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Forums > Homeowner Association > HOA Discussions
Subject: Water Monopoly
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Author Messages
GaylenT
(Arizona)

Posts:2
09/08/2007 11:10 AM  
Has anyone had any experience with [name removed due to posting rules] whose headquarters is in Chicago? Recently they changed our HOA's billing rate from residential to commercial and wants to back charge us over $50,000. Any similar problems? We have no other alternative in our area for water so this is a real problem.
RobertR1
(South Carolina)

Posts:5164
09/08/2007 11:34 AM  
WOW, I don't know nothing about that kind of utility. I would like to know why they changed your rate from residential to commercial? Is 50K a large sum when consideration if made for the number of units. In our condo we have common water and the charge for that is the same as all our expenses incurred by the association; a proportion share is assessed each unit depending on square feet and other eclectic considerations. On the surface it would appear if there is any commercial business in the HOA, they would have to pay a different apportionment, as would smaller homes to larger homes at the residential rate. Sounds very complicated if this utility has the power to do as they please. Have you contacted the Public Service Commission?
GaylenT
(Arizona)

Posts:2
09/08/2007 1:33 PM  
We have 1217 homes in our community. Each home owner pays for there own water and the association picks up the tab for the common area's and the three pools. Which is pretty standard in all associations. I'm not so sure that HOA's are commercial but that is the contention of the water company. Yes, the Public Service Commission and the City have been contacted.
RobertR1
(South Carolina)

Posts:5164
09/08/2007 2:56 PM  
GaylenT,
Has this action by the water commission been the cause for any news items in the papers? Are there other HOA and condos involved?
I would make sure that you keep good records of the entities you contact and document their response. Try to get everything in writing. By the city, do you mean the city council? How about your county council? I would think you could get an attorney to ask a judge to allow you put payments in escrow until you have exhausted the legal provisions you may have? Apparently you have not had replies from the city or Public Commission. Were your water rates extremely low before this? It could easily come down to a judge deciding if you can't get help. I would think the water commission would have an appeals board.
Check your documents to see how you are incorporated by the state. If you don't know, all that is available in the Court House. Does you state have a statute that govern HOA at the state level. You should be able to get a written opinion from the water commission citing what laws they used to justify the change. Take it one step at a time but touch all the bases.
PaulM
(Pennsylvania)

Posts:1347
09/09/2007 6:26 AM  
GaylenT: Since you state the Public Service Commission & the City have been contacted over the fact that your community has now been changed from residential to commercial, has the water company and these offices shown you the official ruling which dictates this change? Have you networked with other communities in the area to learn if their homeowners have had the same change?

How can a 'homeowner' residing in a home unit (not a business office nor running a business) be termed commercial? Have you gone to your local municipality office to question the zoning issue?
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Forums > Homeowner Association > HOA Discussions > Water Monopoly



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