Wednesday, January 23, 2013

Owners stuck with a failed condo project

The Privatopia Papers: In Carrboro, working-class condo owners must pay $...: In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week : The fees are intended to generate n...

If you read the entire article at the link above, you will see a perfect example of one generation of owners passing deferred maintenance on to the next generation and so on until the building becomes an obsolete condo project at the end of its life. At that point, since it is essentially an apartment house owned by multiple owner/tenants, there is no source of repair funds other than the remaining owners and it is unlikely they will be able to raise the necessary capital. This happens because previous boards of directors wouldn't make the tough decision to raise assessments sufficiently to maintain reserves for repairs.