Residents: HOA Wants Bailout, Too - House And Home News Story - KPHO Phoenix: "PHOENIX -- One Valley homeowners' association is more than $1 million in debt and has asked its residents to bail it out.
The HOA for the San Tan Heights neighborhood in Queen Creek said builders left 700 homes vacant and 1,000 homeowners have either been foreclosed on or have stopped paying their dues.
To ease the $1.5 million burden, the HOA has asked the remaining 2,000 homeowners to pay a $750 assessment fee."
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The "bailout" is nothing of the sort. It is just a special assessment. A bailout is when a corporation looks outside to government for help, as a last resort. The owners who are calling this HOA assessment a bailout don't seem to understand that they are the association and their BOD has the right to make them pay the association's debts. Even if the association were to file for bankruptcy, the owners would still be on the hook.
People who buy into CIDs need to know that the association's debts are ultimately their debts, up to the value of their units.
Thanks to Fred Pilot for this link.
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