Question:
What happen when the HOA is out of money and can not get any past.
– Carrien
Answer:
Hi Carrien,
When an HOA runs out of money, it cannot fulfill its obligations to the community. While possible, declaring bankruptcy is rarely a good option. As such, an HOA with no funds may need to drastically increase dues or levy special assessments to make up for the deficit in cash flow. From there, the board should analyze what went wrong with the financial management of the HOA so it can avoid making the same mistakes.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
