Homeowners Associations Still in the Red
Posted: December 18, 2009
Some unfortunate news for homeowners associations - many of them are predicting their financial struggles to either continue into the new year, or worsen. In a recent survey conducted by the Community Association Leadership Lobby, an estimated 90% out of approximately 777 participants share this sentiment.
Unfortunately, the struggles of homeowners associations have been an ugly byproduct of the depressed real estate market. Falling home prices and property values, along with some of the highest unemployment rates in decades have caused owners to become deliquent with their mortgage payments, and homeowners assessments. Faltering HOA's have had to resort to some unusual methods of collecting their dues, short of simply filing for reorganization.
Out of the respondents in the survey, approximately 60% reported that they had increased dues to cover the shortfalls of other delinquent owners, and 66% said that owners over 60 days late in their assessment payments have risen.
With the results of this survey pointing towards further financial woes, it's possible that further government legislation could be supported to let HOA's collect fees directly from tenants, or charge more late fees to investor-owned properties.
As always, feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
Information for this article provided by Information, Inc., the Orlando Sentinel, and Florida Realtors.
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