Tag Archives: hoa

HOA Super lien pose perils for home buyers

Could some of the nearly 67 million Americans who live in communities governed by homeowner associations — condominiums, master-planned developments, cooperatives and others — face much tougher underwriting and higher interest rates when they apply for a mortgage?

That is the looming threat from the mortgage industry in areas where state laws give community associations “super-priority” liens on dwellings whose owners have not paid their assessments.

Super-priority liens give a community association the power to initiate foreclosures and get first crack at the proceeds from the sale of a delinquent dwelling unit, ahead of the traditional first-lien position held by the mortgage lender. Twenty-two states plus the District of Columbia currently have authority for super liens on their books, and all 50 states recognize homeowner association liens.

Homeowner associations argue that, like property taxes for local governments, assessments or dues on units fund the essential operations of the community. They are crucial to maintain the community’s buildings, roadways, parks, recreation centers and other amenities. When unit owners fail to make the payments, the shortfall must be made up by the rest of the owners, often through higher assessments.

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If You Live In an HOA Replace Your Water Guzzling Lawn Without Penalty


Gov. Jerry Brown signed a pair of bills September, 2014 that went into effect January 1, 2015 that protect residents in homeowners associations across San Diego County and California who want to replace their water guzzling lawns with drought tolerant plants, or just cut back on turf watering during a drought.

Brown signed Senate Bill 992, which prevents HOAs from imposing fines on residents who reduce or stop watering landscaping after the governor has declared a statewide emergency due to drought, as Gov. Brown did in January. The protections do not apply in HOA neighborhoods that use recycled water, according to the bill by Sen. Jim Nielsen, R-Gerber.

With the signing of Assembly Bill 2104, by Assemblywoman Lorena Gonzalez, D-San Diego, HOAs will be prevented from penalizing residents for replacing their lawns with low-water plants over concerns about a neighborhood’s character. It doesn’t take away the power of HOAs to establish landscaping rules, as long as they allow for drought tolerant plants.

read more at: http://www.utsandiego.com/news/2014/sep/18/hoa-drought-lawns-water-ab2104-gonzalez/

disclaimer: for entertainment and information purposes only