jvogle
Member
| Joined: | Wed Nov 4th, 2009 |
| Location: | |
| Posts: | 15 |
| Status: |
Offline
|
back to top
|
Communities regulated by developer run HOA's are becoming more prevalent in Sussex County especially and Delaware in general.
The CC&Rs are written primarily to protect the developer and only secondarily to protect the homeowners.
There are often no rules stipulating the percentage increases in assessments per year, no protection against mounting deficits except that the developer may forgive all or a portion of the deficit, nothing to ensure that reserves are adequate or what needs to be included, how often the reserves requirements need to be updated, length of time in forecasting or how the monies must be invested.
Homeowners in HOAs in Delaware are at financial risk as they can be faced with spiraling out of control monthly assessments that make their homes no longer affordable. Not having adequate reserves and having large deficits can cause the homeowner to be faced with a special assessments that also can devastate a homeowner as they literally can be in the tens of thousands of dollars.
Many states including Florida, California and Arizona have realized that homeowners can be put at financial high risk especially those in 55+ communities and have put in place legislation to assist homeowners especially on the financial side such as maximum percentage increases per year and requiring developers to absorb deficits on an yearly basis rather than carried forward as a liability on the balance sheet during the buildout period.
I STRONGLY ENCOURAGE ALL THOSE LIVING IN AN HOA TO READ THEIR CC&RS AND ALSO TO CONTACT THEIR STATE REPRESENTATIVES TO INTRODUCE LEGISLATION TO PROTECT THEIR INTERESTS AS HOA HOMEOWNERS.
|
