[refinnej1989]

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My POA is in danger of RUNNING OUT OF MONEY and we honestly dont know what to do next. Can we declare BANKRUPTCY??

[ikirutheowl]

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So sorry to hear that. An HOA should not run out of money, though, as long as it’s doing its job of collecting fees from owners. Something probably went wrong along the way and your HOA is greatly mismanaged. I don’t see how an HOA could run out of money unless the board has stopped collecting fees or the HOA spent all of its money on something.

[refinnej1989]

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Honestly… I dont know what happened too. I am a new owner and I had no idea the POA was going bankrupt.

[ikirutheowl]

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Ideally, before you even bought the home, you would have looked at the HOA’s financial records and reports. This would have signaled to you that the HOA is not doing well financially, giving you a chance to back out from the sale.

[wazzackrind]

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Filing for bankruptcy is possible but it’s rarely a good option. As a former board member, I suggest your POA board ramp up collection efforts. Increase assessments or levy a special assessment. It’s gonna be costly but homeowners should know that. Your HOA can try to take out a loan but I dunno if any bank would be willing to lend you money at this point since your POA is practically insolvent.

[peoniesforme]

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I agree with wazzackrind. You should increase assessments ASAP. Make sure owners pay. Start from there. And then your board should analyze what went wrong the first time around so it can avoid making repeating the same mistakes. Best to hire professional management, too, if you ask me.

[refinnej1989]

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Thank you for responding to me! I will talk to the other homeowners and board and suggest this to them.

[charles99_b]

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Just a tip – if your association is bleeding cash, something sketchy is probably going on. If i were you, I’d request for the financial records of the association and look for anything shady. Don’t trust your board fully. I wouldn’t put it past them to steal from the association. It’s happened to us before, and it’s happened to many other associations. It’s sad and frustrating, but it does happen.

[refinnej1989]

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Oh gosh I didnt even think about that! I will see what I can do. Thank you!

[muahmeowmeow]

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I agreed with Charles99, I am a newly elected BOD, and I think there are something going on with my HOA board members and the management company.
In my situation, I would love to see my HOA file bankruptcies then the court will audit all the financial reports and find out what was actually going wrong. Keep on increasing duties or special assessment in my opinion is not being responsible without fully inspect the complete HOA finance situation first, and its also not fair for the all the members to pay for the mistakes that the management did.

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