Now that the Riser Project has been approved, the questions have shifted to the payment side.
At this time, we know that if an owner wants to pay their share upfront, they should be able to do so. At this brokerage we are also getting inquiries about paying in lump installments, paying at from settlement at real estate closings, paying a portion to lower monthly payments proportionally and a variety of other options for payment. Those options are not determined as of this date but are being considered by the board.
What we do know is that a financing source has been identified for the project and the terms offered are a 20 year amortization at 5.25% fixed rate throughout the term of the loan. The loan will be secured by future HOA payments and will not be a lien on the building itself or on all the individual condos.
We have run calculations on the full amount of the project at $29.5M to see what it looks like for an owner who wants the assessment to be added to their monthly payment. Based on the current HOA rates for 2018, the average Brooks Tower homeowner can anticipate an increase of around 55%.
Given the above assumption, the following examples would apply to a homeowner selecting payments as opposed to payment upfront:
2018 HOA payment total of $300/month will increase to $465/month (300*1.55=465)
2018 HOA payment total of $500/month will increase to $775/month (500*1.55=775)
2018 HOA payment total of $700/month will increase to $1085/month (700*1.55=1085)
Everyone can expect more information as the board finalizes the financing package between now and the start of work in January 2019.