End of viability of townhomes

Started by JudyrosellaE • 4 replies • 174 views

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JudyrosellaE
Posts: 57

Posted:

Hi,

I'm probably not using the right words. I live in a townhome community (not a condo). Last year, the subject came up about replacing the siding on these 1996-constructed townhomes. We already replaced the roofs. That was hell. Only the people with leaks wanted the roofing done. In the end, we managed to agree that EVERYONE gets re-roofed. Looks better anyway.

No one wants to face The End.

What happens when eventually it is no longer cost-efficient to update our townhomes?

Eventually they will become more expensive than they are worth, IMHO, to update.

I'm suspecting that a day comes when it is better to raze them. And, then what? We get to sell the quarter-acre or whatever it is that our Unit is worth?

There is an Bylaw that says we have an "obligation to rebuild," but I think that only applies to a disaster or a fire. Is Age a disaster?

What have other townhome communities done? Is that discussed somewhere, with better terms?

Judy

AugustinD
Posts: 1,027

Posted:

Note: From Judy's other thread, this may be a cooperative. For purposes of discussion below, I will refer to this as a "coop."

Quote:

Posted By JudyrosellaE on 11/16/2022 7:57 PM

What happens when eventually it is no longer cost-efficient to update our townhomes?

Eventually they will become more expensive than they are worth, IMHO, to update.

I'm suspecting that a day comes when it is better to raze them. And, then what? We get to sell the quarter-acre or whatever it is that our Unit is worth?

In my experience, your questions raise a few topics:

-- Termination of the coop will be per the terms of the Declaration, Articles of Incorporation and state law. Due to much property being owned in common by all owners, it is a complicated feat.

-- The subject of building life expectancy as it pertains to condominiums/coops does appear here and there on the net. Such discussions (typically reports by newspapers) are increasing in frequency. Why? Because the construction of condos and conversion of apartments to condos sped up around the 1960s or so. Now buildings are showing their age. Some require complete gutting. It can be done. But as I think you know, it's a huge chore, legally and practically. A major burden is placed on owners. Just getting owners to agree on xyz is a nightmare. And yet, with disasters in say, Florida, more and more experience

is accumulating on the point.

-- I think it's way premature to be thinking about this for your townhomes. Piping problems may arise. Exterior siding and roofs must be maintained. But these are kind of small potatoes compared to what you are talking about.

-- At some point your studies will lead you to ask about "reserve studies." I advise holding off discussing this until you have caught up on a number of other subjects (bylaws and copy of declaration needed; identifying if this is a coop; a bit more).

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Judy,

Unfortunately, your community's HOA board isn't very experienced or informed on HOA operations.

It will be very difficult to abolish your community so everyone can demolish their homes rather than invest in basic maintenance.

Age is not a disaster. Age is a planned event.

1996-constructed townhomes are not functionally obsolete and I'm unsure how others on this message board can advise you as your assumptions as to the solution to extreme deferred maintenance are high unconventional.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Judy,

I lived in a 1980 town home development previously.
Those homes are selling strong.
In fact, my home was only on the market for 2 weeks before it sold.

Your community is newer then the one I lived in.
It can probably last for many more decades.

Yes, repair costs will keep going up.
When the land is becomes more valuable then the home, you will likely see an investor start buying everything they can within the development.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Judy

In one townhome association I was a member, of the townhomes sell for about $450K. They were built in the early 90's and sold for about $150K but they were maintained properly over the years. Granted the maintenance over the years required dues increases but one gets what one pays for.

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