Florida Homeowners Associations crippled by housing crisis
Article and Video Courtesy of NewsChannel 5 -- Palm Beach County
By Jeff Skrzypek
Published February 9, 2012
LAKE WORTH, Fla. - The home buying market has undoubtedly had a huge impact on both developers and buyers. But homeowners associations are also in the middle caught up in all the mess of the housing crisis.
The HOA was still under the control of the development, not the owners.
"You have a lot of homeowners associations that have high rental rates now. And the homeowners that initially moved into the communities thought they were going to have an ownership community," said Lymon Bradford, a real estate lawyer.
Bradford said because the economy dropped housing prices, developers of communities Estancia Palm Springs decided to rent the remaining of foreclosed units while the market recovered. But because nine of the more than 60 units have not sold, the developer does not have to hand over control of the HOA to homeowners.
"If you're not happy with the way the association is being run, then step up and try to become a part of the individuals who run the association," said Bradford.
Bradford advises frustrated residents to petition and file motions with the county that might force the banks to speed up the foreclosure process.