What can a condominium do when it is facing a large deficit or an unexpected repair project has depleted the reserve fund? Typically, the condominium would levy a special assessment or increase the monthly fees. In some cases, a loan might be the best option for the condominium and its owners.
Some condominiums have found creative ways to generate extra revenue to offset expenditures and avoid (or reduce) deficits. Some of the ideas work better when the deficit is small and there is at least some advance warning of it. Other ideas work better when a long-term solution is sought. Sometimes there is a desire to keep monthly fees low without causing the problems so frequently seen when fees are kept too low, like poor maintenance, deterioration of the property, and an underfunded reserve fund. Continue reading