Here's a very good site about living in an HOA community:
What some HOAs are doing is going ahead and foreclosing on properties (even if there is not equity because the first mortgage stays and is higher than the market value) and then immediately renting them out. You may want to attend your board meetings and suggest they do this--otherwise the owners who are paying will get stuck with paying their neighbor's fair share! Also a recent change allows an HOA to collect the back due assessments from a tenant. Your board of directors is probably taking the advice of a hired property management firm and unfortunately some of these companies do what is in their best interest and not the association they manage. Take an active role and start attending your board meetings to find out what your volunteer directors are doing to tackle the delinquent homeowner issue.
Hope this helps.
Happy New Year!
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
In most cases- the answer is yes. Condominium Associations can implement many remedies in order to bring the budget and operating capital current.
Many people- especially investors do indeed walk away from investments that have gone sour. This is the primary reason that lenders will avoid writing mortgages when there are too many rentals within the association. The association does recover past due maintenance once the bank sells the foreclosed unit.
My understanding is that the bank is obligated to pay a maximum of 1 years past due association fees - even if the fees have been unpaid for several years.
The link below will take you to the official site of Florida Condominium Law...
Welcome to the Division of Florida Condominiums, Timeshares, and Mobile Homes. The Division has the power and duty to enforce and ensure compliance with the provisions of the following statutes and administrative rules:
The Condominium Act, Chapter 718, F.S.
It depends on the HOA documents. But the two most likely ways are through a special assessment or through an increase in the regular assessment.
As the other answers note, the HOA has a responsibility to have a balanced budget. Most of the money likely comes in through HOA dues. If those revenues drop, the HOA can raise the dues on the other members, cut services to reflect reduced income, or both.
HOAs typically can raise dues either through the regular (whether it's annual or monthly or whatever) fee or through special assessments. There are procedures they have to follow. That'll depend on the HOA documents. But usually there's a Finance Committee that will propose an HOA fee adjustment. The Board votes on that. Usually, there's some opportunity for the HOA members (such as you) to provide input--a public meeting, for instance.
So while the answer to your specific question is contained in your HOA documents, the general answer is: Yes, they can.
Hope that helps.
Givoni Realty Corp.
email@example.com http://www.amygivoni.com http://www.shortsaledepartment.com
Unfortunately, times are tough for a lot of people and they are struggling to make ends meet. However, that being said, it's not uncommon for me to know people who aren't paying their mortgages or HOA dues, but are buying big screen t.v.s or driving very expensive cars. This is a tough situation for everyone.
Nicole Marks Mason, Realtor
You will need to check your condo docs on what they can or can do