Go Back   The Finance Forums > Finance forums > Real Estate



Real Estate Discussions about investing, selling, and buying real estate.

Reply
 
Thread Tools
  #1  
Old 03-23-2010, 12:07 AM
Nortoons Nortoons is offline
Junior Member
 
Join Date: Mar 2010
Location: California
Posts: 1
Exclamation Townhouse Special Assessment

Hi everybody. I'm in the process of buying a townhouse, and currently, there's only one major thing I'm concerned about. The townhomes are nearly 30 years old, and the homeowner's association is talking about moving forward on a project to replace the roofing, siding, and paint on all the units. The estimated cost of this project is about $1.7 million. I was only given the homeowner's association's financial documents this afternoon, and they only have around $340,000 in their savings fund.

The paperwork says there are 56 homeowners. Now, should it fall on the shoulders of the 56 homeowners to pay roughly $1.4 million for the part of the project that cannot be covered by the association's savings fund, we're looking at a cost of around $24,000 per homeowner. Is this sound logic? It seems unfathomable to me that the association would see fit to levy such a tremendous special assessment on the homeowners, and that a majority of homeowners would ever approve something like this. Therefore, I find it hard to believe each individual homeowner is going to have to pony up $24,000 for this project. However, that's what the math says. With your typical homeowner's association, can anyone tell me how a project like this is typically funded, and what portion of the expense falls on the homeowners? If I have to pay an extra, say, couple thousand dollars, I can swallow that. But if someone told me this special assessment was going to cost me $24,000, I wouldn't buy the townhouse.

I've posed this question to my real estate agent and the property manager. My agent says she's looking into it with the listing agent, and the property manager said it's still too early in the process to give me a number that each individual homeowner may have to pay. I'm trying to get as much information as I possibly can right now, before I have fully dedicated myself to buying this townhouse. For what it's worth, these townhouses are not in bad condition, but they are far from being ritzy townhouses inhabited by wealthy owners. They're full of working-class stiffs and retirees, and any special assessments must be approved by a majority of homeowners. Based on all of this information, can anyone more experienced than me lend me any kind of advice or information?
Reply With Quote

Old Sponsors
  #2  
Old 03-23-2010, 01:27 AM
sapphirecapital's Avatar
sapphirecapital sapphirecapital is offline
Senior Member
 
Join Date: Sep 2007
Location: Montecito, CA, USA
Posts: 364
Default Re: Townhouse Special Assessment

if you own and the decicion is to get it done, they will have to levy the special assessment, its the owner who has to raise the money, 24000 is okay if the roof gets done in high value and the other stuff as well, they will have to ask for different offers etc; if you don't want to be involved, do not buy. You may be able to sue but......
__________________
Answers are for general information only and should not be construed or relied upon as legal or financial advice.

Reply With Quote

  #3  
Old 11-15-2010, 06:26 AM
saramartin's Avatar
saramartin saramartin is offline
Member
 
Join Date: Jun 2010
Location: uk london
Posts: 45
Default Re: Townhouse Special Assessment

Is this assessment is considers or real? If this information is real I hope people trying to crazy to saving funds.



bayut.com
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 06:14 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.