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Re: A Special Assessment
Hello! I have a question about a recent loss assessment we recieved. Just looking to see if this may be something to be pursued or if the board is within the proper parameters to assess.
Recently repairs began on one of the apartment buildings in our complex (we are 2 apartment buildings and a mix of duplexes and townhomes). The reason for repairs is due to poor workmanship. The board has stated in their written updates that they believe the builder should be held responsible for the repairs. However they have also confirmed numerous times that they have yet to reach out to the builder.
This situation has led to numerous concerns. But the question I have today is can they assess for repairs – that they admit should be someone else’s responsibility and have yet to approach the responsible party? Should we not only be assessed if who we feel is responsible officially denies responsibility?
Thank you very much for your time!
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2 Replies
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Chris, there seem to be a lot of issues in your statement, but I will address:
” the question I have today is can they assess for repairs – that they
admit should be someone else’s responsibility and have yet to approach
the responsible party? Should we not only be assessed if who we feel is
responsible officially denies responsibility?”It looks to me as if the board is doing the right thing, getting the repairs done. In order to pay for them, a special assessment seems to be needed. That seems to be good, in that the problem will have been resolved by the board, but at the expense of the owners.
There seem to be bigger issues – is there not enough money in the Reserve Fund to pay for the repairs? If not, why not? Are the ‘contributions’ too low for a long term, steady and careful budget? Is there no ‘cushion’ of funds in the operating budget to handle issues like this? Would you rather spend money on legal fees or money on fixing the issues?
Many years ago, I was on the board of our condominium – we were all new to the process. The re-developer had low-balled a lot of issues, done a lot of cosmetic work but the renovations were as deep as the paint – not the infrastructure. We contemplated legal action, but our lawyer advised against doing so – we would spend money on lawyers on both sides of the issues, and at the end we still wouldn’t have fixed the problems. We bit the bullet and worked on fixing the issues; it paid off in the long run.
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I agree with Mark. Priority one is to get the work done to prevent potential further deterioration.
It is very difficult to go after the developer after year one. Going to court and trying to recover the funds from the developer might feel good, but would be expensive, time-consuming and may not generate ANY positive results.
Hopefully, the Board of Directors will be transparent, sharing engineer’s reports. Next, the re-financing of the replacement reserves should be a priority. Owners should be consulted Staging special assessments over time is advisable or, if really necessary, a loan.
