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.
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.
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.
