Many more of us own and live in either condominiums or planned communities where all of the owners in the community have an interest in the common elements (e.g., exterior walls and roofs of the buildings, sidewalks, streets, recreational facilities, etc.). Since this type of development was virtually unknown as recently as 40 years ago, something about the concept obviously has appealed to the public.
If you own a home in either a condominium or a planned community with a home owners’ association (technically, the Acts refer to them as “unit owners’ associations,” but to me a home is much more than a unit), it is vital to you and all owners that the individual owners pay their monthly association fees. Otherwise a grim scenario of unrepaired common elements or facilities is inevitable.
A well-run home owners’ association is clearly in the interest of all owners, and it makes sense for all who own to monitor very closely and actually participate in activities and achievements of such associations. If the common elements begin to fall into disrepair, not only will aesthetic failures appear (unkempt landscaping, unmowed grass, chipping paint), but perhaps more importantly a gradual disintegration of the physical elements in the community (broken sidewalks, potholes in the streets, leaking roofs) can actually make living there dangerous.
It is important to all in such a community that the association rigidly enforce collection of monthly fees from all owners so that anticipated repairs, maintenance, and replacements can be undertaken as necessary. Recognizing the enormous importance of such associations’ assessment collections, the Pennsylvania legislature has given them powerful tools to collect.
A delinquent association assessment will become a lien against the unit of the delinquent owner under and subject only to real estate tax liens and the lien of a first mortgage. The lien of a home equity second or third mortgage will be subordinate to the association’s lien for delinquent assessments which can include interest, past-due fees, and attorneys’ fees.
(It is worthy of note that one Pennsylvania home owner who owed a delinquent association assessment of $1,200 refused to pay additional attorneys’ fees of $500. The matter was litigated for years, and the owner lost and ultimately paid the association’s counsel fees which grew to more than $46,000 in the litigation! It’s a good bet that he had his own legal fees on top of that.)
An association has the right to foreclose on delinquent assessments as though they are mortgages in default. Given these effective tools (an automatic lien, the right to foreclose, reimbursement of all costs and attorneys’ fees in litigation), an association has no excuse not to pursue any delinquencies aggressively. Though you, as an owner, may not relish participation in the quasi-governmental activities of an association, it is something you should consider seriously. Not only will a well-managed association make living in your home more pleasant and safer; but when the time comes to sell your home, it can be an enormous asset which can directly boost the value.
There are companies which exist to administer the work of these associations professionally, and it may be in everyone’s interest to hire one of them. In the meantime, it is not a bad idea to give up that Tuesday night with your feet propped up in front of the TV for a couple of hours a month to attend your association’s meetings. Not only do you get to keep an eye on its daily activities, but there is the serendipitous social experience of getting to know your neighbors.
Major caveat: To this point we have discussed the rights of the owners who are paying their assessments in a timely manner. What of those who are delinquent? If you are late with your association fees and fail to correct your delinquencies, you can bet that all of the heavy artillery of the association described above will be aimed at you. You could find yourself foreclosed and dispossessed even though all of your mortgage payments on the home may be current. In the scheme of things, assessments due your association should receive the highest priority among your obligations.
— Ken Butera