Posts Tagged ‘Condo Fees’
Can a condominium have more than one budget?
September 2nd, 2011 | 
Author: The simple answer is yes. Let’s say you have a condominium complex with two housing types. For instance – an apartment block and townhouses or villas. Or it could be commercial units on the main floor and apartments above. Because there are different needs for each housing type or use, often there will be a budget for each. Contributions will be assessed according to the unit factors belonging in each type. How does this work? Well, lets take the apartment/townhouse scenario. The budget amount owed by the unit owners living in the apartments is $100,000. The units factors in the apartments totals 4900. The budget amount owed by the unit owners living in the townhouses is $50,000. The unit factors in the townhouses totals 5100. Here’s the formula.
budget/unit factors=cost per unit factor. This will give you the annual cost per unit factor. Multiply that by the unit factor assigned to the respective unit and you have the annual cost to the unit owner. To give you the monthly assessment, just divide by 12.
So if you had an apartment unit with a unit factor of 125 – then
$100,000/4900=$20.41 per unit. Multiply $20.41 by 125 and you have $2551.25. Divide that by 12 and you have a monthly contribution of $212.60.
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How Often Can My Fees Go Up?
Answer – as often as is necessary. The Board has the mandate to ensure there is enough money in the bank to pay the bills. They assess the fees and collect the money from each unit based on the yearly budget. Hopefully they are able to stay within the set budget but in the event they are unable to – they will need to go back to the unit owners and ask for more money – even if they are mid point through the year. Most Boards very good about trying to stay within the budget and don’t raise the fees on a whim. They are unit owners too. An increase in fees means they will have to pay as well. But – utilities may go up – increased snow removal cost, insurance, landscaping, unexpected repairs and maintenance etc. can all impact on the amount needed to pay the bills. The shortage must be covered.