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Was property manager wrong about how condo fees were calculated?

Posted on Tue, Oct 04, 2011 @ 06:59 AM
  
  
  
  
  
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Our condo regime fees are based on the square footage of our individual units. And there's only 24 condo units. Our budget reflected an increase of 25.99%. The management company said it was only 5% and they would send me their figures. Now I find out the 5% increase is per unit!! This doesn't make any sense to me. Our by-laws state up to 10% without a vote but I believe that should be on the total budget amount not each unit. I think the management co. is wrong. My first condo so I would like to know is this way standard?

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Comments

Please download a copy of your state'sondominium act and look for pertinent reference to these calculations.State law pre empts bylaws in cases of conflict but many time the state law clarifies the meaning of words in the bylaws.
Posted @ Tuesday, October 04, 2011 8:29 AM by Scott
In SC its the "Horizontal Property Act' and this problem of fees is not addressed.
Posted @ Tuesday, October 04, 2011 8:58 AM by marilyn
Your math may be bad. A 5% increase per unit = 5% increase on total budget. So your 24.99% is flawed. 
 
To repeat, xx% on each individual element equals xx% on the total. 
 
Posted @ Tuesday, October 04, 2011 9:19 AM by verda
Recheck your bylaws. I'm betting it says the "assessment" cannot be increased more than 5%. That means each member's assessment amount. The amount of the increase to the budget does not enter into it.  
 
The percentages you give do not make sense. Just because each member's assessment increased 5% doesn't mean the total budget increased by 25%. There are 1702 members in my association and a 5% increase in assessments does not result in a budget increase of 5% x 1702!
Posted @ Tuesday, October 04, 2011 9:30 AM by mary
OK the amount we paid was $22,665.60 and increased to $28,558.08. We are already paying twice as much as the single family homes because they pay on a 'fee simple'.
Posted @ Tuesday, October 04, 2011 9:32 AM by marilyn
Marilyn, I can't grasp what you're saying. Is each unit responsible for paying now $28,558.08 per year? Or was the entire 24 unit condo budget increased to $28,558.08?  
 
"Fee simple" is a legal term for a type of ownership deed in real estate. The term has nothing to do with paying a fee like condo fee or contingency fee or court fee. In the real estate term "fee simple," the word "fee" refers to an "estate in land." 
 
Posted @ Tuesday, October 04, 2011 10:57 AM by George Cameron, Esq. Farmington, CT
Within our community there are two budgets. To pay our share of the common elements monies are transferred from the condo budget to the master budget. An that line item increased by $5892.48. I have been trying for months to get our financials from this management company. They told me an audit was too expensive so it wasn't done but our by laws state an audit is to be done every year. So this is just one of the items I need everyones imput on. And I appreciate taking time to help clarify for me.
Posted @ Tuesday, October 04, 2011 12:08 PM by marilyn
What does your board of directors say? Aren't they supposed to make sure the mgmt company follows the rules and regs? I would think that all unit owners would want an audit done each year to make sure everyone is doing their job properly. This audit also will make your resale value increase as lenders like to see these reports. Insist on an audit and let the auditor inform you if the rules have been followed. Our 130 unit Washington condo community spends $1,500/year for an annual audit. It is worth it! 
 
Posted @ Tuesday, October 04, 2011 2:37 PM by Renee
Try to talk to more to your HOA board, or perhaps check with a lawyer before you make any hasty decisions about how to move forward.
Posted @ Tuesday, October 04, 2011 9:56 PM by HOA Management
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