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JacquelineB2
(Florida)
Posts:20
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| 05/13/2008 1:05 PM |
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What can we do to stop the rise of dues without upsetting the board and the property manager who seems to "own" the board. We have many elderly and some disabled people who just cannot afford more dues and are worried about losing their home. Are there any laws that any of you may be aware off that can stop this threat to these people.
Any help you can give would be greatly appreciated!
JacquelineB2 |
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BrianB
(California)
Posts:1748
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| 05/13/2008 1:33 PM |
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good luck on that, there isn't much legally that can help. ALL people enter into a contract when they buy a home in an HOA, and there is very little protection for them through the legislature to keep HOA dues down.
In general, an HOA can attempt to control raises by:
Collecting ALL dues owed in a timely manner, so some residents don't pay/carry the loan for non paying owners.
Go with cheaper expenses: do some landscaping with volunteers, cut back on utilities, get rid of extra's, lower air conditioners in club houses, etc. Hand deliver letters rather than mail (if possible), hold meetings at free locations rather than pay rent on a meeting location, etc. It all depends on how close to the bone your HOA is living now, what they can do.
CHarge for some extra's/amenities, if allowed.
Rent the common areas, if allowed, to generate money
hold fundraisers
One thing I heard a while ago from a comedian, that leapt to my mind when i saw the topic thread:
"Don't say that 'those' people live on a fixed income. Don't most of us live on a fixed income? When's the last time your paycheck increased just because you wanted it to?" |
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BruceF1
(Connecticut)
Posts:696
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| 05/13/2008 2:13 PM |
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Jacqueline,
As a senior citizen who also happens to have a wife who is senior and disabled, I can certainly understand your dilemma. I dread it every time I sit at a board meeting and try to set the budget, knowing we're going to have to raise fees.
Unfortunately, there's almost nothing that can be done. I'm fairly certain that, in most states, and I know for a fact in Connecticut, that assessments have to be made equally among all unit owners. That's it. It's the law. There's no way to even amend the documents to allow for it.
Obviously, the best you can do is to look for ways to control costs the best you can. Sometimes you have to make hard decisions. This past year we deleted one service the association used to provide and that was annual gutter cleaning. Previously, that service was provided to all units by the association, and this year we made it an individual owner responsibility. The decision was based on a number of factors, but was driven mostly by the fact that because of circumstances, including unit location, only a few units actually needed this service, alhough everyone paid for it. In its place the board now negotiates a discounted rate with a company that the individual homeowners can take advantage of, if they wish to use the service. It seems to have been accepted withou too much fuss.
There may be certain services or ameneties that you can legally break out for separate treatment based on use (such as a swimming pool). Mind you, there will be those in favor (the ones who save on their average assessments because they don't use the service or amenity) and those who will be violently opposed because the service or amenity will now cost them more. Keep in mind, you still need to pay the costs and if fees go down for some, they have to go up for others. It's like taxes. Municipalities might give tax breaks to seniors, but if they do, it means the younger folks then have to pay more. |
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SusanW1
(Michigan)
Posts:2316
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| 05/13/2008 2:32 PM |
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Jacqueline,
This is an issue that comes with the elderly owning a home in a neighborhood where the value of the home may be more than they can afford. Maybe it's time to "downsize" their housing costs. That may, unfortunately, mean moving.
We live in a very sought-after lake community, where the homes all used to be cottages. Now there are million dollar homes in the neighborhood. Some of the older residents, whose houses are paid for, are complaining about the HOA dues and the township taxes. They are "property rich, cash poor."
What to do? Get a complete financial consultation and determine if living where you do is or is not affordable in your declining years.
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DonnaS
(Tennessee)
Posts:2951
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| 05/13/2008 4:41 PM |
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Jacqueline,
Unfortunately, this is a sign of the times. The elderly, the disabled, the young kids with starter homes and babys are all in the same situation. Even retired people who thought they had a perfect plan to carry them thru are now faceing the same problems. I wish that there was an answer but there isn't. The Fed. government and we the consumers have created the mess that we are in. It's time for all of us to change the way that we live. (Not trying to be philosophical here) |
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JC3
Posts:290
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| 05/13/2008 6:17 PM |
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Have you considered dissolving your association? Read your documents and see how you can do that. Look for terms like "amend", "disolve", "disolution" "terminate, termination"
Many associations can be dissolved with member approval after about 20 years of existence. |
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BrianB
(California)
Posts:1748
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| 05/13/2008 6:51 PM |
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| good luck dissolving any HOA with common area or property... |
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BradP
(Kansas)
Posts:1742
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| 05/15/2008 9:14 PM |
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Posted By JacquelineB2 on 05/13/2008 1:05 PM
What can we do to stop the rise of dues without upsetting the board and the property manager who seems to "own" the board. We have many elderly and some disabled people who just cannot afford more dues and are worried about losing their home. Are there any laws that any of you may be aware off that can stop this threat to these people.
Any help you can give would be greatly appreciated!
JacquelineB2
Jacqueline:
Sounds like the elderly and disabled population needs to organize and band together. If they make up at least 1/3 or more of your association they can have a great effect if they organize their efforts. Ultimately to keep dues from rising you need to control costs or find alternative sources of revenue. |
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