First Financial Bank WHAT FIRST FINANCIAL BANK IS NOT TELLING YOU ABOUT BUYING UNIT 302 AT 3840 APPLEGATE AVENUE Cincinnati Ohio

need i say more?

All of the time you're wasting by posting the law in the state of Ohio - it happens to be fairly uniform in the 50 states.  The HOA can pass special assessments upon homeowners, depending on whether a majority of the HOA Board approve of the assessments, and whether the special assessment can be passed by a simple majority - because some require a 2/3 majority.  These assessments would be binding upon any new property owner as well.  Again, one of the reasons why HOA fees suck as a whole; I won't even get into having to live under specific CC&R's.  Now, as long as those assessments are disclosed in full to a potential buyer - and such disclosure would be required by law, then no problem.  If the special assessment is not disclosed, then that's a violation of the law.

The only problem l can see is if the special assessment has yet to be determined, the HOA hasn't voted on it, and a buyer for the property exists.  Then the area is gray, and you can have attorneys racking up fees trying to figure out WTH is going on.  Ethically, the HOA should disclose the fact that a special assessment is being considered at a minimum.  Most competent agents are aware of what's happening on something like this and can best advise their clients before someone makes a decision on a purchase.

At the end of the day, I wouldn't even consider living in a property with HOA fees, let alone the property you're talking about.  However, the bank is still the one who got ripped off....because they may never sell the property...

WHO SAYS THE HOMEOWNERS ASSOCCIATION CANNOT PASS A SPECIAL ASEESSMENT AND MAKE THE NEW BUYER OF UNIT 302 PAY FOR IT?  OBVIOIUSLY YOU NEED TO LEAR THE HOW CONDOMINUM LAW WORKS.  HERE IS THE LAW IN OHIO FOR HOA'S READ IT BEFORE YOU BUY OR YOU WILL LEARN A HARD AND VERY COSTLY LESSON.

BUDGETS, RESERVES AND THE OHIO REQUIREMENT FOR THE SPECIAL ASSESSMENT PROBLEM

The history of Ohio condominiums and homeowner associations has been plagued by “special assessments.”

In the past, condominium and homeowner associations typically included in their budgets the association’s day-to-day operating and maintenance costs.  Pressure on boards to keep maintenance fees low too often resulted in bare bones budgets with only basic necessities being paid.  Many associations failed to build up savings, known as “reserves,” for large future expenses such as roof, siding, or roadway replacement.  Because the costs of long-term replacement projects were not included in association budgets, condominiums across Ohio experienced devastating budget shortfalls.  Boards were left with no choice but to levy special assessments, often fully payable within a month or two, in amounts from the thousands to tens of thousands of dollars.  In many instances, the amount of the special assessment exceeded twenty percent (20%) of the unit’s value.  There has even been an instance where the amount of the special assessment approximated the total value of the units. Ohio community association owners faced large special assessment bills with little or no time to pay.  Needless to say, condominium owners across the State could ill-afford these special assessments often resulting in foreclosures and always resulting in ownership dissatisfaction.

Another serious issue arose when owners sold their units or homes to new purchasers without disclosing the potential for special assessments.  This game of “condominium roulette” proved to be financially devastating to new owners who faced huge special assessments shortly after their purchase with no warning that special assessments were forthcoming.  Purchasers would put virtually one-hundred percent (100%) of their savings into the down-payment and/or fixing up their new condominium only to be “hit” by the surprise special assessment.  “Condominium roulette” resulted in the filing of innumerable lawsuits against sellers, real estate agents, and associations alleging failures to disclose.  Results were mixed, but litigation is costly and demoralizing for all sides.  More importantly, the innocent losers at “condominium roulette” voiced high dissatisfaction with ownership of their new home.

OHIO LAW

(A) Unless otherwise provided in the declaration or bylaws, the unit owners association, through the board of directors, shall. . .

(1) Adopt and amend budgets for revenues, expenditures, and reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, provided that the amount set aside annually for reserves shall not be less than ten percent of the budget for that year unless the reserve requirement is waived annually by the unit owners exercising not less than a majority of the voting power of the unit owners association;

Unless otherwise provided in the declaration or bylaws, the owners association, through its board of directors, shall do both of the following: (1) Annually adopt and amend an estimated budget for revenues and expenditures.  Any budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the owners association, waive the reserve requirement annually.

