I think people underestimate how badly owning a condo can go. If you think about it rationally, then any given condo owner should prioritize keeping things in working order to the best of their...
I think people underestimate how badly owning a condo can go. If you think about it rationally, then any given condo owner should prioritize keeping things in working order to the best of their abilities. Obviously different people will have different abilities to pay above and beyond their mortgage and HOA dues, so it will vary from person to person. But the reality is that a condo association is easily highjacked by a small number of owners and can force the rest of the owners into terrible situations like this. On top of that, a lot of owners want to stick their heads in the sand and do everything the least cost way regardless of how bad the outcome could be.
Personally, I think there needs to be some major reform in this area. There are laws on the books to prevent this sort of thing, but from personal experience, they're either completely toothless or completely unenforceable. Not to mention, who wants to live in a building where all the other owners hate you because you sued the board, or whatever? It's just completely set up to fail.
People also tend to be very stupid. My HOA is trying to change our laws in order to limit the frequency and size of special assessments, and limit the number of houses in our neighborhood that can...
People also tend to be very stupid.
My HOA is trying to change our laws in order to limit the frequency and size of special assessments, and limit the number of houses in our neighborhood that can be rented out. We've had a real problem with rented homes falling into serious disrepair, and getting the owners (most of whom live in a different state) to actually fix them and make our neighborhood not look like a shithole.
It seems all positive to me. I don't think anyone liked paying that $500 assessment in 2019. HOA dues in the neighborhood hadn't gone up in almost 30 years, leading to an inevitable deficit when it came time to make repairs to the clubhouse. Reducing the number of rentals actually helps with home values, as homes lived in by their owners are generally better taken care of, and first time home buyers will find it easier to qualify for a loan on a home in a community with a low rental percentage.
Didn't stop a group of dummies from going door to door in our neighborhood campaigning against the rule changes with vague claims that the board was trying to take away our freedoms. The vote failed by only 5 votes, so now I can look forward to another $500 assessment in a few years when the pool house needs safety renovations or a new roof.
I suspect this kind of thing is endemic to condo buildings (though obviously not usually to such a tragic degree). I used to live in a condo building that had some initially minor problems that...
I suspect this kind of thing is endemic to condo buildings (though obviously not usually to such a tragic degree).
I used to live in a condo building that had some initially minor problems that were allowed to spiral out of control into serious problems. There were a lot of issues with water ingress that weren't taken care of for 10 years, resulting in massive damages to the underground garage structure as well as the roof.
It finally came to a head with a massive special assessment to fix everything ($20K for my unit--for reference, it looks like the special assessment per unit in the FL collapse was around $80K). I've since moved out, but I've looked at real estate pictures from units that've recently gone up for sale and I see that the newly renovated roof still suffers from the original problem: water just stays standing on the roof in large puddles. It's all just going to happen all over again. Ugh.
Serious question: What happens to the people who can’t afford a $20,000 hit? Like literally just don’t have the money? The majority of Americans live paycheck to paycheck so I can’t imagine most...
Serious question: What happens to the people who can’t afford a $20,000 hit?
Like literally just don’t have the money? The majority of Americans live paycheck to paycheck so I can’t imagine most of them having that kind of money lying around.
My spouse and I own a condo we don't live in. (We're housing her sister who has had trouble making ends meet.) We recently ran into this with some of the other owners there and the board at this...
My spouse and I own a condo we don't live in. (We're housing her sister who has had trouble making ends meet.) We recently ran into this with some of the other owners there and the board at this place is actually pretty reasonable. They came up with several potential solutions, one of which was for either the bank to loan the association some money and the association would pay it back with interest, but at a lower monthly cost to everyone involved. I think in the end they let owners who couldn't pay up front paid a smaller amount per month over a couple of months, possibly with a small interest payment in addition. (Like the association had enough to cover them, but they had to pay it back.) If your board isn't a bunch of jerks and you have a reasonable property management company, you can usually come up with some sort of solution.
In the extreme cases, an owner may have to sell if they can't afford an assessment, same as if they can't afford property taxes or their mortgage payment on a house when those increase. It's sad, but it does happen.
The one in the article says the $80k was paid back over a decade. In the case of my unit it was $20k paid back over ~7 years IIRC, with the amount rolled into your normal monthly HOA dues. So,...
The one in the article says the $80k was paid back over a decade. In the case of my unit it was $20k paid back over ~7 years IIRC, with the amount rolled into your normal monthly HOA dues. So, luckily you didn't need to have that money lying around, but the increase to the HOA dues was substantial.
I did a a search and found this article. Apparently the bill eventually goes to collections and the HOA could sue. If they win the lawsuit they can garnish wages. Apparently in some states there...
