Condo Association Management Blog

What state are you in?

Our financially troubled, self managed Condo Association Board is taking out a $25,000 loan rather than assess each of the 64 Unit owners. Is it possible for me to opt out of the loan by paying my portion up front. If the loan is not paid will there be a lien on all Units. We have problems paying basic bill so how are we going to pay the loan? Board is secretive and run by a control freak.

OP, 
 
 
 
Do you mean $350 per month plus a special assessment of $1000 that has occured on a yearly basis for X amount of years? It sounds like the majority of the board is older and probably on a fixed income. by keeping the monthly assessments lower they can skim off putting money in reserves and make SA instead to make up the difference.  
 
 
 
Joanne - I'll assume this is not you in the op. The $25K loan is approx $400 per unit, you should be able to pay your portion of the loan upfront as to not incur paying interest but this sounds like it won't happen with a "secretive , control freak" of a board. If this loan is needed to just pay basic bills then your hoa is desperate need of an increase. 
 
 
 
Shorter answer for both: increases are needed as well as an audit of the past records and a better planned yearly budget. 
 
 
 
Mark

I manage a building that a relatively small group of individuals for many years suppressed the condo fees because they were on fixed incomes and basically let the building fall apart. To keep with rising operating costs, they did not set aside reserve funds and what reserve funds they had in place were drained. When I arrived the boilers had been condemned and the Association had a tremendous SA to pay, which had it's own financial impact on many residents forcing some of them to abandon their properties. A controlled take-over of concerned homeowners took back the Board (it can be done!) and after two years, we are just now getting on our feet. We still have a long ways to go. Our Reserves are still low, but it is happening. The Board has to change, that's the only way I know, and the Board has to realize that it will not happen overnight. The problems did not occur overnight, so it will take time.

What State are you in was the first question asked and that is important. Please answer that and if you are in Florida I would like to speak to the board to bring innovative financial solutions to bear.

I own a 2/1 bath condominium,I didn't know about homeowner association'fees.The association's fees is $1,200.00 in addition,there's $250.00 to pay for un-met budget.I realize that every quater meeting,homeowner association never attended meeting,only board members,and board of directors,is there any way I can get myself out of homeowner association.please let me know.

TEXAS