Homeowner's unhappy about dues..

Started by AngelD • 3 replies • 1935 views

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AngelD (Florida)
Posts: 3

Posted:

We have a small community of only 10 homes. the HOA has to pay to take care of a drainage retention (yearly inspection) and the upkeep of the retention. I just did our annual budget since this is the first year of all the homes and everyone is unhappy. They are only $200 a home for the year. Our builder only charged everyone $35 when they bought their homes so it looks like we are trying to overcharge. He failed to realize the inspection of the retention area that needs to be done yearly and the cost of transferring the HOA from the builder to the association. $35 a home doesnt even pay for the mowing that needs to be done.

Also, should the builder be paying those fees to the state to transfer the association to the homeowners??

LindaJ (California)
Posts: 21

Posted:

I can't answer on the transfer of association to the homeowners, but can on the dues charged by the builder. Before the homeowners took over our association recently, our builder did not charge enough dues to build a reserve for future expenses. It was clear that the builder should have been charging much more for our monthly dues. Now, we can only increase the dues 5% per year without member approval. The reason the builder did not charge higher dues - HE WANTED TO SELL HOUSES!!! I would hold a meeting with your members and review the association's income and expenses - let the numbers do the talking.

RogerB (Colorado)
Posts: 5,067

Posted:

AngelD, welcome to the real world. The developer, who owns many lots (units) does not want to pay anymore assessment per lot than the minimum necessary. Meanwhile, the HOA remains responsible for all HOA costs - not the developer. The developer just controls the Board until most of the units have been sold in order to protect their investment. Explain this to the homeowners when presenting the reasons for a major increase in assessment. Hopefully, your Covenants allow a major increase in the annual assessment, otherwise a special assessment will be required until such time as the annual assessment is adequate to cover yearly expenses and a reserve fund.

Roger

CharlesW1 (Georgia)
Posts: 826

Posted:

AngelD, I can see how homeowners would be offended by the increase in dues. I don’t think many of them understand all that is involved in maintaining the property.
I agree with what LindaJ had said about the developer wanting to sell homes. That is his main priority is to build house so they can be sold.

I would suggest send a copy of the yearly budget to every homeowner. This would explain where the money is being spent.
The homeowners need to understand that a lot of the expenses to the community is paying for now didn’t exist when the homes were being built. Maybe you should have a public meeting encouraging member to come to hear why the dues are higher than what the builder had previously charged. I would mention to all on them that you (if on the board) have to pay or have paid the increase in dues as well. You didn’t want to either but, you saw the budget and you know that what the builder was collected just wasn’t enough. This is why the board has increased the dues.

I think educating your community on the reason for the rise in dues would help significantly.
Best of luck to you
Chuck W.

Charles E. Wafer Jr.

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