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Condo assessments, They are good, bad and sometimes necessary?

Condo Assessments at the Federal Fibre Mills Condos

       Federal Fibre Mills, 1107 South Peters….. The Federal Fibre Mills Condos in the New Orleans Warehouse District pictured above is in the process of refurbusing  its historic windows.  There are a lots and lots of large windows in this building.  I would have to guess there is over 300 large historic windows.  The repair and refurbise these many windows in not cheap and is not a normal expense of a condo association.

     The question most will as is where does the money come from to do a major repair job such as this.  Its the owners of the individual condos that are paying the bill based on their ownership share in the complex.  Larger units pay more since they are larger.  Most condos in New Orleans base ownership on the size of the unit.

      When an association has a major bill such as this they have to have everyone pay for it.  This is an assessment to each owner.  All condo associations have reserves for small jobs as a small amount of the monthly condo goes into the reserve account for things that will happen.  In this case the costs come out of the reserves.  The major bills are generally assessments where the 101 owners of the Federal Fibre Mills pay the bill in the form of an assessment.  The members vote on the assessment and the majority generally wins.

    Repair work has to be done or the repairs will be more later on.  The building was built in 1896 and was part of the Worlds Fair in New Orleans in 1984.  The windows were works of art by today’s standard all being hand made out of quality wood and hardware.  When association do not keep up the complex the value begins to decline as nobody wants something that is in disrepair.  If enough work is delayed the values fall like a rock.

    The Federal Fibre Mills is a first class building and the owners want it to remain as such.  The dues and assessment make it possible.  The buyers that buy after the assessment have no responsibility for paying anything once the assessment is in place.  Buyers should always ask if there are pending assessments when they are looking to purchase.  The minutes of the last couple of meetings should help discover this along with asking the managers of the complex.

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA