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  1. #1
    Join Date
    Nov 2008
    Posts
    4

    Unhappy HOA Fees Go Up Because Others Not Paying

    My question involves a condominium located in the State of: Ohio

    Our condo fees are going up again 2x in the last 2 years. Wife and I received a letter showing the condo association budget. In our small and not developed condo association almost 50% of the people are not paying the fees. In the budget they show a number of units in it and the amount of fees that they should had collected. Since almost $26,000 of fees was not collected, the budget was projected for loss. They have information that states that since they are unable to receive this money than our HOA fees for next year are going to have to go up to pay more because of this. Is this legal for them to make our fees to go up because of these people are not paying? Please let me know.

    Also, last year and the year before there are people that are not paying. If they knew these people are NOT paying how can they "budget" them in for the next year. There is alot of unhappy people in our community. I would be interested in a response on this. If it is legal for them to do this, I would scream.

  2. #2
    Join Date
    Aug 2006
    Posts
    563

    Default Re: HOA Fees Go Up Because Others Not Paying

    dont they put a lien on the units?

  3. #3
    Join Date
    Apr 2007
    Location
    Southeastern Michigan
    Posts
    1,226

    Default Re: HOA Fees Go Up Because Others Not Paying

    Quote Quoting THEAMAZINGCHAN
    View Post
    dont they put a lien on the units?
    And if the HOA's 'stated' reasoning for the increase was to compensate for the delinquency of those who don't pay, then I would take this, and your signed HOA agreement, to an attorney to see what, if any, arguements you and the other against the increases.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: HOA Fees Go Up Because Others Not Paying

    The bills have to be paid.

    Why isn't the COA acting against the delinquent condo owners? (Or is it?)

  5. #5
    Join Date
    Aug 2006
    Posts
    563

    Default Re: HOA Fees Go Up Because Others Not Paying

    Aaron

    some of them cant collect
    they can only put a lien on title
    if/when sold the title cant be transfered unless the balance is paid

  6. #6
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: HOA Fees Go Up Because Others Not Paying

    I once lived in a condo community where many units did not pay.

    One main reason is most of the buyers were struggling "first time" homebuyers. The other reason is that it was "conversion" from a factory, with the "sponsor" responsible for fees on his unsold units, and he was way behind on paying his share as well.

    The HOA suggested raising the fees, budget for the shortfall, but most of the condo owners, my wife calls them "young whippers snappers" said "NO WAY". What happened??

    For instance, they had to call an emergency meeting and everyone was asked to be pay a "special assessment" for the gas bill, which was eight months behind, else the gas was to be turned off the following week. Ditto for the electric.

    They was an emergency meeting every few weeks.

    Yeh, some people were yelling and screaming, "why can't they budget for these instead of asking everyone to come up with the money all at once"?? Answer: "before the gas cutoff came, everyone was saying "why am I paying for those people not paying".

    So you live and learn.

    BTW, in my area, in the news about two years back, a condo complex was closed by the authorities because of health and safety issues. Residents refused to pay fees for those not paying, and when "cutoff notices came", it was too sudden, and people couldn't pay the assessments. So the building was closed, because without heat, electric, it was considered a safety hazzard.

    Obviously, the answer is to pay the bills first, budgeting for them, and then go after the non payers. You don't want the authorites to evict you, right??

    BTW, these are risks you assume buying into Condos. For coops, the risk is even higher because the monthly fees includes the "first underlying mortgage" on the entire property, and the entire building can be foreclosed on by the lienholder, and you'll wind up losing your entire investment, because OTHERS didn't pay.

  7. #7
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: HOA Fees Go Up Because Others Not Paying

    Ohio law permits foreclosure on the basis of an unpaid condo lien. ORC 5311.18. That can create a whole new set of problems - it can be costly, actual foreclosures tend to depress the value of other units, and empty units don't pay condo fees - but sometimes the threat or initiation of a foreclosure action will shake the fees loose from people who can pay but are choosing not to.

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