A condo association in Chicago has begun an effort to buy up the vacant, foreclosed units in its condominium complex. At least 12 of the Shoreline Towers Condominiums' 378 units are in foreclosure and the condominium association has arranged a $2.5MM line of credit to allow it to purchase the units and then rent them out to recapture monthly condo fees and put warm-bodies in the units.
This seems like an obvious and simple way to deal with what is becoming a widespread problem, namely condo associations missing out on big chunks of funding from non-dues-paying, abandoned units. The condo owners in this complex should be proud of their association for adding real value to their collective residence through creative action. Many of my clients complain that condo fees are like extra taxes that will always go up and that you don't really see the benefits from. If more condo associations took such a proactive role in managing their properties during tough times, maybe buyers would see real value in having a condo association and be less reluctant to pay condo fees.
Comments(0)