(Too Many Rentals, continued from page 15)


waslenderapproval.Theyhad45days toapprove,rejector,asexpected,say nothing.Infact,iftheyunderstoodthe process,theyknewmanyloanswouldbe renancedandpaidotoobtainlower ratesoncetheterminaonwas accomplished.Wouldthatconstutea reasonforalendertodisapproveofthe terminaon?Wouldlenderswithhold approvaltoretainhigheryieldingloans, orwouldtheyberelievedtoberidofa mortgageonahardtosellcondominium unit?


Weneedednewplatsandplans,aswell aslegaldescriponsforthecommon elements,andwehadtosolvethe puzzleofwhosignsadeedofcommon elementstothenewassociaon.


Andthereisonereallybigproblemwe don’tknowhowtoresolve.A condominiummaybeterminatedwith an80%vote.Buttocreatethenew associaon,you’dneedalloftheunitsto joinin.Whatdowedoifjustoneperson objectstothenewregime?


TheUCAandUPCAdonotaddressthis dilemma.


Whilewewaitedfortheresultofour nocaontothelenders(requiredto beviaregularUSmail,with"Cercaon ofMailing"),webeganworkonthe remainingformaonissues:


1.Incorporatenewassociaon;


2.ObtaintheEINforthenew associaon;


3.Openbankaccountsforthenew associaon;


4.Obtaininsuranceforthenew associaon; 5.Publicliability


6.Fidelitycoverageforboardmembers andocers 7.Directors'andOcers'insurance 8.ErrorsandOmissionsinsurance 9.Propertycoverageforcommon


34 | 


elements


10.Remindunitownerstheywillneed primaryhomeowners'insurance coverageonthedateofrecordingthe newdeclaraon;


11.Revisemanagementcontractto namenewassociaon.


Ourchecklistforaconaerthe terminaonofcondominiumisrecorded andthenewassociaonisinplaceis:


1.Holdeleconsfornewexecuve boardmembers;


2.Finalaccounngofoldassociaon, andtaxlings;


3.Dissolveorterminateoldcondo associaoncorporaon;


4.Closecheckingaccountandtransfer fundsintonewassociaonname.


Infact,ourlenderscooperatedbynot replyingandwewereabletoproceed withourplans.


Itcouldhavebeenanclimacc.Andit shouldhavebeen.Thetlecompany sentourdocuments,inproperorder,to berecordedelectronically:


1.TerminaonAgreement;


2.NewDeclaraonofPlanned CommunitywithDeclaraonPlatsand Plansasexhibits;


3.DeedtoCommonElements.


AndthatiswhentheOpenSpacedeed wasrejectedforlackofataxparcel numberandlackofaTransferTax AdavitofValue.Openspaceina plannedcommunitymaynothavean assessedvalue,sinceitsintrinsicvalueis includedinthepurchasepricepaidfor eachhomeinthecommunity.(See§ 5105(b)Separatetlesandtaxaon). TheCityofPhiladelphia,assomeother counes,requiresthenonassessable landtohaveaparcelidencaon numbernonetheless,sowewaited whiletheCitysuppliedanumber.Ittook threeaemptsforthetlecompanyto successfullyrecordthenewdeclaraon, andthenweweredone.


Wasitascomplexasitseemedwhilewe wereinthemidstoftheprocess?Yesand no.Homeownerswereconfusedbythe details,sopaperworkhadtoberedone. Therearemanytechnicalsteps,andthis processshouldnotbeaemptedwithout averyknowledgeableaorneyatthe helm.


TheprocessiscompleteasIwritethis paper.Othercondominiumassociaons haveaskedifthey,too,couldbenet fromaconversiontoplannedcommunity associaonform.Inonecase,thecondo containsstackedunits.Iftheybecomea plannedcommunity,lendersmay connuetoargue,"Youonlyhavetwo choices,PUDorcondo.Ifitstacks,it'sa condo."


Thisnextpuzzleisbeingpromotedbythe appraisalcommunity.Butthatisa conversaonforanotherday.


FOOTNOTE 1PUDisnotatermofart.Itcanmean "PlannedUnitDevelopment"or"Planned UrbanDevelopment."TheCityof Philadelphia'sOceofProperty AssessmentseemstousePUDtomeana setofaachedhomes,perhapswhere thereisanassociaontoownandcontrol openspaceorstormwaterfeatures.But PUDisnotazoningclassicaon,andin manylocaons,aPUDmusthaveboth residenalandcommercialcomponents. WeprefertheprecisionofPlanned Community,pertheUPCA.


ABOUT THE AUTHOR MarshalGranoristhePresidentof CommunityManagementServicesGroup, Inc.(CMSG),anaorneywiththelawrm ofGranor&Granor,P.C.,andadelegate tothePennsylvaniaLegislaveAcon Commiee(PALAC).Oneoftheprincipal authorsofPennsylvania’sUniform CondominiumAct,Mr.Granorwas recentlyadmiedintoCAI’sCollegeof CommunityAssociaonLawyers(CCAL).


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