Homeowner's Associations

Given that approximately 2 million people in Colorado belong to a homeowners association – there are 8,000 such associations active in Colorado, a low number, in my view -  it is not surprising that the uneven, often poor performance by homeowners’ associations continues to make the news.  A front page article of the Denver Post February 13, 2012 edition reads “HOA house may get put in order.”  According to the article, the legislature is once again pondering how to make homeowners associations function more efficiently and reliably. 

Financing Condominiums

It has become more difficult to obtain financing for buying a condominium.  Lenders are no longer limiting their due diligence to the financial strength of the prospective borrower – is she or he qualified?  Instead, lenders are scrutinizing the condominium project itself.  Lenders are asking questions such as what is the rent-to-own ratio?  A high ratio may lead to the denial of the loan.  What is the reserve for capital replacements (roof, siding, HVAC)?