Legal Question in Real Estate Law in California
I live in a condo that has monthly H.O.A dues and in addition has passed a special assessment to each home owner for repairs that are being done to the property. in our H.O.A meeting they mentioned that one of the home owners has not only not paid his dues in over a year but has gone into foreclosure with that bank and most likely will not pay his unit's part of the special assessment. Our board mentioned that the rest of the homeowners have to not only subsidize his H.O.A dues but also the special assessment. Are there any laws that protect the other home owners from having to take in another home owner�s dept?
1 Answer from Attorneys
You're looking at it wrong. In a sense, you are indeed having to "make up" the deadbeat's deficit. However, more accurately, you are paying the HOA's bills, not the homeowner's. Also, (1) the HOA may recover that money someday, and (2) bad debts are a cost of doing business for (almost) all businesses, including HOAs.