ScottH1 (Arizona)
Posts: 2
Posts: 2
Posted:
My HOA is in AZ and we are trying to find out if the board rasies the dues the folks who have already paid ahead do they have to pay the differce or not until It is time for them to pay agian.
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Please HELP!!!
Started by ScottH1 ā¢ 8 replies ā¢ 1835 views
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CharlesW1 (Georgia)
Posts: 826
Posts: 826
Posted:
ScottH,
Thatās a good question. I wish I knew the answer to that, but I donāt. With all the advice, I have gotten from the people of this site. I would think someone, surely will know though.
Chuck W.
Thatās a good question. I wish I knew the answer to that, but I donāt. With all the advice, I have gotten from the people of this site. I would think someone, surely will know though.
Chuck W.
Charles E. Wafer Jr.
LuciusD
Posts: 139
Posts: 139
Posted:
The only reason they should not pay the difference would be if the association failed to follow proper procedure in setting and announcing the amount of the assessment. Otherwise what is due is due.
CharlesW1 (Georgia)
Posts: 826
Posts: 826
Posted:
Itās been on my mind ever since I read your post. First let me congratulate you on paying your dues. I know many are thinking that you shouldnāt receive any ācongrateā for that but, itās not common to hear homeowners that do pay their dues, not to mention early. So with that said, āPROPSā to you!
IMO, I donāt think you should have to pay the difference. When the follow years dues and then due yes, at that point you should have to. I believe at closing you were given the by-laws or CC&Rs. In it states how much and when the association dues are due.
Kind of like purchasing a home that is blue. When you go to move in the first thing you notice is that the house is now yellow. Yeah you can live with it, itās not a big deal but itās not what you sign up for.
HMMMMM I donāt know.
Keep us updated if you can
Chuck W.
IMO, I donāt think you should have to pay the difference. When the follow years dues and then due yes, at that point you should have to. I believe at closing you were given the by-laws or CC&Rs. In it states how much and when the association dues are due.
Kind of like purchasing a home that is blue. When you go to move in the first thing you notice is that the house is now yellow. Yeah you can live with it, itās not a big deal but itās not what you sign up for.
HMMMMM I donāt know.
Keep us updated if you can
Chuck W.
Charles E. Wafer Jr.
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Scott:
In my mind even though they paid ahead they are still obligated to pay the difference in the dues raise. As along as you did it according to your documents then they should not be exempt unless you have an obscure rule that specifically addresses this.
In my mind even though they paid ahead they are still obligated to pay the difference in the dues raise. As along as you did it according to your documents then they should not be exempt unless you have an obscure rule that specifically addresses this.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Scott, paying ahead does not exempt you from paying the differential if the assessment is increased during the time period involved. There could be an exception IF when you paid ahead you wrote on the payment "payment in full through _____ date". Then you could have a valid argument. We would return such a check and not deposit if there was any chance of an assessment change during the period involved.
WilliamT (Arizona)
Posts: 489
Posts: 489
Posted:
I agree with Brad and Scott. Paying ahead is admirable, however, you paid ahead on the rates that were in effect at the time you paid.
As long as the dues are raised with the proper notice, then you would owe the difference between the old and new rate.
Bill
As long as the dues are raised with the proper notice, then you would owe the difference between the old and new rate.
Bill
GeraldT1 (<Not Specified>)
Posts: 519
Posts: 519
Posted:
ScottH1,
An increase in dues requires payment, that simple. Yes, adequate notice of the increase should be provided. It's at the discretion of the board to decide a grace period for the difference to be submitted.
However, don't you think the sooner the maintenance dues are in the hands of the MC or treasurer, interest can be gained on the portion of dues that are dovetailed for reserves, investment income, etc?
GeraldT1
NNJ
An increase in dues requires payment, that simple. Yes, adequate notice of the increase should be provided. It's at the discretion of the board to decide a grace period for the difference to be submitted.
However, don't you think the sooner the maintenance dues are in the hands of the MC or treasurer, interest can be gained on the portion of dues that are dovetailed for reserves, investment income, etc?
GeraldT1
NNJ
EdR (Texas)
Posts: 170
Posts: 170
Posted:
ScottH1:
Our CCRs and bylaws address dues' situations. We cannot increase dues more than 10% per year, even if we have decreased them to half of one fourth of what they started out to be, i.e., if reduced from $500 to $100 last year, can only be increased $10 up to $110; also states that cannot go over $500 without association's (members) votes. In other words, our dues cannot exceed $575 (our assessments per year per CCRs) without rewriting CCRs. Also, our board (when I was a director) voted on increases or not in Oct., sent out statements in Nov. and gave until Jan. 31 to pay for current year. Our reserves can be spent without assn. members' votes (unfortunately that's what they've done), but a special assessment requires membership majority vote. In your situation, it sounds like you should have been informed by Title Company or assn. (via your realtor) that dues were going to be increased if they knew it at closing. This is something that a lot of buyers are asking because they don't want to opt into a special assessment or increase. It is my understanding, though, that when you sign to buy, you are agreeing to whatever amount the assessments are or become. Check to see if there is a rule of limit of increase. I also, always pay my dues, just like my taxes, but I'm not always happy with what the board does with them, because it's not always to benefit all, but only to benefit a few---we all pay the same.
EdR
Our CCRs and bylaws address dues' situations. We cannot increase dues more than 10% per year, even if we have decreased them to half of one fourth of what they started out to be, i.e., if reduced from $500 to $100 last year, can only be increased $10 up to $110; also states that cannot go over $500 without association's (members) votes. In other words, our dues cannot exceed $575 (our assessments per year per CCRs) without rewriting CCRs. Also, our board (when I was a director) voted on increases or not in Oct., sent out statements in Nov. and gave until Jan. 31 to pay for current year. Our reserves can be spent without assn. members' votes (unfortunately that's what they've done), but a special assessment requires membership majority vote. In your situation, it sounds like you should have been informed by Title Company or assn. (via your realtor) that dues were going to be increased if they knew it at closing. This is something that a lot of buyers are asking because they don't want to opt into a special assessment or increase. It is my understanding, though, that when you sign to buy, you are agreeing to whatever amount the assessments are or become. Check to see if there is a rule of limit of increase. I also, always pay my dues, just like my taxes, but I'm not always happy with what the board does with them, because it's not always to benefit all, but only to benefit a few---we all pay the same.
EdR
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