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Article
Courtesy of Tampa Tribune
By SHANNON
BEHNKEN
Published
December 29, 2008
Donna White never thought she'd lead the charge to foreclose on her neighbors.
But that was before she was forced to fork over extra cash every month to cover bills they refused to pay.
At one point, 60 percent of the 242 owners at Kings Lake Townhomes in Gibsonton weren't paying their monthly $194 town home association fee.
The fees pay for water, cable, landscaping and maintenance, among other things. The association's bills are based on all the owners paying their dues. When some don't, everyone else has to pay more to cover them.
The association is owed more than $150,000.
The problem came to a boil recently when the security gate needed to be replaced and there wasn't enough money in the association's reserves to pay for it. Paying homeowners had to chip in an extra $230 for three consecutive months to afford the gate.
'It's Frustrating'
So now, White, the president of the association, has a whole new attitude. The association has begun foreclosure proceedings on four homeowners.
"We held off as long as we could because we felt bad for people," White said. "But when you see your neighbors driving nicer cars than you and going on vacation while you're covering for them ... it's frustrating."
Kings Lake is a microcosm of dozens of other Bay area neighborhoods that are dealing with residents who don't pay their fees.
In this troubled economy, many of the delinquent homeowners truly can't pay. Some of the homes have been taken over by lenders who aren't paying either. But there are those, White says, who don't pay because they think they can get away with it.
The problem is becoming so widespread that the Florida legislature may address it next spring, said Peter Dunbar, a Tallahassee lawyer and former Bay area legislator.
Hire A Good Lawyer
The options associations have now, he said, are either to foreclose or sue the homeowner to get a judge to demand they pay.
Foreclosure is typically the most effective, Dunbar said.
When a lender forecloses, communities with a homeowners association can receive a year's worth of unpaid dues. Condo associations receive just six months of fees.
Court costs can eat up much of the money, Dunbar said, and the hassle isn't always worth it. Six legislators are thinking about proposals to help homeowners associations, he said, but each of the plans has downsides.
One allows the association to get paid before lenders during a foreclosure. Another increases the number of unpaid dues that an association may receive when lenders foreclose.
Dunbar recommends associations call their legislators and tell them they want the issue addressed. In the meantime, he recommends getting a good attorney and suing delinquent homeowners.
Even so, he said, suing and foreclosing is hardly a one-size-fits-all solution.
Back in Kings Lake, neighbors are preparing to pay even more. Starting in January, the monthly fees will jump $31 to $225.
White hopes it will be enough to make ends meet for a little longer.
Meanwhile, she's keeping the association's foreclosure attorney on speed dial.
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