New owner capital reserve find contribution at COE

Started by GeorgeW1 • 5 replies • 2600 views

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GeorgeW1 (Arizona)
Posts: 3

Posted:

We are researching the idea of instituting a 2 month fee at COE for all new unit owners. This fee would be a non-refundable fee that would be deposited into our reserve fund. Many associations seem to do this, however, our attorneys feel that language ALLOWING us to do this must appear in our CC&Rs. Our CC&Rs presently DO NOT mention that we CAN NOT collect such a fee. Anyone with experience with this subject?

WilliamT (Arizona)
Posts: 489

Posted:

Posted By GeorgeW1 on 06/17/2006 10:13 AM

We are researching the idea of instituting a 2 month fee at COE for all new unit owners. This fee would be a non-refundable fee that would be deposited into our reserve fund. Many associations seem to do this, however, our attorneys feel that language ALLOWING us to do this must appear in our CC&Rs. Our CC&Rs presently DO NOT mention that we CAN NOT collect such a fee. Anyone with experience with this subject?

The CC&R's don't say you cannot, but it doesn't have to. It doesn't say you cannot collect a one year fee either, but that doesn't mean you can do that.

In my layman opinion, the CC&R's would have to state that you MAY collect such a fee. If it does not say that, then there is no authorization to collect that type fee.

RogerB (Colorado)
Posts: 5,067

Posted:

Careful George, your Declaration does not allow this. Have you done it for all other owners since day one? If not, you would also be discriminating.

GeorgeW1 (Arizona)
Posts: 3

Posted:

No, we haven't instituted any policy. Our CC&Rs (which sadly need to be updated) call for this 2 month fee at the time of the initial sale of all units from te developer. Don't worry, we will research well before we make any decisions, and thanks for the comments.

JulieS (Georgia)
Posts: 412

Posted:

Our developer collected a $100 initiation fee from the very first buyers into the neighbor, which is stated in the covenants. No one else has ever had to pay an iniation fee.

I am in the process of collecting the 2/3 majority eligible vote to amend our covenants to allow for an initiation fee equal to one year's dues when the home is purchased. This will be for any and all future home sales. The money will go into reserves.

LisaS (Illinois)
Posts: 341

Posted:

We collect $100 fee with every transfer of title. This is written into our CCR's.

In the year that title transfers buyer does not owe further assessments, and seller does not receive refund for proration.

At 10% turnover it nets an extra $3000 for us each year.

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