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Subject: Your Monthly dues..... how much do you pay??

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RandalR
(Tennessee)

Posts:82

01/25/2007 6:55 PM
We're in Farragut, TN (Knoxville), a voluntary HOA, and our annual dues used to be $130/yr and an additional $300 for use of the rec area (pool, tennis courts, & volleyball). We just raise our dues to $215/yr and included the rec area. It's a very unrealistic amount as I'm projecting a $28,000 deficit in this first year alone! Our association dues are still very low compared to newer subdivisions around us, even those without a pool.

BradP
(Kansas)

Posts:1742

01/26/2007 6:16 AM
Randal: Did your board actually approve a budget with that big of a deficit? Or were there projections a little more on the rosy side?

RandalR
(Tennessee)

Posts:82

01/26/2007 9:26 PM
Brian, We have 263 households in our voluntary association. The "balanced budget" was based on 250 households paying the new rate of $215. In reality we've never been able to achieve more than ~220 memberships in any given year even before we raised the dues and threw the pool into the mix. So there's $6450 that we won't be collecting from the 30 households that have never joined, and probably never will, regardless of what kind of deal is offered. (That also doesn't include the remaining 13 households they didn't budget for.) For the 70 households that have been recreation members, we've just lost $15,050 of their revenue because they just received a price cut of $215 on each of their memberships. Normally they paid $130 for Association and an additional $300 for Recreation. So now we're down over $21,500 and that doesn't include the money we're going to lose from the Association SHA members that will drop out completely because they don't want any of their money going to fund "that pool down there"! From my estimates that will be another 30 or so which takes our deficit up to the $28K. And just to help us recoup that lost revenue we're probably going to continue to let the swim team close our pool during the evenings. That should help us in attracting outside memberships. Estimates were quite rosy I'd say!

RandalR
(Tennessee)

Posts:82

01/26/2007 9:30 PM
Apologies for calling you by the wrong name Brad.

BobM5
(California)

Posts:34

01/27/2007 6:35 AM
The "military adjustment" is wonderful, but I question it's legality. If approved by a majority of homeowners that also agreed to increase their monthly assessments to compensate for the loss of funds to the association, I see no problem. However, if the decision was made by the board alone, it could lead to challanges.

WilliamT
(Arizona)

Posts:489

01/27/2007 7:19 AM
Posted By BobM5 on 01/27/2007 6:35 AM The "military adjustment" is wonderful, but I question it's legality. If approved by a majority of homeowners that also agreed to increase their monthly assessments to compensate for the loss of funds to the association, I see no problem. However, if the decision was made by the board alone, it could lead to challanges. Most reservists and many new enlistees who go to Iraq face a financial hardship, in addition to the other problems they are up against. I think it is wonderful that a Board has the heart to reach out to help these people. I don't believe it is illegal, as you'll see later, and I know it is morally right. We don't have any homeowners in the military in this community. But if we did, I would ask the rest of the board to form a committee to talk to the military families to determine if they were doing ok financially, or if they could use some temporary relief from the dues, and to begin to build a support system for them. If they need financial assistance, then the committee would determine a total amount needed in dues releif to spread among the military families in the community. Next I would send a notice to the community explaining in detail the boards' plans to help, and notifying them that the motion will be made at the next regular board meeting. Anyone wishing to make comment on this motion is requested to attend the meeting so they can offer their input and ask questions. They would be asked to bring in other suggestions as to how the community could build a suport system for these families. We would also ask people to individually provide whatever support they can to their military family neighbor. The board would rely on the section in the CC&R's that say the dues assesment funds are to be used for the maintenance, "safety and welfare" of the community. I believe that "welfare" of the community can be loosely interpreted as being able to help a community member in need. Certainly every board uses it to mean they can spend money for community social events. Those social events are held to help bring people together in the community to build a better community spirit. So why can't it also be used to help bring the community together to help a couple of their community members who are sacrificing their financial situation and risking their lives to help make their country, which includes their neighbors in the community, a lot safer? A social event could be held to honor the loved one(s) of the family(s)who are serving, and people could be asked to bring certain items the family may need, and or cash donations to help. This support system would go a long way toward bringing that community together, and would provide much needed support for the family if the loved one were killed or paralyzed in the war. Just think of how proud this young soldier in Iraq would feel, to hear about and see photos of his family being supported by his or her neighbors, and showing their support for the dangerous job the soldier is doing. And think about how proud the community would be in what they are doing to help.

GlenL
(Ohio)

Posts:1470

01/28/2007 4:15 AM
William most of the time your advice is right on but you're way off on this one. While I applaud and pray for the brave men and women deployed overseas and recognize the hardship this creates on their families; this is an improper use of the HOA's funds and in my opinion a breach of the BOD's fiduciary responsibility. The HOA is a business first and foremost and as such its primary responsibility is to all the stockholders (members), it is not a charity. I have no problem if someone approaches the BOD and explains that they have a problem and asks for a payment plan and the BOD reaches an agreement with them. But the BOD can't arbitrarily decide that these folks deserve a break and everyone else must cover for them. Not only has the BOD decided that they get a break, they also decided that everyone else in the community must pay for their largess. In another thread some HOA let the assessments for the family's of someone who died which I believe is also improper. If you want to subsidize these families by taking up a collection and paying their dues for them then God Bless; that way the people who want to contribute can. Where do you draw the line? Is it ok to use Association funds to donate to charity? If so who decides the charity? If a young couple or old for that matter buys into the HOA and they then have a child who has a serious birth defect. They are now in a hardship situation, is it ok for the BOD to tell them they don't have to pay their dues?

