The CAI Board of Trustees approved updates to CAI’s foreclosure by community associations to collect delinquent assessments public policy. This decision comes after a comprehensive vetting process that included the establishment of a public policy task force on the topic and feedback from CAI members, homeowner leaders, CAI chapters, member representation groups, and legislative action committees.
The updated public policy was approved by the CAI Government & Public Affairs Committee and presented to the CAI Board of Trustees in December.
This update comes in response to a marked increase in legislation nationwide addressing foreclosure and collection procedures in community associations. The authority of community associations to foreclose for unpaid assessments or fines have been under examination by state legislatures and media outlets. CAI emphasizes the need for fair and equitable foreclosure procedures that protect homeowners and community associations alike.
CAI intentionally chose not to change the core guidance of this public policy, which is community associations should be allowed to foreclosure in cases of delinquent assessments. A CAI public policy assists legislative action committee navigate legislative stances when advocating on behalf of the community association industry.
These specific changes were approved based on conversations in state legislatures about community association foreclosure purposes and procedures:
- CAI does not support state law permitting foreclosures solely for fines but does support the use of liens for fines.
- CAI supports state law that allows for reasonable payment plans for outstanding collections as determined by the association’s governing documents and recognizes the importance of recovering legal costs via explicit references to collecting them.
- CAI supports association rules that provide for a minimum delinquency before an association may act on a foreclosure.
- References explicitly stating CAI supports foreclosure only after reasonable minimum delinquencies are met and after a reasonable opportunity is given to correct delinquencies.
These updates underscore CAI’s commitment to fair and equitable processes for foreclosures of association liens for common expense assessments that protect homeowners, property values, and financial health of a community association by ensuring foreclosures by associations are completed in a fair and reasonable manner. CAI believes foreclosure should be a final resort after other reasonable attempts to compel owners to fulfill their obligations to the association.
CAI believes this policy will provide valuable guidance to legislative action committee members and ensure thriving and well-maintained communities. Thank you to all involved in the review and recommendation process.
Visit CAI’s public policy statements.
Find the updated public policy here.
I am very glad that this organization is proactive in protecting homeowners from very powerful HOA in the US. The system needs overall and tight regulations with state oversight. Florida law gives the right to the HOA executive board to: enact extreme budgets with padding: foreclose on a homesteaded property over 1000.00 past dues, 18 percent placed on past dues, collections fees by the management company, then attorney fees and ours is 800.00 per unit that is behind in dues, the ability to put rules into place without homeowners voting: for example, ours by the same two people who are again on the HOA team, that homeowners that are behind on dues cannot vote: civil rights violation, increase in dues every 3 months, a reserve fund and a contingency fund that is not required by the state for the HOA only condo. the ability to take out loans from the bank without the approval of the homeowners and ours did and it was over 1 million dollars for a roofing project that the HOA board amended the documents with proxies promising homeowners new roofs
thus took away our right to do our own roofs. Then a new board takes over by proxies and then assesses over 1000.00 and enact 3 lawsuits that one has already been dismissed twice. the HOA team gets to select service providers with no votes, i have yet, to see all out documents for the community since last January and i should get my 500.00 from the HOA and I was denied. This HOA board now does everything email and zoom and that limits participation for some of the Homeowners. Our documents state(its like a constitution), that homeowners waive the right to homesteaded. To remove these people a recall is needed and it can be challenged and this HOA can use our fund for litigation to retain position on the board. The HOA is a voluntary position, cannot be sued and only for fraud by the state of Florida. Yet, this attorney firm Muir is giving them advice that this board can the other one and win. The only recourse is litigation and its attorney driven. Condos do have oversight complete by the state of Florida but not the HOA. So with foreclosures and corporate buying the state of Florida also, states the HOA can be dissolved it the investors buy 80 percent of the community and then they can dictate and make the community a rental and so far they have been increasing rents by 30 percent a year. so now the investors and wall street are in the business of rental income. I am working to recall this HOA team and it will be a fight they have expensive ambitions and are very aggressive. vision one in palm Beach Gardens, Florida we are a small community of middle class working people Yes, homeless will be very large and real if this continues. these HOA team even had the audacity to state that he has no problem spending other peoples money. also, another stated if you cant afford it here then you have to leave. the only people who are making lots of money are the attorneys. Foreclosures, fees, collection fees,
HOA reform is very necessary. Now its illegal to be homeless and to camp out in parks or the community in Florida. These leaders are not cost effective. look at California or Colorado. So back to the HOA reform. there are legal lobbyists from the bar association preventing the reform, regulation and oversight. The HOA has too much power, our HOA even changed our docs to purchase a condo policy(even though we are a HOA) and take away interior coverage and there was not even a quorum and they still voted on it. 3 members resigned and then the other two appointed their own people not even having a vote from the community.
amazing. This needs to be exposed and I am hoping that his organization will do so. Thank you for serving.