The point of
fairness came into brilliant light and clarity this past week while watching a
Sunday morning news show with two of my favorite political commentators James
Carville and Mary Matalin. (Editorial comment from the right side of my
brain: 1. I can’t believe that two people who are so politically passionate opposite,
are married. 2. I offer my deepest
sympathy to whoever is their HOA manager 3. Did you ever notice that James Carville
will, without hesitation, interrupt any other speaker, but is well trained and
never, ever interrupts Matalin.)
During the program, which was not
about Homeowner Associations, someone commented “they want to privatize their
profits and socialize their losses.” It
is a take -off on a quote attributed to Andrew Jackson in 1834, on closing the Second Bank of the United States, “I
have had men watching you for a long time and I am convinced that you have used
the funds of the bank to speculate in the breadstuffs of the country. When you
won, you divided the profits amongst you, and when you lost, you charged it to
the Bank. ... You are a den of vipers and thieves.”
The mortgage lending crisis
has caused a big problem for homeowner associations because the strong banking
lobby has put in safe guards that exempts the lenders from paying all pass due assessments, except for generally 6
or 9 months. (Florida’s exception is for 12 months of pass due assessments). This is referred to as a “super- priority
lien”. Banks, not wanting to bring the properties onto the accounting books
allow foreclosures to drag out for 18 months to 3 years, the properties sit vacant, the mortgage not
being paid, and the assessments to the association not being paid. With the banking bailout and private
mortgage insurance, the banks are covering their losses. But associations can only reach out to the
other homeowners who are paying their assessments and require an “allowance for
doubtful accounts”. 
Now throw in the
investors, who pick up the properties at a foreclosure sale and want to flip
the property. They don’t want to pay,
they need to make a profit.
What is a Board of
Directors to do? It isn’t fair… the
lenders want to privatize their profits
and socialize their losses. The
investors are just trying to make a living.
What is a Manager of an HOA to
do? It isn’t fair – the manager is
usually the face of the HOA, and the
butt of the jokes.
It isn’t fair, but it is my job. It is a job I aspire to, because I believe that my homeowners deserve reasoned analysis and compassionate customer service . It is a job that requires education, experience, training, testing, endurance, common sense and sometimes, the skills that only a parent can understand when someone says, “It isn’t fair.”
