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Updated 8 days ago on . Most recent reply

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Carla Intal
  • Investor
  • FL
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Seeking advice: What to do with condo owners not paying HOA?

Carla Intal
  • Investor
  • FL
Posted

Hi BP! I own one unit in an 8-unit condo building in Washington DC, which is doing quite well, as I'm renting out to a section 8 tenant. My concern is that our reserves are critically low, because of owners who have been in arrears for years and not paid HOA. I've learned that the non-paying unit owners have acquired their units via the Tenant Opportunity to Purchase Act (TOPA) -- when the rentals were converted to condos, they were able to purchase the units for a bargain, but were not prepared to pay for the recurring costs such as HOAs and special assessments.

We have tried everything to get our non-paying neighbors to pay up, but to no avail. It's been years and they are not being penalized, it also creates an incentive for other neighbors to also not pay.. all at the expense of the upkeep of our building. I'd like to ask for advice -- is there any legal action we can take? I'm open to any suggestions and recommendations -- keep in mind our building reserves are low so we've deferred on decisions that need payment (like hire an HOA lawyer) -- we are open to hearing any ideas, and if we really need a lawyer please help us find an affordable one. Thank you.

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In your case, if the other owners signed an HOA agreement, they could be legally bound to contribute to the building reserves. However, if they were able to purchase without also signing the HOA agreement, then you might not have any legal recourse to require their contribution.

If you can, reach out to the HOA about the potential penalties for nonpayment. If your HOA needs an attorney, you can look for attorneys using martindale.com or through the Washington, D.C. bar (https://www.dcbar.org/)

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

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