Tag: covid-19

CAI response to HOA COVID-19 payments

The following is the form letter CAI HQ is urging everyone to send to Congress to oppose a federal bill granting exclusions for HOA assessments.  HOAs “uber alles.”
“I am writing to strongly oppose legislation like H.R. 6423 and S. 3565 that impose a national moratorium on debt collection during the COVID-19 national emergency.
This legislation is too broad and will harm the financial interests of households in homeowners associations, condominium associations, and housing cooperatives (collectively, community associations).
. . . .
“When one homeowner is unable to pay assessments, these costs are passed to other homeowners in the community. This increases housing costs, spreading financial distress to other community households. [Part of the HOA contract is the implication of a joint and severable liability by the homeonwers. Didn’t you know this???]
“Community associations are working with homeowners suffering from the economic impact of the COVID-19 national emergency. A recent survey by Community Associations Institute indicated a 20 percent increase in requests for forbearance or payment plans by homeowners who are unable to pay assessments. Beyond this goodwill, community associations are subject to state laws that require payment plans for delinquent assessments.  [Not clear whether or not HOA honored them].
CAI logo
“I ask that you oppose extreme legislation like H.R. 6423 and S. 3563. Thank you for considering my views and I look forward to your reply.”

HOAS as good corporate citizens & covid-19

David Kahne, a Texas attorney fighting for homeowners who had authored the AARP member Bill of Rights policy statement,[1] is seeking just treatment for homeowners in HOAs with respect to covid-19. Kahne seeks a reduction in assessments like the state and local government are doing, “Kahne believes HOAs should refund homeowners part of their dues.”[2]

covid-19With state mandated closures and loss of income to members just like many other non-HOA persons, what is your HOA doing to be a good corporate citizen? The plea from HOA boards is that they need the money and how can the HOA survive as if it warranted special dispensation. Of course, most members fail to realize that in between all that legalese in their CC&RS or declaration, they have pledged their homes as security for payments to the HOA.

Now what about all those lofty covenants about “in the general interests of the members” and “to provide for the health, safety, and welfare of the members”?   Seems empty to me if they do not act accordingly and reduce assessments like a good government should in a crisis like covid-19.

Notes

[1] A Bill of Rights for Homeowners in Associations, AARP HOA Bill of Rights, David Kahne 2006.

[2] Homeowners want HOA dues refunds for amenities they can’t use”, Beanie, HOA Reform Coalition (May 2, 2020).