HOA Deficits for Mosaic Condos
According to the budget filed in court by the developer of the Mosaic condos (Almeda North Tower), the developer had HOA deficits of approximately $100,000 and $90,000 in January and February 2009, respectively. The main reason for the deficit is its inability to ramp up sale of condominium units such that the total monthly operational expenses of the associations exceeds the operational expense portion of the assessments paid by unit owners.
An interim court order authorizing use of lenders’ cash collateral meant that the developer has sufficient funds necessary to pay HOA assessments, sale and leasing expenses and other expenses to maintain the condominium project. Note that this “honeymoon” ends on March 2, 2009, unless the developer gets another order to pay these expenses.
