Payment plans for the 40 Year Re-Certification Project of Aquarius
Special Assessment 2017
First Payment March 2017
The purpose of this post is to give the owners a general and approximate idea of what is being studied with great care and with a strong effort to do everything in the best way, according to construction code, and in the most responsible and economic fiscal manner. The interest and safety of the owners of Aquarius is paramount!
What are the plans? What is the estimated cost?
This table has best estimate costs that need to be finally determined by the signature of the contracts with firms responsible for the work. Details for the improvements for the East Pool Deck have been presented in previous posts.
* 40 Year Re-Certification project includes East Deck, Pool, Balconies with Railings, Sea Wall, Beach Access, Electrical and External Painting. Also included are the Professional Engineering Fees.
† Mandatory items subject to Board of Directors vote. Some beautification items are subject to Aquarius Condominium Association membership approval as well.
‡ Discretionary items subject to Aquarius Condominium Association membership approval
How is this going to be paid up?
This is the next logical question. Everyone is aware that the Aquarius property needs repairs. The effort is to make this large project affordable by all. The idea is to minimize the hardship and at the same time and get the project completed in the shortest time possible with the minimum inconvenience.
The table bellow represents payment of the Special Assessment over a period of years. These numbers due to software round up are slightly (pennies) different from the official numbers. Take these a estimates only.
The interest being charged in the credit line loan contract is of about 4.75% fixed for 17 years (2 years of interest only and 15 years for amortization).
Some owners are interested in a lump sum payment to avoid interest. Studies are being made to accommodate these payments decisions anytime during the payment of the Special Assessment.
Some owners, with excellent credit, are able to get – as individuals – lower rates than the Aquarius Condominium is being charged. It may make sense to borrow from the individual credit institution and pay the Special Assessment in a lump sum. It is a decision each owner must consider. The Association will make every effort to accommodate individual anticipated partial or full payment with the full discount of any future interest to be charged.
At the end of the 24th month, at the end of the project, there will be a “True Up.” It will be verified the total actually used in the credit line to pay for the construction and the balance will start to be paid up. This means capital plus interest.
The numbers in the tables above contains very conservative assumptions: 1) The construction will require the entire loan amount, 2) There will be some bad debt that will use up the contingency reserve, 3) The contingency will be consumed for very expensive unforeseen circumstances, 4) The interest only will be needed for considerable amount of the loan withdrawn at the beginning of the project, 5) Assumption 4) does not allow for any accumulation saved by a lower value utilized in the line of credit. All these conservative assumptions are not likely to occur but they have been considered in the planning to avoid additional charges and project interruptions. The use of careful planing prevents bad surprises down the future.
It must be repeated that these above numbers are assumptions. Final firm numbers will be more realistic after the celebration of the contracts with the General Contractor for the 40 Year Project, for the Elevators rehabilitation contract, for the contracts for the Hallways renovation and other items.