Sunday, August 21, 2011

Staying in or Selling Out?

Whose Interest Comes First?

   The needs of short-term owners can conflict with the interests of owners who are in it for the long-term and with the overall interests of the homeowners association.  Community association boards which cave in to political pressure and avoid developer claims or artificially keep assessments low--are depriving the remaining and future owners of critical leadership.(1)

We hear it all the time, especially now with home sales so hard to close. Members of a community association who have their property listed for sale or those who are seeking alternate financing, complain that their association’s board is taking actions that are contrary to their interests. What actions? Raising assessments to comply with the recommendations of a reserve study. Imposing a special assessment or applying for a bank loan to raise funds for long-deferred repairs. Initiating an investigation of the condition of the project that might lead to a claim against a developer for construction defects. 

Friday, August 5, 2011

The Privatopia Papers: Home ownership hits lowest level since 1965

 Our essay, "Getting Sober in the New Economy" suggests that we should back off of new development of owned homes and focus instead on providing high quality rental properties, especially in urban areas. Click the title link above for a story that shows statistically why this may be the new direction for housing.