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Condo boards everywhere are unprepared for serious repairs

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Re: Condo boards everywhere are unprepared for serious repairs

#11
post #9

It's not just condo boards, it's everything in America... physical infrastructure, corporate R&D, software security bugs. It's more attention grabbing and personally profitable to do something new than maintain something old, so people kick the can down the road and cash in, making the problem someone else's (and a bigger problem). Even worse, America's soft power / cultural influence is infecting other countries wit…

I agree here. And its not just America but really just any government in any country.

I've come to think of governments/countries as just a very, very extensive, giant home owners association that happens to float its own currency, fund its own schools, etc. The HOA fees are basically taxes and often times fees are accessed by the size of your unit.

Thinking from an HOA perspective - you then become comfortable with all the warts and inefficiencies that a country/government may have.

Serving on the HOA board is quasi-voluntary, tends toward folks with free time and a desire for power, no one is particularly accountable.

The home owners themselves are a fickle and diverse bunch, the vocal ones mostly complain about stuff, the silent ones don't say anything and are just getting on with their lives and all have varying attitudes toward expenses for improvements and investment for the future.

Re: Condo boards everywhere are unprepared for serious repairs

#12
post #9

It's not just condo boards, it's everything in America... physical infrastructure, corporate R&D, software security bugs. It's more attention grabbing and personally profitable to do something new than maintain something old, so people kick the can down the road and cash in, making the problem someone else's (and a bigger problem). Even worse, America's soft power / cultural influence is infecting other countries wit…

Japanese are known to think very long term as well

Re: Condo boards everywhere are unprepared for serious repairs

#13
post #6

I would be extremely reluctant to own a condo because condo boards revert to the mean person's attitude to solving problems of putting it off until it is staring them in the face. Grandparents owned one where the board deferred thousands in repairs until it became hundreds of thousands.

I imagine the phenomenon is due to multiple people being responsible but no singular person being accountable. There is probably a board director / president that SHOULD be accountable, but it's easy for them to either consciously or subconsciously blame the rest of their board for inaction. https://en.wikipedia.org/wiki/Responsibility_assignment_matr...

Well, and:

- Long term problems can outlast the tenure of any board member.

- Board members are volunteering. What sort of "accountability" is appropriate?

Can you pin millions in liability on whichever unit owner threw their hat into an election in the year preceding some terrible outcome? Why would anyone be a board member then?

Re: Condo boards everywhere are unprepared for serious repairs

#14
post #9

It's not just condo boards, it's everything in America... physical infrastructure, corporate R&D, software security bugs. It's more attention grabbing and personally profitable to do something new than maintain something old, so people kick the can down the road and cash in, making the problem someone else's (and a bigger problem). Even worse, America's soft power / cultural influence is infecting other countries wit…

Completely agree.

You can abstract this into a general maintenance aversion. Effectively there is a moral hazard here: when problems are put off there is a strong chance that the cost will be borne by others.

Re: Condo boards everywhere are unprepared for serious repairs

#15

Earlier quoted context omitted.

There is an easy fix. Condo finances should be public record, and when repairs are needed, the local code/planning/inspector office reviews with the condo board, approves if necessary, and then puts encumbrances on the units in the complex. Those who can afford the cost pay right away, those who can’t have essentially borrowed against their equity to finance their share of the repairs, with the loans paid back with i…

This is the right answer. Some repairs should be mandatory, if the owner can't pay it should be treated as any other debt. If the owner can't afford repairs, it should sell the unit, otherwise the damages are greater for all other owners.

[deleted]

Re: Condo boards everywhere are unprepared for serious repairs

#16
post #12
post #9

It's not just condo boards, it's everything in America... physical infrastructure, corporate R&D, software security bugs. It's more attention grabbing and personally profitable to do something new than maintain something old, so people kick the can down the road and cash in, making the problem someone else's (and a bigger problem). Even worse, America's soft power / cultural influence is infecting other countries wit…

Japanese are known to think very long term as well

[deleted]

Re: Condo boards everywhere are unprepared for serious repairs

#17
post #6

I would be extremely reluctant to own a condo because condo boards revert to the mean person's attitude to solving problems of putting it off until it is staring them in the face. Grandparents owned one where the board deferred thousands in repairs until it became hundreds of thousands.

I imagine the phenomenon is due to multiple people being responsible but no singular person being accountable. There is probably a board director / president that SHOULD be accountable, but it's easy for them to either consciously or subconsciously blame the rest of their board for inaction. https://en.wikipedia.org/wiki/Responsibility_assignment_matr...

To be accountable, a person needs to be in charge. Board president is often just one vote of many.

Re: Condo boards everywhere are unprepared for serious repairs

#18

I would be extremely reluctant to own a condo because condo boards revert to the mean person's attitude to solving problems of putting it off until it is staring them in the face. Grandparents owned one where the board deferred thousands in repairs until it became hundreds of thousands.

There is an easy fix. Condo finances should be public record, and when repairs are needed, the local code/planning/inspector office reviews with the condo board, approves if necessary, and then puts encumbrances on the units in the complex. Those who can afford the cost pay right away, those who can’t have essentially borrowed against their equity to finance their share of the repairs, with the loans paid back with i…

Could you elaborate on how this is different from the current system?

With the current system, the condo board decides that repairs are needed, assesses fees, and makes the repairs. The fees are either paid immediately by the condo owners, or the HOA puts a lien on the condo. Local laws require larger buildings to be inspected on some scehdule... in New York I think there's a type of inspection (FSPM: fire safety and property maintenance) that is required every three years, for all multi-tenant residential buildings.

From what I can tell, the big problem is that the condo board is just made up of people who own the condos, and the bylaws of individual HOAs require certain actions by the condo board to be approved by the owners.

The other problem is that Florida has weaker laws for condos than other states.

Re: Condo boards everywhere are unprepared for serious repairs

#20
So, condos aren't that old in the US. Is there some similar structure in another country with older urban housing stock that works better?

For demographic, environmental and economic reasons, it seems like more people will and should be living in cities with some density, so we need _some_ well-functioning arrangement for ownership for something other than single family homes. Is there not some country with a lot of heritage 18th and 19th century urban buildings which are successfully inhabited by many owners?

(Given the intractability of strong tenant protections in most of the US, I don't think it's reasonable to take the position that if you can't afford a whole house you should rent.)

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