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Correct about the property tax. I pay $2730 per year in property taxes. Fairly stable is the answer to the other. There has never been an increase of more than $25 in any one year, and normally we are able to go a couple of years before the next increase. However, we recently needed a special assessment of $500 per unit for some extensive and unforeseen replacement of sewer system piping in the section of our system before it empties into the public sewer which runs under the street out front.
Actually we could have paid for that sewer work out of our reserves, but the board felt they didn't want to draw down the reserves any more. People were given the option of paying the $500 in installments. That was the first assessment in six years. Our reserves are about $70,000 right now; the sewer work was about $12,000. I wanted to take it out of the reserves and then increase the monthly fee another $25 to slowly build the reserves back up, but I am only one vote out of five on the board. Note that whenever the board votes for either an assessment or a fee increase we are voting to increase our own (or assess ourselves) also. Under California law there is a limit to how much the board can increase the fees or how much it can assess people without holding a vote of all homeowners. I don't recall offhand exactly what those limits are. We as board members don't enjoy increasing the fees or approving assessments, but we have a responsibility to maintain the property in good condition, which of course also helps maintain everybody's property values.
These costs all sound quite reasonable to me, and far less than any truly nice townhouse on the Northern East Coast.
I have never liked living with coomon wall constructio whther for safety or for maintiance resons;persoanlly. I can see a separate garden home whicvh is quite common here with mnay actually built for older acess usage. Totally seprate with a garage often two car but on small spaced lot . No common walls;elctrical;sewage and such .
If a new roof or other major repair were necessary would that be included in the fee or would there be a special assessment?
I carry a million dollar umbrella; it covers me on both my auto and homeowner's insurance. I believe that umbrellas are very popular and I'm wondering how it would work in your situation. Or does the HOA carry an umbrella policy for the homeowners?
Assuming you're describing it properly - umbrella coverage applies in general to losses covered under liability insurance or property damage to the property of other people insurance. An umbrella policy won't cover damage to your own property or losses that aren't the result of "accidents/covered perils" (your homeowners' policy won't cover the latter either). IOW - maintenance and routine wear and tear repairs and the like aren't covered.
If you're dealing with a HOA or condo association - you want "loss assessment coverage" to pick up any assessments (keeping in mind that loss assessment coverage won't cover assessments resulting from normal maintenance - wear and tear repairs - etc. - just losses from things like accidents or perils that would be covered under a normal homeowners' policy - like fire).
FWIW - the way to get adequate property insurance on your own place is to make sure the limits of your underlying homeowners' policy are ok. Buying an umbrella policy won't help you if the limits of your homeowners' policy are inadequate. Robyn
Assuming you're describing it properly - umbrella coverage applies in general to losses covered under liability insurance or property damage to the property of other people insurance. An umbrella policy won't cover damage to your own property or losses that aren't the result of "accidents/covered perils" (your homeowners' policy won't cover the latter either). IOW - maintenance and routine wear and tear repairs and the like aren't covered.
If you're dealing with a HOA or condo association - you want "loss assessment coverage" to pick up any assessments (keeping in mind that loss assessment coverage won't cover assessments resulting from normal maintenance - wear and tear repairs - etc. - just losses from things like accidents or perils that would be covered under a normal homeowners' policy - like fire).
FWIW - the way to get adequate property insurance on your own place is to make sure the limits of your underlying homeowners' policy are ok. Buying an umbrella policy won't help you if the limits of your homeowners' policy are inadequate. Robyn
My coverage is strictly for liability or propery damage to the property of others. I had to have a certain amount of coverage on both my homeowner's and auto policies in order to purchase it. My wondering about an HOA has been strictly academic as I'll never be in a place that requires membership in one unless it would for some reason it would have only me as a member.
Here's another question. Does an HOA provide a corporate shield for the members? I realize that both could be named in a lawsuit but assuming it's just the HOA what would be the situation?
I have never liked living with coomon wall constructio whther for safety or for maintiance resons;persoanlly. I can see a separate garden home whicvh is quite common here with mnay actually built for older acess usage. Totally seprate with a garage often two car but on small spaced lot . No common walls;elctrical;sewage and such .
We call these houses patio homes here and they are a great option.
My coverage is strictly for liability or propery damage to the property of others. I had to have a certain amount of coverage on both my homeowner's and auto policies in order to purchase it. My wondering about an HOA has been strictly academic as I'll never be in a place that requires membership in one unless it would for some reason it would have only me as a member.
