My 100 unit, mid-rise property needs significant infrastructure repair and replacement costing $750,000 to $1M dollars near term, plus another $1.5M in years to come. We've had an aging resident profile for years, which is changing as turnover from estate sales, etc occurs; property values have crated to an alarming degree - up to 60% over last 2 decades and 10-30% in the last 2-3 years.
Our documents are very restrictive as to assessments, requiring 67% (75% for borrowing); age of residents, plus presumptive financial limitations of younger new owners buying at low prices make approval of needed assessments and/or borrowing highly problematic (we plan to make the request within the next 6 weeks).
Obviously, this has many of the hallmarks of a classic death spiral, except that we are in a very good location, adjacent to a large university and a large hospital complex, both of which are expanding aggressively, including in the real estate acquisition area. We also enjoy stunning area views from upper floors; it was once a prestigous address in the area, and has real potential if capital can be brought in.
My Questions are (1) can we compel residents to pay assessments in the face of a negative vote (especially if we can claim emergency in respect of some of the capital needs); and (2) if we ultimately can't raise capital via assessment, how can we bring in capital?
Note that we have a current reserve balance of about $280K and a 5 year loan (which we've serviced in good shape) with a net outstanding balance of about $200K
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