On the Hudson waterfront, two units with the same view and the same price can carry very different risks. The monthly maintenance fee is the easiest number to compare, and the least complete. A low fee can mean an efficient building, or a building that has been putting off repairs.
1. How healthy are the reserves?
A reserve fund pays for big, predictable items: roofs, facades, elevators, garages, mechanical systems. Ask for:
- The most recent reserve study and how closely the association follows it.
- The current reserve balance compared with what the study recommends.
- The share of the annual budget that goes to reserves.
New Jersey recently tightened the rules: associations must now carry out periodic structural inspections and reserve studies and fund reserves accordingly. That is good for buyers in the long run, but it can mean fee increases in buildings that were underfunded. Ask what the latest study recommended.
2. Are there special assessments, now or coming?
A special assessment is a one-time charge to owners for work the reserves cannot cover. Ask whether any are in place, approved or under discussion. Read recent board meeting minutes; upcoming facade, garage or window projects usually show up there months before an assessment is announced.
3. What is the building’s physical condition?
- Age and condition of the roof, facade, windows, elevators and garage.
- Any history of water intrusion, especially in waterfront and lower-level units.
- Flood zone status and what the master insurance policy covers.
- Pending or past litigation against the developer or contractors (construction defect cases are common in newer buildings).
4. What do the rules allow?
- Rental and short-term rental restrictions, if you might rent the unit later.
- Pet rules, including size and number.
- Renovation rules, approval process and hours.
- Parking: deeded, assigned or leased, and whether it transfers with the unit.
- Move-in fees and capital contributions due at closing.
5. What does the unit itself cost to own?
| Monthly item | What to check |
|---|---|
| Maintenance fee | What it includes: heat, water, gas, internet, amenities. |
| Property taxes | Current bill, any PILOT or abatement and when it expires. |
| Insurance (HO-6) | Your policy for interior and contents, sized to the master policy. |
| Utilities | Electric heating and cooling can be significant in glass towers. |
| Parking and storage | Sometimes separate fees. |
Some newer Hudson County buildings carry tax abatements or PILOT agreements that keep taxes low for a set number of years. Find out when they phase out, because your monthly cost will rise.
The documents to request
Master deed and bylaws, rules and regulations, current budget, latest financial statement, reserve study, insurance certificate, recent board minutes, and a resale certificate showing fees, assessments and any violations on the unit. Your attorney reviews these during attorney review, and I help you decide which questions to raise before you commit.
This article is general information, not legal advice. Your attorney, lender and insurance agent will confirm the details for a specific building.
Want to talk it through?
I am happy to look at your property, your timing and your numbers, with no obligation.