More On The Squeeze Felt By Homeowner Associations Resulting From Defaulting Homeowners

Several recent media reports describe the problems foreclosures are causing on the budgets of local homeowners' associations around the country, and its effects on those association members who are current on their homes' financial obligations:

• Prince William County, Virginia: One homeowners group with almost 8,000 members, is losing $20,000 a month because of delinquent fees related to foreclosures. That amounts to $240,000 of its annual $4 million budget. See Associations Suffer as Homeowners Do (With Residents in Foreclosure or Not Paying Their Dues, Groups Face Hard Choices);

• Cook County, Illinois: Residents of a condominium complex in unincorporated Maine Township are in danger of having their gas service shut off unless they can pay the $276,000 their homeowners associations owe Nicor gas. A soaring number of foreclosures within the complex are primarily to blame for the associations' inability to pay the gas bills. About 30 percent of the 354 units in the complex are vacant due to foreclosure. See Nicor threatens to shut off gas to 53 condos;

• Miami, Florida: "I have a constant battle every month to pay a light bill, a phone bill, just the operational costs of the condominium," [condo Association President Colin] Hendrick told CBS4 Reporter Carey Codd. That's not to mention the $1,200 a month insurance bill for the building. Hendrick says the foreclosure crisis has forced the association to raise monthly fees for unit owners by about 35 percent. On top of that, they've charged thousands in special assessments to make repairs, like fixing the elevators. He says 60 percent of the unit owners are being forced to pay 100 percent of the fees. See Condo Owners Find Themselves Paying Extra Fees.