Common Fees Condominium Financial Governance Legal

Changing the Condo Common Fee Structure

E.G. from outside of Connecticut writes:

Dear Mister Condo,

What are the ways to realign the condo fees in a condominium building?

Mister Condo replies:

E.G., it is very difficult to change the common fees in most condominium associations, and for good reason. The fees are established when the condominium is formed as part of the condominium’s governance documents. When units are purchased and mortgages are created for individual units, this fee structure is part and parcel of how a unit owner buys into the association. They effectively become a shareholder in the corporation. There are many different formulas for how these fees are arrived at. The most common is the percentage of unit ownership formula. Everyone pays a share of the fees based on their percentage of ownership in the association. However, there are other factors that can contribute to these formulas, including but not limited to enhanced desirability of a unit for factors such as water views, penthouse locations, garage parking, etc.. The bottom line is that the fees are part and parcel of the corporation itself and changing them typically requires 100% of unit owners voting in favor to do so. If you check your condo documents and state law, you will have a better feel for if and how the change can be made. Personally, I advise against it. Everyone who purchased into the association knew what their share of the common fees were before they made the decision to purchase. Changing these fees after the fact is patently unfair and likely unachievable even if allowed by law. All the best!

2 thoughts on “Changing the Condo Common Fee Structure”

  1. Mister Condo,

    I agree with your answer. One scenario that could justify a change in the fee structure is if something has changed after the association was established. This could include a change in the state, provincial or federal legislation governing the association or to correct an error that the association became aware of after the fact.

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