Did you buy this foreclosed unit sight unseen, or some such? How else could you not have known what you were buying into with the building at large, let laone the unit, being a disaster zone?

You're likely fully on the hook for this one if you did.

Now if the entire building was cleaned and spiffied up, along with the unit, just for your benefit on an inspection, then I guess you might have a tiny case.

I guess you never had anything inspected, not just physical issues, but condo finances, etc.

Do not kid yourselves.  This property has been owned by First Financial Bank for more than two years.  They foreclosed on the owner and have refuse to change the title to their name to avoid paying the HOA Fees.  Those fees will never go away. That is the law.  The HOA Fees are mandatory by Ohio Revised Code Chapter 5312: OHIO PLANNED COMMUNITY LAW.

If you buy this Unit, nothing will prevent the HOA from forcing you to pay for every little thing that is legal under Chapter 5312.  That means all the back HOA fees due, regardless of how much.  If you are not familiar with how condominium HOA work, you need to learn because you will have to come up with as much money as necessary based on the percentage of the building you own, to fix this building. 

It could be any amount from to zero to whatever necessary. Even if it is $1-million.  You will be as responsible as the other owners for the repairs of the entire Condominium development. It is called Assessments fees and they can be in any amount necessary as the HOA Board determines and your do not have any say in the matter. And, if you don’t pay you lose your house.  If you are up for such a headache, then a condominium is the to sink all your money into.  And, that is the reason Banks do not lend on condominium units anymore.

I am aware of this property, I am presently working with someone that is suing this building. It is not a purchase you should take lightly.  The Bank is not going to come to your rescue… In fact, you are on your own. Buyer beware! Good luck to

LISTEN, NEVER MIND THE BANK!  THE BANK IS DUMPING THIS UNIT 302 AND YOU WILL BE FACING A BUNCH OF TROUBLES THAT YOU WILL BE PAYING FOR.  I FOUND OUT THE BANK HAS BEEN TRYING OT SELL THIS UNIT 302 FOR MORE THAN TWO YEARS.  I WONDER WHY?  EVEN THE AIR CONDINTIONING UNIT WAS STOLEN, LOOK IN THE BACK OF THE BUILDING. THE AC ALONE IS GONG TO COST YOU ABOUT $4,000 RIGHT OF THE GATE.  THE BED BUGS AND COCKROACHES ARE EVERYWHERE. PEOPLE VOMITED IN THE ELEVATOR AND IT SAT THERE FOR DAYS. THE CHEVIOT POLICE TOLD ME THEY HAVE MADE 68-TRIPS TO THIS BUILDING FOR SOME REASON OR ANOTHER ALREADY THIS YEAR.  INVESTING IS ONE THING BUT PURPOSELY BUYING A PROPERTY WHERE YOU ALREADY KNOW YOU WILL BE WALKING INTO LOTS OF TROUBLE AND LITIGATION IS NOTHER.

THERE ARE ALSO TWO COURT CASES PENDING AGAINST THIS UNIT 302 IN THE CINCINNATI COURT, CASE NO. A1705743 AND ANOTHER IN THE OHIO APPEALS COURT C180567.  I WAS ONE ATTORNEY I CALLED THAT THERES ARE LIENS ON UNIT 302 FOR A BUNCH OF MONEY AND SOMETHING CALLED LIS PENDENS ON IT.  I AM NOT READY TO TRY TO BE THE HERO AND TRY TO FIGURE OUT WHAT ALL OF THAT MEANS! ALSO, YOU WILL NEVER BE IN CONTROL. THIS IS A CONDO BUILDING, REMEMBER. YOU WILL ONLY OWN THE SPACE FROM THE PAINT INSIDE THE UNIT. THAT IS IT!  YOU WILL HAVE NO SAY IN ANYTHING AND HOW YOUR MONEY IS SPENT. 

