Updating Complex

LauraL3 (Arizona)
Posts: 21

Posted:

I am on a board of a complex that is 40 years old. Some of the new owners would like to update their units. One owner would like to add a room where a patio is currently. The exterior wall will go up to 12feet. The city code allows it.The wall faces a driveway and wall to another complex. The CCR'S state the board shall have the right to refuse to approve any such plans which are not suitable or desirable for aesthetic or any other reasons. A couple of members of the board do not want any changes in any form to our complex. I am a believer in change. What "valid" reason could be used to deny any changes. If denied in this case what will happen to any request in the future.This includes painting, adding garage,patio to front of unit. Also 75percent are two storey units, what could the board do if someone wants to add a storey to a one level unit? I am sure that other older units are having the same problem with progress. Our condos are in very desirable areas and the values are increasing and some of us would like to insure that we keep it that way.Any advice would sure be appreciated.

JM2 (Oregon)
Posts: 439

Posted:

Hi Laural:

I would suggest the following procedure:
1) Look at plans to see if there is anything from the board's perspective that would be unsuitable or undesirable for any reasons that the Board would come up with.
2) Consult with a couple of architects about the aesthetics of the proposed project, with relation to the rest of the condominium. Perhaps include a couple of real estate agents to talk about how the proposed changes could affect the value of other units in the condominium.

If the project passes approval from steps 1 and 2, then the next step would be:
3) If the dues in your condominium are based on the square footage of the unit, as a percentage of the total square footage of units in the condominium, calculate the dues for all the units if the addition is approved. The result should be that the rest of the units have a slightly lower assessment, and the modified unit should have a slightly higher assessment (due to increase in square footage for the Unit). Inform the owner of the resulting increase of the unit.
4) I would strongly recommend that (if your documents & state law allow) the Unit owner be charged a special assessment, to cover the cost of the Association's hiring of a consultant to oversee the project, to make sure that installation of all changes to the general elements of the condominium are proper, so that the HOA is protected against any improper construction work (this could cost a good chunk of money, but since there will be a change in the common elements, the Association has to protect itself).
5) The association may want to require a deposit prior to construction, to make sure that any association costs are covered (any violations that may result in fines; any additional costs that the HOA has to bear are covered).

Some other members of this forum may have some different and/or additional suggestions... I think that these suggestions would be a good way to help the HOA to protect itself.

It isn't that you would necessarily "just say no," but that the way in which you might end up saying "yes" has to be a good procedure, since you are setting a precedent within the association with the review of the proposal, as well as possibly with the project. You might want to consult with the Association's attorney regarding both your docs and state law, to see if there are any potential land mines that you need to be aware of, and so that the board fully understands the process you need to go through, whether the project is approved or not.

J. Patrick Moore, CMCA