Condo Association Management Blog

Who is responsible for condo association fees on foreclosed units?

Posted on Thu, Jun 19, 2014 @ 09:08 AM

Tags: Coverage, Property, Bankruptcy, Boards, Developer Transitions, Condo Assessments, condo law, condo, Foreclosure, Delinquencies, Collections, Condo Act, Freddie Mac, Ohio, HOA Collection Firm, Ohio Condo Association

condo unit bank owned 061914 resized 600

Our Ohio condo association has a foreclosed unit that sold at auction on 2/21. The bank was the buyer. We initiated billing for condo association fees and they made one payment, but it was short of the amount owed. The bank then transfered control to Fannie Mae. A Fannie Mae representative contacted us for billing info and told us we would receive timely payments every month effective 4/23. We provided the data and they forwarded it to their agent, which turns out to be the bank that was initially in control.

We have still not received any other payments and it is currently 3 months behind. The property was listed and has sold. We don’t know a closing date yet. We are concerned that once the new buyer closes we will never see our past monies from the bank or Fannie Mae. Can we do anything to bind the closing pending full payment of the monies owed to us. We are already 18 months short on this property.

New developer takes over HOA project and changes plans

Posted on Thu, Feb 13, 2014 @ 08:15 AM

Tags: Developer Transitions

Our developer we bankrupt and the bank sold the remaining 56 lot of the original 94 lots to a new developer. The new developer wants to change the plan and build duplex units lots originally planned as 4 unit townhome units. This would increase our lawn, and plowing, and irrigation expenses and decrease the assessments that we receive. Can a builder legally make changes to the association agreements and unilaterally make these changes to his benefit and the detriment of the association. There is a conflict of interest in our view.

How to transition new condo association to its members?

Posted on Tue, Sep 10, 2013 @ 10:34 AM

Tags: Developer Transitions

What are steps of transition of HOA control from declarant to homeowners? Declarant is close to selling last lot in subdivision and under Covenants, the control of the HOA will move to the Community. How is that accomplished? What does the Declarant need to do and what does the community need to do under these circumstances?

Condo developer wants back pay fees from association

Posted on Mon, Nov 5, 2012 @ 07:36 AM

Tags: Developer Transitions

I serve on my homeowners' association's board of directors. The developer and a fellow home owner serve as the other two other board members. The developer also serves as the property manager. So, he serves in three capacities related to our building. The board has voted to not renew the property manager's contract, which expires at the end of the calendar year. The developer/board member/property manager has demanded that his company be paid for retroactive payments that he didn't charge the association prior to the association turnover from the developer to the homeowners. The contract stipulations are vague, as the developer, who owns the property manager, drafted the contract. Can property managers demand retroactive payments that predate the association turnover to homeowners?

Developer holds and rents units, refuses to pay HOA dues

Posted on Mon, Jul 23, 2012 @ 09:11 AM

Tags: Developer Transitions

I am the president of an HOA which has 24 units. Two buildings -- 8 units and 16 units. All units are owner occuppied in the 8 units building. Five units are owner-owned in the 16 units building. The developer owns 11 units. He has not sold a unit in the last four years but is renting the units. He will not pay the association fee --only pays what the associatiion fees do not cover at the end of the month. The by-laws provide this option as well as being able to choose to pay association fees. My question is when does he cease from being the developer to nothing but a land lord who would then have to pay association fees.

Developer wants to build apartments on association property

Posted on Thu, Jul 12, 2012 @ 08:16 AM

Tags: Developer Transitions

Our Condominium Association in North Carolina is the owner of ten acres on which three condominium buildings have been built. There are two vacant parcels the building rights for which are currently for sale by a broker on behalf of the bank who owns those rights due to the bankruptcy of the developer. The Board just got notice of a potential offer from a developer. The developer would like to buy out the Associations rights to the property because they want to build apartments (no change in architecture to be used from current buildings). Said and done it would be condos across a common parking lot from apartments sharing landscaping common areas, an HOA's nightmare. Of course condo property values would suffer. The Board is intending to engage a real estate development law firm to help say "no way." Can anyone advise on legal or financial exposures that the HOA may face beyond attorney fees? What other avenues of recourse do we have? Thank you. Ron

Condo board did not transition well from property developer

Posted on Sun, May 20, 2012 @ 11:26 AM

Tags: Board of Directors, Developer Transitions

I'm in a condo association in Pennsylvania. We have a new board, elected about 15 months ago. Upon taking office a transition occured. The new board refused to use a lawyer to review the transition from developer to association members. To datethe only info owners get is.....don't worry it's done. Recently, November 2011, my building that is 5 years old was found to be infested with termites. To date, the board has spent $42K of reserve fund to repair the damages. This excedes their 5% limit. They refuse to take legal action against the builder, provide any documents spelling out services rendered, and are telling residents in the infected building that they don't need to disclose if their particular unir showed no signs of damage. Can legal action be taken against this board?

When does developer of new condo association start paying fees?

Posted on Wed, Apr 25, 2012 @ 09:10 AM

Tags: Developer Transitions

We are a self-managing Condo Association with construction still in progress. Question: when does the developer start paying HOA fees? Should he pay before he get the Certificate of Occupancy? The property is in New York State.

Condo developer wants to divide master condo association in two

Posted on Fri, Apr 20, 2012 @ 07:50 AM

Tags: Developer Transitions

I am the developer of a 136 unit project and have built 72 of the planned units. There is a remaining piece approved for 64 units that I want to take out of the master association and plat as a separate lot outside of the association. The 72 homeowners agree to the splitting out of this land. Is there a way I can do this?

Developer goes bust. Condo association takes on unfinished projects

Posted on Mon, Apr 2, 2012 @ 08:01 AM

Tags: Developer Transitions

I live in a 200 unit condo association. Our developer went into bankruptcy and in 2010 the bank that took back the property turned the property over to the association. We elected a board of directors and we have just finished our first and challenging year. Many things were neglected due to the owner filing bankruptcy and the bank not taking care of the property. We have several homeowners that are willing to do projects around the association to help get the property back to the "luxury" status the association was when units were first being sold. We have a few board members that are totally against this. I would like to know if other associations have had homeowners volunteer to help and if so did you have waivers for them to sign stating the association wasn't responsible for any damage, injury, etc. Any help you could give me would be greatly appreciated. I'm all for it and I need help convincing my board.