Phoenix Landmark condo owners fight HOA assessments — and win: "The HOA assessment for a new HVAC system would have cost each of them at least $15,000 per condo. Many other owners in the 236-condo high-rise said the same thing as Hardaway: They could not afford the assessment, and it could cost them their home."
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They got a judge to overturn the assessment, but this isn't over. Apparently the work still needs to be done. There is an ongoing issue of what work, how much, and how to pay for it. But it is yet another example of huge special assessments that seem to be more and more common.
2 comments:
Consider contacting other owners to vote to TERMINATE the declaration of condominium so that the property can be sold and re-developed.
Otherwise transfer to an LLC or trust of which the (former owner) is a member or beneficiary in order to avoid further losses due to personal liability.
There is no "upside". These folks are going to lose savings AND housing if they don't kill the condominium.
The owners are lucky so far here. In many states, the industry trade group sought and obtained legislation that overrode any requirement for the condo board to have to get homeowner approval or that otherwise provided any input or control by owners at all. The legislation (now statute) allows the board to unilaterally borrow money without the consent of the owners. The management company contracts provide for the management company to get a fee that is a percentage of the amount borrowed. They profit from sending their clients into debt. Of course they are also in the collections business and the hardship it imposes on the individual unit owners just makes it more lucrative for the management companies who get those late fees and "collection" fees when owners can't pay the bill that the board racked up.
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