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  1. #1
    Join Date
    May 2008
    Posts
    2

    Default Investment Property Has Depreciated, Owe Assessment

    My question involves a condominium located in the State of: illinois
    the story
    i bought investment 3 years ago , 2 bedrooms apt - fully remodeled , not in the best area.. but.in october we had the managment changed , the next their step was - the assesment fee was raised from 198 to 244 , 3 days ago i received a call from tenant saying that the gas and water disconected , today in the mail i received a letter from managment telling that they have $50k bill after previous management and now in order to reconnect the gas to the building(the whole building was shut down(water and gas)) they have to pay gas company $14.8k , i was billed special assesment of $2195 that is due within 30days and if i will fail to pay it i will be turned over to the association attorney.by the way apt i bought for 125k , now it is 110k(appraised) , no balcony , no parks , no swimming pool , no club house.i am just shocked and do not know what to do.

  2. #2
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Investment Property Has Depreciated, Owe Assessment

    You have bo choice but to pay the $2,195.00 special assessement, NOW, as would everyone else. IT'S AN EMERGENCY.

    I lived in a condo, my first one, where the owners REFUSED assessment increases, so the HOA first went thru it's reserve fund, then went almost a year behind in it's water and gas bills, and got to within a week of shutoff. We all had to pay an immediate assessment to avert the shutoff, and agree to the assessment increases to build up the reserves, and keep fees in line with expenses.

    Apparently my fellow owners had their heads in the sand, and beleived just refusing increases would keep assessments low.

    Your only recourse would be to find out what happened, and demand a new board for the HOA as the previous one obviously fell asleep.

    I also own "out of state" condos for rental as well, and still keep abreast of developments. I had another condo owner attend the meetings, and fax me the minutes. Unfortunately,too many absentee condo owners do not stay on top of things, depending on the resident HOA to handle things, that can be mishandled.

    If too many people are too shocked and refuses to pay the assessment, then the utilities would remain shutoff. It happened in NYC here, condo owners cannot come up with the money to pay the bills, and local code enforcement had to evacuate the building for health and safety reasons.

    BTW, the condo I own has no club, no park area, and the fees still run about $250/month which is about right. I also own 2 to 3 family houses for rent, and heat and water per unit actally runs a little more than $250/month, without amenities. Major repairs additional.

    In fact, my rental condo was talking about a $10,000/unit assessment for replacing the roof for the building that has "historic" designation. As comparison, I paid the bank merely $38,000 for the unit as the developer was in foreclosure. The total roof replacment alone costs over $1,000,000, and there are 103 condo units.

    What I'm saying how much your condo costs has nothing to do with how much it costs to run it, especially with rising gas prices.

    I think the problem is sometimes too many absentee owners are too far removed and disengaged to know how much it actually costs to run things. This could be especially true if the building has too high a propottion of absentee owners.

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