Mixed use association

Started by JoanR • 11 replies • 1825 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JoanR
Posts: 24

Posted:

Does anyone belong to an association where there are residences and commercial spaces that are both classified as condos? If so, I am interested in knowing how the commercial space is assessed. I belong to an association in NC and the commercial space pays 80% less in dues because they supposedly do not use all the amenities and are considered an amenity to the community. These spaces are used for restaurants, gift shops, and convenience stores. I can see allowing a break in the dues but not that extreme an amount.

MikeS1
Posts: 658

Posted:

Not enough info here. Are you in Wilmington? Suggest listing dollar amounts, square footages and also.. a lot of commercial condos also pay a C.A.M. Common area maintenance charge. Any more info here?

MikeS1
Posts: 658

Posted:

JoanR
Posts: 24

Posted:

On the NC Coast, but not in Wilmington. My unit is 1175 sq ft and my percentage of ownership in the total property is calculated at 1.37%. One of the commercial spaces is 8000 sq ft and their percentage ownership is calculated at .513%. This ratio is used for dues and any special assesments. Commercial unit owners pay no C.A.M. fees, only their HOA dues. Are you familiar with what the ratio is usually for commercial vs residential in a mixed use complex?

PaulM
Posts: 1,325

Posted:

JoanR: What do your official documents state? Do they refer to a percentage based on the sq. footage if/when any unit becomes commercial?

Who determines/sets the ratio scale that is used for dues and special assessments of Condos in N.C.? Perhaps you can refer to the N.C. Condo Act.

JoanR
Posts: 24

Posted:

The Declarations do not address this issue other than listing the percentage interest in the common area. The Declarations do not list the square footage of each unit. I am trying to get some comparative information on how other mixed use properties assign the ratio of commercial to residential. I want to propose an amendment to the Declarations to make this more equitable for residents as we do not feel the ammenity they provides should give them such a drastic reduction in dues. The commercial units also create a parking problem for the community since we no longer use an attended gate because the commercial owners complained that this was not inviting to customers who were not at the property and were coming to use their services from other condo complexes.

PaulM
Posts: 1,325

Posted:

JoanR: Do your documents address the ability to allow mixed use properties: residential and commercial?

MikeS1
Posts: 658

Posted:

Curious - How much are your monthly assessments now for 1175 sq ft condo?.. and what does it include?

JoanR
Posts: 24

Posted:

The property was developed to be mixed use and the Declarations were written in my opinion to be very favorable for the commercial owners. For example, in the Declarations it has a section titled: Rights of Commercial Unit Owners whereby it states that no rules or regulations be enacted by the Association which shall unduly restrict the parking rights, elevator usage, hours of operation, access, electricity, cooling, heating, telephone service, water/sewage servicer to these units.

I am really only trying to get some responses where people will let me know what the ratio is on the percentage compared to the square footage. I need this information to develop a proposed amendment.

PaulM
Posts: 1,325

Posted:

JoanR: Thank you for the clarification that the property was developed for mixed use but you feel it is very favorable for the commercial owners.

As far as the ratio on percentage of sq. footage between commercial and residential, perhaps you could network with like-communities in the area to learn what their setup is. I, personally, am not familiar with this type of "mixed use association", but it does sound like the present Declaration "rights" give the commercial unit owners the edge. To get this changed will take lots of hard work and communication with other like-minded residents to get your point/s across.

In order to establish an amendment to the official docs, you will have to adhere to the percentage of unit owners necessary to vote yes for an amendment to pass and then have it filed. If you suspect the commercial owners will not vote for an amendment which will ultimately cost them more money, you may want to canvass your community of residents to secure proxy votes for the meeting.

This is a very interesting post and I don't envy your situation. Good Luck.

PaulM
Posts: 1,325

Posted:

JoanR: Check out another present Topic Listing: "New Condo Purchase" and the responses from Art and DottieS. Maybe you can link up with them re your similar situations.

JoanR
Posts: 24

Posted:

Thank you.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here