Variable Assessments

A committee of two directors (I'm one) and an Owner have been board-approved to rewrite our CC&Rs. We're just getting started and will get our HOA attorney's advice on many topics.

Our 200+ condo 25 story HOA's current CC&Rs state that larger units pay more than smaller units towards their assessments for thee things that they supposedly use more of than smaller units: gas (cooking, hot water; fireplace), water, & insurance on our buildings. But in reality, 90% of the units are 2 bedrooms and two people live in most. So, try they consume most of our buildings' sq. ft., but not water or gas.

Are there other variables that might more sense? Does anyone know of elevator buildings, for instance, where higher floors are charged more for electricity and elevator Major Repair reserves than lower floors? Or any other ideas?

Variations based on square footage is common. I have also seen builders charge a height and view sale price difference but never different dues for such. I have heard elevator surcharges floated about but cannot point to a specific case.

Thanks for replies.

I have not decided on any path, dangerous or otherwise, Tim. Just looking for ideas.

My suggestion would be to look at CC&Rs from similar high rise condos in your area.

See what is common and what is different between those documents and yours.

I would also minimize questions to the attorney.
Wait until you have a draft and then simply have the attorney review it.

I would also recommend a layout that shows the existing language, the proposed language and the reason for the change.

Thanks, Fred. We really need to rewrite our 15 y.o. CC&Rs and don't want anything in them that will cause "no" votes. As in many such restatements, we need 67% approval.

I'm not going to suggest any change and if others do, I think I'll be able to point out that if we eliminate, say, two variables--water & gas, and replace them with say, reserves & checkups for window washing equipment & contracts (the larger units certainly do have many more windows), and add something for elevator reserves--major repairs, and electricity to run the elevators (90% of the larger units are on upper floors), the $ amount per unit would change very little, but this could be very confusing to voters.

I'm sure I'll be back with more questions! Right, Tim, our PM has a fine network of other high rises around downtown and will survey them about what topics are popular with voters. Turnout is crucial!

I'm thinking a complete ban on smoking would be very popular. It's not a common problem, but we have 2-3 complaints a year about smoke intrusion or butts dropped onto balconies below. Smoking is banned in our common area exteriors.

Yes, we do, Jeff. But once notified if they don't dissent in 30 days, it's considered a yes vote. Another piece of of good news is that in our zip code, 40% of all purchases are all cash, so maybe not as many lenders as others.

Good one, Larry! Our CC&Rs are a complicated mess and each committee members have made lists of things that must go, many of which overlap. But none of us thought of that one!

I think I don't understand your question, Jeff. Are you saying that if we don't give lenders a voice in amending our CC&Rs in the future that they won't lend to purchasers u in our HOA?

Or are you asking if some lenders refuse to lend in our zip code for some reason so buyers must purchases all cash?

As a former mortgage banker, Jeff hit the nail on the head.