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By CondoAssociation.com • January 23, 2016

No interest being charged; can it be recovered?

condo-interest-charges.jpgSix years ago, my HOA had a really big special assessment. Owners could either pay it all at once, or pay it over 10 years with interest.

I'm not a director, and I paid all my assessment up front, so I didn't have a clue that management was failing to charge interest to the homeowners.

At 4 years, I let the owners know about the really big and growing deficit in the special assessment fund. I included a supporting letter from an HOA CPA.

At 5 years, I concluded from various clues that homeowners were not being charged interest. I tried to discuss the problem with the management company and board, but they wouldn't discuss it. I informed the homeowners that interest was not being charged. I included a supporting letter from the previous treasurer who sold his condo.

A few people expressed concern, but not enough to compel action. Without addressing any specifics, the board wrote that everything is fine and pay no attention to the troublemakers.

Few people understand the finances or believe such a simple mistake could be made. Perhaps each owner expects that if there is a problem. someone else will take care of it like the accounting police.

HOA dues have increased about 10% beyond inflation in the past two years, and the reserve fund is being emptied in order to make loan payments. I don't have access to complete data about exactly who owes what. I wouldn't later be able to verify later if the problem was ever fully corrected. The financial details are none of my business, but many of us are being shortchanged by many $1,000's. Seems to be the definition of my business.

How can we force the board and management company accountant to fix past mistakes and fairly account for interest?

Could the HOA collect unpaid interest from homeowners who have already sold their condos based on the too low closing cost provided by the HOA?

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Please note that blog comments and postings are not legal advice, rather only the opinions of our readers.
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