Assessments Board Common Fees Condominium Damage Financial Governance Reserve Fund

Lack of Maintenance by Self-Run Condo Board

D.T. from New Haven County writes:

Dear Mister Condo,

The self-run condo board is not taking care of the maintenance of our complex. Shingle, roof, painting and paving have not been addressed in years. We pay on an average of 350.00 a month in HOA fees. What recourse do the owners have to get action and for the board to be held accountable to provide proper upkeep for our complex? Is there a state board that we can contact that can help us?

Mister Condo replies:

D.T., I am sorry that you find yourself at odds with your Board over care and maintenance of your complex. I wish I could say that you were alone in your dissatisfaction but the truth is that many associations simply haven’t saved enough money over the years to appropriately maintain their properties. This leads to the unpopular Special Assessment and the equally unpopular increase to common fees. In your case, $350 per month should likely be adjusted to $450 per month or higher. That way, the current expenses of the association could be paid and a healthy contribution to the Reserve Fund for future repairs could be established. As for the immediate needs of the association, a loan or Special Assessment is very likely needed. From the brief list you have provided, I wouldn’t be surprised if $10,000 or more per unit would be needed. If unit owners can’t afford that kind of one-time payment, then a loan (which will also increase common fees and have the additional expense of interest) is in order. The bottom line is that Boards of Directors turn over in condo associations over time. Each new Board inherits the good or bad practices of the previous Board. In associations that require maintenance on 20 to 30 year-old buildings, that means either having the money to do the projects from the great fiscal planning of previous Boards or picking up the pieces from poorly thought out Reserve Fund planning. Guess which kind of association you live in? The bottom line is that it takes money to perform the needed maintenance and that money only comes from one place – the owners. It sounds to me like it is time for your association to pay the piper. Of course, all of the unit owners have a say in raising common fees and Special Assessments. Neither are popular and both have real consequences to owners, including forcing out the folks who can’t pay up. However Darwinian as this sounds, it is the way of the world. I wish you and your community good luck in solving this difficult problem.

1 thought on “Lack of Maintenance by Self-Run Condo Board”

  1. Mister Condo was very polite in his response and gave some very good advise. Personally, I have no sympathy for you or your fellow owners. You allowed this to happen because you did not want to pay a penny more in maintenance fees or fund your reserves. I see this nonsense every day and I have come to the conclusion that condo ownership is for the wealthy Ian/or responsible. Why do you think they call your payments “MAINTENANCE FEES?” Continue down this path and you will eventually have your certificate of occupancy pulled and then a vulture will swoop down and start buying your units and terminate your condo, make a healthy investment in rehabilitation and convert your building to a rental.

    Your only hope is to raise the fees, borrow money (if you still can), take on a large special assessment and make this building right or you will be out in the streets selling your units for pennies on the dollar.

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