Attached is very important information regarding the Elevator. Please read the information and respond immediately. We need your response by June 15, 2020.
Thanking you in advance for your cooperation.
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May 26, 2020
Dear Unit Owner of The Hill at Furnace Brook Condominium,
As you are aware, the elevator broke down in mid-January. Due to the fact that the current elevator is 50 years old the trustees looked into all options deciding to replace the elevator as repairs were not possible and new parts were not compatible with the existing salvageable parts nor was it cost effective. A contract was signed in mid-March to replace the elevator. Engineering was completed by April and Buckley elevator was paid a deposit to order the new elevator. Delivery on a new elevator is typically 12 weeks.
Due to covid 19 the factory had to shut down delaying the elevator by 7 weeks. I am told that we should expect delivery in mid-august.
To pay for the Elevator replacement Trustees voted to obtain a credit line which closed last week in the amount of $291,000.00. To pay off the credit line, a supplemental fee for the $291,000.00 must be collected. Like condo fees, the supplemental assessment is based on each unit owners beneficial interest percentage. The Trustees are sensitive to the fmancial constraints that many unit owners face and therefore would like to offer 2 options to pay your share of this assessment. Enclosed is a fee schedule listing the options. You may pay option 1 in full at a discount of 4% on July 1, 2020 or pay option #2 over 24 months which includes interest starting July 1, 2020. This will recoup reserve depletion from the deposit and pay for the new elevator. We realize this is a significant amount of money, but the need to maintain the building and preserve the value of everyone's investment is imperative.
Enclosed/Attached is a form that we request you complete and return to Great North Property Management, no later than June 15, 2020, letting us know which payment method you prefer. You can return the form via email to james.paul@greatnorth.net, by fax to (617) 631-8667 or mail to James Paul c/o Great North 109 Oak Street #201 Newton, MA 02464.
If we do not hear from you by June 15, 2020, we will assume that you choose to pay the supplemental assessment over the 24-month period. In that case we will order a coupon book for you and your supplemental assessment will begin with your July l" payment.
If you have any questions, please feel free to call me 781-455-6565 or email James Paul per above. Checks should be made payable to The Hill at Furnace Brook Condominium Trust and mailed to same address as your monthly condo fee.
Sincerely,
The Board of Trustees and Great North Property Management, as agent
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| The Hill at Furnace Brook Condominiums |
|
| Elevator Project |
|
|
|
| Fee Schedule |
$291,000 |
|
|
| |
|
OPTION 1 |
OPTION 2 |
| |
Square Footage |
Total Due - One Payment |
Monthly Fee for 2 Years |
| UNIT |
Beneficial Interest |
No Interest |
Includes Interest |
| |
|
|
|
| 3 |
2.474 |
7,199.34 |
312.59 |
| 5 |
2.23 |
6,489.30 |
281.76 |
| 100 |
1.798 |
5,232.18 |
227.18 |
| 101 |
2.379 |
6,922.89 |
300.59 |
| 102 |
2.636 |
7,670.76 |
333.06 |
| 103 |
2.933 |
8,535.03 |
370.58 |
| 104 |
2.379 |
6,922.89 |
300.59 |
| 105 |
2.379 |
6,922.89 |
300.59 |
| 201 |
2.379 |
6,922.89 |
300.59 |
| 202 |
2.379 |
6,922.89 |
300.59 |
| 203 |
2.933 |
8,535.03 |
370.58 |
| 204 |
2.933 |
8,535.03 |
370.58 |
| 205 |
2.379 |
6,922.89 |
300.59 |
| 206 |
2.379 |
6,922.89 |
300.59 |
| 301 |
2.379 |
6,922.89 |
300.59 |
| 302 |
2.379 |
6,922.89 |
300.59 |
| 303 |
2.933 |
8,535.03 |
370.58 |
| 304 |
2.933 |
8,535.03 |
370.58 |
| 305 |
2.379 |
6,922.89 |
300.59 |
| 306 |
2.379 |
6,922.89 |
300.59 |
| 401 |
2.379 |
6,922.89 |
300.59 |
| 402 |
2.379 |
6,922.89 |
300.59 |
| 403 |
2.933 |
8,535.03 |
370.58 |
| 404 |
2.933 |
8,535.03 |
370.58 |
| 405 |
2.379 |
6,922.89 |
300.59 |
| 406 |
2.379 |
6,922.89 |
300.59 |
| 501 |
2.379 |
6,922.89 |
300.59 |
| 502 |
2.379 |
6,922.89 |
300.59 |
| 503 |
2.933 |
8,535.03 |
370.58 |
| 504 |
2.933 |
8,535.03 |
370.58 |
| 505 |
2.379 |
6,922.89 |
300.59 |
| 506 |
2.379 |
6,922.89 |
300.59 |
| 601 |
2.379 |
6,922.89 |
300.59 |
| 602 |
2.379 |
6,922.89 |
300.59 |
| 603 |
2.933 |
8,535.03 |
370.58 |
| 604 |
2.933 |
8,535.03 |
370.58 |
| 605 |
2.379 |
6,922.89 |
300.59 |
| 606 |
2.379 |
6,922.89 |
300.59 |
| 700 |
3.882 |
11,296.62 |
490.49 |
| 39 Units |
100% |
$291,000.00 |
|
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The Hill at Furnace Brook
2020 Supplemental
Assessment Election of
Payment Option
Name: __________________________________________________________
Unit#:______________
Please check one option below and return no later than June 15, 2020
_______I wish to pay my share of the supplemental assessment in a lump sum due on July 1, 2020.
________I wish to pay my share of the supplemental assessment in 24 monthly payments with first payment due on July 1, 2020. Subsequent payments will continue until June 1, 2022.
