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Condo president can't collect on assessments for building repairs

Posted on Tue, Oct 11, 2011 @ 06:45 AM
  
  
  
  

My husband became President of the condo association since July 2011. Our building of 10 units urgently needs roof repair services before winter. After two meetings, we voted for a contractor and acknowledge the cost. However, my husband finds difficulties to collect the special assessment. In fact, three units are fall behind their association fees. And, two units are in foreclosure. My husband wants to hire lawyers, but they insist the board members should consist of three persons. The problems is that no one other than him and one of owners willing to be board members. What should he do? Any advice is greatly appreciated.

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posted @ Tuesday, October 11, 2011 7:02 AM by nanci mahoney


There are provisions in State law in Florida and probably in other States as well that provide for s situation where the number of Directors cannot be fulfilled. 
The association will have to repair the roof and lien the non-paying members. The cooperating members will have to put up funds sufficient to repair the roof. Perhaps they might loan the association the money, but this is something that you must get an attorney's advice about. Not having the requisite number of directors is less of a problem than raising the money for the roof. Florida's ombudsman or Department of Professional and Business Regulation are quite helpful, but they will do more more than point you in the right direction. You will still need an attorney.

posted @ Tuesday, October 11, 2011 7:20 AM by Gloria Thayler


In what state is your ciondo located??

posted @ Tuesday, October 11, 2011 8:22 AM by Scott


In as much as there are only 8 of you to carry the burden, and it appears that some are having financial difficulties parting with their money you have limited options. First (1), is your roof so bad that it needs repair now? If not, then postpone as long as possible to build your reserves. That raises another option, (2) you do not have to full fund your reserve if so voted on by ownership. You can then collect your normal reserve funds solely for roofing until you have enough to do the repairs. (Basically, reallocated funds to the roofing fund). (3) See if those that have the funds can provide additional money, then make some kind of payment plan with the remaining owners to reimburse those that paid the higher amounts. (4) Last option I would consider, borrow from a bank. Finally, a question, do you have a management company? If so get them involved. Why, with only 8 owned and paying units, are the others not interested in saving and fixing their homes? Seems ridiculous to me.

posted @ Tuesday, October 11, 2011 9:08 AM by cebo


When was the last time you as a 
 
CODO HPOA tried to borrow from a bank? We are a 24 unit beachfront 
 
condo. Contractors "went south" after spending 1.2 mil leaves us with closed building. 
 
 
 
After talking to 16 banks we hve given p on that. SBA.FHA will not back loan to HOA cause they are NonProfit.. 
 
 
 
SO ANY IDEAS? NAMES OF BANKS WHO wILL LOAN TO HOA??? {OUT OF 24 UNITS WE HVE 6-8 IN FORECLOSURE OR HVE NO PAD ID 30 MONTHS????

posted @ Tuesday, October 11, 2011 9:39 AM by jmculpepper


Thank you for your advices. Greatly appreciated. 
 
Our condo is located in Chicago, IL. We are self-managed. My husband took control of the management after the president passed away.  
 
Both former president and treasurer left behind a very bad mismanagement of funds and worked in secrecy. My husband was the secretary and was always denied access to the account. In fact, we now know that the former treasurer falls behind her assessment fee for more than a year.  
 
3 different contractors told us in 2 recent association meetings that our roof is in really bad shape and life-threatening, especially in winter because it collects water. However, since it is hard to make people pay for the roof, my husband is considering to do the partial repair this year and continue it next year. Hopefully, that will be enough to save us from this upcoming brutal winter.  
 
Of the 8 units, 3 units belongs to 1 person who does not live in the building (he is the late president's grandson). 1 unit owner who falls behind the association dues is trying to sell her condo for half of the property value, cash only without telling the board members (we found out on the internet). 1 unit belongs to someone who lives abroad and her son is not fully cooperative. 1 unit belongs to the former treasurer and she is very unpleasant to deal with. 
 
Is there a way in Illinois to hire attorney even though the board members consist only of 2 persons? 
 
 

posted @ Tuesday, October 11, 2011 10:02 AM by Caroline Williams


Caroline, 
 
I am not familiar with Illinois laws, but a common sense tells me you should have no problem finding a lawyer willing to work with you regardless on how many people you have on your board. What you may find later is that your HOA may not operate under current laws and existing governing documents because you don't meet certain requirements, like number of board members. If this was a case you wouldn't be able to pursue any collection activities, impose fines, or even collect assessments.  
 
I would highly recommend finding a qualified attorney specializing in HOA matters and asking for their help.

posted @ Tuesday, October 11, 2011 11:10 AM by Jeff Ross


Hi Jeff, 
 
Thank you for your response. My husband already contacted the lawyer firm and an attorney he wants to hire. But again, as I said earlier, the lawyer wants him to recruit the 3rd person to be board member. 
 
Last night, again, he begs one owner to be board member only to be harassed by him by saying "NO!" and hung up the phone.  
 
I am upset and tired to see these people acting so rude without realizing that my husband volunteers so much of his time and energy in order to save the building. 
 
We really need help because we are running out our resources.

posted @ Tuesday, October 11, 2011 2:26 PM by Caroline Williams


Are you looking for advice on collecting association fees? What state are you located in?

posted @ Tuesday, October 11, 2011 4:22 PM by Tony Giaimo


Hi Tony, 
 
Yes,I am looking for advice on collecting association fee AND special assessment fee. 
 
I am in Illinois. 
 
Thanks!

posted @ Tuesday, October 11, 2011 5:10 PM by Caroline Williams


We also have a small community. 
 
The owners here have the same attitude. 
 
We decided to give out parking passes. You get a pass only if you are paid in full. If not yo park on the street. If you don't have a pass you will we towed.  
 
If that doesn't work we foreclose. 
 
And my personal choice is MOVE . 
 
 
 

posted @ Wednesday, October 12, 2011 7:00 AM by Joyce morgan


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posted @ Sunday, October 16, 2011 10:23 PM by Belstaff UK


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posted @ Thursday, November 10, 2011 3:03 AM by pandora bracelets


Caroline: 
 
 
 
I'm the president of a 4-unit condo in Chicago, and am dealing with similar problems. But I found a lawyer and small managment company that are helping.

posted @ Wednesday, April 25, 2012 9:44 PM by Elissa


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