Sometimes an owner falls on tough times and struggles to pay their HOA.
The reality is that an HOA relies upon the funds raised from owners to pay for maintenance of common property as well as repairs and replacement when necessary. The types of expenditures may vary from one community to the next, so we set out some of the common budget items in this post.
HOA fees are levied through both ordinary dues and, when required, special assessments. The fees are based upon ownership entitlement (typically based on lots, size and/or value) to be fair. When an owner does not pay, it is not as if the HOA is fine; it is reliant upon those funds. While an HOA may seem to lack compassion, they really must collect funds from each owner.
As a result, when an owner does not pay, an HOA must take action. They will expect payment, and it it’s not forthcoming penalties, liens and/or foreclosure may follow (check your state law to see what applies where you own). You may also face costs or penalties associated with collection, so do your very best to stay current on payments.
Want to learn more about your HOA? Run a free Eli Report!