Condo owners - special assessment for last year's snow? (Springfield: to rent, HOA fees)

[seiketsu]

I just received notice that there will be a special assessment to cover operating expenses from last year's snowstorms. It will total almost $1,000 per unit. We already have a snow removal line in each year's budget, so I don't know if we ended up being charged far more than expected, or if there was extensive property damage, or what. I know last winter was a doozy, but are you other condo owners out there being slammed with special assessments from it?

[NOVA_almost_native]

Good grief. We're also condo owners but haven't been charged anything extra for snow removal. $1,000 per unit seems very high, but we once had to pay $1,000 for the replacement of a sprinkler head and some drywalling , so maybe that's a "typical" amount for a special assessment. Luckily, that's the only assessment we've had since we've been here.

How many units are in your complex?

[seiketsu]

We're a little less than 200 garden-style units. We've had special assessments on top of fee increases every year since I've been there (the better part of this decade). One year it was for new dumpsters. Another it was for roofing. Another it was to build the reserves. When I bought the place, it cost me $1200 a month -- comparable to rent. Now it is approaching $1800 a month.

[mikebnllnb]

$1000.00 is very high. Ask to see the HOA's budget and audit. You should know where you money is going. Get involved.

[NOVA_almost_native]

Yeah, I really can't believe that your complex spent nearly $200,000 on snow removal. I agree with mikebnllnb that you should look into the numbers. It sounds as if your condo association isn't managing its funds well in general if it's charging assessments and increasing fees every year.

[Margery]

I live in a condo development of 125 units in 5 buildings. Our snow assessment was $265.00 this year, the first time ever for a special assessment. However, our total fees, condo association and fees for 2 homeowner associations, are about $400/month and have remained at that for 6 years. Our reserves are quite high and the management is very good. You need to get involved and review the budget, it is easier to come up with a set amount each month than a large lump sum all at once

[statecollege]

I've lived in one townhouse condo and owned two resort area condos in the past and learned that the fiscal soundness of an association depends on owner involvement and owners collectively facing reality. The townhouse condo was very well run--owner involvement and professional management. The only special assessment I recall was to replace gutters extensively damaged by snow and ice damaged after an unusual snowfall. The gutters were special design for this historic area (Fairlington) and replacement cost could not be met by reserves. The assessment was in the $1k or $2k range as best as I recall, but this was over 20 years ago. I and my friends didn't own a new beachfront elevator condo long enough to experience the inevitable high-cost repairs associated with age, but I'm sure they eventually happened. Fortunately, I made money in both these ventures. A ski area condo was simply a horrible experience and investment fraught with absentee owners and dishonest management. I will never own another condo and would not advise anyone to except in unusual circumstances. Too often condo fees are set attractively and unrealistically low and do not consider long-term needs and planning. A common mantra is "Why plan too far into the future when I don't want to live here long-term, anyway?" Delinquent condo fee owners are a common occurrence and cause money to be paid to lawyers and result in condo coffers to suffer and condo fees to be raised--or special assessments. Too many people purchase condos blindly without regard to how much more expensive than advertised they can be. Just to be fair, home ownership can have the same pitfalls. Periodic maintenance is essential to maintain value, and HOA fees can mirror condo fee issues. We have a ridiculously low voluntary civic association fee ($35/yr) in my Springfield community to cover incidental common costs, and yet barely more than 50% pay it! Too many people just don't understand the concept of the common good, which reflects our society and politics as a whole today.