Homeowner Associations: What you Need to Know

Home Owner Associations, Condominium Associations, and Co-operatives are filing for bankruptcy at staggering rates. As property owners are not able to afford their mortgages, they often elect not to pay their association dues and what they consider less important monetary obligations.

As a result, Home Owner Associations and Condominium Associations are not able to pay for the expenses they had planned for. Some associations pay for common area elements, roofs, plumbing and other structural aspects of properties. Several associations, primarily condominium associations and co-operatives also pay for water, gas and electric. Some even pay for cable tv and garbage removal.

When an association is not able to pay for roof, plumbing and other repairs, further damage is caused and the entire community suffers. This can cause a further devaluation of property and poor living conditions.

If you are a part of a Homeowner’s Association where you live, you have the right (as a property owner) to the most recent financial statements of the HOA. Keep up with how your HOA is doing. If they are behind in paying their bills, you need to know about it.

Don’t wait until your HOA files for bankruptcy protection to learn that your dues are not going to be getting the services you thought in return.

Have any comments? Has your HOA left you high and dry? We’d love to hear about it. Click the comment link below and tell us about it.