This past year, community associations have seen an increasing benefit of implementing foreclosure proceedings against delinquent owners. This article describes the foreclosure process and addresses changes in community association law relating to this process. In 2004, the Georgia legislature amended the Georgia Property Owners’ Association Act (the “POA”) and the Georgia Condominium Act (the “Condo Act”) to permit judicial foreclosures of an association’s lien, subject to...
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The National Bureau of Economic Research made the determination that the United States is in a recession - and has been since December of 2007. The current economic downturn has been caused, in part, by the nation’s housing downturn, which began in 2006. As a result, many Georgia community associations have noticed an increased number of homes being foreclosed upon and an increased number of bankruptcy filings. Many assume that a bankruptcy will completely eliminate an association’s ability...
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Community associations are entirely self-funded from the assessment payments of their members. When members (owners) do not pay, an association’s revenue is reduced, along with the association’s ability to satisfy its continuing obligations. Simply put, when owners become delinquent, such nonpayment directly affects the association’s ability to operate. As a natural result, the owners who are paying their assessments unwittingly subsidize the delinquent owners who are not paying. Worse,...
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If you are considering creating a mandatory homeowners association in your existing neighborhood, your first step should be to identify its purpose. Mandatory associations serve particular purposes. For example, mandatory associations are often created to enforce restrictive covenants and to maintain common areas. Maybe you are considering a mandatory association to enforce neighborhood covenants, such as architectural standards, or to enforce new covenants that have been proposed. Or, maybe...
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An old green sedan with chipped paint, no registration, a flat tire, and covered in a fine layer of dust and pollen. Can your condominium association legally tow it? The answer could very well be “yes,” even if your condominium does not have the specific authority to tow within its declaration of condominium. But what is required in order to safely tow? Let this article be your guide. First and foremost, a few caveats: each condominium is different, and each condominium’s declaration...
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