Holy Toledo Batman! A special assessment of $100,000.00 for repairs...from the Chicago area comes these horror stories...
The perfect shock
Condo dreams turn into nightmares with $100,000 special assessments
February 16, 2007
BY SANDRA GUY Staff Reporter
Robert Kelter was watching a football game when he noticed water dripping from the ceiling into the living room. He figured he'd have to call a roofer for a quick repair of the upstairs deck.
Kelter, who had paid $405,000 for his 2-bedroom condo in 2001, had no idea the water drip would turn into a potential $100,000 expense because of alleged major structural problems in the building.
But it did. And he's not alone.
Condo board President Robert Kelter stands under a leaky roof at the Lincoln Theatre Lofts.
(John J. Kim/Sun-Times)
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But it did. And he's not alone.
About 100 condo owners at two renovated buildings -- one where Kelter lives on the North Side and the other in the South Loop -- have faced special assessments as high as $100,000 apiece to pay for damage they say is caused by shoddy construction.
The two condominium buildings are undergoing a total of $7 million in repairs, and their boards have filed lawsuits asking the developers to take responsibility for alleged construction defects.
A legal expert says the jaw-dropping extra assessments result from a perfect storm of condo conversion circumstances: A lack of oversight by the city, buyers with stars in their eyes and little information and developers who claim they have no assets to correct defects after they sell the condos.
One condo building is the Lincoln Theatre Lofts at 3146-72 N. Lincoln Ave., near the busy intersection of Belmont, Lincoln and Ashland. The other is the East Side Lofts at 1601 S. Indiana Ave., which is about two blocks south of Mayor Daley's home.
About $4 million in repairs to the East Side Lofts are nearly complete and have been paid for by a special assessment imposed on the condo owners. Final repairs to the roof will start when the weather improves.
"We're going to have a tip-top building when it's all done," said one owner who asked to remain anonymous.
The East Side Lofts owner said he paid $77,000 in the first special assessment. He bought his 2-bedroom condo for $290,000 in August 2001, and owed less on his entire mortgage than the amount of the first special assessment.
He said he will pay another $4,000 to $5,000 for a new special assessment to cover lawyers' fees.
"The homeowners didn't deserve to be put in this situation," he said.
The first special assessment of $4 million was divided among 65 condo units of varying sizes. A couple owners of double units reportedly paid $120,000 each in the first special assessment.
The second special assessment for lawyers' fees totals $100,000.
The board recently approved a third special assessment totaling $150,000 to pay lawyers' fees through trial. A trial is scheduled for late this year.
sguy@suntimes.com
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