Opinion ID: 2593799
Heading Depth: 1
Heading Rank: 14

Heading: Street Debt

Text: The Owners allege that they improperly pay for the streets twice, a cost included in the purchase price of their condominium and as an assessment. Board President Thomas Wentz testified that when the units were originally marketed, KBRS planned to pay for street assessments out of the sale price of the condominiums. However, KBRS obtained street financing through a municipal bond issue at a substantial cost savings over conventional financing. Instead of paying a higher initial purchase price, the residents paid the assessments over time. Wentz did not recall whether the price of the individual condominiums was reduced or when the assessments were charged but believed residents were not charged twice. The record indicates that the Village marketing materials included a statement that: You receive a deed to the unit, and property taxes are paid monthly as part of the maintenance fee. All purchase prices include the unit share of costs to construct streets, curb and guttering, and utility lines. Therefore, there are no special assessments to pay on these improvements after you buy the unit. Several Owners testified at trial that they relied on this statement when purchasing a condominium in the Village. The brochure is not dated. It cannot be determined if the brochure described the project prior to the municipal bond debt. The trial court believed the testimony of Wentz. The Owners had not paid for the streets twice; therefore, the Owners' claim that they were overcharged for street assessments is without merit.