Community Association Delinquencies Nationwide

Due to the current economic climate in Ohio, we often associate delinquency issues for condominium or homeowners associations with the real estate decline in our area. However, a recent survey by the Community Associations Institute revealed that half of the nation’s 300,000+ community associations have serious financial issues. Of those associations surveyed, 65% of them had delinquency rates higher than 5% (in 2005, only 19% of associations had delinquency rates higher than 5%).

The major issue with delinquencies at this time is that the paying neighbors must account for the shortfall in the budget caused by non-paying members through increased maintenance fees, special assessments, or holds on general maintenance/capital improvements, or all of the above. The increased maintenance fees or special assessments may cause a normally paying member to become delinquent and add another property to the list of delinquencies. Although foreclosure rates are high in Ohio, the highest rate in 2010 was in Las Vegas, where 1 in 25 (4%) homes were in some stage of foreclosure, and in Cape Coral, FL, where the rate is 1 in 35 (2.9%) homes. The foreclosure rate in Ohio for 2010 was 1 in 59 homes (1.7%)

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