It seems that for week after week we have been blogging about condominiums for the obvious reason that condo laws have undergone an absolutely dramatic change this year. Not only is the change dramatic, but it will no doubt lead to foreclosures of countless units when unit owners cannot pay the special assessments necessary for Phase One Inspections, Phase Two Inspections, numerous costly repairs and the full funding of reserve accounts.
So, what is there to really say about HOAs this week? How about this? Despite what you may feel about your specific HOA, all owners of homes located in HOAs are pretty lucky. The new inspection laws only apply to buildings 3 stories and higher, so your single family home is off the radar.
I don’t doubt for a second that over the next two years, as condo owners begin to realize what they’re in for financially, they will start searching for homes located in HOAs, especially owners who are retired and on fixed incomes. Townhome condominiums under 3 stories will also be sought after. If I’m right, there won’t be nearly enough single family homes and townhomes to accommodate the rush of fleeing condo owners. These homes will no doubt be going for a premium.
I know that those of you who live in an HOA and are responsible for your own roof think that HOA owners took it on the chin as well with the tremendous rise in insurance rates. Understand that condo owners have gone through the same massive insurance price increases, in addition to every other expense that they have on their way.
For those of you who live in condominiums that are three stories or more, please tell us you plan. Do you intend to ride out the wave and see what happens? Or, will you be pro-active and move out of your condo before all of the bills come due? Are any of you lucky enough to live in a condominium that has already undergone a 30 or 40 year inspection, made all the necessary repairs and are already fully funding your reserve accounts? If so, I can assure you that you are in the minority.