up for sale)?. The condo board does not want to borrow any more from the townhouse board, than it already has. If you need more info, I will try to provide it. And, thank you for your help.
Memo to Someone: There must be other alternatives to a spike in HOA fees. I mean what is the point when the spike will only cause added delinqiuncies, and further sales of condos.
Would borrowing from a local bank be a good idea?
They could do a one-time special assessment rather than raise the fees in perpetuity to cure the shortfall, but the simple fact is that costs increase over time and you must have funds on hand when higher cost items such as roofs need replacement. Would you rather get socked with a $1000 special assessment or pay an extra $30/month? Either way, delinquents are going to be delinquent and it’s likely the special assessment would blow out more people than a 30% increase would.
Your question illustrates why people need to be involved in their condo boards and understand that reserves must be accumulated to deal with common element expenses BEFORE there is a critical need. Self managed associations tend to be the worst offenders since they will seldom vote to take money out of their own pockets until there’s a critical shortfall. It comes down to whether your board is proactive or reactive.
September 20th, 2011 at 6:35 am
No you pay the fee. You agreed to abide by the Boards Decision when you purchased your unit
References :
September 20th, 2011 at 6:45 am
They could do a one-time special assessment rather than raise the fees in perpetuity to cure the shortfall, but the simple fact is that costs increase over time and you must have funds on hand when higher cost items such as roofs need replacement. Would you rather get socked with a $1000 special assessment or pay an extra $30/month? Either way, delinquents are going to be delinquent and it’s likely the special assessment would blow out more people than a 30% increase would.
Your question illustrates why people need to be involved in their condo boards and understand that reserves must be accumulated to deal with common element expenses BEFORE there is a critical need. Self managed associations tend to be the worst offenders since they will seldom vote to take money out of their own pockets until there’s a critical shortfall. It comes down to whether your board is proactive or reactive.
References :
Broker / REALTOR / Property Manager