Condo Association Management Blog

HOA loans considerations for your condo association

The condo association we belong to needs some major repairs to buildings that have deteriorated over the years structurally. With engineering reports and bidding completed, it looks like it came in at a $500,000 price tag. The board wanted to take out an HOA loan but is having problems due to the level of foreclosed units (9) - the HOA lending bank wants the level to be 6. We have had 3 denials over the last year. My question is the board has had the ability to assess the owners for the amount but they are gung-ho on an HOA loan that would use the buildings as collateral. How much value will our individual units loose if an HOA loan is on the books. The board want to take out a 10 year loan - this is unacceptable to the majority of unit owners. If the board had begun assessing 18 month ago instead of beating their heads against a wall, the assessments collected would have almost cover the cost. Now the board has reduced the scope of work so the total restoration is down to under $300,000. Each unit would be responsible for about $3,700. There are a few owners who would have problems coming up with this right away but the majority could handle this assessment. The board will not listen to the owners (over 50%) who do not want a lien on the property. Where do we go from here and what are the owners rights?

Making amendments to condo association bylaws

Our New York 55+ condo association just sent out a letter about an addition to the condo association bylaws, not an amendment. Also included in the envelope is ONE page containing both 1) a proxy that specifically names the Secretary of the Board as the person to act on the proxy, and 2) a voting form that requires the homeowner to enter their name and address. Homeowners are directed to respond with a vote or proxy by March 15. A meeting on the issue will be held on March 25. Our bylaws clearly state that a meeting to discuss amendments is required before a decision is made on amending bylaws. Isn't all of this illegal? The last amendment was passed the same way a year ago.

Questions about filing claims on condo association insurance policies

I am a vendor who did work relating to a condo association insurance claim for an HOA in North Carolina. How long do we have after the date of claim to the Master Policy to get the bills paid? The proceeds of the policy were insufficient to cover the work we performed. Is there a statute of limitations on filing a supplemental claim or pursuing the HOA for the unpaid bills?

Condo association needs engineering study - Florida law

Florida law will require Engineering Studies to be completed for all condo association buildings. We have 2 buildings, 116 condo units. Any idea on how much this would cost, how far should we go with the scope of the engineering study, and how do we go about hiring a "reputable" firm to complete a thorough study? Thanks.

Property manager accused me of being a racist landlord

I was presented with the possibility of renting my condo to a person that has bad credit. I agreed to do so by giving the tenant a monthly rental contract and requested the age and race of the person wanting to do so. The property management company accused me of racist and breaking the law for requesting this information but mostly it appears that the monthly contract was something he did not want to do. Is it unlawful to request this information when you are giving a break to a person with bad credit?

Condo Association Reserve Funds: Use and Regulations

Regarding Reserve Funds: Can the Condo Association Board utilize reserve funds to make needed improvements? Can one reserve fund by reallocated to another to accomplish the improvement? Does the majority of the condo association need to vote to re-allocate funds or can the Board re-allocate the funds as needed without a vote if they make the condo association aware at a monthly meeting? I'm a Florida Unit owner and am not fully aware of the FL 718 statutes or the Florida Administrative Codes regarding use of reserve funds

Condo association's history effects its corporate structure and operations

We recently bought a condo in a large gated community association. We just learned that there is a 66-unit lease-hold apartment complex within our gates at our entrance (the land on which it sits is owned by a man in Hong Kong). They share our community facilities for a monthly fee per apartment unit. The problem: the apartment corporation is allowed to participate in our membership voting as if it belonged to our Condo Owners Association. They don't.

The County identifies their building as an apartment. Before 1991, 396 condos were noted in our Condo Association bylaws. In 1991, that count was increased by 66, the exact number of the apartment's units. Long-time owners report that in 1991 a large bank foreclosed on the apartment. That bank sued each condo owner individually. It would drop the lawsuits if the owners voted to annex the apartments. So they all did. The bank wanted a controlling voice in the Condo Association's fees charged for use of common areas. With 66 votes, they threatened to removed Board members if they didn't vote the way the Bank demanded. My question is, now that we know the situation, how can we get the apartment complex removed from the voting process without it costing a fortune in legal fees? How do we get our condos' total number corrected back to 396?

Our condo association bylaws definition of a condo clearly matches the legal definition pursuant to California code. The apartment building doesn't meet the definition. Because they are now part of our total numbers, our rental rate is too high. No HUD/FHA loans are allowed. We definitely need advice. Help.

Condo association issue with leaking pipe. Who is responsible for repairs?

Water is leaking through my bathroom ceiling from the condo unit above me. It appears to be a pipe in between our units. Who is responsible for repairs, my neighbor or the condo association board? Is this a condo association insurance matter?

How does condo association fire a property manager?

We, as unit owners in our condo association are disgusted with our property management company. I've heard of "disbarment docs" for firing the property managers, yet don't know where I can info..or what it actually means..please, any help would be great.

Understanding Fannie/Freddie loan rules and small condo building occupancy

I live in a four unit condo building. I have lived here for 14 years and 2 years ago purchased a larger second unit which is now my residence. My initial condo unit is now rented as is one of the other units in the condo association building.

The fourth unit in the building has recently gone under contract and it has come to light that with the changed freddie mac / fannie mae laws, the loan for the potential buyer is challenged on two fronts.

The first is that 1 entity owns 50% of the building and the second is that 50% of the building is now rented. If I understand correctly lenders will no longer lend given this scenario. It has been suggested to me that I file a Quitclaim deed on one of my units which I fear may have negative implications for me and it has also been suggested that there may be a way around this in the small world of non-conforming loans.

I have consulted lawyers, mortgage brokers, real estate professionals and my accountant and I don't yet have a firm answer. Is there a known way around this? Is there any kind of exception for buildings with less than 20 units as these loan laws/rules are clearly problematic? Thank you.