Reasonable Fees?

Started by ClaytonG • 6 replies • 1286 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

ClaytonG
Posts: 19

Posted:

A Declaration contains the following:

the right of the Association to charge reasonable admission and other fees for the use of any recreational facility situated upon the Common Area

Hypothetically, assume a community has multiple recreational amenities. Some of the amenities are used more than others. The current board decides to impose a fee for use of one of the facilities that is more than twice the costs needed to operate the facility.

If this scenario was to head to court, how would the court possibly define "reasonable"?

GlenL (Ohio)
Posts: 5,491

Posted:

Clayton this is what, the third time you've asked this? The first two times you claimed that the BOD couldn't charge more for using the mysterious amenities and that they were equal in stature. As far as reasonable IMO take the amount it costs to maintain the amenity and divide it by the number of people who use it. I realize you want to paint your side in the most favorable light but when continue to obfuscate exactly what is involved do not expect an answer you can take into court.

Studies show that 5 out of 4 people have problems with fractions

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Glen,

I think it's five, including posts on other, similar threads.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Clayton,

The court will decide what is "reasonable" based on the specific details and arguments that you provide versus the details and arguments that the other side provides. You have to PROVE your case with specific details. Hypothetical cases are irrelevant.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Clayton,

The facts I would want to know would include, but not be limited to, the following:

1. What, specifically, are all of the amenities? (swimming pool, clubhouse, etc.)

2. Is each amenity available to all homeowners or to only a certain few? What is the breakdown?

3. How long is each amenity available for use? All year? Only for part of a year?

4. What is the percentage of use of each amenity? The percentage of homeowners for each amenity? The percentage of time for each amenity?

5. How much is budgeted for maintenance for each amenity?

6. What is the actual cost for maintaing each amenity?

7. Does the cost for maintaining each amenity depend on the number of people using it? Does the cost depend on how long it is used? How frequently? How long it is available for use? Provide facts, not guesses.

I could think of more, but you get the general idea. You'd have to do a lot of work to fill in all the necessary details. You can be sure the opposing side will.

PatrickH (California)
Posts: 204

Posted:

Clayton,

Is this user fee a charge above and beyond the regular dues? If so, how does the Board determine who uses that particular facility and pays and extra fee, and who doesn't use it and doesn't pay the fee?

Do owners who want to use this facility sign up every year to use it? Do they get a special pass or key to use the facility? If an owner doesn't pay to use the facility, who or what prevents them from doing so?

In my HOA, we have a meeting room in our recreation center that we rent out to members for parties for a $ 50 fee. The regular dues take care of operating the facility, so the extra money from renting the meeting room just goes into our bank account. Then the Board determines how to use that money on anything related to our recreation facilities. Even though the money was collected by use of the meeting room, it could be spent on anything at our recreation center from flowers to new basketball nets.

RogerB (Colorado)
Posts: 5,067

Posted:

Clayton, the judge will most likely agree with the decision made by the Board of Directors so long as they have the right to make the decision and the decision was based on good business judgement. The factors you have presented to date may not be relative to the judge's decision.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here