LISTEN THIS PLACE SPELLS TROUBLE!  I WENT BACK TO SEE THE PROPERTY. I FOUND A TON OF MORE PROBLEMS WITH THIS BUILDING, IT HAS A VERY SERIOUS PLUMBING PROBLEM. JUST LOOK AT THE CEILING FULL OF HOLES IN THE HALLWAYS. I SPOKE TO THE SECTION 8 TENANTS IN UNIT 402, 502, AND 202, THEIR UNITS HAVE BEEN FLOODED SEVERAL TIMES IN THE LAST TWO MONTHS. SOME INDIAN GUY WHO CALLS HIMSELF “HARRY” OWNS THE CONDO UNITS AND HE DOES NOT FIX ANYTHING. THEY SAY THE GJY IS A SLUMLORD AND A PIG.  THERE IS A DRUG PUSHER LIVING IN UNIT 206 WHO SUPPLIES THE SECTION 8 TENANTS WITH HEROIN AND SPEED.  SOMEONE OVERDOSED NOT LONG AGO IN UNIT 202.  IN DECEMBER TWO PEOPLE WERE SHOT DEAD IN THE BACK OF THIS PROPERTY.

JUST WALK AROUND THE PARKING LOT AND YOU WILL SEE THE PARKING LOT ALONE WILL COST MORE THAN 60,000 TO FIX IT. IT IS DESTROYED. AND HOW ABOUT THE ROOF? DOES ANYONE KNOW HOW BAD THE ROOF MAY BE?  THE ROOF ON THIS PROPERTY CAN COST AS MUCH AS $60,000 OR MORE. THIS BUILDING HAS SO MANY PROBLEMS THT NEED FIXING IT WILL TAKE LOTS OF MONEY.  ALL YOU ARE BUYING IS TROUBLE AND A BLACK HOLE TO THOW MONEY INTO.  IT REMINDS ME OF A BOAT I ONCE OWED.  IT WAS A HOLE IN THE WATER I DUMPPED MONEY INTO. THIS BUILDING WILL BE WORSE BECAUSE THE MINUTE YOU DO NOT COME UP WITH THE MONEY FOR THE HOA ASSESSMENTS YOU, WILL BE LOOKING STRAIGHT AT FORECLOSURE AND LOTS OF LEGAL FEES.  BUY YOURSELF A LITTLE HOUSE SOMEWHERE, FIX IT AND SELL IT…SAVE YOURSEF. 

THIS BUILDING IS A MESS AND IT WILL TAKE LOTS OF MONEY TO FIX IT, WHICH UNQUESTIONABLY WILL HAVE TO COME FROM THE CONDO OWNERS.  THE THIRD FLOOR RED AND GREEN CARPET HAS NOT BEEN CLEANED IN AT LEAST 1O YEARS. $23,000 PER UNIT LOOS TO ME TO BE TOO LITTLE TO FIX THIS MESS. BED BUGS ON THE WALLS, ROACHES AND A PILE OF VOMIT INSIDE THE ELEVATOR.  REALLY!  HOW ABOUT ALL OF THE TENANTS ON SECTION 8? THERE ARE NO CONDO OWNERS LIVING IN THIS BUILDING…ALL SECTION 8 TENANTS. UNIT 102 IS VACANT BECAUSE IT IS COMPLETELY FLOODED WITH SEWER WATER. UNIT 101 WAS CONDEMNED BY THE HEALTH DEPARTMENT BECAUSE IT IS FULL OF MOLD. THE STATE OF OHIO HAS A SIGN ON THE DOOR OF THE BOILER ROOM THREATENING TO SHUT DOWN THE BOILERS BECAUSE THEY ARE UNSAFE TO OPERATE. THE WATER HEATERS ARE LEAKING, ANY WATER HEATER FO THIS BUILDING WILL COST ABOUT $12 TO 15,000 TO REPLACE. IN THE END YOU WILL BE ABOUT $80,000 INTO THIS UNIT NOT COUNTING LEGAL FEES. I WILL NOT TAKE THIS UNIT 302 EVEN IF THEY GIVE IT TO ME FOR FREE.  

