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Homeowner Associations - Q & A
| 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.
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| 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.
Resources:
* Common-interest development brochure available free from California
Department of Real Estate, Book Orders, P.O. Box 187006, Sacramento, CA
95818-7006; (916) 227-0938.
* Various Internet sites specializing in common-interest developments,
such as those operated by the Community Associations Institute and
CIDNetworks.
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| 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.
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| 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.
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| 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.
Other resources include:
* The Home Sales Line allows people to use their telephones to find
the exact selling price of houses anywhere in the state 24 hours a day.
Call 1-800-585-HOME.
* Dataquick Information Systems tracks home sales statewide and prepares
reports for specific properties. Call 1-800-999-0152.
* Go to Web sites such as http://www.homeshark.com and http://www.dataquick.com.
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| 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. |
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| 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. |
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| 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.
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Copyright 1999 Inman News Features
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