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Blummy99, Home Buyer in Chicago, IL

How long can a condo assoc hold special assessment funds if the work has not been done?

Asked by Blummy99, Chicago, IL Sat Nov 10, 2012

Our condo board imposed a special assessment for a major repair ($2k per unit payable in installments). There is no signed contract for the work. So, nothing has been done. It has been 3 months since they've started collecting the special assessment. How long can they hold on to this money? I don't want to go into collections for not paying.

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Answers

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As a condo owner, you agree to abide by the decisions of all, and that would mean once these collections have started, you need to be a good citizen and pay.
It is a little late in the discussion to start questioning the wisdom of the assessment , the time for that is past, and your delinquency has potential serious consequences for all the unit owners as well as anyone who is looking to buy a unit in your building.
If you really feel this is unfair or wrong ,you need to hire an attorney, otherwise it is time to start acting like a responsible owner and pay your fair share.
0 votes Thank Flag Link Sat Nov 10, 2012
Blummy,

Sounds like they are waiting to collect from all the unit owners so they can cover the costs. Do you know if every unit owner has paid? How much are they collecting per month? Does the association have enough reserves to start the work now?








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0 votes Thank Flag Link Sat Nov 10, 2012
We need more information to give you a complete answer. But they can hold the money until you vote as an Association to return the money to the owners (just like you had to vote to levy the special assessment in the first place).
0 votes Thank Flag Link Sat Nov 10, 2012
I am unclear what the problem is. Condo associations often start collecting the money for a special before the work is started or finished. How many installments 3....5...10? Are they paying cash for the work or are they getting a loan to do the work and collecting the special over time to pay off the loan? Why don;t you just ask them? They normally explain the over all plan before they start the process. Didn't they have a meeting and send out minutes of the meeting to explain it? The money will go into a special account normally.
0 votes Thank Flag Link Sat Nov 10, 2012
I would speak with your attorney, but just because they didnt start doing it, doesnt mean they havent done any work. A lot of times you need to give deposits, find out the work, etc. I would look more into the issue as to why they havent started
0 votes Thank Flag Link Sat Nov 10, 2012
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