I learned yesterday that too many condominium unit owners at Alpine Village located at 25 Alpine Street, Mattapan are delinquent on their condominium fees which is negatively affecting the ability of condominium unit owners to sell their units for, what would be, fair market value. Many buyers that are buying in Mattapan are using Federal Housing Authority (FHA) loan programs because the low down-payment feature opens up homeownership to many buyers that wouldn’t otherwise be able to save the 20% down-payment requirement that most traditional loan programs require. I have a buyer that might fit nicely into the unit that’s currently on the market at 25 Alpine Street, Unit 44, Mattapan for $169,999 but he will be using a low down-payment loan program to purchase his new home so that, by default, removes Unit 44 from the list of properties on his search.
According to the Department of Housing and Urban Design (HUD), “no more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments (does not include late fees or other administrative expenses). The 15 percent includes all units (occupied, investor, bank-owned, vacant).” And that’s sad because Alpine Village, otherwise, seems to fit many, if not all, of the other FHA requirements like the requirement mandating that at least 50% of the units are owner-occupied. According to the listing agent of Unit 44, Georg Higgins of New Wave Boston Real Estate, twenty-seven of the forty-four units are owner-occupied which is well above the minimum requirement mandated by FHA.
On a related note, it’s extremely important that condominium associations within the Commonwealth of Massachusetts notify delinquent condominium unit owners, in writing, of their delinquent condominiums fees or those fees may be waived after six months so sending thirty day and sixty day notices to the condominium unit owners and the condominium unit owners’ banks as soon as possible and then taking legal action, as soon as possible, will help to protect the condominium association from losing out on condominium fees. The Commonwealth of Massachusetts’ General Laws, Chapter 183A, Section 6 better describes the burdens that are required by condominium associations to collect delinquent condominium fees.