I'm about to close in a new development condo that's still under construction. We have the basic amenities, such as working elevator, lobby, doorman, but not the luxury amenities (e.g., gym, resident lounges, playroom). I don't expect the first of these to be done for a few months (who knows how long before they're all completed) as they're not high priority to the developer who's naturally... [more]
I'm about to close in a new development condo that's still under construction. We have the basic amenities, such as working elevator, lobby, doorman, but not the luxury amenities (e.g., gym, resident lounges, playroom). I don't expect the first of these to be done for a few months (who knows how long before they're all completed) as they're not high priority to the developer who's naturally focused on finishing the units themselves. I'm wondering if given the reduced amenities, it's common to ask for a temporary reduction in common charges prior to/at the closing and whether the developer is likely to agree to this. Our CCs are on the high side and can be justified only by the great amenities. I just don't see how it makes sense to pay the full amount when they are nowhere close to being finished.
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Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
Redpanda, are you sure you aren't in over your head on this purchase? How much are you expecting to save because you have no gym, resident lounges, playroom for a few months?
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Response by NYCMatt
over 12 years ago
Posts: 7523
Member since: May 2009
LOLOLOL!
Sure, why not ask.
While you're at it, why not keep a chart and ask the developer to drop your charges accordingly on the days you may be away and aren't even using the elevator or doorman?
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Response by uptown_joe
over 12 years ago
Posts: 293
Member since: Dec 2011
You're not renting anymore. You are buying a share of the common elements, and your common charges are the condo association's income to cover all its various expenses, including the cost of operating amenity spaces once the developer completes the construction (as contracted) and hands them over.
Initially your common charges are set by a developer-produced budget, since there is no history of actual spending to provide a baseline, so they may be a little off. If expenses are less than the income payments, the condo association keeps the surplus for future use. That's of course assuming the developer's not stealing from it in various ways, which the owners can and should audit.
So for a period when the amenity spaces aren't open and therefore aren't staffed, cleaned, repaired, or whatever, the condo association would theoretically be banking a small surplus that would have gone to those costs. The surplus will be used at the discretion of the board, whether to reduce future common charge increases, or buy toys for the playroom, or whatever.
I don't think you are likely to get a developer rebate to mitigate your common charges (which go to the condo not the developer). That said you can certainly try (via your attorney).
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Response by drdrd
over 12 years ago
Posts: 1905
Member since: Apr 2007
'Our CCs are on the high side" ~ and remember, they'll only go UP from here. At this point your query seems petty to me. I'd wait & revisit the issue in 3 to 6 months if you don't have these amenities then.
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Response by redpanda
over 12 years ago
Posts: 28
Member since: Feb 2011
uptown joe & drdrd - thanks to you both for your responses. I understand the purpose of common charges and that you are buying the elements, not just paying for an amenity, but it's not unheard-of to get a reduction when the developer is slow to finishing them. I do agree that asking at closing is too soon, I'll wait a few months and see, and hopefully some of the amenities will be available by then (not that I'm expecting it).
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Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
Are you sure you aren't in over your head? What neighborhood is this in?
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Response by NYCMatt
over 12 years ago
Posts: 7523
Member since: May 2009
Another renter who doesn't understand what it means to be an owner.
Redpanda, are you sure you aren't in over your head on this purchase? How much are you expecting to save because you have no gym, resident lounges, playroom for a few months?
LOLOLOL!
Sure, why not ask.
While you're at it, why not keep a chart and ask the developer to drop your charges accordingly on the days you may be away and aren't even using the elevator or doorman?
You're not renting anymore. You are buying a share of the common elements, and your common charges are the condo association's income to cover all its various expenses, including the cost of operating amenity spaces once the developer completes the construction (as contracted) and hands them over.
Initially your common charges are set by a developer-produced budget, since there is no history of actual spending to provide a baseline, so they may be a little off. If expenses are less than the income payments, the condo association keeps the surplus for future use. That's of course assuming the developer's not stealing from it in various ways, which the owners can and should audit.
So for a period when the amenity spaces aren't open and therefore aren't staffed, cleaned, repaired, or whatever, the condo association would theoretically be banking a small surplus that would have gone to those costs. The surplus will be used at the discretion of the board, whether to reduce future common charge increases, or buy toys for the playroom, or whatever.
I don't think you are likely to get a developer rebate to mitigate your common charges (which go to the condo not the developer). That said you can certainly try (via your attorney).
'Our CCs are on the high side" ~ and remember, they'll only go UP from here. At this point your query seems petty to me. I'd wait & revisit the issue in 3 to 6 months if you don't have these amenities then.
uptown joe & drdrd - thanks to you both for your responses. I understand the purpose of common charges and that you are buying the elements, not just paying for an amenity, but it's not unheard-of to get a reduction when the developer is slow to finishing them. I do agree that asking at closing is too soon, I'll wait a few months and see, and hopefully some of the amenities will be available by then (not that I'm expecting it).
Are you sure you aren't in over your head? What neighborhood is this in?
Another renter who doesn't understand what it means to be an owner.