Owners, Associations Scrutinizing Fees During Tough Economic Times
The legal distinction between condominiums (where the units are each owned separately by individual owners) and apartment buildings (where the entire building is usually owned by one entity and then the units are rented out) can have impacts in unexpected ways. For example, condominium owners in Charleston, South Carolina are disputing their trash removal charges because they are charged a higher rate by the county than apartment complexes, which, from a practical perspective, have the same trash needs. Is this something that is or could happen here?
This scenario also points out that community associations, like the individual homeowners who make up the associations, are suffering through these tough economic times along with the rest of us. Many associations are more closely scrutinizing vendor invoices, and we have seen an increase in disputes between associations and vendors as associations attempt to tighten their belts. In an effort to save money in other areas, a lot of associations are entering into alternative collection fee arrangements with their attorneys, and selling their liens to investors. Until these economic times improve, many associations are going to have to continue to be creative to stay ahead of the game.