Associations Suffer as Homeowners Do

The mortgage crisis is striking at the core of associations' mission: providing residents a shared sense of community and enhanced quality of life.

Yet some homeowners, struggling to pay their mortgages, don't see the point in paying their fair share to maintain their neighbors' curb appeal.

Nearly 8,000 homes are in various stages of foreclosure in Prince William. Most of the foreclosures are clustered on the county's eastern side, in Woodbridge and Dumfries and around Manassas.

Lake Ridge Parks & Recreation Association, a homeowners group with nearly 8,000 members, is losing $20,000 a month because of delinquent fees related to foreclosures. That amounts to $240,000 of its annual $4 million budget.

Lake Ridge has had 200 foreclosures in the past year, according to Ron Pereira, the association's general manager.

Pereira and his staff first noticed the onslaught in 2006. They began checking the newspaper every day to track foreclosure listings, because every other site, including the county's, was always a few months behind.

"As soon as we saw the number of foreclosures in the paper, we became realistic. We set ourselves a realistic budget last year," Pereira said. "It helped us to confront the situation right away instead of sticking our heads in the sand."

The 35-year-old community increased fees 5 percent last year. It expects to do the same this year.

"It's creating a financial problem for many associations," Rathbun said. "There are a lot of alternatives, but none of them are going to be popular among homeowners. They can raise assessments to make up for the loss, charge a special assessment or borrow money from a lender or bank. Or they can tighten their belts."

Shelly Ahluwalia was promised a swimming pool at her Occoquan area subdivision when she bought her townhouse eight years ago.

The concrete was poured this year, but the pool sits empty, except for a few inches of murky rainwater. Yet she and the other homeowners at the Glen Oaks townhouses were charged a $150 special assessment for the unfinished pool.

"There's nothing we can do," Ahluwalia said. "We don't question it. We just pay the bill."