Why should we bail out HOAs?

As the foreclosure crisis reaches into those private planned communities, more and more homeowners are upset about being forced to pay special assessments and higher annual assessments to keep their HOA going. I even have been receiving questions from homeowners asking:

1. My HOA says they have no money and cannot maintain the common areas. What can I do?

2. My HOA says it will file bankruptcy if it doesn’t raise assessments. What will happen? Do I have to pay assessments to a bankrupt HOA?

3. Why do I have to pay higher assessments because of all those foreclosed homes?

Over the years homeowner rights advocates have been hearing stories about deadbeat homeowners who don’t pay their assessments, and it’s not fair for others to pay for them. So, foreclose on them! These stories have come from both the CAI supporters, and even a few misguided homeowners. Well, they got what they always wanted. Foreclosed homes for the nonpayers.

Oh, there’s no money to the HOA? That’s right. As pointed out to the pro-HOA foreclosure enthusiasts who felt strongly committed to the need for a club — the HOA right to foreclose on “deadbeats” — the HOA is in second place and must buy the mortgage and HOA debt in order to get anything out of a foreclosure. And that’s what they are up against today, except on a much larger scale.

Well, I might add to the above. Those in HOAs wanted a private community, free from government interference. Well now it comes time to pay for your own private way. However, the impact of a “cheapskate” homeowner attitude without “having to pay the piper” has now come due, and homeowners must now pay for their private government failures, and penny-pinching attitudes. There are no free lunches!

Demand competent management and sound business practices from your board, which will indeed raise the costs of living in an HOA. That’s “the cost of doing business” as an HOA.

HOA supporters cannot now ask for special “favors” from the government in terms of bailout legislation, not until the HOA legal scheme is changed and individual rights and freedoms are first restored and protected!

Published in: on May 13, 2008 at 10:21 am  Comments (1)  

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  1. […] In 2008 I wrote in Why should we bail out HOAs?, […]

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