To: Brian Taylor,
Subject: Re: Proposed SB 153
Date: 2/4/2014 11:55:33 AM
On Feb 4, 2014, at 11:50 AM, "Brian Taylor" <email@example.com> wrote:
I am writing to you concerning SB 153 - Association Foreclosure Amendments. This bill comes before the Senate Business and Labor Committee today.
I have served as the President of a Homeowner Association for past 7 years and I have managed over 1,000 HOA properties in the past. I am also a banker of 36 years, and have developed, for our bank; a lending program specifically for HOA¹s to fund necessary capital expenditures. My perspective on this issue comes from hands on experience and knowledge of the issues HOA¹s face; as a homeowner in an HOA; as a President of an HOA and as a lender to HOA¹s.
This bill, if passed, will require lending institutions to provide 9 months of assessments to be paid to the HOA in which the foreclosed unit belongs.
Lenders cannot and should not be penalized for the actions and consequences of homeowners who cannot or do not fulfill their financial obligations and either abandon their homes or file for protection through bankruptcy. To require the banks and mortgage lenders to assume the financial responsibility for the homeowners HOA fees until the lender acquires title through foreclosure is improper and unjustified.
We have seen a large number of properties that have been held in foreclosure as a result of prolonged lawsuits and legal action. In many of these cases, the property has been abandoned by the owner and the property has not been maintained. This proposed bill would require the lenders to pick up the tab to pay the HOA to maintain the property, even though the lender has no ownership interest in the property.
A better solution would be to require HOA¹s to create a reserve account to cover such expenses in the event of such an occurrence.
I have voiced my opposition before to this proposed legislation, which is being promoted under the guise of AOPC sponsorship, when indeed, the AOPC membership has not endorsed this legislation.
As I did last time this bill was proposed, I have urged my colleagues at the Utah Bankers Association to wield their influence to squash this bill and any other legislation that imposes obligations upon lenders for which they have no legal obligation, as would be required of property owners. Lenders, without title to the property, should not be required to bear the burden of property ownership, without the right of ownership.
I urge you to squash this bill in committee. It is bad legislation and its passage would create a precedent that would harm, not help community associations.
Thank you for all you do to make Utah the greatest state in America.
Senior Vice President
405 E. St. George Boulevard
St. George, UT 84770
Fax: (435) 986-2059
Cell: (435) 229-4740
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