What exactly is a condominium?

A condominium is a form of property ownership and not a specific type of building. In condominium ownership, parts of the property (the units) are owned by individuals and other parts (the common areas) are owned collectively by all the unit owners. All of the unit owners are members of the condominium association, which is the entity created by the condominium's Master Deed that formed the condominium. Ownership of a condominium means that you own your specific unit plus an individual interest in all of the common property in the condominium. You have ownership over all the space and improvements within your unit as defined in the Master Deed and you have the individual ownership interest specified in the Master Deed in all common property.

Understanding Habitat I Section A's characteristics as well as it's financial condition is important because you own both your unit as well a portion of the entire Habitat I Section A complex.

What are condo fees?

Your monthly condo fee is the sum collected each month to pay for the management, operation and maintenance of the Habitat I Section A buildings and common property. Examples of things your monthly condo fees cover include are: water and sewer service, fire insurance, electric for garage, driveway and outdoor lighting, landscaping, maintaining the areas and facilities outside the units, maintenance and replacement of doors, windows, roofs, siding and other structural parts of the buildings. management fees, and so on. Each unit owner pays a portion of the total expenses of the condominium based on their "unit factor" as set in the Master Deed as their monthly condo fee. The unit factor represents each unit owner's ownership percentage in Habitat I Section A. This unit factor is based on the square footage and type of unit you own. Each year the Habitat I Section A Condominium Board of Directors is required by the Master Deed and By-Laws to estimate the total operating costs for the condominium for the coming year and set the monthly condo fee based on this unit factor or percentage of ownership.

What is a reserve fund?

It is a fund where money is set aside to use for future repairs, maintenance, or improvements to the buildings and the common areas. A small portion of your monthly condo fee is deposited in the reserved fund for future expenses. The Master Deed requires that Habitat I Section A have a reserved fund. In preparing the annual budget, the Board of Directors is responsible to assess the state of repair of the condominium and to plan for need repairs, maintenance and improvements. If there is not enough funds saved in the reserved fund to cover unexpected major repairs or shortfalls, all the unit owners would be assessed and expected to pay a share of the shortfall based on the total cost. This would be a special assessment over and above the regular monthly condo fee.

Who manages the Habitat I Section A Condominium?

The unit owners of Habitat I Section A elect a Board of Directors who manage the condominium and all its buildings and facilities. The Board hires a management company to handle day-to-day matters and to keep financial records under the direct oversight of the Board.