Date: ______________________
Please return by June 15, 2020 to Great North Property Management via email to james.paul@greatnorth.net or fax to (617) 631-8667 or Mail to James Paul c/o Great North 109 Oak St. #201 Newton, MA 02464.
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Frequently Asked Questions and Answers
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What happened to the elevator?
Elevator got stuck between ground and first floor, motor burnt out and transformer shorted resulting in smoke in the elevator shaft and upper hallway floors where units face the front of building. Electricity was shut off in time to prevent a major fire or more damage. Fortunately, no one was trapped in the elevator as the smoke could have caused more serious harm or worse.
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How often is the elevator inspected?
Elevator is inspected by the state once a year as state requirement with certificate posted in elevator. Inspections result in items needing repair/replaced that are complied with an order to pass inspection.
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When was the elevator last replaced?
Elevator is original with building constructed ~1974 or nearing 50 years old. Elevators should last for 20 to 25 years. Our elevator is over twice the average age for replacement.
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Why didn't we replace the elevator when 25 years old?
We had been using the common break/fix maintenance method that a lot of buildings use to avoid large cost to replace and downtime needed. Sept 2018 spent $17,250 on new door operator parts but with roof replacement more urgent was decided to continue fixing the elevator until next major repair.
Previous repairs: Nov 2008 replaced hoist cables, etc. $8,000. June 2005 replaced door operator, clutch, damaged sills and tracks $6,400. Sept 2000 new infrared edge, replaced door operator and car rollers $7,000.
-
Can we just replace the motor?
Not sure if just motor needed repair or other major parts as smoke could indicate a more serious issue. An old elevator with obsolete parts and becoming more unreliable, decided to upgrade than spend time on costly repairs that may not work (existing motor could only be rebuilt ~$35k with crane to remove, rebuild motor and re-install. Electrical components would need upgrading to code for ~$30k.)
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What is elevator modernization?
Upgrading major components of the elevator such as the hoist motor, controller panel, cables, cab, etc.
-
What is the cost of upgrading the elevator?
~$291,000 includes upgrading electrical wiring and other state code requirements.
-
Why can't we upgrade gradually over several years to spread out cost instead of all at once? An old elevator and its major parts are not compatible with new elevator systems. Can only upgrade as one new unit (e.g. New control panel is digital and unable to connect to old elevator lift and motor).
-
Were multiple bids obtained?
Yes - several elevator companies were solicited for quotes with best value being the criteria.
-
How long will elevator be down?
Several months - typically 8 to 12 weeks to receive equipment and another 2 to 4 weeks for installation. Anticipate a minimum of another 10 weeks downtime AFTER a loan is obtained and contractors hired.
-
Why is this taking so long?
Tedious process - fire/smoke investigation/inspection from various city and state resources, developing specs to code, requesting bids, reviewing bids, reviewing finance options and fee collection plans, placing order, receiving equipment, installation, passing state inspection, corona virus pandemic, etc.
-
How is this being funded?
Loan with payments spread out over longer period than previous special fee collection. As an option you may be able to pay lump sum up front by a certain determined date and avoid paying interest.
-
Why was a loan used instead of supplemental fee?
Loan guarantees full funding available for company to get paid on time and stait work, instead of waiting for collections from unit owners which could take many months or years. Also, since we recently had 2019 special assessment fee for roof did not want to burden owners with another large assessment. The loan allows for smaller monthly payments spread out over years.
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When was the last Supplemental Fee, how much and what was it for and why do I pay different amount than other owners?
$200,000 was collected up to May 2019 averaging over $5k per unit for new roof and depleted reserve replacement. Amount you pay is a propmtionate interest percentage based on square footage of each unit per the Master Deed.
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What is the current Reserve fund balance?
Under $30,000
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Why is the Reserve balance so low?
We have been replacing and repairing aged capital items and over time the reserve eventually has been depleted. According to the Condition Reserve Study we should be collecting $50,000 per year.
However, we have been only able to collect half with the current condo fee structure as explained in past Annual Meetings and in meeting minutes - any large project would require supplemental fee.
-
What alternatives do I have with the elevator being down for long period?
Homeowners insurance may be able to cover partial cost for hotel stay. If you are a senior citizen you may be able to get help from services such as Quincy Elder Services with meals, groceries, laundry, house cleaning, etc. If willing and able, you may want to live with a relative or friend while elevator is down or try senior housing for temporary residence. There are always neighbors willing to help.
