Sunday, March 25, 2012

Inadequate Condo Maintenance Fees

Condo Boards try to keep maintenance fees the lowest possible to spend the least amount of money. Unfortunately although well meaning it is misguided when 8 - 12 or 15 years later money is required and the Reserve Fund is in adequate. This results in borrowing additional money for specific repairs (requires a vote by a majority of owners) or a Special Assessment.

Lawyer Derrick Fulton, an expert in condo law, said one major problem area is the Act’s requirement on reserve funds; currently, 10% of common element fees must go into a reserve, but he believes that number should be at least doubled. Hundreds of older condos in the city have fallen into disrepair, and the funds are simply not there to fix them, Mr. Fulton noted.

It is imperative that your Board of Directors truly operates with the best of intentions for your building. Well meaning but weak self management may cost you thousands later. Be vocal, be involved and ask questions. The government is stepping in because as buildings are aging there are no funds to make repairs. Do we need another layer of government like the Land Lord Tribunal to handle Condo Buildings?

No comments: