One Hanson Board Jacks Common Charges 17 Percent
According to a letter that went out last week, life at One Hanson Place is about to get more expensive. While 2008 expenses were less than expected, the Board of Managers foresees more costs this year. A couple of the reasons include service contracts for the mechanicals and the purchase of an apartment for the…
According to a letter that went out last week, life at One Hanson Place is about to get more expensive. While 2008 expenses were less than expected, the Board of Managers foresees more costs this year. A couple of the reasons include service contracts for the mechanicals and the purchase of an apartment for the “resident manager” of the building. (Nice gig!) In addition to being irked by the rising costs themselves, our tipster was extra-peeved when he learned that the Board doesn’t have a single condo owner on it, that it’s basically the tool of the developer. Can anyone confirm?
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January 21, 2009
All Unit Owners
One Hanson Place Condominium
One Hanson Place
Brooklyn, NY 11243
Re: Common Charge Increase
Dear Unit Owners:
The building’s fiscal year-end was December 31st and the Board of Managers met in order to review the 2008 operating expenses and prepare the budget for 2009.
The building’s actual expenses for this year, 2008, were less than projected; however, in 2009 there will be expenses that were not required during the first year of operations. These expenses include service contracts for all of the mechanical equipment in the building, expenses related to the purchase of the resident manager’s unit, as well as increased operating costs in utilities, water & sewer, insurance and payroll-related expenses.
It is the Board’s responsibility to ensure the building remains financially sound, and only to increase common charges in order to meet projected needs. As a result, effective March 1st, 2009 residential common charges will increase 16.93% – this fiscal discipline should make 2009 a successful year. The common charge increase will be retroactive to January 1st and will be billed in two installments in March and April.
The Board does not take lightly the need to raise common charges and thanks everyone for their understanding.
Board of Managers
Good luck with that IronBalls. Rents are falling all over the city and you think the rent guidelines board will be able to withstand that pressure. Possibly, but certainly not a “no choice” situation.
I know assessments aren’t “random” – that was just sort of a flippant remark. However, it seems all too standard that the boards (and in this case an unscrupulous developer that will probably have some lawsuits) don’t know what their doing.
I hear from all of my poor co-op dwelling friends about ridiculous lump sum assessments ($500-$4,000) and huge raises in maint fees (10-30%) for stuff that should be planned for. You shouldn’t have an assessment to rreplace a roof. There should be $20k in the reserves for such… same with boiler replacements or awning and window repairs etc etc etc.
This Hanson place situation seems like a horrible bait-and-switch and the developers should be slapped for it. But, in general, co-ops seems like they are run by non-confrontational idiots that don’t know how to plan for more than a year.
My costs are going up too.
I have rent stabilized tenants who for the first time ever signed one year leases instead of two years leases this year because they think the increases will be less next year due to lower oil prices.
My fuel costs have actually gone up, as has nearly every other expense, property taxes included.
The Rent Guidelines Board will have no choice but to increase the official rent increases next year. Those rent stabbers made a big mistake not locking in the lower two year rate when they had the chance.
HUGE question here – what was the price of the residential manager’s unit? The sponsor’s asking price or market price (based on comps from recent sales minus a margin for the current market downdraft)? Did the sponsor basically take a unit that they were going to have to sell at a big discount and get the condo to buy it from them at full asking price? If so, regardless of their legal standing (which I can’t speak to) I think this is completely inappropriate.
Ooh! Assessments are rarely “random.” Coops and condos have operating budgets that should break even every year. Given the fact that at least in recent years, some costs increase every year, it’s likely–and actually optimal–that the maintenance costs will increase every year to keep pace with the increased costs. The trick is to hold the cost increases in line, and to keep unit owners/shareholders apprised of increases when they are necessary. So I have no beef with that.
My beef is that I get the sense that the sponsor knew in advance that these costs would be handled that way. Would buyers have come to 1 Hanson Place when they did if the maint was 17% higher than it was when they bought? Maybe.
Jawbreaker’s right…as cool as 1 Hanson Place is, the facade law alone (sorry, forget the number) will be expensive for unit owners. The facade has to be checked and certified every six years or so, and believe me, the cost to mobilize scaffolding is NOT cheap!
Eh, maintenance in my coop went up 13% this year. Agg.
I have always thought in passing the building, where even now you might still see areas of the exterior which aren’t finished, that maintaining this type of building will cost a lot more than a new glass and steel job.
What’s with making it retroactive? That’s just mean, isn’t it? I don’t happen to have wads of cash kicking around… but then again, I don’t live in a co-op where you have no control over random “assessments” etc.
Folks;
On a related topic: in today’s forum, I put up a post asking for advice on dealing with an abusive Board in my condo. If anyone could provide advice, I would appreciate it. Thanks in advance.