COMMUNITY NEEDS COSMETIC SURGERY
Q. Our condo is a moderately priced community which was built in the 80's and is now beginning to look dated. The new condos of the same approximate unit size and same general location have a better curb appeal. We are afraid that as interest rates creep up our owners will have more and more difficulty competing with other units. Our board of directors wants to take action, but we don't know where to begin in deciding what to do first to make improvements. Our ideas might not be shared by other owners who may question our plan. How can we address this critical issue and not make a big mistake that will cost us and our fellow homeowner’s lots of unnecessary money?
A. Your board is very astute to recognize this need which should be addressed responsibly because, as you suggest, this can be an expensive proposition. You will be investing in the futures of all of the unit owners and part of your responsibility is to preserve and enhance the value of the property. One thing is clear - you will need help from several professionals – starting with an architect. By consulting professionals in this process you are getting appropriate outside help and not relying only on the opinions of the board members or a committee as to the best course of action.
The look and image of a community can be dramatically altered simply by focusing on its highest profile areas. Two examples are entry areas and exterior color schemes. In terms of the entry there are signage and landscaping features which need to be considered. Styles and materials used for entry signage are constantly changing and an update with a new sign, additional plantings and perhaps a couple small brick walls could make a dramatic difference in your entry area. Perhaps some extra lighting could be added. A landscape architect can help you with this design. Another important maintenance item that is often neglected by boards is the wooden components like stairs, decks and balconies. These items need power washing and staining (as well as partial replacement) periodically in order to look their best.
There are some legal and financial management issues that arise here. First, to what extent does the Board have authority to decide to go forward with such a project? What if there are not sufficient funds in reserve for the project and the unit owners need to be assessed? Can the board do this or is a unit owner vote required? This is usually dictated by the provisions of your declaration or bylaws. How can you raise the money if there are insufficient reserves set aside for this purpose? There are various ways to raise the funds - bank loan, regular dues increase, and/or a special assessment. Actually you can use a combination of the above methods depending on the immediacy of the need for funds. Once you decide on the scope of your project and the approximate cost you should consult with your attorney and accountant about the legal and financial requirements and strategies.
This is a good time of year to begin this process. It'll take some work by a dedicated committee but the community should get a lot of satisfaction from the results - both visual and financial.