The Real Deal Miami

Homeowners associations try deficit spending

September 12, 2008 11:07AM

As residents of Captiva Lakes Villas in suburban Miami fell behind on mortgage payments, the condo association saw its budget shortfall rise. Water and garbage collection fees were a struggle, and the association was $56,000 in the red. Captiva outsourced its woes to Miami-based Association Financial Services, a company backed by private investors which gives associations a cash advance to cover shortfalls and pay for maintenance, landscaping, repairs and other responsibilities. The company now has 40 clients statewide.