Why Homeowner Association Exclusive Contracts Can Backfire
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Engadget has an interesting article on why homeowner associations that sign exclusive contracts for services can have it backfire.
The example they are using is the contracts homeowners associations have signed to make cable companies exclusive providers to get better rates. The problem is that with if foreclosures happen or homes go empty, the rest of the neighborhood has to pick up the slack. As Engadget notes, it can get pretty painful.
The problem is that the contracts only make sense if everyone in your ‘hood is paying their part, and as you’d expect when a house gets foreclosed on, the last thing the newly homeless people are worried about is paying the HOA fees. So as more houses go vacant, the price per house goes up and in at least one community in Florida, it has gone up about 44 percent. via Engadget HD.
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