[JourneyOfLife]

I thought this was interesting. It is an older article, but still relevant. I have not lived in a community where there are property and facilities in common that are maintained by a HOA or Condo association that charges fees.

I have been studying it a little to understand it better. If we every move into that sort of community, I want to know what to expect and hopefully not have any surprises.

Looks like the insurance increases in some coastal areas of Florida might come in the form of special assessments for commonly owned properties and facilities.

NYT:
In coastal areas that have seen a jump in insurance premiums, a special assessment may be all but a given. “Buying in Florida, there will be a special assessment,” said Gary Poliakoff, a lawyer with Becker & Poliakoff in Fort Lauderdale. He has seen $50,000 special assessments, he said, though the $2,000-to-$5,000 range is much more common.

http://www.nytimes.com/2007/04/11/re...11GH-home.html

[buzzy]

Been there, done that at the old condo in North Palm Beach. $2000 for roof replacement after 4th hurricane, $9000 for concrete balcony restoration, $2000 for clubhouse, dock & seawall restoration. All of this was for necessary repairs. However, there are seldom assessments for additions or modernization, because the are voted down by the association members.

[mulligan]

My wife and I were both in the association management business. We bought here, in part, because there is no mandatory association. Cdd form of common area ownership/management is far superior.

[JourneyOfLife]

What I have read is that it HOA and Condo Associations should have regular actuarial audits and projections of future expenses that are used as a guide to set fees and make sure future expenses are not a accumulating and end up in a future surprise special assessment.

IOW; in some cases it can be gamed by current owners to shift the payment into the future by voting to reduce current fees. When the infrastructure needs to be replaced, the future owners get the special assessment.

Apparently HOA and Condo associations have often differing laws in a state. Different states have different laws too.

You should be able to find out if the TV CCDs are audited by actuaries and projections done periodically. It is probably documented somewhere.

Some things are not as predictable; Changes to laws ( e.g., Biggert-Waters). Insurance companies exiting a state, Weather pattern changes, etc.

It can happen in local governments with taxes too. Look at the pension deficits.

However, IMO it is still something that most people should understand and have an awareness about.

[Bogie Shooter]

Originally Posted by JourneyOfLife

What I have read is that it HOA and Condo Associations should have regular actuarial audits and projections of future expenses that are used as a guide to set fees and make sure future expenses are not a accumulating and end up in a future surprise special assessment.

IOW; in some cases it can be gamed by current owners to shift the payment into the future by voting to reduce current fees. When the infrastructure needs to be replaced, the future owners get the special assessment.

Apparently HOA and Condo associations have often differing laws in a state. Different states have different laws too.

You should be able to find out if the TV CCDs are audited by actuaries and projections done periodically. It is probably documented somewhere.

Some things are not as predictable; Changes to laws ( e.g., Biggert-Waters). Insurance companies exiting a state, Weather pattern changes, etc.

It can happen in local governments with taxes too. Look at the pension deficits.

However, IMO it is still something that most people should understand and have an awareness about.

If this is really a concern you have, I can direct you to the documents.

[JourneyOfLife]

Originally Posted by Bogie Shooter

If this is really a concern you have, I can direct you to the documents.

Thanks. I am pretty sure I already looked. But it was a while back and the details are fuzzy... I was looking at several similar properties too. So I stopped short of making a statement about TV out of fear of stating the wrong thing and I was too lazy to go dig it up to verify what I think I remember.

But, I do not have a personal concern about TV. However, if I lived there or in any similar arrangement anywhere, I would be keeping tabs on it.

The reason I am looking into the general topic.... We will downsize in the next few years. We are considering all options in terms of type of homes, condos, single family dwelling in communities with HOAs, etc.

We are also easing into the idea of relocating in the future... not sure about that one yet. But we are considering our options. We have some family obligations where we are currently living so it might be a few years.