Crumbling Homes in a Crumbling HOA


D.M. from outside of Connecticut writes:

Dear Mister Condo,

Thank you for your article. I have a townhome that was built substandard, now have both foundation and structural damages. Old HOA Board was kicked out by new Board. Old HOA had committed fraud and embezzlement. New HOA has moved on. They hired an engineer but will not fix or file charges. I have now put close to $140,000 into home and been declined modifications due to damages. Now disabled, I am about to be homeless. I have reported all this to state and federal authorities since years ago. Answer has been it would take $25,000 up to hire attorney with no guarantee of satisfaction. I have prayed for help and have none. What can be done here for justice? I’m now with other owners with no answers and nowhere to turn. What can be done?

Mister Condo replies:

D.M., I am truly sorry for your problems. While I do not know all of the circumstances surrounding your HOA’s plight, your story is not unique. Purchasing into an HOA is an agreement to enter into a business. In addition to purchasing your living space, you are essentially becoming a stockholder in a corporation. In this case, it would appear to have been a poorly run corporation with many, many issues. I am not sure how many of these issues were apparent when you decided to purchase but now that they have surfaced, you are wise to seek legal help. I would not seek modifications for such a property if it were me because it would appear that between foundation and structural damages you have described you may very likely be putting money into a bad investment. You have mentioned a changing of the guard with regards to the HOA Board. However, you have also indicated that the new HOA Board isn’t doing enough to remedy the situation. You must find competent volunteers from within the ranks of the HOA members to guide the association through the turmoil. It may take lawyers, court cases and a lot of legal expense (passed down to homeowners like yourself) to get through this quagmire but it is necessary if the association is to get back on track. Support interested volunteers for the Board and do not reelect ineffective leaders. If the association does not get back on track, it is very likely to fold under its own weight. Unit owners can only bear so much expense before they become upside down in their homes and bank foreclosures loom. I can’t promise you a rosy future at this HOA but, form what you have told me, it is likely to get worse before it gets better. Good luck!

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