Loudon County seeks change in real estate law » Knoxville News Sentinel
Thanks to Shu Bartholomew for this link. For decades, municipalities have been imposing CIDs on home buyers in order to reap a tax windfall. Now the bill is coming due. Local governments foreclose on home owners for unpaid property taxes, and discover that they have to pony up thousands of dollars in unpaid HOA assessments. So now they want the law to be changed. This would stick the HOAs with the losses, of course.
Legislators representing Loudon County will go back to the drawing board to work on changes in real estate law that could affect the disposition of tax-delinquent properties across the state. The issue in Loudon came to a head last October when 293 tax-delinquent properties in Tellico Village were removed from public auction because the county would have been liable for hundreds of thousands of dollars in ongoing property owners association fees. The proposed changes to the law would exempt county governments from paying property owners association assessments after acquiring the properties in tax-delinquency sales. Under current law, counties are responsible for paying such assessments if they acquire the property.