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AlmirD (Illinois)
Posts: 5
Posted:


Hello for the past 10 years I was paying $250 for assessment for my 1100 sq feet unit

There are 15 units in the building. 6 are 2 br, 9 are 1 br.

There are 3 entrances so there are some variations in the shape and the size between 2br units and small variations between 1 br units.

for the past 10 years, 2br units were paying $250, and 1br units were paying $223 per month for assessment.

Now we got the new board president who recently moved in and who figured out that the assessments were not calculated based on the percentage of ownership.

Now he increased assessments for all 6 2-br units to $275 and increased some 1-br units from $223 to $245 and decreased the rest of 1-br units from $223 to $202.

Can the board do that without any official documents from lawyer etc?

TimB4 (Tennessee)
Posts: 21,059
Posted:
Probably.

You need to read your covenants and bylaws to see what authority the Board has in setting assessments and how those assessments are to be set.

Additionally, don't blame the President. They are simply the signature for the Board. This would have only been done with a majority vote by the entire board.

Also, keep in mind that developers often set assessments lower then they should be in order to entice buyers.
Once your Association has a reserve study done and contracts in place, they will know then know how much money is required.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Echoing what Tim said, check the section(s) of your CC&Rs that talk about the types of units and their par value (essentially the percentage of ownership each unit has).

It's very common for the par values to vary according to the sizes of the units and possibly other characteristics as well (for example, certain locations such as corners or top floors may be more desirable).

The assessment amounts should also vary by par value.

Not only *may* the board change assessment amounts, they *must* do so in order to pay the bills, which in a condo building can include things like water, electricity, and trash collection. In some states such as mine, the law also states that the assessments must include contributions to the reserve accounts for future replacement of things like roofs. By paying into the reserve, owners are essentially paying for their fair share of useful life of components such as roofs. It's also much more affordable to pay into this reserve gradually over the years, rather than being hit by a huge special assessment when the roof suddenly starts leaking everywhere and must be replaced asap.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By AlmirD on 10/20/2020 11:43 PM
Now we got the new board president who recently moved in and who figured out that the assessments were not calculated based on the percentage of ownership.
Ditto what Tim and Cathy posted. To me, it sounds like the new President actually read the covenants and found the page that gives the percentage of ownership assigned each unit. Prior boards may not have been calculating the assessment correctly.

I hope you post back with what your covenants say about the percentage of ownership that each unit is assigned.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Almir,

You didnt discuss the financial situation ... is it solid? Are reserves fully funded? Does the ops budget keep everything looking and operating right?

"Now we got the new board president ... recently moved in ..." - with Augustin - perhaps this new person read and understands the docs and sees a financial problem? Or, is simply responding to another member who believes they are paying too much for a small 1 BR?

The math - and, I guess at 5 larger 1 BR and 4 smaller: currently assessments total $3507, and the new total is $3683, only a $176 difference. So, not much difference.

When was the assessment last changed? From what? What was it when it was turned over from the developer?

You didn't note whether or not you agreed with the changes?

There are other Board members - what do they think?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
When all was said and done, did the changes effect the annual amount of dues the association takes in?
AlmirD (Illinois)
Posts: 5
Posted:
Thank you all so much for such a great responses. I will keep you informed.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Almir,

Will you answer the questions asked, now?

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