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LarryL8 (New Jersey)
Posts: 5
Posted:
I am one owner of a 30 unit condo building.
10 of the units have 10 parking spaces included with their units as part of the original contract.
Those spaces are actually part of the building.(Mine is not part of that group.)
None of the remaining 20, have parking spaces assigned unless, they pay for one to the owner of a separate garage, (which oddly enough is owned by the developer of the condo project).
I have found out that all 30 units are subsidizing those 10 spaces in the form of “Maintenance Fees”. i.e., the said parking spaces are not included in the square footage of each owners unit when the fees are calculated.
Right now not enough units have been sold to establish its own “Association” so the project is still under the control of the developer.
So, the question is, at this point, what is the best way to alter the By Laws in order to establish a change so those owners who have assigned parking spaces are paying for their spaces and the owners who have none are no longer subsidizing them. Is there a way to force the developer to change it? Or do we have to wait until the building has enough owners to form its own association? Or is this something that will be very difficult to modify.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By LarryL8 on 03/05/2016 8:58 AM

So, the question is, at this point, what is the best way to alter the By Laws in order to establish a change so those owners who have assigned parking spaces are paying for their spaces and the owners who have none are no longer subsidizing them. Is there a way to force the developer to change it? Or do we have to wait until the building has enough owners to form its own association? Or is this something that will be very difficult to modify.

Since the Declarant typically has control of enough votes, the only options I see are:

1) Wait until control has been turned over to the owners, then gather support to make the change (just make sure you change the correct document).

2) challenge the issue through the courts (which will be expensive and likely scare away some potential buyers until the issue is resolved).

3) Gather support and set up a meeting with the developer and see if they would be willing to make the change.

You may want to try option 3 first.

Hope this helps,

Tim
NpS (Pennsylvania)
Posts: 4,216
Posted:
I agree with Tim. Never a bad idea to approach developer first.

Unfortunately, you are at the mercy of the developer's marketing plans. He priced the condo units with and without a deed to garage space. He's letting the marketplace decide. He's probably not looking past the sale of all the units.

3 suggestions:

1. Look at your docs. Find out what event triggers the transfer of control from developer to homeowners. You probably have to wait til all the units are sold, but maybe not.

2. Ask for a copy of the budget. See for yourself what portion of maintenance costs are being spent on the deeded garage space.

3. Find out what portion of your fees are supposed to go toward reserves, and what portion of those reserves are planned for the deeded garage space. Reserves are about long term replacement and repair - They're very often understated by developers are more interested in showing low fees than planning for long term needs.

BTW, nothing strange about his owning a paid garage next door as long as he's disclosed it. I have a question on that though - IF it's a public garage, are you guaranteed available space and some kind of discount against price he charges the public? How long do those guarantees last?


Sikubali jukumu. Read all posts at your own risk.
KerryL1 (California)
Posts: 14,550
Posted:
Welcome to the forum, Larry. First, some questions: Are the 10 spaces in a covered area since they, as you put it, are a "part of your building?" Does the building form a wall for these spaces?

Is the garage that the developer owns on HOA Land? Or on his separate-interest lot?

Our HOA is two condo buildings with 200+ units. All parking spaces're in a 3-level underground garage and are deeded to owners. Their sf isn't a part of each unit's sf. They are exclusive (limited) use common areas. Most owners own two spaces, but 15%-who own smaller condos- own only one.

A few owners actually purchased motorcycle spaces from the developer and we all pay for their maintenance. Every residential owner pays equal assessments into reserves to resurface the garage floors, to replace the overhead lighting ballasts & CO sensors. Re: the floors, cars that have spaces near the main drive aisles pay the same as cars that're waaaaay into the less favorable interior, say, next to a wall; the latter "use" more of the floor to get their cars there than the former, but pay the same.

Each group pays equally to the operating budget for nightly custodial work, striping the spaces, touching up the columns, painting the yellow bumpers in front of our cars, etc.

The fact is that our parking garage structure is common area so everyone chips in to its reserves and routine maintenance. Even if I sold or leased both my spaces, which I'm permitted to do, and never go into the garage again, I'll still pay my fraction of the HOA fees for the garage.

This raises one question: How much a month or year a will/do you pay for your share of these garages?

In addition, there often are parts of HOAs' common areas that some owners do not or sometimes cannot use, but must pay into because of their common areas' status.

I think that all of the high rises around us have a similar set up--lack 2 parking spaces for every condo, but every owner pays the same dues.

So, I think what you see as inequitable is very common. Still, it might not hurt to try Tim's #3.

If Bonnie from NE checks in, she too, is in an older condo bldg.--maybe 40 units-- where not everyone owns a space in the garage. Perhaps she'll be able to tell us if all owners are billed for garage maintenance & reserves, or just those who owns spaces.
LarryL8 (New Jersey)
Posts: 5
Posted:
Regarding additional questions:

"IF it's a public garage, are you guaranteed available space and some kind of discount against price he charges the public? How long do those guarantees last?" and "Is the garage that the developer owns on HOA Land? Or on his separate-interest lot?"

The way it is set up is that the developer owns a 135 unit apartment building as well as the underground garage parking. The developer owns the land under the Condo building. The condo building includes only the ground to which it is built on. This was set up by the city as an incentive to build the units so that part will not change.
At time of purchase, the owners who have to pay for underground space, are not obligated to have a parking space even though they are designated at time of purchase.
If an owner chooses not to rent the garage space, they pretty much loose their right to have a parking space, say there are none available later down the road. As for the rate, it is subject to "market rate" which is the same as would be for the 135 rental units.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryL8 on 03/05/2016 11:47 AM
The developer owns the land under the Condo building.

Can he charge the Condo a rental fee on that land? Any limits?

