Advice on a request for a reduced condo fee

Hello,

I’m a trustee at a newish 13-unit association in the Boston area. Our building is centrally heated with oil. The cost of fuel represents 47% of the 2009 condo budget based on fuel costing $5.00 a gallon when the budge was created (it’s now about $2.50).

Here is my issue, 12 of the 13 units all have radiator heating. When the building was rehabbed the developer built a basement “loft” that has radiant floor heat. The buyer was told that “loft unit” get supplemental heat from the building because pipes run along the units walls. The loft owner is finding that she has to rely mostly on her radiant heating and is now asking that we reduce her condo fee by 50% because she’s not receiving any heating services. All association members fees are based 7.75% ownership except the loft that is based at 7% because of the heating situation.

I’m wondering if anyone has any advice. Here are the issues I’m trying struggling with:

• How do I allocate costs if the loft does not pay heat? If there is a surplus in the heating budget that money will move to reserves. In the future if there’s a major expense how do I manage the reserve if everyone paid more money into the reserve that the loft did?
• Is it fair to assume the Loft unit does share a responsibility to heat the common areas of the building (the rest of the basement, the stair ways, laundry room)?
• Are there any implications this could open the door for other unit owners to demand a change in fee depending on service received?

I’d like to do what is fair but I think this is complicated. If anyone was any input I’d greatly appreciate it.

Thanks!

How different is this from a homeowner who cannot and does not swim not using a pool, then asking to have reduced assessments because she doesn't use the pool?

But go back to your governing documents. The odds are that they state something along the lines that "Section 8. Uniform Rate of Assessment. Both annual and special assessments shall be fixed at a uniform rate for all lots except those owned by Developer."

Meaning, regardless of which amenities, common areas, usage, consumption, access, what have you, they all get the same assessment.

It may already be a violation of your documents to be reducing the fee by that .5%.

Or it may be that the docs already address that, and go no further.

Either way, her "loft's" existence relies completely on the existence of the rest of the building, which requires the heating as mentioned.

So in order for her to maintain her "cave," she must ensure that the rest of the structure is properly maintained.

She gets no reduction. She's getting living space.

Little different then a pool. With a pool you use it or don't use it. With heat, she pays her dues for heat and then has to pay more for another heat source because she isn't getting enough (assuming she pays her own electric bill for the floor heater?).

This would be like living in a condo with a pool and not being allowed to use the pool, but still having to pay for it! Or maybe more like, you can't use the pool on Tue, Thur and Sunday?

I disagree. I don't think it's all all different in terms of where the association funds are going.

People who have certain disabilities can't use a pool.

But it's okay for us to disagree.

If you like, then use another analogy.

You get to the same place.

Hope it works out equitably for everyone.