Estates ll Board of managers: Alan Rothenberg, Cindy Davidowitz, Debbie Resnick, Stephen Fanuka, Stephani Michele, Donald Feldman, Donna Geffner, David Hoffman

Maintenance increase right after the assessment right after a maintenance increase

Ah, the classic two-for-one special: a maintenance increase right after an assessment right after a maintenance increase. Truly, it’s like watching a magician pull rabbits out of a hat—except the rabbits are our wallets, and the only magic is how they disappear! But hey, why bother with a complex explanation when all you have to do is say the other condo's charge more.

In a very short time no one on the board will be able to tout Estates ll maintenance being lower than any other condo. Estates ll will be a cautionary tale of what can happen to even the best financially stable condo under certain circumstances. Inflation and rising minimum wage does not decimate a properly run condo's finances. 

Rick Saccullo's explanation during the meeting regarding the correlation between rising minimum wage and inflation and the subsequent increase in maintenance fees appears to lack depth. It is perplexing that he did not address how TCM is managing to keep their management fees very low despite the broader economic pressures. Moreover, isn’t it true that TCM is also providing inflation-adjusted wage increases to their office staff? Additionally, like other vendors, TCM must inevitably face rising costs for supplies and utilities so how is it possible they are the only vendor that has not substantially increased their fees. 

The inflation rate in the U.S. had shown signs of decreasing from its peak in 2022. In 2022, inflation reached levels around 9.1% in June, which was the highest in several decades. By late 2023, the inflation rate had fallen to approximately 2.5%. Core inflation is down 25% from one year ago.Good news! Estates ll can expect price reductions from the vendors now that inflation is off its high.  
 

Raising the issue of Whitewood's maintenance without specifying pertinent details such as the size of Whitewood, the number of units it contains, the extent of land it occupies, and the amenities it offers in comparison to Estates II only serves to create confusion among the residents of Estates II. Such a comparison lacks the requisite specificity, making it an ineffective and misleading assessment. An equitable analysis requires a detailed and contextually relevant comparison. This is not an apples to apples comparison. 

The objective assessment reveals that Estates II is currently experiencing financial difficulties and is devoid of an adequate reserve fund. During the recent meeting, Saccullo presented a chart indicating that Whitewood incurs higher maintenance fees compared to Estates II. It is noteworthy that Whitewood, which is also under the management of TCM, consists of only 64 units and does not feature a clubhouse. Consequently, their maintenance costs are disproportionately elevated, a trajectory that Estates II seems poised to follow unless corrective measures are implemented.
 

The Summit condominium complex, which is segmented into two divisions, is overseen by two distinct management companies. Notably, the section managed by TCM has exhibited a higher maintenance cost relative to the portion under alternative management. A similar observation can be made with Acorn Ponds, which comprises three divisions; here, the segment managed by TCM incurred maintenance expenses that were 30% greater than those of the other divisions. It is worth noting that Acorn Ponds has recently severed ties with TCM. 

Saccullo asserted that the board endeavors diligently to maintain lower prices; however, he provided no specifics regarding the methods employed or the achievements realized in this regard.

Currently, Estates II’s maintenance costs are trending in a parallel trajectory to the majority of TCM-managed properties—indicative of a consistent upward pattern. If the escalation in maintenance expenses at Estates II persists, it is anticipated that property values will experience a downward pressure as a consequence.