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LouV (Florida)
Posts: 7
Posted:
I am a newly elected President of an HOA development (So. Florida) that is fairly new and has been turned over by the developer over 3 years ago. Financially we are OK with our funds in our operating, reserves and general maintenance. We watch our expenses closely but we now have approx. 21 units that are in foreclosure and or short sale status. Of those 21 units there are 7 units that either are owner occupied or have a tenant living in them. Our HOA fees included the usual landscaping, common area maintenance, clubhouse & pool janitorial service (3 days a week for gym, clubhouse & pool), pool service, house & fire alarm monitoring, pool access & use of the gym plus water (bulk rate) and basic cable for each unit (317 units). The people living in these foreclosure / short sale units are either an owner living in the unit or a renter paying a rent or paying a discounted rent to the owner who in turn is not paying the HOA quarterly dues. We have already taken the residents name off the community directory at the front gate for guest access, some of the tenants do not have updated leases filed with the HOA thus they are living on a month to month basis. We have sent letters notifying the owners that we need an updated lease (no response), and a year and a half ago we instituted a rider for any new renters that if the owner of the unit becomes delinquent in paying the HOA dues the HOA has the right to ask the tenant to pay the HOA fees and the balance left will go to the owner towards the rental agreement. This document is signed off by the new tenant & owner. This has been working but a few tenants were here before we instituted this procedure. Does the HOA have the legal right to cut services like cable and put a lock on the individual unit cutting off the flow of water to the unit? I have been told by our legal counsel, management compnay & other association attorney's that we can not cut these services. Again the HOA pays for the water, the unit owner is collecting unclaimed money in their pocket and the rest of the community has to suffer the consequences, any suggestions? Oh and access to the pool and gym are by a special entry key which can not be duplicated and it is difficult to get these keys back from a tenant. They can find ways to access these areas without a key. So what can do done or are we in a Catch 22. Thanks and I look forward to your an suggestions or comments. Have a great day.

LV – from Palm Beach Gardens

JeanneK3 (Maryland)
Posts: 562
Posted:
Cutting off water can bring citations or fines from your local Board of Health. Thus, it is not the way to collect a debt.
Jeanne
RickW (Illinois)
Posts: 169
Posted:
I've come to realize, the laws are completely different for every state. If your legal counsel and management company says you can't shut off services, I'd most likely comply. But, I'd ask them what you can do to find a way to collect assessments. I'm in Illinois and an association can file a lien for assessments. We have also tried to garnish the wages of one owner for the assessments owed.

Hang in there and keep asking questions. There might be a next step you can take.
LouV (Florida)
Posts: 7
Posted:
Jeanne,

Yes that was one of the things that was noted to us with cutting off the water. Thanks for the input and if any ideas let me know
LouV (Florida)
Posts: 7
Posted:
Rick,

Yes it is agreed by all the board that we do not shut off services. In Florida we do put the liens on but again if and when a foreclosure gets sold we only get one years worth of back dues. In a short sale you get it all. I like the idea about going after the owners wages. Any other creative ideas would be appreciated.
DennisB6 (Florida)
Posts: 11
Posted:
Our association in Florida cuts off cable & internet services. We cannot cut off telephone which is also through our cable supplier.

Dennis, Port St. Lucie

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