Foreclosures Lead to Rise in Homeowners' Association Fees

Recently, WKYC Cleveland ran a "focus" story entitled "Foreclosures Lead to Rise in Homeowners' Association Fees" featuring Kaman & Cusimano, LLC Attorney David Kaman. The story details the plight of Ohio's associations in the event of a foreclosure and highlights the grassroots effort to pass a "Super Lien" in Ohio.

When a unit goes into foreclosure and an owner stops paying the association's fees, the other members of the community often have to "foot the bill" to ensure that all necessary services of the neighborhood are carried out. According to Attorney Kaman, "[Ohio's] associations are bleeding bad debt, with no bank bailout to help them and so they have to act aggressively in foreclosures." A "Super Lien" would ease this burden on community associations by giving the association's lien six months priority over a bank's first mortgage. Joining the fifteen other states that have similar legislation, a "Super Lien" would not only preserve property values, but also the vibrancy of Ohio's neighborhoods and communities.

To watch the story please click on the following link: http://www.wkyc.com/video/default.aspx?aid=94514

SB 187 Hearings Held

On Tuesday, December 1, 2009, Kaman & Cusimano, LLC attorneys David W. Kaman and Darcy Mehling Good attended Senate Bill 187’s proponent hearing before the Ohio Senate’s State & Local Government & Veterans Affairs Committee. David Kaman testified and answered questions before the committee, elaborating on the bill’s benefits to Ohio’s homeowner associations and Ohio’s homeowners. This was a crucial first step to getting this legislation passed in the Senate.

If passed, SB 187 would establish the Ohio Planned Community Act, giving Ohio’s homeowner associations a statutory foundation, similar to Ohio’s condominiums. The Act will provide Ohio homeowners with the consumer protections they deserve by protecting their investment through statutorily organized associations creating strong neighborhoods and communities. This includes the ability to amend a declaration, permit spouses to serve on the board, and affirm the association’s right to file a lien.

As this bill progresses through the Ohio General Assembly, your support will be crucial to show Ohio legislators that Ohio’s communities and homeowners need this important law. Stay tuned to this blog for how you and your community can help, and for updates on the progress of this legislation.

To view a full text version of the bill, please visit http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_187