Condo Board Wrestles With Ways to Pay for $7 a Million Facade Project
A condo board in Upper East Side Manhattan with 300 units faces challenges when planning the best way to pay for the $7 million needed in facade work. With loan interest rates increasing, the association is looking at about $72,500 in monthly mortgage installments that would be spread among all the owners. If the association decides against taking out the loan, the homeowners will have to pay a little over $23,300 each for this project. The board has a few other options, including offering different payment plans, but realistically would become an accounting nightmare for the association to keep track of every unit and option. The association could also have the owner pay the principal portion due then. Still, they must immediately pay the bank after collection to avoid paying the interest rate. Lastly, the board can present one or two payment plan options to owners and assign the loan to each unit, meaning if the unit sells, the owner can negotiate a payoff amount and have the buyer continue to pay the fees. Let us know which payment option you would choose by leaving a comment.