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How can my condo fee be more expensive than other owners?

Posted on Thu, Jan 03, 2013 @ 08:13 AM
  
  
  
  
I just bought a condo 6 months ago. There is a $200 a month condo fee and only three condos here. In the past we divided everything equally and my dues were raised by an attorney to $420 and the other owners were raised to $330 We are the condo board  I dont see how she can tell us to pay more because we have the larger unit? This covers lawn maintenance, insurance and snowplowing.

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Your condo fees are determined by your governing documents, not an attorney. If the docs state that the fees are prorated based on percentage of ownership (typically tied to the size of the unit) then that is what should be paid. If the owners don't agree with that or want to do something different then the docs need to be amended.

posted @ Thursday, January 03, 2013 8:30 AM by Jeremy


condo owners pay according to the percentage assigned to their units.  
 
Most often this is determined by the footage or size of the unit. Therefore your fees would be calculated based upon the percentage assigned to your unit. The larger the unit the higher the fees, conversely the lower the percentage the lower the fees. You will have to look at your governing docs to verify this. 

I can only conjecture the reasoning behind larger fees for larger units is that you are certainly using up more heat and possibly other utilites than the smaller units, and this is addressed by the higher fees. 
 
Our association pays for our gas and electricity as well as common elements. Our monthly assessment and other fees are based on percentages applied to each unit, with the larger units paying larger fees. I urge you to take time to read all of the applicable docs related to your condo. This will help you greatly, in understanding better what condo living entails.

posted @ Thursday, January 03, 2013 8:33 AM by serola


I know in NE each unit is assigned a percentage value according to the square footage of the unit. This is state law. So I assume other states have the same law regarding percentage value of units. I have a one bedroom unit and pay a lower fee than an ower with a two bedroom unit. 
But when we vote the owner who has a two bedroom unit gets a greater percentage of the vote. My vote counts 1.997 % but the vote of an owner with a two bedroom unit has over 2% of the vote.

posted @ Thursday, January 03, 2013 8:33 AM by Bonnie


In Florida we have 92 units in an 8 story building right on the water. 
Their are 3 different sized units. 
We have three different monthly fees that are based on the size of the unit. 
Most of our fees go to Hurricane insurance because of where we are situated.

posted @ Thursday, January 03, 2013 8:35 AM by DLC


My questions are: A three unit condo? Is that it or are you part of a larger condo community or perhaps a condo community under development? 
 
First, assessment fees should be assigned by a HOA Board of Directors based on the HOA's governing documents and annual budget. All this according to local and state laws. 
 
I question why an attorney is involved. You should explain that to us. 
 
There are two methods to calculate individual assessments: 
 
1) Annual Budget / Number of Condos/12 Months 
$12,000 / 10 / 12 = $100 per month per condo 
 
2) Annual Budget / Total Square Footage of All Condos = Annual Assessment per Sq Ft 
Annual Assessment per Sq Ft X Square Footage of a Condo / 12 
 
The second method seems to be more equitable because the assessment is based on the size of any condo. However, does the larger condo owner use the common areas any more than the smaller condo owner? Tell me, what is it that a larger condo owner uses more of to warrant a larger assessment? 
 
For our community of 78 condos, the HOA pays the water and sewer for all. We have condos of various sizes. The actual utility usage varies not because of condo size but by number of occupants, some of whom are only part time. Some condo occupants are there 24x7 and others are working. Consequently, for us, the easiest and most equitable approach is to use the first formula. 
 
Now if the HOA is paying for the heating/cooling of each condo then the second formula makes sense.

posted @ Thursday, January 03, 2013 9:55 AM by Ron - NC


Hi, 
My unit is on the end of a building and larger than the interior units by square footage. Our fees here are based on the town's assessment value of the units; thus yes, the larger units are charged more. It doesn't make sense because the maintenance is the same for everyone.

posted @ Thursday, January 03, 2013 11:00 AM by martha roessner


If there are condos of various sizes where you live they can legally charge you accordingly but the question is ,is it fair? If they are paying for the utilities it sounds fair. But it sounds as if they aren't. 
See the docs and maybe have them amended. This needs to be discussed at a meeting. It sounds like the fees are pretty high.  
Here where I live all the units are the same.We pay $200 a month. It used to be $150 but I had them raised to $200 back in 93 due to many repairs needed. No one was happy of course and I was not very well liked for a time. 
If where you live they go by square footage then they are just being greedy but yes they can do it. Make sure you get it in writing that the fees will not go up in the future. If you don't get something in writing then they may go up again.

