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?
I would love to read some intelligent answers today.
