CAI attorney Becker Requests Federal Solution to Foreclosure Crisis in Common Interest Ownership Communities - Yahoo! Finance: This is in the form a letter from Gary Becker to Barack Obama, and here is the punch line:
"To put this into proper perspective, according to the Community Association Institute (www.caionline.org), the value of homes in all associations is estimated at $4 trillion. Estimated annual operating revenue for U.S. community association operated homes, housing 60 million Americans, is more than $41 billion. To a large degree, the assessments paid by the unit owners are going to maintain the collateral of the banks and defaulting unit owners, neither of whom are paying their share of the common expenses.
There is a solution to this problem -- banks receiving Federal bailout monies and unit owners offered restructured mortgages at lower interest rates, as a condition of their receiving Federal funds and lower interest rates should be obligated to bring their obligations to their Community Associations current."
3 comments:
Is it really the assessments to the HOA that he is worried about or is it the legal fees from the vortex of litigation that he is concerned about? For several decades CAI vendors have been diverting funds from members into the pockets of the vendors. Perhaps it is a good time for all of that to stop. Condos? They are a guaranteed planned ghetto and should not be subsidized - let 'em fail, reclaim the space, and don't make the same mistake again.
…To a large degree, the assessments paid by the unit owners are going to maintain the collateral of the banks and defaulting unit owners…
As with much in the world according to those who depend on HOAs for their livelihood attorney Becker’s statement above is misleading and false. Because 30-60% of the owners assessments go towards the management and legal fees required to operate their HOA. Consequently as a corporate entity and business HOAs are very inefficient and not cost effective because of their high overhead and potential for risk.
Therefore I believe Mr. Becker’s statement is in reality about maintaining a healthy and consistent income source for his professional services and those of his industry. As compared to obtaining income from an HOA whose financial health is poor which also limits opportunities for more income. Again legislation is being sought to guarantee an uninterrupted source of income and opportunities with no risk for the HOA industry professional service providers at the owner’s expense.
The foreclosure crisis in Condo and Homeowner Associations has had NOTHING to do with homeowner(s) NOT paying! In the past, this "CRISIS," has been innocent, assessment paying, due paying homeowners targeted by sociopathic board members and their associates for whatever reason they have been able to fabricate. The vulnerable populations have been the hardest hit and these "thieves and domestic terrorists," should be in jail! When is someone going to start telling the truth about this industry gone wild?
Many of these abusive boards have a personal stake and profit from the intentional abuses inflicted upon "someone vulnerable, or someone they do not like,"(jealousy, etc.)
The very sad part is that not all these groups are abusive, or start out abusive.
They have evolved. It is the job of our press to reveal them and our elected officials, the courts and the people to stop them!
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