posted @ Thursday, January 03, 2013 11:37 AM by Mari


We are full owners of our unit. Our by-laws say no flooring except for carpet except for kitchen and baths. Ii have never had carpet, only hardwood unti I moved here 5 years ago...since that time I have developed chronic sinusitis and I believe our carpet is the culprit. My question is would a doctor note suffice to establish a change in flooring to present to the board. Are they compelled to accept medical recommendations. We have no children and we would be sure to have tiles padded. Do you have any suggestions, and do we have any rights to the inside our of home, and how do we go about attaining what seems to be a necessity for the home we own. t Thanks.....P.S. we have group of women who clearly tend to be controlling, and often uncooperative.

posted @ Thursday, January 03, 2013 11:39 AM by BARBARA


Your legal docs are supposed to comply with your state laws, so the allocation of fees could vary from reader to reader depending upon where home is. In CA, the law says that the allocation of the expense among owners is to be based upon "derived benefit." So, if the owner of a larger unit derives more benefit from an expenditure than the owner of a smaller unit (insurance, painting, roof repairs, etc. come to mind), then the expense is allocated on the basis of square footage. All other expenses are allocated on a straight line basis. 
 
So, when I prepare my building's annual budget and computation of fee per owner, I use an Excel spreadsheet with a column for each unit along with that unit's percentage ownership of the entire building. I then allocate each line item in the budget across the units in accordance with the terms of our docs. Expenses allocated on a percentage ownership basis are highlighted in yellow so that they stand out from the others.

posted @ Thursday, January 03, 2013 12:40 PM by Larry Davis


BARBARA, 
 
First and foremost you should have used the large red button located in the right hand column labeled 'Help' which would have opened a new question just for you. 
 
Ultimately you are the owner of your condo and everything from the drywall in, including the drywall, as well as the sub-flooring up. That said you could replace the carpeting with hardwood. The bylaws should only contain information and rules as how your HOA government is organized and how it operates. There should have been a separate document, usually called Rules and Regulations, where the flooring rule should have been applied. In either case, the HOA could fine you and put a lien on your condo for putting in hardwood carpeting. So now comes the question; who is in the right here? 
 
First, if you can get a signed note from your doctor indicating no carpeting that would be great but you will still need to engage an attorney familiar with HOA law in your state. The attorney will be able to ascertain your legal risk should you wish to replace the carpeting with hardwoods. With that knowledge, proceed to notify the Board of your intent. 
 
If there is a condo on the floor below you consider talking to them as well. In addition, DO NOT do laminates of any kind. 
 
---- 
I have had chronic sinusitis for over three years now, a result of the H1N1. Two sinus operations and countless overdosing of various antibiotics later I am much better but not yet cured. I still have almost no sense of smell or taste. How do I know it's not anything within my condo? Because I have spent multiple weeks over the three years elsewhere with no change in my condition. 
 
May I suggest you chronicle your day to day sinus condition for at least a week. Then go away for a week or more to a location as far away from home as possible. Chronicle your day to day sinus condition again. With little or no improvement, it ain't the carpet.

posted @ Thursday, January 03, 2013 1:02 PM by Ron - NC


The dues collected at our Florida condo are not based on square footage of the condo. Larger units paid more upfront for their footage and more in utilities. The fees are for the use of common elements and the maintenance of the grounds. Everyone has the same option of use of the common elements. ie pool, exercise room, library, party room, clubhouse, etc. The grounds are maintained for the value of all.

posted @ Thursday, January 03, 2013 4:50 PM by Randi


If we would ever sell the buidling (which I hope we don't) I would only get 1.997% of the profit but there are a couple of larger two bedroom owners who would receive over 3% of the profit

posted @ Thursday, January 03, 2013 6:34 PM by Bonnie


Our condo's are 4 levels Boca del mar. We live on the top floor (4th) all units ending in 00 or 07 are 3 bedrooms and they are all the corner units.  
 
We live in 400. Because we live on the 4th floor we pay more than the other 3 bedrooms for maintence,why? the 3rd floor 2nd floor and first floor 3 bedrooms pay less on each floor, so the first floor that has 3 bedrooms has the lowest maintence fee from the 2nd,3rd and 4th floor. There are 32 units to each phase. Answer please Thank You

posted @ Wednesday, January 16, 2013 11:09 AM by barbarajo gagliardi


What does your Master Deed say? 
 
My Association documents clearly say I have to pay a bigger proportion of monthly maintenance, because my unit is bigger. I don't think it is fair, because I actually get less services than other units. However, I knew that when I bought the place.  
 
If there is nothing about this in your Master Deed, this is not legal to change the dues proportion after the fact. Your BOD would have to change the By Laws (which is the legal way to do this), and there is a set, legal process to that.

posted @ Tuesday, February 26, 2013 3:22 PM by susan


In Nebraska it is a state law that states each unit must be assigned a percentage according the the square footage of the unit. This can not be changed simply by amending our documents.

posted @ Tuesday, February 26, 2013 3:44 PM by Bonnie


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