03 Jul Possible collision of HOA management company and “investor” who is buying up units.
I am currently helping renovate and then sell a condo in Tempe, AZ for one of my friends.
This complex (36 units) has very dated units and looks a little run down. Lately they have had to do some pavement of parking lot and replacement of wood beams in front of each condo. Which they have used to justify increases in the past. A new management company stepped in and immediately doubled the HOA to $350 a month for condos that value for about $150,000-$175,000. This is causing a lot of people to sell their condos because their HOA is approaching 50% of their mortgage payment.
I found out today from a neighbor that there is an investor who has stepped in and has successfully scooped up a majority of the properties in the complex.
Could the HOA be colluding with this investor to buy up all the units to use the space for another real estate project? Is this illegal? How can I prove it?