Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Rising Tides: The Catch 22 For Condos That Need A Repipe

Rising Tides: The Catch 22 For Condos That Need A Repipe
Your building is leaking.  Your pipes are failing.  Your insurance company might even be calling.  You need a repipe.  The problem is that it’s going to cost millions of dollars, and your board doesn’t have it in your reserves.  Do you take out a loan, issue a special assessment, or both to cover the costs?  Or do you wait, hoping you can raise the funds over the next several years, and try to buy more time? Unfortunately, for boards facing the prospect of a repipe in their community, making this choice is increasingly difficult, increasingly costly and increasingly litigious.  As I write this article, there are pending lawsuits against condo boards on both sides of the equation.   Pay Up and Stop The Leaks! In Hawaii, where a typical cast iron waste line replacement costs tens of thousands of dollars per unit, most properties, and homeowners, simply don’t have the cash to pay for it out of pocket.  Buildings that are in critical condition are declaring a “state of emergency,” and taking out loans to get the pipes fixed.  To pay off the loan, each owner’s portion of the loan payment is added to their monthly condo fees in order to cover the loan costs.  Sure, no one is happy about the increased fees, but the job gets done and the leaks stop. Clogged drain pipes, like this one, are causing a variety of problems in buildings across Hawaii including leaks, odors, slow running drains, and corrosion. But what happens when you live on......
Continue reading
5249 Hits