Council imposes housing improvement fee for Village Manor condominiums

Coon Rapids City Council adopted resolution 25-67 to impose housing improvement fees in the Village Manor Condominium Association housing improvement area following a public hearing with no public comment. The council voted to impose assessments that will pay for roof replacement, soffit, fascia and gutters for one building.

City staff said the construction cost of the improvements is $93,660; with the city's standard assessment fees the total cost is $110,023.20. The cost will be divided equally among the eight residential units in the condominium association and collected over 15 years at a proposed interest rate of 5.25 percent, producing a fee of $13,752.90 per unit. Staff said fees paid in full within 30 days of adoption will not be subject to interest.

Staff explained that state law requires the association to present a financial plan showing it can maintain future capital needs; staff reviewed that plan and concluded the association should be able to meet future maintenance needs through increased monthly assessments and scheduling. Under state statute the resolution will not take effect until 45 days after adoption unless owners representing at least 55 percent of the units commit in writing not to object; owners may veto the resolution within 45 days.

Council member Geisler moved to adopt resolution 25-67; Butler seconded the motion and council approved it by unanimous voice vote. Council members commented that the city’s housing improvement program allows owners to finance improvements through property tax assessments and that staff’s first preference is for associations to use balanced reserves for maintenance when possible.

The council’s action authorizes the city to collect the assessment annually along with property taxes unless unit owners pay the assessment in full.