The association at Shoreline Towers, a 378-unit Chicago condominium, plans to use reserve funds to buy foreclosed units, rent them, then resell them when the market improves.
The move prevents foreclosed units from being sold far below market value and allows the association to recoup some unpaid assessments, says Chris Sempler, vice president of Shoreline Towers’ condo association board.
State law allows associations to be paid six months of past-due assessments when a foreclosed condo sells.
Reserve funds. Luck them. Most HOAs squander the money like the Obama Administration.