Condo Form A/C Check-Box?

[hastalavista]

I think I've learned something new (for me):

In the current condo form (1073) in the "unit description" section, for Air Conditioning (AC) there are two choices:
- Central Air
- Individual AC

When the unit has its own air conditioning system (not a window, but tied into vent system, i.e., "central air") I've always checked "Central Air".

A client of my sent the appraisal back for a correction, stating that "central air" would mean the system cools the entire project while "individual AC" means that the unit has its own air conditioning system not tied into the project.

Thinking about this, I can see it makes sense. I'm going to make the change.

But I guess I've been doing it wrong all these years. Am I the only one?

(I really hate condo assignments and am many times too busy to take them. This one was 5-blocks from my office, and turned out to be more of a hassle than usual).

 

[Randolph Kinney]

What happens when a condo has a window unit and no other cooling?

I have had individual condo with its own central A/C unit (on the ground) while others don't in the same building.

Seems to me the question needs to be uniform is its application of its meaning.

 

[hastalavista]

What happens when a condo has a window unit and no other cooling?

I have had individual condo with its own central A/C unit (on the ground) while others don't in the same building.

Seems to me the question needs to be uniform is its application of its meaning.

My bold. Me too. For those, I've checked "Central".


23 years of appraising condos and this was the first time anyone has ever asked about this. And, I've done condos for this particular client before; I'm sure some of them have had AC units (what I would call "central" and they would call "individual"). I've never checked the "individual" box that I can recall, or if I did, I'm sure it was because of a wall or window AC unit.

This is a regional lender. They are very good (I think all of the bank clients I work with are very good; I don't work with many). They pay well and they are not onerous on their requirements/demands. I had more issues with this one file than I've had with all other files combined.

I have no complaint with this lender nor do I have an issue with changing the box (I already did).
From the lender's point of view, if the project was served by a central air conditioning system (more than one unit on the same system) they would have required evidence of additional insurance to cover the potential break-down/repair/replacement of the system (as per the email they sent me). So, I don't think this was an issue where they are trying to be picky (they never have been in my experience). I think this is a legitimate lending issue that they take (or are now taking seriously) and, so far, no one else has.

That's my best guess!

Going forward, I will start checking "Individual AC" in the form and explaining exactly what that means.

I'm just curious if this is common knowledge (if the unit has its own AC system, then it is an "individual AC" and not "Central" check-box in the form) or not-so-common (that way, I don't feel like a total idiot. CAN will probably chime in and say, "Well, Denis, I don't think you are a total idiot." :laugh

 

[Randolph Kinney]

Just curious - if the individual condo unit cooling means, be it window or CAC, it must go through the unit's electrical meter, the way in which your client defines it as individual cooling, does that mean CAC is central if all units are centrally cooled from the same source and that means each unit is not separately metered?

How does that work? CAC use must be part of the HOA dues.

 

[Joe Flacco]

I think you were doing it correctly and the underwriter is confused. If the control of air conditioning throughout the unit in all rooms is located in a "central" location in the unit then it is central a/c.

 

[Joe Flacco]

The heating/cooling questions are in the unit description section and not the project description section.

 

[hastalavista]

Just curious - if the individual condo unit cooling means, be it window or CAC, it must go through the unit's electrical meter, the way in which your client defines it as individual cooling, does that mean CAC is central if all units are centrally cooled from the same source and that means each unit is not separately metered?

How does that work? CAC use must be part of the HOA dues.

That's my assumption. Even though in the form, it asks for HOA dues breakdown which, under the "project CAC" scenario, would include the costs of heating and cooling.

 

[Randolph Kinney]

Under Unit Description: Are the heating and cooling for the individual units separately metered? Yes or No. If No, describe and comment on compatibility to other projects in the market area.

Even in the high rise condos in San Diego, units are separately metered.

I had only one in my 12 years of appraising that had "truly centralized heating and cooling" from a central source without separate metering.

 

[hastalavista]

I think you were doing it correctly and the underwriter is confused. If the control of air conditioning throughout the unit in all rooms is located in a "central" location in the unit then it is central a/c.

The heating/cooling questions are in the unit description section and not the project description section.

Joe:

My initial reaction were the exact same thoughts; especially due to the fact that the AC question is in the "unit description" segment, and it seems to me (in reference to Randolph's post) a shared CAC system would be dealt with on page 2 in the HOA dues section.

However, this lender did give me some rationale for the request: effectively, it says if the AC is central (to the project) they require an additional insurance rider (which I assume they'd get from the HOA). And, although I've never thought of it like they do, I can see how it could be thought of that way.

This is one of those deals (IMO) where it isn't a question of fighting with them over it. I made the change and explained why I did it (the client defined the system as X, so I checked the box as X; here's what I said:

ADDENDUM TO THE APPRAISAL DATED 11/10/2014: Correcting the AC check-box

My client has informed me that "Central Air" in the "Unit Description" section means that the entire project is serviced by a central system. That "Individual AC" means that the unit has its own, individual AC system. The subject unit has its own AC system. I have therefore changed the check-box and have resubmitted the appraisal with a new signature date of 11/10/2014

But, it sounds like (from at least two of you), what I did is no different from what you guys do.

Maybe this is a unique interpretation of my client's, or maybe this is due to some missive coming on down from Mt. Olympus (the GSEs). I've never seen this question asked on the forum before, so who knows if it is a one-off or something others will get. :new_smile-l:

 

[Randolph Kinney]

I wonder how frequent in your area that condos truly have "centralized heating and cooling"?