Posted in Assessment Collection, Owner Payment Responsibility, Reader Q&A
Question: Our condominium association is undertaking a very large repair project involving the structure of our building. It is a several million dollar job, and would involve a huge special assessment. There has been talk of taking out a bank loan. Can the association borrow money for this purpose? Can the association allow some owners to pay a lump sum and allow others to pay in installments?
Answer: Your question raises a number of important and potentially complex legal issues which should be discussed with competent legal counsel. Typically, a “structural restoration project” will have many aspects that require advance knowledge and decision-making, including “who pays for what” (as between the unit owner and the association), the responsibility for “incidental damages” (who has to pay for repairs when the association has to destroy or disassemble a unit owner installation, such as balcony tile), whether any of the work involves a “material alteration” (which may independently trigger a unit owner vote requirement) and the like. Read more