Quote:
Posted By LarryL8 on 03/05/2016 11:47 AM
The condo building includes only the ground to which it is built on.

Not clear. Does the condo own any land at all?

Posted By LarryL8 on 03/05/2016 11:47 AM
At time of purchase, the owners who have to pay for underground space, are not obligated to have a parking space even though they are designated at time of purchase.

I think what you're saying is that they get deeded a space even if they don't use it. Correct?

Quote:
Posted By LarryL8 on 03/05/2016 11:47 AM
If an owner chooses not to rent the garage space, they pretty much loose their right to have a parking space, say there are none available later down the road. As for the rate, it is subject to "market rate" which is the same as would be for the 135 rental units.

Wow. Not sure how easy it is to find parking near where you are, but this arrangement could make me very uncomfortable if I was in your shoes.

Sikubali jukumu. Read all posts at your own risk.
LarryL8 (New Jersey)
Posts: 5
Posted:
Re questions:
"Can he charge the Condo a rental fee on that land? Any limits?"
"I think what you're saying is that they get deeded a space even if they don't use it. Correct?"

The garage owner cannot charge a rental fee on grade level land that the condos are on because he does not
own the grade level. He only own below grade level.

The Condo owners who have been "assigned" an underground parking space are in fact not "deeded" the space. i.e. the parking space underground is a separate agreement not part of the CC&R's or By Laws or part of the property the Condos are on. Only the 10 spaces referenced are "deeded".
KerryL1 (California)
Posts: 14,550
Posted:
I do get it, Larry, that only 10 Owners own parking spaces at your HOA, but all 40 Owners are paying to maintain these 10 via their assessments.

What you haven't cleared up for me is: are these 10 spaces attached in any way to your condo building? Are these 10 spaces covered with doe kind of roof??

I also asked how much a month (or year) of your dues go towards maintenance of these 10 spaces?

LarryL8 (New Jersey)
Posts: 5
Posted:
Reply to question:
"...are these 10 spaces attached in any way to your condo building? Are these 10 spaces covered with doe kind of roof??
I also asked how much a month (or year) of your dues go towards maintenance of these 10 spaces?"

The 10 "deeded" spaces are considered the 1st floor level of a 5 story building and are indeed attached to the building as the pillars in the 10 spaces are supporting the other 4 stories.

The maintenance fees are calculated on a per square foot basis of each unit which are different.
In measuring the total sq footage of the 10 parking spaces at the $ per sq foot basis, it comes out to approximately $250 per year per unit.

KerryL1 (California)
Posts: 14,550
Posted:
We also have a square foot variance in our condo buildings; bigger units pay more in dues than smaller units for three specific services: water; gas & bldg. ins (don't ask). (I do know you have 30 not 40 condos) what does the sf variance cover in your HOA?

BUT the unit sf does NOT include the parking spaces that are deeded to us owners. And, in fact, some parking spaces are bigger than others. In fact, two spaces are extra wide handicap spaces that that original owners had installed by the developer. Should those two current space owners pay more each month into reserves & the operating budget?

And what about the areas between the spaces--they're owned by all of you in common.

You wrote, Larry, that: "The 10 deeded" spaces are considered the 1st floor level of a 5 story building and are indeed attached to the building as the pillars in the 10 spaces are supporting the other 4 stories."

These pillars and the structure they support are part of your HOA's common area so all owners pay to maintain them. This roof also is the floor of maybe some condos and perhaps a lobby or other condo areas. So you all pay.

I'm looking at a roof on a town home that is part of our HOA. The roof serves ONLY that condo. It's on the street level & several of these surround our high rises. But all Owners pay into reserves to replace those roofs.

To know how much you're paying into reserves & into your operating budget for these 10 spaces, you look at your budget line items; not at the sf. Your reserve budget might be best.

I feel like I'm not making sense to you, Larry, but don't know where I'm going wrong!
TimB4 (Tennessee)
Posts: 21,062
Posted:
I would also ask if the spaces are considered part of the deed or simply exclusive use common area.

This may make a difference.
KerryL1 (California)
Posts: 14,550
Posted:
As noted in my way above, Tim, ours are both. The space number or numbers is on the deed and is recorded. BUT the spaces also are designated exclusive use common area in our CC&Rs. Our HOA makes rules about them, e.g., we must clean up fluid leaks; only one car & one personal shopping cart may be in each space. And our HOA maintains them. e.g., stripes them, paints the yellow bumpers.

My understanding is that this is very common in our urban high rise neighborhood.

Larry, I believe that $250/ann. per owner for the upkeep & reserves of these 10 spaces that you estimate is way out of line and I'm thinking incorrect. That's $7,500/ann. And it clearly cannot cost that much of your custodial line item to sweep these, nor that much to replace the components in say, 10 years, for only those 10 spaces!! Something's not right here.

LarryL8 (New Jersey)
Posts: 5
Posted:
Re question cost per sf.

Info is correct.
per month maintenance is .35 psf of occupancy.

take the following sample:
average space 180 sf
maintenance fees are calculated at $.35 per sf
EllieD (Vermont)
Posts: 446
Posted:
LarryL,

Re Condominium Documents that I am familiar with, Percentage of Ownership can be based on a number of different factors, such as selling price, lower floor, top floor, size of Condo Unit – Square feet, etc.

Which is then converted into percentage of ownership, and the percentages of ownership of the total number of Condo Units in the Association, have to add up to 100 percent. And it is the percentage of ownership for any particular Condo Unit, that determines how much of the Total Maintenance Fee, that Condo Unit pays.

But you seem to be describing something different.

Would you be willing to post the exact words from your Documents, that state how the Maintenance Fee due, from each of the individual Condo Units, is to be calculated?

Thank you.
KerryL1 (California)
Posts: 14,550
Posted:
Ellie, your question might help!!

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