Drawbacks, good points to being over 55

Q: All the owners in our small condominium are older. What would we have to do to officially turn our building into an "over-55" community?

A: First, you must amend your condo's declaration, which would require a vote of the owners, said attorney Dean Pody, who's with the Mercer Island law office of Kris Sundberg.

Next, you'd have to comply with a federal law — the Housing for Older Persons Act of 1995 — so that you didn't violate the various fair-housing laws passed to fight age discrimination.

Under the Housing for Older Persons Act, 80 percent of the units must be occupied (not necessarily owned) by at least one person age 55 or older.

The facility must be clearly identified as an over-55 community, and the association must publish and adhere to policies and procedures that demonstrate the intent required.

Also worth considering is whether turning your building into an over-55 complex is wise.

On the plus side: There aren't enough adult communities to serve the growing number of baby boomers beginning to retire, noted Edward Krigsman, founder of Seattle's ek Real Estate Group. So that could make your building attractive to older buyers.

But demographics alone aren't enough.

"Generally when you limit the pool of buyers, you lower the value of the property," Krigsman cautioned. "So you have to have something that offsets the impact of that limitation substantially."

Such amenities as a game room where planned activities would be offered would be one.

Another would be good accessibility — elevators, wide hallways, kitchens and baths that could accommodate wheelchairs. Nearby medical care is another plus.

Krigsman suggests you interview the managers of several over-55 condo communities before proceeding. Describe your building and ask them for their observations and advice.

Q: Our neighbor's home has no downspouts, and his runoff has flooded his neighbors' basements on both sides of him. He says Seattle city code doesn't require him to have downspouts. (His house is older).

Is there a specific city code for existing residences that addresses runoff? If so, who regulates and enforces it?

A: It's true that houses don't all have to be up to current code. Rather, they must comply with the code that was in place when they were built or remodeled.

But in this case, all that's beside the point, said Seattle attorney Karen Willie.

"Just because you're doing things up to code doesn't mean you can be negligent and get a free pass," Willie said. "You can't say, 'I have a right to harm my neighbors because my house is old.' That kind of defense doesn't fly."

Liability usually follows when homeowners allow their runoff to damage a neighbor's property, she added.

There are exceptions; generally they occur when the neighbors have allowed the situation for so long that an easement of sorts has been created.

So where do you go from here? Willie suggests contacting Seattle's Department of Planning and Development. Explain the problem and see if you can lodge a complaint.

If the city won't handle it, then write this neighbor a letter, telling him his runoff is doing damage, he's responsible and you expect his insurance company to cover it.

Send the letter certified mail and get a return receipt. That should get his attention.

Q: How does the homeowners association operate when a building is a combination condo/hotel complex?

My fear is that if the hotel owners have a majority stake in the association, they may run things contrary to the wishes of homeowners.

A: These hybrids are new here, but there are a growing number of them, including Olive 8 in Seattle and One Lincoln Tower in Bellevue. Yours is a question that likely will be repeated in the coming years.

Seattle attorney James Strichartz says there's no standard format for the operation of a condo/hotel hybrid. "It depends on how the governing documents are structured," he said.

For example, the massive One Lincoln Tower project has five associations — one each for the condos, the garage, the retail shops, the hotel and the building itself.

"If you have a good developer and a good developer's lawyer, you can have a fair and reasonable approach to operate with sufficient flexibility," Strichartz said.

"If you have a developer intent on keeping control, and a developer's attorney who drafts to control, then you're open to all kinds of mischief," he said.

So how can a buyer evaluate a particular project?

Probably not alone. Rather, the buyer needs to consult one of the handful of local attorneys who have sophisticated knowledge of this complex area.

Then ask: Do the governing documents provide for reasonable protections of the owners' interests and a fair and reasonable governance structure?

Is there adequate flexibility within that structure to deal with unanticipated issues?

Home Forum answers readers' real-estate questions. Send questions to Home Forum, Seattle Times, P.O. Box 1845, Seattle, WA 98111, or call 206-464-8510 to leave a question on a recorded line. The e-mail address is erhodes@seattletimes.com. Sorry, no personal replies. More columns at www.seattletimes.com/columnists.