records I am not sure of the details of the solvency but it is simply that the HOA does not have enough money to pay the bills. So most likely they are not meeting minimum reserve requirements by the state. Also there could be deferred maintanence that needs to be done but cannot be due to no funds. Other issues such as insurance, exterior maintanence, and all the things that HOA’s may pay for may now start to seriously suffer.
jp – you got it right. Unfortunately they may have to make an assessment to get things right immediately, then also raise the HOA’s. It all depends who they owe, what the reserve requirement is, and the timeline of things.
