| Q: | Do condos have to be made accessible to the disabled? |
| A: |
The 1990 Americans with Disabilities Act does not require strictly
residential apartments and single-family homes to be made accessible. But
all new construction of public accommodations or commercial projects (such
as a government building or a shopping mall) must be accessible. New
multi-family construction also falls into this category.
In all states, the Federal Fair Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren't accessible to the disabled. Two educational brochures, "Housing Rights" and "Discrimination is Against the Law," are available through the Department of Fair Employment and Housing by calling (800) 884-1684. |
| Q: | Can condos ban smoking? |
| A: | A
homeowners association's board of directors can restrict smoking if it
applies to indoor common spaces such as hallways or recreation rooms.
Outdoor spaces are a different story, say legal experts. Any restriction
would probably hinge on local laws (i.e. if a city banned smoking outdoors,
a homeowners association probably could restrict smoking in its outdoor
spaces).
Typical covenants, codes and
restrictions (CC&Rs), which govern condo associations, give the board
authority to make and enforce reasonable rules for the use of common
property. But that would not apply to interior spaces owned by smokers
themselves.
|
| Q: | Can a condo association ban nudity? |
| A: |
Could you sunbathe in the nude on your own balcony? Not necessarily. In a
condominium development, a balcony is not considered private property but
common property assigned to your exclusive use but a common area nontheless.
Covenants, codes and restrictions (CC&Rs) usually spell out what activities can and cannot be conducted on common property. Some associations prevent people from barbecuing on their balconies or hanging large plants from the railings. However, the larger issue of regulating personal conduct is not so clear-cut. It literally depends on what side of the fence you're on. If the sunbather can be seen from a public vantage point -- not by someone who must climb a tree or peer through binoculars -- then the rule probably would be considered reasonable, say legal experts. Incidentally, there are places where nudity is tolerated but again, only out of public view. |
| Q: | Are condos a good investment? |
| A: |
Condominiums have held their value as an investment despite economic
downturns and problems with some associations. In fact, condos have
appreciated more in the last few years than when they first came on the
scene in the late 1970s and early 1980s, experts say.
While there are lots of reports about homeowners association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past. Meanwhile, changing demographics are making condominiums more attractive investments for single home buyers, empty nesters and first-time buyers in expensive markets. |
| Q: | What's a house worth? |
| A: | A
home is worth what someone will pay for it. Everything else is an estimate
of value. To determine a property's value, most people turn to either an
appraisal or a comparative market analysis.
An appraisal is a certified appraiser's estimate amenities, energy efficiency, the quality of the of the value of a home at a given point in time. To make their determination, appraisers consider square footage, construction quality, design, floor plan, neighborhood and availability of transportation, shopping and schools. Appraisers also take lot size, topography, view and landscaping into account. A comparative market analysis is an informal estimate of market value, based on comparable sales in the neighborhood, performed by a real estate agent or broker. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available at local recorder's or assessor's offices, through private companies or on the Internet.
|
| Q: | Where do I get information on condo association laws? |
| A: |
Resources: * "The Condominium Bluebook" by Branden E. Bickel, B&B Publications, San Francisco, CA; 1994; call (415) 433-1233). * Community Associations Institute, Alexandria, VA; (703) 548-8600. |
| Q: | Where do I get information on condos? |
| A: | The major interest group for condominium projects and other so-called common-intereset developments is the nonprofit Community Associations Institute,1630 Duke St., Alexandria, VA 22314; (703) 548-8600. Also, check the Internet where CAI operates an informative site as does CIDNetworks. |
| Q: | How are fees and assessments figured in a homeowners association? |
| A: |
Homeowners association fees are considered personal living expenses and are
not tax-deductible. If, however, an association has a special assessment to
make one or more capital improvements, condo owners may be able to add the
expense to their cost basis. Cost basis is a term for the money an owner
spends for permanent improvements throughout their time in the home and is
used to reduce eventual capital gains taxes when the property is sold. For
example, if the association puts a new roof on a building, the expense could
be considered part of a condo owner's cost basis only if they lived directly
underneath it. Overall improvements to common areas, such as the
installation of a swimming pool, need to be considered on a case-by-case
basis but most can be included in the cost basis of any owner who can show
their home directly benefits from the work. To find out more about how the IRS views condo association fees, look to IRS Publication 17, "Your Federal Income Tax," which includes a section on condos. Order a free copy by calling (800) TAX-FORM. |