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Q: I own a condominium in Mammoth that was built in the
mid-1970's. Now the Homeowner's Association is talking about a major
renovation of the project which is going to cost alot of money.
They're talking about all of this fancy stuff that we really don't
need-we've been fine without it. Some of the proponents say that
we'll get more than a dollar-for-dollar return on what we spend. Does
this make any sense?
A: This is becoming a very hot topic around Mammoth. And any
buyer of a condominium should carefully examine the Association
information provided during the escrow to understand the trend or
direction the project is taking in regards to this.
I remember being the president of a local Homeowner's
Association back in the 1980's and we could barely pay for the bare
bones things the project needed let alone any frills. Property values
were very low and necessary capital improvements (like new roofs)
were a true burden on the owners. Today, with ever increasing values,
aging physical plants, and new owners who represent a more affluent
and upscale social strata, this trend is inevitable. But there are
classic old owners (like the one's who still wear the same ski pants
they did in the 70's) that don't want anything to do with it.
The reality is that the condominium projects built in this
town before and during the 1970's have come to the point where they
need upgrading. Even though some projects have been very diligent at
maintenance, time and the elements are catching up with them. Lately,
for instance, water lines have been going. Those lines that lie
beneath the parking lot that you don't even think about have needed
total replacement. Some projects' internal plumbing is clogging up.
Some of those projects are replacing water lines and some are using
new techniques to auger them out. Roof replacement and paint is just
ongoing. Asphalt parking lots, after years of freeze/thaw and
loaders slamming them, just need replacement. Wood in this dry
environment just loses it. And on and on.
There are also some great new products to take advantage of.
Asphalt composition roofs can be very long lasting, can add some nice
color and are better in case of fire. Vinyl windows are great; no
rotting, no painting, heat efficient, etc.. New Hardi siding is a
cement based siding that looks like wood, doesn't dry out, holds
paint well and is suppose to last for 50 years. Most of us won't be
here to know but it looks like it should. New exterior lighting
usually helps with insurance.
There are some projects in town that have already executed
these major renovations. There are two that are in the middle and you
can actually go and see what the old buildings looked like and what
the new buildings look like. They are Chamonix up by Canyon Lodge and
St. Moritz on Meridian Blvd.. These projects went about financing
their improvements in different ways. Chamonix assessed their owners
in one lump sum, and it was substantial. Beside giving the project a
whole new look they are resolving many critical issues including new
plumbing, new electric, and radical improvements to their structural
engineering and the building's thermal envelopes. St. Moritz financed
their improvements over time and it is more like a glorified
re-siding project. When completed both projects are going to look
great and will be far more efficient.
.The process is not an easy one. Plan on a few years to get to consensus. Just picking a new paint color can start a war in Associations. Learning from the experience of those who have gone through it would be a good place to start. A needs assessment is critical. Professional help is advised. The problem is once you tear into one thing, it warrants tearing into another. And while you're at it you might as well do this or that. And even once your done with "the plan" there will be some warranted add-ons after completion. All of this costs money
But a well conceived and executed plan should be worth it
financially. Many of improvements are things that are going to need
addressing in the next 10 years anyway. And it is probably more cost
effective to deal with them all at once. Your unit should become more
energy efficient. Long term maintenance should decease. The"curb
appeal" to potential buyers and/or renters will go up significantly.
Your value should increase by more than the investment made and
experienced Realtors can display the "added value" of the
improvements, especially because the work is done and paid for. And
ultimately, you might even find out that you like your "new" project
even more than your old one. But be careful, once the outside looks
great, your wife will want to redo the inside.
Paul Oster is Broker/Owner of RE/MAX of MAMMOTH. An archive of past
Q&A columns can be found at
www.remax-mammoth.com. You can send him your real estate related
questions to Box 2618, M.L. CA 93546-2618 or email him at
pauloster@qnet.com. All questions will be researched and presented
with the greatest care but the accuracy is not guaranteed. For legal,
accounting,construction, etc., advice-seek out the appropriate
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