I own a condo and 60% of all owners in the building are in foreclosure, is it legal for the HOA to ask for 3 times the fees?
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I own a condo and 60% of all owners in the building are in foreclosure, is it legal for the HOA to ask for 3 times the fees?
Building with 120 condos.
Asked on July 15, 2010 under Real Estate Law, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Many states have passedlaws that regulate the reserve fund of a HOA, requiring that the reserve fund be at a minimum to operate. What I am assuming from your question is that the 60% in foreclosure are not paying their HOA dues and now the HOA has increased the fee of those remaining units. Did the call is a "reserve assessment" or are they increasing the maintenance fee? This also may be to cover taxes, etc., that they can not pay due to the foreclosures. If it is a reserve assessment then it should just be temporary until the building is on its feet again. If it is a permanent raise in your fee yes, I do think that it is a bit excessive but again, it may be necessary for the time being. Make sure they spell out what it is and for how long it is to be in place. And make sure that they are following up with placing liens on the foreclosed properties for the HOA fees.
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