Great condo for sale in the grand Indianapolis Athletic Club. Things you should ask as a potential buyer:
- confirm reserve study performed to set reserves
- confirm estimate of current budget and that reserve amount meets the minimum required to maintain the building
- confirm that rent on south parking lot will increase based on inflation and will be a drain to finances
- projection of HOA monthly due increases for next 5 years (e.g. is it at all possible that HOA dues will not increase)
- Confirm HOA increases for last 5 years and compare to balance in reserve
Chances are that what you will pay in HOA dues will continue to increase as compared to other condos in downtown Indy. Thus making the IAC a poor economic decision.
Word has it that the IAC’s insurance company settled a lawsuit regarding the deceptive practices of the IAC Board of Directors in regards to the financial viability of the association. From what has been shown to the owners who operate the site, discovery from the litigation discovered wide spread incompetence and a complete disregard to of the internal policies of the IAC related to finances. No wonder the condos in our building linger on the market for 200+ days……
The annual budget proposed by the HOA at the 2017 annual meeting did not provide for sufficient revenues to meet the new reserve target of $250,000!!!!! And us owners would not approve the larger budget without more details. This being said, the increase in dues has gone up by 20% (the max the HOA can force on owners). Given that the HOA Board had never actually performed a reserve study, we expected assessments to increase 20% every year unless major one time assessments (beyond the ~$2,000,000 from Jan-Apr 2017!!!!) occur.
Ask questions about Reserves! Ask questions about the maintenance plan (non-existent as of January 2017)!
Owners were informed in May 2017 that a prior owner filed litigation against the IAC because information provided prior to their purchase were not consistent with the facts later discovered. Us owners are being left in the dark as to the details of the litigation, but are subject to growing costs and what seems to be misinformation.
The documents about the lawsuit are very interesting. If you are interested in buying, you may want to review these public documents.
The IAC does not own the parking lot to the south of the main IAC building located at 350 N. Meridian Street. The lease for the parking lot includes an inflationary adjustment and also requires the IAC to maintain the parking lot. The cost of the lot rental is substantial and may be the largest expense on the IAC income statement. As the cost to maintain is high…and there is no option to negotiate the lease, this cost will continue to climb.
More expenses equals higher assessments given the current reserves are insufficient (as of April 2017).