Deeded Condo Units

Started by HeleneN • 5 replies • 1513 views

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HeleneN (Connecticut)
Posts: 84

Posted:

We are a Condo Assoc. consisting of 52 individually owned deeded units (structure and lot)surrounded on the perimeter by Common Property as well as roads. Declaration is confusing as to responsibility of maintenance, repair and replacement of roofs and siding. It says the Assoc. is responsible and that it will be a common charge. However, when you read what common charges consist of, among other things it says Reserves for Common Property. There is no mention of Reserves for Units. Some take that to mean it will be paid for by assessment. Others want immediate Reserves set up to meet the expense of replacement. We are in the process of re-writing our Declaration and there seems to be a lot of controversy on whether we even have the right to set up Reserves for Unit owned property. Some people, after 10 years of living here, didn't even know that they owned anything on the outside. Other folks believe that its' private property and want total responsibility of their own homes and not a board or Management Co. dictating who the contractor would be. Some owners have already had a bad experience with contractors sent out by management to repair roof leaks.

I would be interested in hearing from others in a similar situation as to how they handle this.

Thanks for sharing!

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Helen

Just to get this straight. Your units/homes are free standing homes. As in not attached to each other. Am I correct?

If so, does each home/stand sit on a deeded to it piece of property?

If the answers are yes, then your setup is similar to my HOA. Basically standalone homes on a deed piece of land.

Our Covenants make it clear the HOA is responsible for all outside home maintenance and landscaping maintenance of each lot plus responsibility for our limited common areas. If a brick falls off the front on my home (due to normal wear and tear), the association replaces the brick. If a bush dies (again normal wear and tear), the association replaces it. Now remember, we are the association so we pay for this in the form of our dues.

In our association, this also means you cannot plant a bush of your own choosing nor paint your front/garage door a different color, but another subject.

I would say removing or modifying, etc. the existing responsibility (Covenants)would not fly here noir most anywhere. Most understood how this is (a major selling point here actually) and is one of the main reasons many choose to live here. I would also say adding such if not already there would not fly in most places as additional services will have to be paid for. In either case, adding or removing, can only result in one major legal battle with "the other side".

I think your association needs some legal clarification of how your present docs read and what they mean. Also an understanding of how people understand them. Lastly, a clear picture of what any proposed changes would mean.

I say back down on changes until you all have a better grasp of the situation.

Hope this helps.

HeleneN (Connecticut)
Posts: 84

Posted:

Thanks John

Yes, we are free standing and each unit sits on a deeded lot as well. It's clear that the Assoc. is responsible for lawn care and snow removal(why didn't I stay in Beaufort County?)Shrub replacement under the same circumstances. How we look is another subject and handled by the ARC Comm.

And so it sounds like you have Reserves set up for things like bricks falling out(we have vinyl siding)and roof replacement(we have asphalt)

We are getting legal opinion though it sounds like with a 67% affirmative vote we can change the Declaration. Right now it sounds like it will be a hot issue. If you have Reserves for Units do you think it adds to your resale values? I'm sure if we establish Reserves our monthly fees will sky rocket and wonder what that will do to resale.

Incidently we lived under the rules of a HOA in SC and were totally responsible for our own property. Very strict covenants on how we looked. It worked just fine.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Helen

Are you saying it appears the association has the responsibility for things but no money set aside (reserves) for such?

In todays market it would cost us about $2K per home (in SC, cheap labor) to reshingle/roof each home. 113 homes or $226K. Now we are not that old an HOA so this task it at least 20 years down the road (and staggered over 5 maybe 6 years) but if we started today, we would have to add $11K per year to the Roofing Reserve to have the money to do so in 20 years.

If the reserve is not built up over the 20 years then in 20 years we will have to access each unit $2K to do so. When I say do so. Our Covenants contractually commit our HOA to do so. It is not a question of must we. The only question is when do we pay the Piper? Slowly as we go or all at once? Like kiss me first.

I am 71. One part of me says screw what they have to do in 20 years. Sorry to say, many think like that. Hmmmmmmm...maybe the more I think about it...hmmmmmm......LOL

Bottom line is your association needs a mindset/policy change long before any Covenant change.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Helen,

Typically the Association would only establish reserves for planned maintenance, expected repairs and replacements of those things they are responsible for. The members would be responsible for any maintenance, repairs or replacement of things they are responsible for.

Insurance would be used for the unexpected.

From my understanding of your posts, your Association doesn't have reserves for the roofs or siding that they are responsible to maintain. If this is correct, then I would think that your Association needs to reconsider it's reserve study and include those items. I don't think you need to amend the governing documents to have reserves for those items.

However, if you are saying that the Association should have reserves for things that they are not responsible to maintain, then I would be against incorporating such a requirement.

FredS7 (Arizona)
Posts: 927

Posted:

You have not quoted exact language; however if your paraphrase is correct it sounds like your documents are ambiguous.

It is possible that they are not ambiguous to a careful reading by a lawyer. If he agrees they are unclear it seems to me you need to change the documents to clarify.

The association responsibility is determined by the documents and is independent of the existence of a reserve account.

If your association is responsible for external repairs without a reserve fund: you are financially unattractive to buyers whatever you do. Increasing the fees looks bad and having no reserve also looks bad.

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