Condo bylaws - discriminatory -unit owners vs landlords

[tobysen]

What is the name of your state? Delaware

Recently, there has been a change in the condo's association directors. The new directors have incorporated new policies / rules that result in monetary difference between a unit owner (one is lives in the unit) and a landlord (who is a legal unit owner, but lease the unit).

The two new policies are:

1. Parking - Unit Owner are allows one free space - Landlord, must pay for the tenant's one free space... cost is $75 dollars... I believe, as a landlord / unit owner, I am entitle tothe the one free space also...???

2. Over a year ago there was a change in the property management group... as a result some landlords / owners where not inform of where to send the monthly fees... where the new director took over, they established anmestry program... however, they created separate discount policies for owners vs landlords... 40% discounts for lump sums payment due for owners, but 20% for landlords....

Are these policies considered discriminatory?
Do I have any recourse?

thanks, tobysen

[IndianaOwner]

I take it you lease out your unit? FYI - you may have no idea the problems your tenants may be causing for others, esp. if do not even live in the area...so be aware of that. Obviously these rules were designed to solve a problem caused by non-owner occupied units.

It is highly doubtful that the board can act in this manner. They could impose a admin reasonable fee regarding the expenses related to leased units, but they can not deny equal access to the common areas via a different fee amount for a parking space.

[tobysen]

Thanks, this is useful... fyi... The Condo Declaration contains what is acceptable conduct, rules for how owners / occupptances co-exist, and common grounds, etc. I also have an agent that handles local issues either caused by the tenant or a complaint by the tenant. The condo assoication has the agent's name..

Thank you again...


Do you know how I can get this resolved... I tried to reason with the directors, but they are standing firm...

regards, tobysen

[alent1234]

not sure about condos in delaware, but in NYC co-ops many boards have all kinds of rules to make it more expensive for landlords to discourage people from renting their units out. Anything from requiring the unit to be lived in for 2 years before allowing it to be rented, to rental taxes on the landlord, etc.

[You Are Guilty]

Originally Posted by alent1234

not sure about condos in delaware, but in NYC co-ops many boards have all kinds of rules to make it more expensive for landlords to discourage people from renting their units out. Anything from requiring the unit to be lived in for 2 years before allowing it to be rented, to rental taxes on the landlord, etc.

1- The poster isn't in NYC.
2- Even if they were, the poster isn't in a co-op.

[IndianaOwner]

Common Areas are just that ... common areas where each unit is equally entitled to use them. The board can adbt reasonable rules and regulations regarding parking, but they must be uniform such as one space is reserved per unit, but they can not charge one unit more than the other. Read the section regarding common areas and limited areas in your condo docs....then send a letter quoting that section and possibly the state condo statute. The board is wrong from what you have posted. You and your tenants, guests, etc. have equal rights to the common areas. The restriction on even renting your unit in the first place (per a previous reply post) is a totally different question ... here, it is already rented out.

[BlondiePB]

Originally Posted by tobysen

Thanks, this is useful... fyi... The Condo Declaration contains what is acceptable conduct, rules for how owners / occupptances co-exist, and common grounds, etc. I also have an agent that handles local issues either caused by the tenant or a complaint by the tenant. The condo assoication has the agent's name..

Thank you again...


Do you know how I can get this resolved... I tried to reason with the directors, but they are standing firm...

regards, tobysen

The By-Laws should address parking and whether or not a fee for parking is allowed. In order to charge a parking fee should the By-Laws state no fee, the By-Law has to be amended. "House Rules" are different and not By-Laws unless the By-Law is repeated in the "House Rules".

[Paddy Reagan]

Each state has its own statutes and codes governing condo operations and it's difficult to offer specific responses to your questions without research. (This is something you can do on your own using this link: [url]http://www.delcode.state.de.us/title25/index.htm#TopOfPage[/url])

There is some commonality, however, between most statutes based on fairness and equity. Here are some examples:

a. In most states, every owner must have equal access to common areas such as parking. In many states, tenants have identical access to facilities such as pool and parking as the owner (though the owner can't use them while a lease is in place.)

b. It's unlikely that your state permits variances in condo fees based on residential or rental use, especially those involving the "discounts" you describe. Here's why: Condo budgets are developed based on operational requirements. If owners are receiving discounts there will likely be a deficit, a condition that ALL owners must rectify with higher fees or special assessments.

c. These fees and discounts should not have been implemented without a vote of the entire membership with, at least, a majority voting in favor and an amendment to the Declaration of Condominium authorizing the changes.

Recourse? Read your condo docs and by-laws carefully. Ask the board and management company for the language that enabled their decisions. If you find that procedures weren't followed you may wish to file a complaint with the state regulatory agency responsible for condos or, contact other investor owners, hire an attorney, and work to overturn those decisions.

[tobysen]

Thanks to all for your help and guidance... Paddy, very good and thanks,,, tobysen

I read that I should paid the fees now and dispute them later... or sue to get them back... any thoughts on this?

[Paddy Reagan]

Originally Posted by tobysen

I read that I should paid the fees now and dispute them later... or sue to get them back... any thoughts on this?

Withholding payments to protest board decisions is rarely a good idea. Doing so can result in late fees, interest, liens, and perhaps even foreclosure. At best, failure to pay undermines your own legal position as it relates to the original actions by the board.

Investigate the issue thoroughly and choose a course of action. Depending on the statutes in your state these may range from the formal complaint mentioned earlier to a request for arbitration. If enough owners are unhappy with the new parking fees, etc., you may wish to consider initiating a recall of the board or, with the assistance of an attorney experienced in condo law, more formal legal action.

If you're determined to withhold these fees, contact an attorney and ask him to hold them in an escrow account for you. Have him write a letter of explanation to the board. Until you have a specific plan of action in place, such a move is probably premature.