Karen Capo, Home Buyer in Minneapolis, MN

What are condo fees and what do they cover?

Asked by Karen Capo, Minneapolis, MN Sun Nov 24, 2013

This question was asked from http://www.trulia.com/property/3131141636-2615-Park-Ave-203-…

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In addition to what others said regarding associations and the dues, you need to understand what a co-op (cooperative) is because 2615 Park is not a condominium, it is a cooperative. Mike Kelcher did a great job explaining what condominiums are, which are very similar to cooperatives. Kristin Long is also right that taxes are included in the dues for 2615 Park, which is never the case for condos.

Cooperatives are like condominiums except you could say the ownership structure is flipped. They still have board members, voting rights, and share costs but instead of owning a unit and having rights/membership of the association like a condo, you own a share in a corporation and are given the rights to a unit. For this reason, traditional financing (i.e. 5-10-20% down conventional loans, FHA loans, VA loans) is not possible since there is no real estate to secure the financing. Cooperatives maintain a relationship with usually one or two banks who continually review the cooperatives financials and offer financing to new members. It's typically one of the few large cooperative lenders (e.g. http://www.ncdf.coop) or a local credit union. For 2615 Park, loans are offered through South Metro Federal Credit Union (contact is Dean Davidson, 952-445-0888 x33).

Since you own a share in the co-op's corporation, the monthly dues include real estate taxes that are assessed on the building. Condominiums are assessed real estate taxes as individual units since they are each individual pieces of real estate.

If you're interested in learning more, please contact me at blakeh@kw.com or 651-485-3635!
0 votes Thank Flag Link Mon Nov 25, 2013
Condo fees or "association fees" are real estate's version of socialism. Evey owner in the association contributes to a "general pool" of money to be used for "the common good". What those fees cover varies depending on the association. In most instances, they cover lawn care, snow removal, trash pickup, common area maintenance, etc. In some instances, they cover water, heat, swimming pools, party rooms, exercise rooms, saunas, and yes...even the dreaded doorman. The amount of the fees varies widely. I've seem them under $100 a month and over $1500 a month.

It's not all bad however. Imagine a city block of 20 homes. If each homeowner contracted to have their lawn mowed and their snow shoveled, collectively, they'd spend a lot more than if they got together and hired one contractor to do the work....essentially, that's what the association does.

In the end, you simply have to decide whether or not what's being provided to you is worth the expense you are required to pay. Usually, associations provide good "bang for the buck"....but there are exceptions.

If you end up living in a home that has an association, get involved. Go to the meetings and vote. If someone doesn't vote, they should be required to forfeit their right to complain.
0 votes Thank Flag Link Sun Nov 24, 2013
Hi Karen,
2615 Park is a beautiful building, but the association dues shock everyone! They have some nice amenities, but some buyers might find that they are paying for things they do not really need, like a doorman.
I live at the Midtown Exchange. Have you looked into that development? I know of a few owners who are contemplating selling soon. We really have a nice building and there is lots of great stuff always happening at the Global Market.
Let me know if you have any questions on the condo market in South Mpls. There are some great buildings out there!

Emily Green
Sandy Green Realty
0 votes Thank Flag Link Sun Nov 24, 2013
If that co-op doesn't work and you want to talk about other options give me a call, text or email anytime
0 votes Thank Flag Link Sun Nov 24, 2013
Hello Karen,
This is a co-op so yearly taxes are included in the HOA fees. Owner pays Electric/Cable/Phone only. Garage space additional $75/month and is assigned.
Here is the link to the MLS listing:

Click the following link to view the listing:

Please feel free to contact me if you have additional questions.

Have a great day!
0 votes Thank Flag Link Sun Nov 24, 2013
Hi Karen,
Here is the information on the MLS regarding the association fees and what they cover. If you have any additional questions or would like to schedule a showing, please feel free to contact me.
612-618-5311 kristinlong@kw.com

Assoc Mgmt Comp: 2615 Park Ave Association Assoc Mgmt Co Phone #: 612-871-2808 x10
Association Fee: $902 Assoc Fee Frequency: Monthly
Assoc Fee Includes: Heating, Sanitation, Snow/Lawn Care, Outside Maintenance, Hazard Insurance, Water/Sewer, Building Exterior, Security System, Professional Mgmt, Shared Amenities, Other
0 votes Thank Flag Link Sun Nov 24, 2013
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