Cohousing-L Mailing List: How do communities deal with members who can't pay their condo fees or assessments?

[Thomas Lofft (tlofft]

Judith Adler <judith_adler [at] hotmail.com> Wrote:Subject: [C-L]_ How do 
communities deal with members who can't pay their condo fees or 
assessments?[Hi:At Cornerstone we are once again thinking of how much money we 
should keep in reserve, and one issue that repeatedly comes up is how we deal 
with members who cannot pay increasing condo fees, either because of job loss 
or low income. We have 4 non-market rate units and those households pay the 
same condo fees according to percent ownership as we all do. We'd like to hear 
how other communities handle this. Thanks, Judy Adler]MY RESPONSE: One of the 
many important self help issues to deal with for the non-market rate units, 
presuming they are publicly endorsed, affordable housing units, is to assure 
they are not being over-assessed for taxation. Gov't required or endorsed 
affordable housing units come under the same tax category as any government 
owned or sponsored affordable housing unit with long term affordability 
guaranteed by non-profit or limited gain sale restrictions, acknowledging that 
these units are below market value units and should accordingly be assessed for 
taxes at their below market value, NOT at the same market value as other market 
rate units in the community.The net effect of getting below market value 
assessments is lower taxes, which in turn leaves the household with more 
disposable income to spend on paying community assessments, not nail art or 
premium TV channels.I managed this art for Habitat for Humanity of Northern 
Virginia which had homeowners in HFH units who were paying more for taxes than 
for their mortgage.  I investigated and the HFH covenants were limited equity 
covenants which were comparable resale restrictions as any of the County 
subsidized ownership units. I was successful in filing tax assessment appeals 
for 31 previously completed and owner occupied units and recovering excess 
taxes for several years backward as well as in perpetuity for the life of their 
mortgages going forward.  Many owners received rebates as well as lowered tax 
bills. Cheers,Tom LofftLiberty Village, Maryland which now has 20 kids in 
residence and 10 lots available for the next 10 families to start 
construction.Http://www.libertyvillage.com