NATIONAL – Titleholder Equity Is The Association’s Windfall
Neighbors at War: Titleholder Equity Is The Association’s Windfall
By Donie Vanitzian JD
September 3, 2014
Human Capital is used to supply ALL the homeowner association’s cash flow. Without the board’s statutory mandate to assess at-will, the association could not operate, the entire engine would die, stop running. Other than a pat on the back, if lucky, titleholders producing said Capital get nothing in return. Most especially, they get nothing from stockpiling money in bogus money pits otherwise labeled “Reserve Accounts.” While the statutes talk a good game, owners have no real quantifiable statutory assurances that said money will be spent on items for which it was collected. If the owner sells and moves, that money is left behind, it is effectively “donated” to the association, the seller-owner cannot even write it off. If the Capital is stockpiled at the time the owner sells and moves away, and the seller did not realize the benefit of his accumulated money that was stockpiled, the money is still left behind. If the homeowner association is a debtor and a creditor suffers a loss, because the homeowner association is a corporation, in the name of “nonprofit mutual benefit corporation” that creditor’s losses become the debtor association’s reorganization process. Of course, the oxymoron of “mutual benefit” is not to be missed. This may answer the question as to why gardeners now contract with homeowner associations so that a breach or failure to pay may then be remedied in court by an order to assess the Human Capital. Read more:
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