I WAS INTERESTED IN THIS PROPERTY AND THEN I FOUND YOUR COMMENTS.  FIRST, I DO NOT HAVE ANY LOVE LOST FOR ANY BANK MUCH LESS FIRST FINANCIAL BANK.  HOWEVER, I DID GTAKE A TRIP TO SEE THE PROPERTY.  THIS BUILDING IS A MESS AND IT WILL TAKE LOTS OF MONEY TO FIX IT, WHICH UNQUESTIONABLY WILL HAVE TO COME FROM THE OWNERS. 

 THE THIRD FLOOR RED AND GREE CARPET HAS NOT BEEN CLEANED IN AT LEAST 1O YEARS. I THINK THE $23,000 ESTIMATE SOUNDS TOO LITTLE TO FIX THIS MESS. ON TOP OF IT I WAS GREETED BY BED BUGS ON THE WALLS, ROACHES AND A PILE OF VOMIT INSIDE THE ELEVATOR.  THIS BUILDING IS FULL OF TENANTS ON SECTION 8. AND, FROM WHAT I WAS TOLD THERE ARE MAYBE TWO OR THREE OWNERS INTITAL THE REST ARE TENANTS.

UNIT 102 IS VACANT BECAUSE IT IS COMPLETELY FLOODED WITH SEWER WATER. UNIT 101 IS CONDEMNED BY THE HEALTH DEPARTMENT BECAUSE IT IS ALSO FULL OF MOLD. THE STATE OF OHIO HAS A SIGN ON THE DOOR OF THE BOILER ROOM THREATENING TO SHUT DOWN THE BLILERS BECAUSE THEYR ARE UNSAFE. I WALKED AROUND THE BUIKLDING AND IT IS A BIGGER MESS.

I DO NOT KNOW IF THER IS AN ASSOCTION OR NOT BUT I WAS TOLD BY SOME OF THE TENATS THAT THERE IS A LOT OF LITIGATION IN COURT OVERF THIS BUILDING AND CHANCES ARE THE BUILDING WILL BE EMPTIED BECAUSE IT IS NOT SAFE. NEVERTHELES, I AM NOT GETTING INVOLVED BECAUSE THE LAST TIME I BOUGHT A CONDO IN MIAMI, THE ASSOCITION HAD TO PASS A $150,000 ASSESSMENT PER UNIT TO FIX THE FOUNDATION OF THE BUILDING AND I HAD TO WAL AWAY. 

I SEE SOMETHING LIKE THIS HAPPOENING HERE. SO WHOEVER BY THIS UBIT THEY BETTER BE PREPARED FOR A LOT OF TROUBLE AND SLEEPLESS NIGHTS --- I PASS.!  SORRY!!!

Let's be really clear - the bank was ripped off far more than anyone.  There's a saying - if you owe the bank $1,000, then you have a problem.  If you owe the bank $25,000, then the bank has a problem.  Clearly the bank has a problem.  I mean this unit you're talking about was foreclosed by the bank - and the owners who were going to lose the property - trashed the place.  If you deal in situations like this, then you know it happens a lot.  Does the bank know about the fact the place is trashed?  Probably.  I mean they had to.  I don't blame them for trying to rid their portfolio of foreclosed properties, nor should anyone.

Now to the rest of it:

The sort of thing with regards to the HOA you mention happens a lot - not the BK part, but the other stuff.  I mean that's what the reserve account is generally for - which means of course your estimate for the reserve is too low, but the others you have are too high, so the overall total still looks right.  I had a situation years ago where a building with condos was damaged in a shaker; I consulted with the HOA and they took out a loan through the SBA and the owners of the building, which happen to be the people who generally live in the condos, end up paying the loan back through a monthly assessment.  That loan was eventually paid, the building is in good shape, and the assessment removed.  Now, the payback period of the loan could be anywhere from 10-15 years.  Based on that, the owners would likely pay an assessment of $200-250 per month to the HOA fees, on top of what the owners already pay.  As long as the condos aren't all vacant, then there isn't an issue with repayment or collateral.

You cannot infer any owner is going to have to come up with $23,000 upfront...that's simply untrue.

I am not advocating anyone buy the unit because I am no fan of having to pay HOA fees in the first place.  I am simply clarifying the fact that:

a)  the bank owns the property due to foreclosure - they were really the ones who were ripped off.  So of course they're trying to find a buyer.

b)  no one has to come up with $23,000 upfront to pay their share of the assessment.