CONDO ASSOCIATIONS
The 800-Pound Condo In The Room :
The Harsh Realities Of Condo Associations Getting Older In 2017
Since the dawn of humankind , Homo sapiens have lived in communities . From the first groups of cave dwellers , we ’ ve huddled together for our own survival — the literal success of our species . What is new is the concept of condominium associations . Here , an anthropologist might say , is a unique form of human socialization . Picture a single cave , owned equally by all the cave dwellers , ruled democratically — the first cavedominium ! ( Society Hill at Mesopotamia ?)
The first condominium associations in New Jersey came about some time in the mid-1960s , with some of the earliest condos evolving from apartment buildings which may have been built even earlier . As time went on , builders found improved profits were to be had in constructing conjoined housing instead of single family homes .
Quickly , condos were everywhere .
The advent of commonly owned buildings created opportunities , questions and challenges . Attorneys and lawmakers put together the concept and the paperwork . Builders flourished . Banks sold more loans and property management firms sprouted . A relatively
small number of insurance companies jumped in the pool . Some quickly jumped back out .
For years , the few insurance companies which participated in this new market did well . With new condos appearing regularly in New Jersey , the flow of new business was steady . Condo associations performed extremely well . Roads and sidewalks were perfect . Roofs and plumbing were all new and didn ’ t leak . Unit owners enjoyed sitting by the community pool as their kids played on the new playground .
WHERE ARE WE NOW ? The bulk of condo associations in New Jersey are now probably around twenty years old . Many are older . Unit owners , like any other homeowners , must now face the costs needed to maintain , repair and in some cases ; replace the major components of their buildings . Boards of directors which have reserved money over the years are best prepared for these costs , but some associations have not adequately set the money aside , fearing backlash from unit owners or not seeing the need to save for a rainy day . That ’ s where a great property manager can make all the difference .
According to Bruce Young , property
manager at Taylor Management , “ Many condos which were built in the late 70s or early 80s generally were self-managed and had governing documents that were not specific in spelling out the need for the association to save for future major expenses . Some associations knew that saving for the future would make sense , but still did not save , as the theory of ‘ Let the future board worry about it ’ prevailed .”
Even though most unit owners understand quite clearly the need to maintain their property in order to preserve and even enhance the market value of their units , there may be those in the association who still must push back . In instances where individual incomes are fixed or declining , boards have to argue their position . This is where the experiment of condominium living hits its first major obstacle .
There may be cases where , even though unit owners were able to afford purchasing their units , they may not be able to afford to maintain them in the face of increasing costs for practically everything . Thus , when discussions arise to resurface the roads or replace the roofs , there will be many votes against such a large expenditure , even though it obviously must be done . According to
28 | SPRING 2017