Rhode Island "Foreclosure" Bill - CALL TO ACTION
3/14/2008
The devastation of a condominium foreclosure extends well beyond the foreclosed unit owner. In a condominium association, all unit owners are assessed condominium fees to cover the anticipated common expenses of the association including insurance, overhead, security, common utilities as well as maintenance and repair of the buildings and amenities. Unit owners who default on their mortgage payments generally default on their monthly condominium fees, thereby creating revenue shortfalls for the association. This unanticipated financial shortfall is typically passed on to the remaining unit owners through increased monthly fees or supplemental assessments.

In addition, when the association forecloses on a unit for unpaid condominium fees, the foreclosure costs, which can be substantial and often exceed the $2500 currently provided for under the lien statute, are also borne by the association and are yet another expense paid for by unit owners. In essence unit owners who pay their mortgages and monthly condominium fees unfairly bear the burden of their neighbors who default.

RI Legislation Addresses Inequities
In an effort to reduce this burden on the association and provide a measure of protection for the remaining unit owners, the Community Associations Institute, Rhode Island Legislative Action Committee (RILAC) with the assistance of Representative Patricia Serpa (D), Warwick has sponsored House Bill 7512 (H7512) and its companion Senate Bill 2816 (S2816) sponsored by Senator Tassoni (D).

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