The CommunityPacalypse, whats unfolding in Condo HOA land

 In 2007 when #StateofCommunities was first established,  the conditions, issues, recourses  and government response to “problems in CIC land.”  was already lacking now 14 years later it’s so bad that we have been forced to restart this blog and expand on some of the new threats to the Communities, Insurance underwriters, Mortgage companies, Banks & connected Financial institutions and eventually the government entities: Fannie, Freddie, VA, HUD  and FHA so let’s estimated impacted total market. 

Common Interest Communities represent about 1/4 of the US housing market and 100 million collective US residents. There are over 15 trillions of dollars of community repairs that are not underway and may not be possible to start under the present course.

Acknowledging these number shows the scale and scope of the unresolved and often growing problems for tens of thousand of communities like SurfSide Condo in Florida which highlights the “Reserved Fund underfunded problem.”  Yet that is nothing to the money giants taking our communities and especially tokenize the ownership of them creating what they claim is oppourity, and that translates into higher cost of rent for the average citizens and the long-term viability of the community based upon the number of owner occupants reserve fund contributions special assessment contributions for all the investor owners like them that haven’t been paying their assessments.  Here’s the problem stated by one of the main creators of it. 

Let’s be clear, the housing stock never should have been allowed to be turned into some kind of disconnect asset class. Now we present #TheCommunityPacalypse which is what is happening as Hedge Funds that have turned the US Housing  into a bad crypto like housing is an asset scam! 

 It was first brought to our attention by a user on Tic Tok, talking about how these funds have stopped their investors from dumping these homes.

And within a week we saw Senator Marley has seen the light* and intruded the "End Hedge Fund Control of American Homes Act", if passed, the Act would ban hedge funds and private equity investors from owning large numbers of homes by establishing a $20,000 federal tax penalty for each single family home owned by a single company and its affiliates over 100 homes Link.  while this is an efforts it amounts to locking the barn-door after all the livestock left. 

* Underwriting of these communities precludes more than 15% investor owners which this flies in the face of it and literally makes a mockery turning homes into a crypto asset class, example a popular Fox News Host boost of owning 3000 homes, so the bill while well intended will not do anything to stop the problems that now will be forthcoming which; we’ll be blogging about here, so come back this is  just the tip of the iceberg.