Several of the owners had high hopes of turning the place around, after many years of neglect. A judge terminated the Receiver’s contract last month.
Well, it didn’t take long for the newly formed Condo Board to throw in the towel. Assessments are seriously delinquent, and remaining owners are apparently not interested in paying for a place that has become a haven for crime and a safety hazard. Reportedly, the trash is piling up now, too.
Where are the developers willing to swoop in like White Knights and rescue this dilapidated old motel turned into low-income condos? Isn’t that why Florida clings to its “eminent domain for condos” law?
It appears Blossom Park has reached the end of its useful life.
Who would pay in a situation like this? The dues of one person aren’t going to do anything to change the situation. When people see no improvement and don’t receive the services they are paying for but not receiving…they stop paying.
Looks like the taxpayers are going to have to bail this one out.
It’s a mystery to me why the CAI hasn’t run in there to arrange for a million dollar loan for these folks since failing HOAs are the moneymakers for the HOA loan industry and the CAI property managers know it. Plus the property managers get a percentage of that loan right off the top to line their pockets.
Nila, Blossom Park has been without a willing volunteer Board and without a Manager for at least 5 years. A court-appointed receiver has been put in charge, and Receivers are not in the business of issuing loans. Their main job is to attempt to collect assessments and then use the funds to maintain the property. Of course, even CAI-affiliated lenders don’t want to take the risk of lending money to an Association with a high delinquency rate.
This link explains the collection and maintenance duties of a Receiver for an HOA or Apartment Building http://www.hindmansanchez.com/resources/article/receivership-alternative-collection-method/
Note that when funds are collected, the Receiver gets paid first, and the assessments get paid last!
I still can’t imagine why the CAI isn’t jumping on this with their preferred lenders. They can write the loan to be secured with every unit. Knowing full well the loan will default. Then they foreclose and take all the units for the price of the loan. It’s such a typical way of doing business for them, I can’t fathom why they haven’t jumped on it. Somebody must be asleep in the CAI/HOA lending department.