Unnecessary budget expenses a growing concern for unit owners
Unnecessary budget expenses a growing concern for unit owners
Benny Kass
Inman News?
DEAR BENNY: I thought condo fees were for the maintenance and repair of homes and grounds, and for lawn care. Our association fees also pay for parties. I think the people who participate in the parties should pay for the parties themselves. Our condo fees have been raised twice since I moved here six years ago, and they are expected to go up again this coming fiscal year. What can be done to remove the party category from the budget? --R.E.
DEAR R.E.: Condominium fees are set by a board of directors, and in some cases, depending on your legal documents, the budget must be approved by the membership. The fees cover a lot of things, over and above maintenance and repair. They pay for snow removal (where applicable), lawn maintenance, management fees, and (of course) legal fees.
In many associations, the budget will include parties, although if liquor is involved the board must consult with their legal counsel as well as their insurance agent.
Since you are concerned about the party item in the budget, I suggest that you volunteer to assist with determining next year's budget. Many associations actually have budget committees that work with management to draft a budget for consideration by the board and the membership.
If there is no such committee, make a formal request that one be created.
But don't just look at a line item for "parties." Analyze the entire budget and compare it with the actual expenses over the last few years. We all know that utility charges (water, gas, electricity) have gone up, but are there any budget line items that can either be eliminated for next year or at least reduced?
Condominium ownership demands that every unit owner take an active role in the affairs of the association, whether serving on the board of directors, or attending board meetings and serving on committees.
If you do not participate, then you should not complain.
DEAR BENNY: I live in a freestanding house that is part of a homeowners association. We have a neighbor who parks a 32-foot motor home in four guest spaces just outside our fence, with permission of the manager, for 24 hours every three or four weeks. In our restrictions, covenants and conditions (CC&Rs) it states, "Recreational vehicles shall only be parked in an area designated by the association for such use." The owner of the RV is parking in guest parking spaces (meant for one car in each space). Our manager told us those spaces are common property. Our bylaws state that "common areas shall mean all real property owned by the association for the common use and enjoyment of the owners."
What does "designated by the association for such use" mean? Can the board let this homeowner park in any of the guest parking spaces, even though they're not specifically for parking an RV?
My husband and I are very frustrated by this situation and the board is refusing to make any changes. In our view, they are ignoring the rules. --Lorraine
DEAR LORRAINE: One of the major concerns of state legislators when drafting a common ownership interest statute for their state was to provide flexibility to associations and their boards of directors. Some things are carved into stone (i.e., the state law), such as the ownership percentage interest for each owner cannot be changed unless 100 percent of the owners agree. So, most community association statutes (whether for condominiums, homeowners associations or cooperative housing projects) have language stating that unless specifically required by law, the association legal documents can expand on the law.
That's a long-winded explanation of "designated by the association." I doubt that your state law deals with parking of recreational vehicles, so the drafter of your legal documents gave the authority to the "association" to designate where recreational vehicles can be parked.
And, typically, if there is a board of directors, the legal documents delegate authority to the board to make such decisions.
Has the board formally authorized the manager to make his decision? You should demand a copy of the minutes where such a decision was made, if at all.
Here's my suggestion: Do you have any support from other neighbors who dislike where the RV is parked? It would be very helpful if you could muster a number of owners and then prepare a petition to the board, demanding that it rescind the parking authorization.
Otherwise, if you are alone in this fight, you may have to consult with legal counsel to assist you.
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Source: http://www.southphillyreview.com/real-estate/slashing_perks_when_condo_fees_rise-168623526.html
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