Here's another question. Does an HOA provide a corporate shield for the members? I realize that both could be named in a lawsuit but assuming it's just the HOA what would be the situation?
Not a corporate shield per se. For example - some people think a president of a corporation can hide behind a corporate shield if he's driving a car on company business and negligently hurts someone That's not true. And the same is true if a homeowner is personally responsible for causing a loss. The homeowner can be sued - sometimes the association as well (depending on the facts). So both can be liable.
Also - if an individual homeowner isn't at fault - he can be liable through the assessment process if the amount of any claim against the association exceeds the amount of any available insurance coverage (which is where loss assessment coverage comes into play). If it's possible that the second may happen - the association is required to give notice to the homeowners - and allow the homeowners to intervene in the lawsuit on their own behalf. Note that is a general statement of the law in Florida best I understand it. Laws may vary (considerably) in other states. Robyn
Not a corporate shield per se. For example - some people think a president of a corporation can hide behind a corporate shield if he's driving a car on company business and negligently hurts someone That's not true. And the same is true if a homeowner is personally responsible for causing a loss. The homeowner can be sued - sometimes the association as well (depending on the facts). So both can be liable.
Also - if an individual homeowner isn't at fault - he can be liable through the assessment process if the amount of any claim against the association exceeds the amount of any available insurance coverage (which is where loss assessment coverage comes into play). If it's possible that the second may happen - the association is required to give notice to the homeowners - and allow the homeowners to intervene in the lawsuit on their own behalf. Note that is a general statement of the law in Florida best I understand it. Laws may vary (considerably) in other states. Robyn
If I own stock in a corporation and that corporation has debts it cannot pay I cannot be personally held liable. As you know it's what we mean by limited liability. I'm only responsible to the amount of my investment. Therefore, I assume a member of an HOA is not a stockholder but a partner, either de facto or de jure. Is that correct?
That's not exactly the way it works with condos - at least in Florida. Here's the statute:
718.119 Limitation of liability.—(1) The liability of the owner of a unit for common expenses is limited to the amounts for which he or she is assessed for common expenses from time to time in accordance with this chapter, the declaration, and bylaws. (2) The owner of a unit may be personally liable for the acts or omissions of the association in relation to the use of the common elements, but only to the extent of his or her pro rata share of that liability in the same percentage as his or her interest in the common elements, and then in no case shall that liability exceed the value of his or her unit. (3) In any legal action in which the association may be exposed to liability in excess of insurance coverage protecting it and the unit owners, the association shall give notice of the exposure within a reasonable time to all unit owners, and they shall have the right to intervene and defend.
There really isn't anything comparable to this in the HOA statutes. Although there are laws relating to the ability of the association to assess owners (and how they have to do it). Note that our HOA statutes really aren't as comprehensive as our condo statutes. Robyn
I'm now thinking that my next move may be neither another owned house or a condo...I am thinking about the virtues of renting a nice solid apartment in a Boston type brownstone somewhere in a big town that is not on the retirement radar screen (i.e., not a hot spot) that has more or less stable rents over time.
The way I look at it, with property taxes, upkeep, repairs, homeowners' insurance, yardwork and snow removal, plus utilities, I'm now paying around $1200/month on average. If I sell, I can move the proceeds into more lucrative investments and be free of a property that the family will have to dispose of when I kick the bucket.
Does anyone live in such a rental (nice solid building, solid rooms and floors, kind of like a Bostonian), and what are the rents like? What is your rental situation like? Maybe I should start a new thread on Renting in Retirement?
I'm now thinking that my next move may be neither another owned house or a condo...I am thinking about the virtues of renting a nice solid apartment in a Boston type brownstone somewhere in a big town that is not on the retirement radar screen (i.e., not a hot spot) that has more or less stable rents over time.
The way I look at it, with property taxes, upkeep, repairs, homeowners' insurance, yardwork and snow removal, plus utilities, I'm now paying around $1200/month on average. If I sell, I can move the proceeds into more lucrative investments and be free of a property that the family will have to dispose of when I kick the bucket.
Does anyone live in such a rental (nice solid building, solid rooms and floors, kind of like a Bostonian), and what are the rents like? What is your rental situation like? Maybe I should start a new thread on Renting in Retirement?
I vote for a separate thread on this. I've wondered about this option too. Rent increases might be one problem with it.
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