Evan McKenzie on the rise of private urban governance and the law of homeowner and condominium associations. Visit evanmckenzie.wikispaces.com for my published articles and services.
Failing?According to Rachel Alexander, in "Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental" (discussed here):While everyone else is struggling, HOAs are doing quite well. HOA management companies are adding customers and employees despite the economic downturn. It has become such a lucrative industry that new businesses are popping up specializing in buying HOA debt. HOAs are making money on interest and late fees. Most are not required to provide any leniency to delinquent homeowners, and they completely recoup their costs in attorneys’ fees from the homeowners. Few have any obligation to accept full payment from a delinquent homeowner or set up a payment plan, the homeowner is at their mercy and they can require additional fees and costs tacked on. HOAs aren't failing the homeowners, because HOAs aren't created for the benefit the homeowners. HOAs are serving the property management companies and HOA law firms quite well.It's no wonder that millions of people are voluntarily giving up their rights, and making their homes collateral to whatever debts and liabilities the HOA board creates, to choose the lifestyle offered by community associations.
Post a Comment