What happens if we don’t fix this?

The Association has a legal obligation under its governing documents to maintain the community’s common areas and amenities. If the Association no longer has the financial ability to do that, courts will often appoint a receiver to take control of the Association.

A receiver is a court-appointed manager who takes over running the Association instead of the homeowners.

Once appointed, the receiver can ask the court for authority to charge and collect whatever assessments it believes are necessary to:
• Cover all operating expenses
• Fund future maintenance and repairs
• Pay court costs and legal fees
• Pay the receiver’s own hourly rate, which is often hundreds of dollars per hour

Because all of these costs are paid by the homeowners, receivership can become extremely expensive for the community. In many cases, the costs end up being far higher than what the community could have addressed on its own.

All of this can happen without any homeowner vote or input.

In other words, financial decisions about the community would be made by the court and the receiver instead of the homeowners who live here.