GET READY FOR SOME STICKER SHOCK By Eric Glazer, Esq.
GET READY FOR SOME STICKER SHOCK
In the last 24 hours I was told of two different association annual budgets going up massively for the coming year. We are talking about over 35% increases in the budget. Think about that. If your assessments are already $600.00 per month, you probably can expect going to $850.00 per month. If you’re already at $800.00 per month, you’re about to go over a thousand.
It’s actually worse though, on a smaller scale. People that are only paying $400.00 per month will now be going to around $550.00 per month. It’s going to hurt them the most. It always hurts the poorer people the most.
Add this on to the rising costs of gasoline, food, utilities and insurance and we are looking at a real crisis coming up. Just remember, we can also expect that The Florida Legislature will likely be passing laws this year making it impossible to completely waive the funding of your reserve accounts. So, on top of everything we just mentioned, get ready for your assessments to go up even hire when you are forced to pay in advance for future repairs.
For those of you that have not started addressing your budget for next year yet, I would get busy immediately. You’re fooling yourself if you think that by avoiding it, things won’t change. They will. Unfortunately, all of these causes are coming together like a perfect storm. Thank heavens most people don’t have adjustable rate mortgages any longer because if they did and mortgage rates started going up, things would be even worse.
I’m telling you what’s definitely coming. The question is…..are there any solutions to prevent these increases. I don’t think there are. What things can you cut from your budget to offset these increases? What steps can you take to curb costs? I’m open to suggestions but I just don’t see good things on the horizon. I can tell you that at least in my office, it’s starting to feel like foreclosures and delinquencies are already on the rise. How do we put the brakes on another foreclosure crisis?
Tags: Condo and HOA, Management News
