Condo Association Management Blog

Typically you will get no more perks but in some states, such as Massachusetts, you get a larger vote since the vote is based on percentage interest. 
 
 
 
Stephen Marcus 
 
Marcus Errico Emmer & Brooks 
 
781.843.5000 
 
smarcus@meeb.com 
 
www.meeb.com

You should only be paying a proportional share of the fee for those items that provide you greater benefit. Examples would be exterior painting and insurance. Expenses that benefit everyone equally (the management fee) should be paid ratably.

I also live in New Jersey and the biggest condo taking up the most space in our community pays the same as the condo that is the smallest. I think if anyone should pay more in maintenance fees and assessments it would be because the largest condo has a double driveway, two garages and takes up a lot more space on the property than the single car garage unit. The largest unit's surrounding area is about 5 times as much as the area I have when grass is cut even though the ground is owned by all of us, the larger unit gets more shrubs, trees, etc. and that enhances the look of the largest property. It takes more fertilizer, more paint has to be used when painting, more roofing, more stones or blocks when replacing sidewalks, more driveway to replace, etc.  
 
If the maintenance done on your property isn't requiring more expense because of the size, then I truly do not think you should be paying more unless your place is that much larger and you have a combined gas, electric, and water bill and if that is not the situation I don't think it is fair for you to pay more because you have the largest unit when it doesn't require more supplies and man hours maintain your property.  
 
I never hear of anyone getting extra because they paid more but it might be nice if that was done for you since you pay the most and there is only one of you. Unfortunately because you are the only one in this category, I doubt if they would change it and give you anything extra.  
 

You get what you're paying for, you own one unit, you get one vote. You own the largest percentage of floor space & common elements, you pay the largest fees. This is what's owed to you. Nothing more. You knew this when buying that unit and read the CCR's.

I also live in NJ. Our fees are based on unit size as stated by Cebo, but I agree since we have our sewer and water included in our fees. The larger the unit, the more people it can accommodate and more sewer and water usage. I don't feel there should be any special priviliges. We are allowed one parking space per unit but there are pleanty of free spaces available.

Please tell me what Cebo means. I just happen to live in the smallest of three types of condos where and when the builder had the bylaws made, he was not aware of how many two car garage units would be sold and made the maintenance fees all the same. Since it was completed no one made any adjustments for the size of the units or even the end units who get more shrubs, and beauty to their units plus more paint when painting. Is Cebo something that is required in the state of New Jersey or just a way that anyone can charge if wanted for different size units. I'm feeling very uneducated about this. Please advise or tell me where I can find out about this? Thanks

The CCR's should specify how costs are apportioned and a purchaser should have been aware of this. Seems to me that unless there is some tangible direct benefit derived by a single or group of owners from the common areas (e.g. if some units had garages then they should pay more) costs should be equally divided between the units i.e. they should all pay the same. Having said that the CCR's are the controlling documents.

In time maybe they can proclaim you KING of The Condo Land! 
 
Just kidding. I had to say it.

I own a condo in Charleston and have to pay by square footage and 2 parking spaces in underground parking.The largest unit pays more, but has the same benefit, 1 vote, nothing moree or less. Same interest in all common area's. I knew that going into this condo complex.

Your bylaws and your NJ Condominium Act will both sopecify proportionate share as the basis not only for the fees you pay but also the weigh given to you vote on condominium matters. You get nothing else legally. You pay according to your documents and state law and neither grant any special consideration because you are the fatest cat on the block.

The problem that we have paying a proportionate share is that a third of our our associations budget is to pay for bills our unit type never incurs. We have a duplex and pay our own water, sewer, electric but yet we are also paying our proportionate share for those people's units who live in a condo building whose water and sewer is on a master meter that the association pays. They also have interior hallways, and fire alarms panels, telephone lines for the fire alarms, outdoor lighting, indoor garage, janitorial services, light bulb and carpet replacement, intercom repairs....We don't have any of these maintenance costs on our duplex's ever....but yet they make us pay our proportionate share (the largest in the association) for all these other costs in the budget.....Is this legal? I'm willing to pay my porportionate share to the charges we incur.

