HOA Board Purchasing Resident's Home

We have a resident whose home is in need of significant repair and in danger of falling down a hillside and needs new support. The concern is whether the HOA would be liable somehow if the house falls down to another property below or on our common property. The Architecturual Committee has already reviewed it and recommended immediate repair. If the owners are unable to fix it up, is it legal for an Arizona non-profit corporation to invest HOA money in a private residence to repair it since she is unable to do it herself or unable to get a loan due to living on social security only.

Bob,

I agree with Brian! IMO, the only involvement the HOA should have is to inform the prop. owner that the home must be repaired immediately. No way should the HOA undertake the repairs for this prop. owner as that would really open the door to future situations that might arise whereby a financially-strapped prop. owner is in need. This prop. owner should check into getting city aid for the repair. I live in Glendale and I know the city has a grant program that will help low-income prop. owners with these type problems. I believe this program is sponsored by HUD so it may be available in all cities throughout the state. It's worth checking out. Also, there may be other civic assn's that provide this type assistance to low-income, elderly prop. owners. Perhaps a board member could check this out for this person and assist with the application. Although I believe this is not a board issue, that doesn't mean a board member cannot help this elderly member.

I want to know where that kind of HOA funds would come from. Are they available to be used for a purchase? If coming from a Reserve Fund, that must be voted on by the membership. Taking out a loan, I'll bet is not addressed in the CC&Rs and would not be a suitable expense from your budget. The Corporation would be the name on the deed and property owned by the corp has a whole different set of rules to follow.

And as Kirk said, this is setting a total new precedence and not a very good one IMHO. What would be the limit on helping others in similar situations? I feel a whole new problem for this association.

I want to thank each person that answered my query on this topic. This basically reflects the majority of the board opinion but I wanted to be able to have some outside opinions on this matters so the board can be thoroughly convinced to stay out of this issue. Thanks. Bob

Bob,

Glad to hear we were of some help to you. Although I did state I thought the board should not be involved, I do hope someone steps forward to help this elderly person, especially if she/he doesn't have any family around. Please tell her to check to see if the City has programs for low-income elderly home owners.