Payment of common charges in new building
Started by BedStuyCondo
over 7 years ago
Posts: 6
Member since: Jan 2017
Discussion about
We closed on our condo in a new development in January and began paying common charges then. At the time there were no expenses incurred by the building except common electric charges. The remainder of the tenants closed in April and May, and we are now incurring charges for our super who takes care of trash. Essentially, we paid several months into the maintenance fund, but basically no expenses were paid during the time. Are we eligible to get that money back? or is all the money we paid that wasn't used for any expenses now going to be considered funds of the condo board and essentially benefit everyone who now lives there?
I think you need to adjust your expectations... You are in a long term investment now as a condo owner. The Condo's funds are a long term thing.
Building expenses are budget annually... there are good months and bad months. No any sane building would adjust the CCs until you have a full operating year under your budget, has enough of a reserve that it can write a 5-6 figure check when one of the mechanical systems breaks (roof, boiler, booster pump, elevator, security system, front door, etc) at a drop off a hat.
And they will break.
Right, the maintenance fund is to build up a reserve for a the building, and every new owner will also pay several months in when they close. It's not to cover what was actually spent in any given month.
I appreciate your perspectives and do realize that the monthly payments are made to the association and should be use for the building. (btw - reserves were set up at closing for any additional costs).
I also see it this way, we move into the building at the beginning of the year and pay 4 months of fees, with virtually no expenses, because there are no services provided (ie - we take care of our own trash, we shovel the snow). Everyone else moves in, they pay the fees for the remaining 8 month's, during which time there are expenses and services provided. At the end of the year, we have a surplus, and we decide to reduce the following year's dues. So the money we paid for 4 months at the beginning, and lived with no services, is now to the benefit of the remaining owners who contributed and received services of a fully functional building.
Yes, agree with the second comment, you're a long term owner now! In fact, most closing cost calculators (check out https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/ - most accurate on in the industry) will not even include this as a closing cost, because it's really going to you, the part building owner.
The building will need all the cushion the owners can afford. Yes, things will break, the city will fine the building over nonsense, Perhaps the budget estimates were too low- not uncommon to sell units, etc. If the building is 6 stories or over you will need to inspect the facade for Local Law 11- and even if no repairs are needed, the cost of doing the evaluation was likely not baked into the budget (and it's not cheap).
Bedstuy, On principle, you are correct. However, how would you practically allocate the charge and what process will you use as it is very likely you agreed to pay common charges as stated some where in your purchase agreement? Are you responsible for corridor lifting expense in all hallways? Are you responsible for only a part of the managing agent fees? Would you have been responsible for a major plumbing breakdown while no one else was living there? What about building insurance? That said, you can send your request to the managing agent and see what happens.
Lifting = Lighting