Page 10 - NY Cooperator July 2019

10 THE COOPERATOR —JULY 2019 COOPERATOR.COM BUDGET & FINANCE T here are few things upon which most is fi nally coming to fruition. For example, say people agree, but a general dislike for that a piece of building equipment or ma- paying more today for something that chinery has become harder to maintain, and cost less yesterday is pretty universal. Th is needs an increasing amount of service—or goes for taxes, consumer goods, healthcare, you’re increasingly repairing something be- and of course for monthly maintenance or cause the association has been using it more. carrying charges to a co-op, condo or HOA. Th ere could also be a change to a local ordi- But like it or not, the reality is that major nance that requires some work at the property building systems wear down, natural disas- ters happen, and the environment around a property changes over time. All of these will eral and liability rates could go up, as could eventually mean an increase in what each in- dividual shareholder or owner must pay in erty manager for Casagmo, a community in order to keep his or her community solvent Ridgefi eld, Connecticut. “And cost of living and well-maintained. Th at said, it’s important for boards, man- agement and residents alike to understand why and at what intervals fees should be in- creased. An open and honest board commit- ted to transparency in its processes will have maintenance increases. “We make increases a much easier job conveying the necessity of with infl ation and as the community grows,” a cost hike than one acting arbitrarily or in a says Laurel Wolfe, Association Manager at clandestine manner. Similarly, residents who Sleepy Hollow Lake in Athens, New York. know the whys and wherefores of an increase “We have 800-plus homes with 400-plus are far less likely to grumble or resent their building lots yet to be approved, and all pay board for implementing it. Broadly Speaking While every association is unique, there areas.” are certain commonalities related to why a maintenance fee increase could be necessary. “Maintenance charges are going to be nance on a yearly basis, just to keep up with driven by a few diff erent things,” says Sean the cost of living,” adds Mark Liberman, Jordan, Director of Property Management at Founder of On the Mark Management in Mil- FirstService Residential in Canton, Massa- chusetts. “It could simply be that expenses are half to 3 percent annually.” increasing, or that a short- or long-term plan to make sure it’s in compliance.” Insurance can also be a factor. “Both gen- utilities” says Jeanne Eberhardt, a prop- increases can impact landscaping, snow re- moval, and trash removal.” More sprawling communities with enough land to expand onto can grow signifi cantly from year to year – and this can also cause the same dues. But as we get more residents, we require more maintenance to the common “Every association should have a nominal increase to common charges and mainte- ford, Connecticut. “I’m talking a point and a A board might also increase monthly ISTOCKPHOTO.COM Maintenance Charge Increases When, Why, and How to Raise Monthly Fees BY MIKE ODENTHAL ENGINEERING, ARCHITECTURE AND ENERGY CONSULTING Proudly Serving Higher Education Institutions WE HAVE NYC COVERED The Falcon Group is a unique, full-service Engineering, Architectural & Energy Consulting firm. Falcon’s primary focus is on existing facilities ranging from site, building envelope and energy improvements. Our full-service capabilities focus on your building’s specific needs. Falcon’s mission is to ensure each of our clients are held at the highest level of individualized service. ENGINEERING & ARCHITECTURE BUILDING ENVELOPE RESTORATION & FISP NYC SPECIAL INSPECTIONS MEP & ENERGY CONSULTING SERVICES 350 7th Avenue, Suite 2000 New York, NY 10001 www.falconengineering.com (800) 839.7740