| In addition to the thousands of condominium and | | | | reviews(with allowable exceptions). If homeowners |
| homeowner associations throughout the nation that | | | | have questions on finances during Developer control, |
| are experiencing assessment shortfalls, delinquencies | | | | insist on the annual audit. If professionally managed, |
| and high foreclosure rates, there also are many new | | | | work with your association management company in |
| developments coming on line where the developer | | | | this endeavor. |
| has run out of funds and simply walked away from | | | | Identify the amount or percentage of common |
| the project midstream-after some homeowners have | | | | expenses the Developer has paid to ensure equitable |
| already purchased homes and moved into the | | | | and proper allocation between development and |
| partially completed communities. | | | | association expenses have and are being paid. |
| If you are a member of an association that has not | | | | Maximize homeowner involvement and awareness of |
| yet turned over and you believe your Developer is | | | | the situation. If possible, recruit owners to volunteer |
| experiencing serious financial distress, do not wait for | | | | to perform maintenance or other work, thus reducing |
| it to file bankruptcy. Specific steps may include: | | | | the common expense liability to the association. |
| Call for a Special Meeting for the purpose of | | | | Lastly, be prepared to seek legal intervention, if |
| discussing the association's finances. Insist on straight | | | | needed, to preserve the assets of the association |
| answers to the hard questions of the solvency of | | | | before the Developer drains all available funds. |
| the Developer and financial resources of the | | | | In addition to the adage "Buyer Beware," under the |
| association. | | | | current economic downturn, condominium and |
| Some state statutes require condominium and | | | | homeowner association members must follow the |
| homeowner associations to conduct annual audits or | | | | "Owner Beware...and Act. |