Industry News

Report cards assess condo associations

Service helps home buyers understand financial risk

One of every three community associations is financially unprepared for the future, believes Robert Nordlund, president of Association Insights. And home buyers purchasing a condo often don't understand the financial risk for which they may be responsible through higher fees or special assessments. Calabasas, Calif.-based Associations Insights created a report card to help buyers understand the risk. The service is designed to assess the financial condition of a community association and predict the probability of a special assessment, which could levy thousands of dollars in fees against a new owner's townhouse or condo. Association Insights charges $89 for the report. The report, known as the Risk eValulator, is compiled of 12 specific questions that determine the financial health of the association. The report also includes three key insights that tell a comprehensive story about the association's history: the percentage of owner-occupied units, the percentage of 60-day delinq...