Here is an ethics quandary and thought experiment (one combined) for your delight. Answer briefly as you wish. But follow the rules at the end.
A condominium complex is completed and all the condos have sold. The owners have not yet moved in. The very final “touches” are being put on it.
The “Declaration” to be filed with the Secretary of State is being written by the owners. They all meet to decide on several issues. One of those is the structure of the monthly Home Owners Fee for maintenance. It will cover all expenses except exceptional and special repairs that come up unexpectedly. Those will be covered by special assessments.
The complex is a “covenant community” in that every owner agrees to abide by the rules and regulations and pay monthly into the HOA budget with the to be agreed on monthly fee.
What should the monthly fee be based on?
The condos are in three sizes and floor plans: 1) a simple, one floor, two bedroom apartment; 2) a two story townhouse with three bedrooms; 3) a studio apartment (no separate bedroom). Number 1 has 1500 square feet of living space. Number 2 has 2500 square feet of living space. Number 3 has only 500 square feet of living space. All have a one car garage, kitchen, patio or balcony, provided by the HOA heating, water, and trash service. Electricity is paid by the owners individually. There is an equal number of types of apartments: 33 of each.
An argument breaks out among the owners. Some say the fee should be based strictly on square footage. Others say it should not be based on square footage alone because all owners have equal access to: a club house with sauna, fitness room, meeting room, library, kitchen, etc., a swimming pool, a tennis court and a large open lawned middle space (like a courtyard).
Is there a right way of determining the HOA fees? If so, what is it? How should that be decided?
*Note: if you choose to answer, keep your answer to 100 words or less, address it to me, make sure it is on topic, civil and respectful (not hostile or argumentative), and devoid of pictures or links.*
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