This is a tough situation. Your unit owners need some no-nonsense talk: "Our building is in bad shape, and it's just going to get worse if we keep pretending we can fix it with Band-Aids and a skeletal reserve fund. We've GOT to raise a lot of money and this is going to add to your monthly payments, whether in common charges or as an assessment. If we don't do this now, it's going to cost even more money down the road. We've already delayed this for too long, and we can't put it off any longer. We're all *owners* here, not renters; there's no landlord who can be pressured into solving our problems for us."

I agree with those who suggest that a bank loan is in order. Furthermore, you should borrow *more* than you think you need, not less. I'm a co-op guy and am not sure of the intricacies of a condo loan, other than that the security is the revenue stream of common charges. With one of your unit owners in foreclosure and two others in default, this may pose problems in getting a loan - especially since the condo association's interest is subordinate to the bank's. You may end up with nothing after the foreclosure goes through. (This is quite different from co-ops.)

It sounds from your description like your common charges haven't been increased in ages. This is a terrible idea for a building in your situation, especially when your by-laws cap the annual increase at 10%. I would push hard for a 10% increase immediately, plus whatever additional assessment you need to impose.

You also need to build up your reserve fund. Most sources advise that the reserves should be equal to at least 25% of your annual budget. If you don't have that much - or at least a plan to replenish the reserve fund over the next few years - then a purchaser's attorney will be rightly nervous and units will become difficult to sell. Once the reserves start growing, resist any urge to plunder the fund as an alternative to raising common charges.

Stress to the unit owners that you're not spending money needlessly and that your budget is already tight. Unless they want their apartments to become virtually unsellable, higher charges are essential and must be implemented immediately. Be straightforward and matter-of-fact, but firm. You're not frittering away money on amenities; you're making critical repairs to the building itself.