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JennyS3 (Texas)
Posts: 6
Posted:
As a owner I want to know is there anything I can do about the rising HOA fees in my town-home units. I moved here 2 years ago, and the fee changed from 110-130 a few months after I move in, and then now I am getting a notice about the costs rising to 160 starting January. That is a monthly fee.. I don't see much if any change in the stuff being done around my town-home set. It has dead plants right and left.. (the ones in front of my house have been dead all summer, and I complained about them. They did trim our bushes and my screen to my windows ended up torn from them cutting it. I have noticed they changed water heads to our sprinklers, but they are still not working as they need to be.. Please help!!!
BradP (Kansas)
Posts: 2,640
Posted:
Jenny:

First I would point you to your CC&R's...in there it should state how much the board is allowed to raised assessments without a vote of the membership. My association we can raise them 20% annually by just a board vote.

Secondly I would encourage you to get to know your HOA and find out why this is happening. There could be a myriad of reasons...a couple I can think of are just rising costs of everything and perhaps an unexpected maintenance item which drained reserve accounts...or prior boards could have done a poor job of fiscal planning. Often times boards don't want the negativity of a dues raise and the ire of the people thrown at them so instead of seeing red flags they live year to year.

Once you find out the issues and what your rules are then you can go about addressing the situation. I know it is frustrating. But there are a lot of hidden costs in an association that you don't see, I woudl encourage you to ask questions.
JeffR7 (California)
Posts: 251
Posted:
Review your annual budget. You should see all expenses and how your assessments are being spent. Remember costs are going up all the time and your assessments need to keep up with it. Just because they are not doing anything 'new' it doesn't mean that the cost of 'old' didn't go up.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
A HOA is ONLY funded by it's members FOR it's members. You might not see anything being done because quite frankly there is no money for it to be done. It cost money to pay someone to cut those bushes and fix the screen. You spread that out to how many other owners have complaints and it doesn't take long for the money to be spent.

Example: Your bush cutting and screen repair cost $50 to perform. There are 10 members in the HOA and each pays $100 a month. That's only $1,000 to pay it's bills IF everyone pays on time. The utilities and bills of the HOA are on average $700 a month. That's only $300 for the HOA to spend on other projects including savings. Your $50 came out of that $300. Leaving the HOA with only $250 to spend/save that month. How much do you think your HOA can do with that much money? Slim to nothing.

I would question how they are raising the dues. It usually takes a certain amount of votes of the owners to raise dues. The board may raise dues a certain amount each year by their vote but that's usually 2-3% range. Otherwise, it's a decision of the owners to raise dues higher than that percentage or have a special assessment. Is this HOA run by a management company or the owners? I would attend a meeting to find out how and why they need to raise the assessments. You may find out what the costs are in running a HOA are.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By MelissaP1 on 12/06/2011 11:59 AM
A HOA is ONLY funded by it's members FOR it's members. You might not see anything being done because quite frankly there is no money for it to be done. It cost money to pay someone to cut those bushes and fix the screen. You spread that out to how many other owners have complaints and it doesn't take long for the money to be spent.

Example: Your bush cutting and screen repair cost $50 to perform. There are 10 members in the HOA and each pays $100 a month. That's only $1,000 to pay it's bills IF everyone pays on time. The utilities and bills of the HOA are on average $700 a month. That's only $300 for the HOA to spend on other projects including savings. Your $50 came out of that $300. Leaving the HOA with only $250 to spend/save that month. How much do you think your HOA can do with that much money? Slim to nothing.

I would question how they are raising the dues. It usually takes a certain amount of votes of the owners to raise dues. The board may raise dues a certain amount each year by their vote but that's usually 2-3% range. Otherwise, it's a decision of the owners to raise dues higher than that percentage or have a special assessment. Is this HOA run by a management company or the owners? I would attend a meeting to find out how and why they need to raise the assessments. You may find out what the costs are in running a HOA are.

I would add the following to Melissa's comment - GET INVOLVED IN YOUR HOA! Perhaps there's a finance committe that advises the board - why not join to help them research ways to save money, such as evaluating vendors or searching for new ones that do businesses with HOAs?

Incidentally, you should also remember inflation - as Melissa pointed out, many HOA boards can raise fees up to 3% over the current rate. The rate of inflation is between 2.5% and 3.5% (depending on which enonomist or government study is doining the quoting) so the $110 you might have paid when you brought your home has lost some of its spending power.