I did a a search and found this article. Apparently the bill eventually goes to collections and the HOA could sue. If they win the lawsuit they can garnish wages. Apparently in some states there could be a foreclosure.
The president of the board of the Florida condominium that collapsed last week resigned in 2019, partly in frustration over what she saw as the sluggish response to an engineer’s report that identified major structural damage the previous year.
Anette Goldstein was among five members of the seven-member board to resign in two weeks that fall, according to minutes from an Oct. 3 meeting, at a time when the condo association in Surfside was consumed by contentious debate about the multimillion-dollar repairs.
[...]
Despite increasingly dire warnings from the board, many condo owners balked at paying for the extensive improvements, which ballooned in price from about $9 million to more than $15 million over the past three years as the building continued to deteriorate, records show.
I think people underestimate how badly owning a condo can go. If you think about it rationally, then any given condo owner should prioritize keeping things in working order to the best of their abilities. Obviously different people will have different abilities to pay above and beyond their mortgage and HOA dues, so it will vary from person to person. But the reality is that a condo association is easily highjacked by a small number of owners and can force the rest of the owners into terrible situations like this. On top of that, a lot of owners want to stick their heads in the sand and do everything the least cost way regardless of how bad the outcome could be.
Personally, I think there needs to be some major reform in this area. There are laws on the books to prevent this sort of thing, but from personal experience, they're either completely toothless or completely unenforceable. Not to mention, who wants to live in a building where all the other owners hate you because you sued the board, or whatever? It's just completely set up to fail.
People also tend to be very stupid.
My HOA is trying to change our laws in order to limit the frequency and size of special assessments, and limit the number of houses in our neighborhood that can be rented out. We've had a real problem with rented homes falling into serious disrepair, and getting the owners (most of whom live in a different state) to actually fix them and make our neighborhood not look like a shithole.
It seems all positive to me. I don't think anyone liked paying that $500 assessment in 2019. HOA dues in the neighborhood hadn't gone up in almost 30 years, leading to an inevitable deficit when it came time to make repairs to the clubhouse. Reducing the number of rentals actually helps with home values, as homes lived in by their owners are generally better taken care of, and first time home buyers will find it easier to qualify for a loan on a home in a community with a low rental percentage.
Didn't stop a group of dummies from going door to door in our neighborhood campaigning against the rule changes with vague claims that the board was trying to take away our freedoms. The vote failed by only 5 votes, so now I can look forward to another $500 assessment in a few years when the pool house needs safety renovations or a new roof.
I suspect this kind of thing is endemic to condo buildings (though obviously not usually to such a tragic degree).
I used to live in a condo building that had some initially minor problems that were allowed to spiral out of control into serious problems. There were a lot of issues with water ingress that weren't taken care of for 10 years, resulting in massive damages to the underground garage structure as well as the roof.
It finally came to a head with a massive special assessment to fix everything ($20K for my unit--for reference, it looks like the special assessment per unit in the FL collapse was around $80K). I've since moved out, but I've looked at real estate pictures from units that've recently gone up for sale and I see that the newly renovated roof still suffers from the original problem: water just stays standing on the roof in large puddles. It's all just going to happen all over again. Ugh.
Serious question: What happens to the people who can’t afford a $20,000 hit?
Like literally just don’t have the money? The majority of Americans live paycheck to paycheck so I can’t imagine most of them having that kind of money lying around.
My spouse and I own a condo we don't live in. (We're housing her sister who has had trouble making ends meet.) We recently ran into this with some of the other owners there and the board at this place is actually pretty reasonable. They came up with several potential solutions, one of which was for either the bank to loan the association some money and the association would pay it back with interest, but at a lower monthly cost to everyone involved. I think in the end they let owners who couldn't pay up front paid a smaller amount per month over a couple of months, possibly with a small interest payment in addition. (Like the association had enough to cover them, but they had to pay it back.) If your board isn't a bunch of jerks and you have a reasonable property management company, you can usually come up with some sort of solution.
In the extreme cases, an owner may have to sell if they can't afford an assessment, same as if they can't afford property taxes or their mortgage payment on a house when those increase. It's sad, but it does happen.
The one in the article says the $80k was paid back over a decade. In the case of my unit it was $20k paid back over ~7 years IIRC, with the amount rolled into your normal monthly HOA dues. So, luckily you didn't need to have that money lying around, but the increase to the HOA dues was substantial.
That’s still $240 per month, which is, sadly, a significant hit for most people. It’s basically taking on an extra car payment for the next 7 years.
I did a a search and found this article. Apparently the bill eventually goes to collections and the HOA could sue. If they win the lawsuit they can garnish wages. Apparently in some states there could be a foreclosure.
[...]