Is a special assessment in the works at Fulton House?

by Joe Zekas on 6/25/14

The Board of Directors of the Fulton House Condominium Association was scheduled to meet Monday evening to discuss, among other items, levying a special assessment against unit owners for façade repairs and roof replacement. If we’re able to learn the results of the Board meeting and the amount of any special assessment we’ll pass along the details.

Special assessments to cover major building repairs are more common than condo buyers like to think, and they can be costly. In two buildings we’re familiar with recent special assessments amounted to six figures for some owners.

If you’re buying a resale condo you should ensure that your contract requires the seller to provide the disclosures specified in Section 22.1 of the Illinois Condominium Property Act. Carefully evaluating those disclosures, however, is just one step in your due diligence.

You should have a competent, independent home inspector review the property’s common areas. If your inspector is not given full access, that’s a major red flag that you shouldn’t ignore. It’s not uncommon for homeowners’ associations, especially ones that are self-managed or managed by second-rate companies, to ignore needed repairs to a building rather than incur the cost of remedying them.

Tips, Advice, Buying, Condos, Condominiums, Condominium Property Act, Disclosures, Special assessments, Fulton House Condominium

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{ 8 comments… read them below or add one }

EUGENE August 19, 2014 at 11:19 AM

ANY WORD ON FULTON HOUSE
RESURFACING OUT SIDE OF BUILDING AND
REPAIR ON ROOF. WHAT IS IT COSTING THE
HOME OWNERS? OR IS IT COVERED BY
INSURANCE.

Reply

Clementine December 1, 2014 at 12:25 PM

The Fulton House Board recently passed a special assessment of approximately 7.2 million dollars. This will cover repair of the facade, new roof and passenger elevators. The homeowners will be responsible for the entire cost.

Reply

Brian December 3, 2014 at 12:48 PM

Is there a way to confirm this figure? Clementine, do you reside in the building? I’m just curious if this high number is accurate. I’m also curious how quickly owners need to pay this amount. Thanks.

Reply

Joe Zekas December 3, 2014 at 4:12 PM

Brian,

I emailed Clementine yesterday with questions and left a message for the condo manager earlier today. Haven’t heard back from either.

Reply

Clementine December 3, 2014 at 4:41 PM

In response to your questions. Yes, I own a condo at Fulton House. The Board originally passed a $12 mil special assessment. That assessment included a total re-brick of the facade. The cost of the assessment caused quite an uproar. The Board’s decision was eventually overturned by a majority of owners. There are several repayment options, the longest being 10 years.

Reply

Joe Zekas December 3, 2014 at 5:27 PM

Clementine,

Thanks for the update.

I just heard back from the property manager, who provided the same information you have.

The special will not be final until after an owners’ meeting next week.

Reply

Brian December 4, 2014 at 8:04 AM

Thanks for the info and follow up. It’s interesting to hear how associations handle/bill for repairs this large in scope. Joe, is it relatively common to see numbers in this range from time to time?

Reply

Joe Zekas December 4, 2014 at 8:33 AM

Brian,

I wouldn’t say it’s common – I’d say it’s not unusual.

I can think of more than a dozen over the past half dozen years, and I’m sure there are more I haven’t heard of.

Most large buildings have studies done and build up reserves to handle potential major repairs. My understanding is that part of the special at Fulton House is going into the reserve fund.

Reply

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