Homeowners associations try deficit spending

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.