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©
2002 Ruth E. Campbell. |
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Frequently Asked Questions Owning
Your Home - 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 multifamily 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 nonetheless. 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. 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. Q: Where do I get information on condo association laws?
Q: Where do I get information on condos?
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. |