Posted by: phillipsre | January 16, 2014

Underfunded Homeowners Associations Have Rights

iStockPhoto_CondoBuildingIf you are one of the 63 million Americans that live in Homeowners Association, this article is something for you to read. Through out the country, there are homeowners that believe the HOA rules don’t apply to them. A woman in Lexington, Kentucky, decided she didn’t need to pay her homeowners dues because she didn’t use the pool, the club house, or attend any of the social events. She learned the hard way, that those bills need to be paid because she is part of the Association. In the end, she was evicted from her home. This story also reports how  the average association has financial reserve accounts – the amount required to maintain infrastructure and common areas – but only funded at 52 percent, down from 60 percent a decade ago. The Association ends up having to take on legal issues, managing a multi-million dollar business (the HOA) and managing Dog DNA processes, just to keep their community running smoothly and safely. It is an interesting article for anyone living in an HOA and a lot of this information, makes a good case on why an Association may want to hire an outside management company that will be able to help in troubled times, collect or set up automatic payment options for HOA dues, provide an outside opinion and be a stront advocate for enforcing HOA rules and regulations. Management companies also have a long list of referrals that can help when necessary, from lawyers, insurance agents and contractors. Some food for thought for HOA and Board Members.

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