Dawn: 
Something sounds fish in your case, I agree with you that your duplex should be different from a condo complex. If you are paying you own way regarding utilities, them these items should NOT be included in you fees. Additionally, if you have no use of those limited common elements you mention, then the same should apply, not usage, no fees. You should carefully review you Articles of Incorporation, Declaration of Condominium and your By-Laws, all these documents were prepare up-front before your Association became a Condominium and should spell out specifically how fees are proportioned. Be persistent and I believe you'll fine your answers, otherwise contact your lawyer (something I don't normally suggest as it can be expensive). 
Another issue about being the "Fat cat" by owning and paying for your share, in the long run you benefit because YOUR property has the greatest Value of all others; you'll benefit financially if you sell. 
Chilly: 
I'd also have you review your Documents, if you are in the same or similar situation as Dawn, you may have a legitimate claim to have your Documents changed, but this will be a battle as you will have to involve everyone affected and need to have a lawyer amend your documents. Amending documents can have undesirable consequences, so be careful what you wish for.

1.) 6 buildings in association. 
 
2.) Each building has the same size foundation foot print. 
 
3.) Each building is sub-divided into three equal units. For example, each building is 6,000 s/f. Each "unit" is 2,000 s/f 
 
4.) Each 2,000 s/f unit has high ceilings and ability to install a second level "living area".  
 
5.) One owner has second floor...as initially built when condo was created. Owner's total s/f is 3000 s/f (2000 1st floor plus 1000 2nd floor) and wonders if their "percentage share" should be based on the first floor only instead of the total s/f of their unit. 
 
6.) Condo docs state "...determined on the basis of the proportionate square footage of each unit..."  
 
7.) The bulk ($$$) of common expenses are insurance, landscaping, and snowplowing. The lease ($$$) of common expenese are repairs/maint (all are new bldgs) and water (very little use) 
 
 
 
Based on the above, is this the best way to calculate percentage interest share? If not, would it be better to calculate based on the number of units in the condo association instead? 
 
Any thoughts/suggestions are greatly appreciated. We understand at a minimum any changes will need full acceptance from all owners and of course be re-stated/re-recorded in town hall. Thank you for your time.  
 

Yoyr state's condominium act will give you the answer you seek. Most states laws require that all assessments and voting is oproportoionally based and the square footage of each indivisdual unit is the basic determinant. The only perk the largest unit owner by floor area is to pay the highest condominium and assessment fees.

Thanks Scott. I'll review the general laws and determine whether or not we even have a choice to consider other ways in determining percentage share (s/f vs. # units). So long as no laws prevent the association from changing the way in which the % share is calculated AND everyone is in agreement, do you (or anyone reading this) agree that based on the example above, the per unit method is a fairer way? This one owner has to pay more than someone else with a 2000 s/f foundation footprint only because a second living area (not simply unfinished mezzanine) was built. Thank you for your assistance and time.

The proportional method based on size is almost universally used. The larger a unit the more heat and air conditioning is sued, the more lights are installed,more water and sewage is involved. Bigger is better but costs more to operate. When a vote of unit owners is required that same proportional weighting factor is applied. Reasoning behind this-the larger the unit the larger the monthly condo fees is required. Since they larger units pay more of the common expenses their vote is weighted accordingly. But the real answe is in your bylaws or your state comdominium act.

Thanks Scott. I took your responses and of course referred to the condo docs as well as the general laws pertaining to condominiums. Let me know what you think if you have the time and don't mind: 
 
1.) Nothing in the condo docs or general laws prevent the association from using a reasonable method of calculating the percentage ownership, and nothing prevents the association from changing to another reasonable method(with full acceptance of owners). 
 
2.) Condo docs grant ONE vote per UNIT.  
 
3.) The second floor does not impact add'l septic, water, utility, or insurance costs for the condo association. The association's coverage of the building is the shell in general terms. Utilities are separately measured by Unit and is the Unit owner's responsibility.  
 
4.) Changing to a unit based calculation might be better. There are 18 units. Each unit owner gets one vote. Each unit should represent 1/18.  
 
 
 
I agree that the proportional method based on s/f is widely used and accepted. It's the reason we chose this in the first place. However, we didn't forsee second floor "mezzanines" that would be finished for everyday use. Note of interest: yes, the space was permitted and build accordingly and included in the total s/f at town hall (tax assessments included). 
 
 
 
Thoughts? Comments? Many thanks!

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