“Percent Interest”
The Fair and Just Way
If you’ve ever wondered how and why fees are determined, this is the method of “Percent Interest” as legally required in Burnt Tavern Manor Condominium.
Each unit and deed has a specific “percent interest” assigned to it and cannot be ignored. As stated in the Master Deed, each owner’s individual deed and even a NJ State Superior Court Order, the amount owed by each unit owner is a very simple bit of math. For Burnt Tavern Manor Condominium, there are only two percents available. Your property must be assessed for 0.261% or 0.325%. The determining reason for the application of the percentages, is based on the one true fact, the square footage of a property is directly related to the cost of repairs. This same principle is the number one factor in a municipality determining the application of property taxes charged to a home.
So let’s get to seeing how much you can expect to legally owe, associated with your home.
If you live in an “apartment-style” unit, then, you are required to use the “Percent Interest” of 0.261%, in calculating your annual fees. If you are in the Twin Lakes area, you are required to use the same, 0.261%, in calculating your annual fees. Should you live in a “Townhouse” style unit, then you must use the “Percent Interest” of 0.325%, in calculating your annual fees. (see map for ease of locating)
Now that you know your correct “Percent Interest”, as shown on the Master Deed and your individual deed, you will only need one number. And, though not always easy to acquire, we will use amounts as purported on the estimated budgets each year.
Year: 2014 (common area expense as $892,621* )
Year: 2015 (common area expense as $960,874* )
Year: 2016 (common area expense as $ 1,048,680* )
Year: 2017 (common area expense as $ 1,048,680* )
The following is an example of how the calculations are done.
Common expense of: $ 892,621 multiplied by 0.261% ( or 0.0026 ) equals $ 2,329.75 per year.
Year: 2014
892,621 x 0.00261 = 2,329.75 annual fee per unit
892,621 x 0.00325 = 2,901.00 annual fee per unit
The per month fee is simply dividing the annual fee by 12 months
2,329.75 / 12 = $ 194.15 per month
2,901.00 / 12 = $ 241.75 per month
So the other years would be,
Year: 2015
960,874 x 0.00261 = 2,507.88 per year
960,874 x 0.00325 = 3,122.84 per year
2,507.88 / 12 = $ 208.99 per month
3,122.84 / 12 = $ 260.24 per month
Year: 2016*
1,048,680 x 0.00261 = 2,737.06 per year
1,048,680 x 0.00325 = 3,408.21 per year
2,580.09 / 12 = $ 230.59 per month
3,212.76 / 12 = $ 284.02 per month
Year: 2017
1,048,680 x 0.00261 = 2,737.06 per year
1,048,680 x 0.00325 = 3,408.21 per year
2,580.09 / 12 = $ 230.59 per month
3,212.76 / 12 = $ 284.02 per month
There you have the simple to calculate yearly and monthly maintenance fees you were legally required to pay, per the Master Deed and your own individual property deed.
In recent years, owners were introduced to the surprise of “Special Assessments”. For those unfamiliar with the term, it occurs when the regular budget for the operations of the Condominium Assocation falls short and isn’t enough to keep the business of running the association continuing. This is typically a result of unexpected large costs of repairs. This is a problem common when the required reserves funds are too low. This is followed by the Board announcing the need for a special, one time charge to the unit owners, in order to make up the lack of funds. Since budgets typically flucuates as the costs of business change throughout the year, it’s possible for the costs of things to get more expensive as the year progresses. And that cuts into the available budget faster. In the same respect, it is possible for the price of things to decrease, and that would lead to a surplus of funds which could decrease the budget in the upcoming year.
In simple terms, “Special Assessments” are just an extension to the “Common Expenses” as estimated in the yearly budget. And the calculation is the same as above, with each unit responsible to pay their “Fair and Just” amount of fees.
Speical Assessments
Year: 2014 ( $87,840 )
Year: 2015 ( $87,840 )
So the math is:
87,840 x 0.00261 = 229.26 per unit
87,840 x 0.00325 = 285.48 per unit
And that’s the simple math needed to calculate the individual yearly and monthly fees.
It’s reccomended you do your own verification of facts, and point you to read the Master Deed as well as review your own personal property deed. Need help getting a free copy of your deed, email the Staff at Support@Btmamember.info .
* amounts may be estimated from available documents.
Read PART 2 – HOW DOES THE TOTAL BUDGET $ COME TOGETHER