Saturday, February 05, 2011

What Will It Cost?

The first flurry of emails among our group focused on the projected costs of condo conversion. How much will it cost and how will we pay for it? We knew this was something we would need to do someday - our TIC agreement mandates that if we win the lottery we must condo convert. However, our group has a policy of using dues for routine expenses and special assessments for projects like higher cost maintenance and repair. (That's because if/when you sell you cannot withdraw the money you contributed to the house fund.) So in our building everyone is supposed to keep a personal reserve in the event of a large special assessment. Well, it's been so long in coming, I'm not sure everyone in our group is fully prepared financially for the burden of condo conversion. After so many years of losing, it feels like an impossible possibility has suddenly become a reality.

So the first thing we are doing is levying a special assessment, to get some money in the hopper for the kick-off condo conversion costs, like hiring a lawyer. Hopefully everyone will be able to pony up without too much trouble.

For our 6-unit building we are estimating the basic costs of condo conversion to be close to $30,000. That does not include any repair work we might need to do as a result of the required city building code inspection.


Estimated Condo Conversion Charges as of 2008
(6 unit Bldg):

City Application $8,897
3R Report $160
Survey and Mailing (varies w/building size) $9,000
Budget Preparer $4,000
State Application $1,700
City Inspection (varies w/building size) $2700
Attorney fees $5000

Data taken from Andy Sirkin's website: www.andysirkin.com

2 Comments:

Blogger Nerdwin said...

Don't forget property tax assesements. It may be possible that 3 payments will be due in advance. And also consider costs to refinance.

8:15 AM  
Blogger rp said...

Yes, thank you! When this is all over I will post the spreadsheet detailing all charges so people can see what it ended up costing our building - for the group and individuals.

1:24 PM  

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