Friday, April 9, 2010

Find Out Who Owes Your Association Money

This is perhaps the most overlooked area by most community associations. The first step in uncovering money that was owed to you, but may not have been collected, is to determine whether or not your community suffered any storm damage over the last 5 years. If you did, you may have left thousands or millions of dollars still owing to you on the table. Insurance companies typically pay cents on the dollar. Combine that with the fact that many boards may have been too intimidated to file claims or were made to believe that their claims did not meet their deductible or that they would be canceled or their rates raised if they did file a claim, and it is not surprising that money was left behind. Perhaps now is the time to get a little bolder about your claim while you still have time left?

In addition, take a look at any construction defect claims that may still be viable. If a developer owes your community money as a result of construction defects or financial improprieties, now is the time to investigate those claims.

Lastly, make sure you own your common areas. Some communities are shocked to find out that the developer never deeded over the swimming pool or clubhouse and that property has been liened and/or taxed at rates other than the nominal rates at which common areas are taxed.

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