Condo Board violating new law

[Delcondo]

What is the name of your state (only U.S. law)? Delaware

I just found out that our Condo Board is atempting to avoid new Delaware State
Condo law, in regards to our Reserves. Here's a link (with the new law they are attempting to say they are in compliance with by using underhanded tactics)

===================
[url=http://delcode.delaware.gov/title25/c022/sc08/index.shtml]CHAPTER 22. UNIT PROPERTIES Subchapter VIII. Miscellaneous[/url]


§ 2245. Compliance phase-in.

Anything in this title to the contrary notwithstanding, if the amount held by a condominium in its repair and replacement reserve as of October 1, 2009, in lieu thereof,

(1) Constitutes less than 25% of the level of funding required for a fully funded reserve as defined in § 2202(19) of this title, then the council shall have 3 years to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title);

(2) Constitutes 25% or more, but less than 50%, of the level defined as fully funded, then the council shall have 2 years to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title); or

(3) Constitutes 50% or more, but less than 70%, of the level defined as fully funded, then the council shall have 1 year to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title).

==========================================

I've heard that they took a recent update to our community's Reserve study
and had our Management Company switch numbers around to make it appear they are in compliance with the new law. The Board claims the Management Company is only providing them with "different options" to follow in regards to the Reserves. They don't want to follow the numbers provided in the update
to the Professional Study because that would require a much larger contribution to the Reserve Fund.

I believe the Board & our Mangement Compant are acting illegally. Could one of our legal experts confirm that these actions are illegal? Is there a Delaware State Agency that I could report this situation to that would take action against our Board to get them to comply with the new law?

Any help/advice is greatly appreciated.

[HomeGuru]

Originally Posted by Delcondo

What is the name of your state (only U.S. law)? Delaware

I just found out that our Condo Board is atempting to avoid new Delaware State
Condo law, in regards to our Reserves. Here's a link (with the new law they are attempting to say they are in compliance with by using underhanded tactics)

===================
[url=http://delcode.delaware.gov/title25/c022/sc08/index.shtml]CHAPTER 22. UNIT PROPERTIES Subchapter VIII. Miscellaneous[/url]


§ 2245. Compliance phase-in.

Anything in this title to the contrary notwithstanding, if the amount held by a condominium in its repair and replacement reserve as of October 1, 2009, in lieu thereof,

(1) Constitutes less than 25% of the level of funding required for a fully funded reserve as defined in § 2202(19) of this title, then the council shall have 3 years to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title);

(2) Constitutes 25% or more, but less than 50%, of the level defined as fully funded, then the council shall have 2 years to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title); or

(3) Constitutes 50% or more, but less than 70%, of the level defined as fully funded, then the council shall have 1 year to make the repair and replacement reserve fully funded (as defined in § 2202(19) of this title).

==========================================

I've heard that they took a recent update to our community's Reserve study
and had our Management Company switch numbers around to make it appear they are in compliance with the new law. The Board claims the Management Company is only providing them with "different options" to follow in regards to the Reserves. They don't want to follow the numbers provided in the update
to the Professional Study because that would require a much larger contribution to the Reserve Fund.

I believe the Board & our Mangement Compant are acting illegally. Could one of our legal experts confirm that these actions are illegal? Is there a Delaware State Agency that I could report this situation to that would take action against our Board to get them to comply with the new law?

Any help/advice is greatly appreciated.

**A: was there a full Level 1 reserve study completed by a professional RS provider?

[Delcondo]

was there a full Level 1 reserve study completed by a professional RS provider?
=======================================

Yes, it's a full Level 1 Reserve Study was completed by a professional Reserve Study provider -- Reserve Study Advisors is the name of the company. This is the 2nd time that they have updated the study. This update identified more elements that the Condo Assn. is responsible for along with updating their factors for determining projected future costs. That resulted in an additional 1.3 MIL in projected costs over the time frame in the study.

The recent change in Delaware Condo law that I quoted in my last post has a provision forcing Condo Associatons to catch up within either a 1, 2 or 3 year time frame to become fully funded. Our Condo Board wants to avoid following the Professional Reserve Study numbers, which would require complying with the catchup portion of the new law. So, instead they had our management company switch numbers around numbers and want to follow those numbers which are very much backloaded.

All these seems very much illegal and our Condo Assn. seems to be trying to
find a way to try and circumvent the new law. The new law is aimed at preventing Condo associations from having to levy huge assessments due to underfunded reserve funds (which has occurred numerous times over the years in Delaware).

If I can get confirmation of this action being illegal (or if it's not, a note on
why it is not illegal) and find out if there's a Delaware State Agency to
report this to, I'd be very appreciative.

Thanks to HomeGuru and all our other legal experts that contribute to this
great Forum.