Collecting the Condo Fees
In a condominium the condo fees are calculated against the budget. Usually the management company, projecting the expenses of the next year (our fiscal year starts July 1 and ends June 30 of the following year) comes up with the total amount that would be needed to pay for the operation and maintenance of the building's common elements for the whole year.
Let's say it is $ 1,500 000 for illustration purposes. Remember, this amount is what is expected; i.e. an intelligent guess.
The board must then approve this budget or send it back for review, again, basing this decision on their best estimates. Once the budget is approved the condo fees are calculated with a formula that weights how much each owner should contribute. This "formula" - or rather distribution - is found attached to your condominium declaration (Schedule D). In this table (Schedule D) you find your unit number, your parking number(s) and your locker number and then add up the corresponding percentages. The percentages were set according to area so a 630 sq .ft. condo would have to contribute less than an 915 sq. ft. condo. Also not all parking spaces are equal and not all lockers are equal.
For example, say your total percentage came up to 0.408%.
What does it mean?
It means that of the total projected expenses (budget) you are personally responsible for covering 0.408%. In our example this would be $1,500 000 X 0.00408 = $ 6,120. This amount is for the year and it is collected on a monthly basis. In our case $6,120/12 months = $510. Thus the unit owner must pay the corporation $510 every month (maintenance fees) to cover his/her share of the common expenses.
Things to Consider
The procedure applies not only to condo fees but to any charges coming from the condo corporation. If any repair for which the owner is responsible (read your declaration) was handled by management on behalf of the corporation then the unit owner must pay the charges or face the consequences listed in the procedure.
IMPORTANT: Every time management schedules a repair in your unit please ask them who will pay for this repair, whether is covered by the corporation (your condo fees pay for it) or the owner should pay for it separately.
Even if you have a dispute with the corporation we strongly recommend that you pay your condo fees and other charges on time to avoid the steep fees of the notice of lien and the lien. These fees are not collected by the corporation so we have nothing to gain when a homeowner ends up in this unfortunate situation.
The board of directors will keep in mind that we were elected by the unit owners to see for the best interest of the unit owners and we will strive to settle any disagreement in a fair and prompt manner and most importantly according to the rules.