Texas Debt Collection Practices Act

One way or another, future historians will consider the Coronavirus Pandemic among the most noteworthy events of the early 21st Century. The full economic impact on homeowners and their families cannot yet be precisely predicted, but it is likely to be immense. Taking the necessary precautions to avoid exposure to the virus and preparing for the financial ramifications will require prudence, careful planning, and maybe even a little creative thinking. Homeowners can't completely avoid the fallout from Coronavirus, but there are a few measures that could hopefully soften the blow.

What happens when an essential common element is unforeseeably damaged—resulting in significant repair or replacement costs—and there’s no money in the budget or insurance to cover the loss?  Rather than get caught scrambling for cash when an unexpected contingency or major maintenance need arises, many communities maintain “reserve funds,” a sort of back-up savings slated for emergencies, long-term upkeep costs, and irregular expenditures. Although reserve accounts are often not mandatory, an ample reserve can play a big role in protecting a community’s long-term financial health.

Homeowners’ associations typically are formed to manage any property in the community that is owned communally, as opposed to individually, such as a playground or building hallways.  Whether an HOA is made up of a condominium building, townhouses, or single-family homes, the responsibilities generally include the same type of tasks – maintain landscaping, employ property managers, maintain shared private roads or driveways, arrange trash removal, operate a swimming pool, and the like. This article will help you better understand the ins and outs of HOA fees. 

A district judge in Florida described community associations as “a little democratic sub-society of necessity.” And, as with federal, state, and local governments, for the “little sub-society” to function, it needs revenue. Association revenue comes in the form of HOA fees paid by homeowners – the functional equivalent of property taxes paid to a local government. An association’s authority to collect HOA fees (or “assessments”) arises from two places: state law and the HOA’s declaration.