You should also ask your board about reserve funds - if you have one, part of your dues is used for that and the rest must cover monthly expenses. Now toss in the homeowners who don't pay fees (or refuse to) for whatever reason - if you only get 80% or 70% of your budgeted income every month, the board has to make decisions as to what gets paid and there are some things you MUST pay, such as insurance or property taxes.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JennyS3 (Texas)
Posts: 6
Posted:
Thank each and everyone of you for the responses! I tried to get involved with the HOA, and attend meetings (we never get notices of when they are and where they are.. another issue.. until after the fact).. I got told by a board member flat out I was too young to understand what a position holds.. I have held many positions in my life through out High school and college, and currently hold one for a non-profit group, so I am petitioning now. The HOA here is all owners, our complex is each townhome is owned by a separate person. I am getting a financial document soon, and I hope to be able to break it down to figure out where all the money is being separated into, and I plan on trying to come up with a more cost effective plan to make a power point to prove I am worthy of a spot on the HOA. As for the torn screen I am taking it up with the company who cut it. I think they need to pay damages, since in the contract with the company no where it states that they are not responsible for the damages.
BrianB (California)
Posts: 2,820
Posted:
Jenny

politely remind the stupid board member that your "young money" is paying for just as much road, landscape, insurance, etc. as anyone else's "old and experienced" money, and then politely ask him again to explain/answer things. Heck, one might even politely remind the old geezer that it is the job of the elders to inform, educate, and raise up the youngers, and he's doing a crappy job of it by being condescending.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
I don't see much if any change in the stuff being done around my town-home set. It has dead plants right and left..


Most of the expenses are things you "cant" see. Boring stuff like insurance, electricity, sewer, water, reserve funds, etc. Everything keeps going up in price and so will your dues. Most of it you will never see with your eyes. If everyone wants the place to have nice plants, and to look pretty on top of that, your dues will go up even more. Start going to meetings, and reading budgets. You will have a better idea of where your money is going.
MikeS1
Posts: 521
Posted:
Jenny - Why not join the board or the grounds committee?
TimB4 (Tennessee)
Posts: 21,047
Posted:
Jenny,

With the new changes in TX HOA laws you should start receiving notice of meetings at least 72 hours in advance. You might want to ask your board how they will comply with this law.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Jenny, it sounds as though you want a position on your HOA's board of directors. You already have a position on your HOA because you're a homeowner. Your ownership makes you a member of the HOA.

Board members, on the other hand, are elected by homeowners at annual members' meetings prior to which ballots are sent to homeowners. So . . . what are you "petitioning" to do? Is there a vacancy on the board that you want to fill?

To get a good start on becoming elected to the board of directors, learn your governing documents, e.g., the CC&Rs, bylaws, etc. Learn the financials. As much as possible, make sure that your board complies with the TX law to provide 72 hrs. notice before regular meetings of the board. Also to better prepare yourself, join an HOA committee as others above have suggested. The board approves committee members.

If your HOA has no committees, submit a written request to the board to authorize you to form a committee, e.g., a Grounds Committee. Ask your board to place your request on its next regular meeting agenda. Your attempt to get the board to approve such a committee will be most effective if you can entice 2 other homeowners to join you on it, an include their names on your written request. Such a committee won't necessarily cost your HOA more in dues. As a committee, you may well find a way to work within the existing annual grounds maintenance budget more efficiently. This is exactly how our HOA's grounds were improved without going over budget.
JennyS3 (Texas)
Posts: 6
Posted:
We do not have grounds committees, and a home owner doesn't vote in the officials here only the current officials get to.. I have also noticed they do not change them once a year, but more then once a year. I have a chance for fighting for a position if I stand up in front of the bored. Also, in the paper work we got months after we moved in they do not make us sound like a part of the HOA basically just a owner of a town home who pays..Thanks for the heads up for the new law.. I am going to see if they know about it already!
CarolR11 (Colorado)
Posts: 2,563
Posted:
Please check your governing documents, Jenny. The HOA members (homeowners) generally. vote for members of the board of directors, i. e., "directors."

I'm not sure what you man by "officials."

If you mean OFFICERS on the board, i.e., president, vice president, secretary, treasurer are typical, they usually are appointed by the board. Officers are usually, but not always members of the board, but again, that depends on your governing documents.

Again, please read your documents so that, at minimum, you can learn the language of HOAs.
JennyS3 (Texas)
Posts: 6
Posted:
No we call ours officials (because they do not direct us) I have read over my documents.. do not assume I am clueless! We as a homeowner do not vote for the officials the officials vote for themselves I checked that so many times! I might be young, but I have learned how to do research, and I have learned to write notes. I did go to college, and they taught us on the importance of doing that. I am a science major and that is a big part of our course work. I know I am using the right terms when I am speaking about my HOA here.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Well, I'm not young, and have read a whole lot about HOAs but have not seen the word "officials." So, for lack of a better term, what is the governing body of your HOA? A Board of Officials? How many of them are there?

Is it possible that your "HOA" is not a "corporation," but is legally something else?
JennyS3 (Texas)
Posts: 6
Posted:
Yes it is a HOA they have our units split into two sections.. one side being "name" I and the other being "name" II.. They are both separate HOA's. They are the Official board members aka Board of Officials. Consists of President, VP, Treasurer, Secretary, and relations. We pay our fees to "name"II, and drop it off in the mailbox of the treasurer. We have 26 units in total under "Name" II 2 being new as of last year.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Jenny,

It sounds like you might still be under control of the declarant (developer). When the developer is in control, the members typically have little say until control of the Association is turned over to the membership.

One indication that a declarant might still be in control is if new construction is still happening or if there are homes built that haven't been sold yet.

Do you think that this is the case for your development?
LarryD10 (Texas)
Posts: 26
Posted:
I'm in Texas also , do you have more than 1 covenants or they the same
in Texas should be a Management Certificate showing what Declarations
Recording Data covers all covenants, if so that's rules

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