Villas at chasewood

building type: A Minnesota Condominium Association

Location: minnetonka, MN

Project Team: Gittleman Construction & Maintenance (GCM), Encompass inc. (Architect // Owners’ Representative), FirstSERVICE RESIDENTIAL (Property Management Team), Dunbar Strandness, Inc. (Housing ImPROVEMENT AREA FINANCING)

GITTLEMAN EXPERTISE: General Contractor // Project Management

PROJECT facts:

The Villas at Chasewood, built in 1989, consists of 21 buildings with 188 units. The Villas at Chasewood needed to make $10,000,000 in capital improvements but they only had $500,000 in their reserve fund. Due to significant deferred maintenance, Fannie Mae and Freddie Mac – the two largest providers of conventional loans – declared the Association ineligible for financing and the Association’s unit owners were not eligible for FHA mortgage insurance. Furthermore, the Association was unable to secure project funding through private lenders and other financing options such as special assessing the unit owners were deemed not feasible.

As a last resort the Association turned to the City of Minnetonka for assistance via their Housing Improvement Area (HIA) financing program wherein bonds were issued and fees were imposed to repay the bonds. The bonds were not included in the city’s net debt, and no election was required for their issuance.

SPECIFICS OF THIS PROJECT:

As the general contractor for the project, Gittleman Construction & Maintenance (GCM) brought together a dozen specialty contractors to work as a team to make the following repairs:

Windows (removal & replacement): 1,128 Windows and Doors

Sheathing (removal & replacement): 50,000 square feet

Siding, Trim, and Fascia (removal & replacement): 180,000 square feet

Balconies/Decks and Deck Railings (removal & replacement): 23 Buildings

Attic Insulation (removal & replacement): 10,000 square feet

end results:

Gittleman Construction & Maintenance Corp. completed the project on time with a very tight production schedule, and the project came in under budget. By all accounts, the project was a resounding success.

The Association and, by extension the City of Minnetonka, achieved the following objectives:

• Promote neighborhood stabilization and revitalization by upgrading the existing housing stock in the neighborhood
• Correct the Association’s building code violations as identified by the City of Minnetonka
• Improve the livability of the housing stock
• Prevent a loss in the tax base of the City of Minnetonka thereby ensuring the long-term ability of the City to provide adequate services for its residents
• Stabilize and prospectively increase the owner-occupied level within the association
• Increase the safety and energy efficiency of all the units