Monday, March 26, 2012

Howard County News: Council bill aims to reduce delinquency rates on condo dues

"Condo and homeowners associations have struggled for years to collect dues from all the property owners in their communities, but when the economy turned sour and the housing market declined, delinquency rates skyrocketed.

After the Federal Housing Administration tightened its financing procedures for condo owner associations in 2009, high delinquency rates — the percentage of property owners in a community who are 30 days or more behind on their dues —became even more of a problem.

Unlike with homeowners associations, COAs own the ground and the buildings in which units are located, and thus are required to have an FHA certification to ensure the community is in good fiscal health so that people who want to buy a unit can get FHA financing. Condo communities with a delinquency rate of more than 15 percent, are ineligible for a FHA certification..."

Click the following link to continue reading "Council bill aims to reduce delinquency rates on condo dues": http://www.baltimoresun.com/explore/howard/news/ph-ho-cf-condo-fees-0329-20120324,0,3421534.story?page=1