CharlesW1
(Georgia)

Posts:821

01/28/2007 7:07 AM
Posted By JanM on 01/25/2007 5:32 PM A little off the subject, but I received a statement from my HOA saying that they are giving us a "military adjustment" meaning that while my husband is deployed, we don't have to pay any dues during the duration of his tour. I thought this was really awesome and a pleasant surprise. Are there any other HOA's doing the same? JohnR4, I’m not providing you the information you are seeking, although you have received some very good posts and suggestions I personally thank you for posting the topic. It seems to have been steered toward, should the board or shouldn’t the board? I, like previously posted, think it would be extremely generous to take up a collect. I feel this would be best, before discounting the assessment. Now that I’m a board member, I have much better understanding and a tremendous amount of compassion for anyone who is faced with any sort of financial hardship. I completely agree that an HOA is a business and should be run as such, but being a board member myself (which most of the replies you have received so far are as well) There comes a time where being known as a loving, caring, and compassionate human goes much farther than, the aspect of “running a business” Come on! That has to the one of the most disturbing posts I have read (in a couple of years) I now know that I would feel much much better about accepting money from my neighbors appose to the BOD just reducing the annual assessment. I don’t feel it would be fair to those who are experiencing something in a much lesser scale, to you and me, but to them it’s pretty dramatic. Who are you to make that decision? Not you literally, As posted earlier, where do you draw the line? HMMMM A board member is to make decisions for what is best for the entire community, not just one family. The money you would be discounting is also the money of the community. I feel it should be the decision of the entire community, not at the soul discretion of the board (in this particular case) I also as previously mentioned, encourage any member(s) confronted with any financial hardships, to contact the BOD or MC for help with their particular situation. They (the board, community your neighbors) may not be aware of what the situation is about nor should that person feel obligated to share their financial troubles with the neighborhood at such a difficult time. It’s embarrassing to say the least! But if could be worst. I would suggest taking up a fund within the community and presenting that if anything at all. But I do agree with the majority of the responses you have received that the board needs to do what is in the best interest of the community, morally as well as ethically! I hope all reading this post will question their decision, about whether to or not too give some sort of financial relief to those who need it the most. God Bless, Chuck W.

Charles E. Wafer Jr.

JanM
(Texas)

Posts:142

01/28/2007 7:49 AM
Just to clarify a few things... Our dues are only $240 per year and I have no problem paying them. I live and budget within our means. I just got a phone call from the office out of the blue and I had no knowledge of it. I had actually already paid in advance! I live in a very conservative town where folks support our military and war efforts. If there was a military family who had problems paying their dues while deployed, all they would have to do is contact the JAG office and have them intervene. All they need is a copy of their orders. All other companies have to comply such as cell phone companies, utilities, and rental properties if someone is suddenly deployed. There was another post either here or on ahrc where a guy was getting fined for leaving his car parked at his home while deployed which is wrong, wrong, wrong. I haven't heard any end results but I also directed him to the JAG. I thought it was a nice gesture by my HOA and wanted to share.

WilliamT
(Arizona)

Posts:489

01/28/2007 8:24 AM
Posted By GlenL on 01/28/2007 4:15 AM William most of the time your advice is right on but you're way off on this one. While I applaud and pray for the brave men and women deployed overseas and recognize the hardship this creates on their families; this is an improper use of the HOA's funds and in my opinion a breach of the BOD's fiduciary responsibility. The HOA is a business first and foremost and as such its primary responsibility is to all the stockholders (members), it is not a charity. Glen, what I've offered regarding the Iraq soldiers is only my opinion, and an example of how I would proceed with our board and community. I hope it's not construed that I'm advising others to do the same. Each board and board member must make their own decisions in these cases, whether it is for a community member who has a spouse soldier in Iraq, or a widow who is having a difficult time financially. You mentioned charity, and I'm a believer in suporting charities, and I'm also a believer in helping those who are closest to us who are in need. Businesses do support charities, and some businesses do help their employees financially, (above and beyond their normal paychecks) when they are in need. Our HOA Bylaws do not permit charitable contributions, but, helping out community members in need doesn't fall into that charity category. Our CC&R's have this statement: "...The assessments levied by the Association shall be used exclusively for the upkeep, maintenance and improvements of the Common Area..." "...and for promoting the recreation, health, safety and welfare of the Owners and residents of Lots within the Property..." "Welfare" is not defined in our documents, so I look to the dictionary. In the Merriam-Webster dictionary it is defined as: 2 a : aid in the form of money or necessities for those in need Definition 2a, is a definition that I feel can be legally applied to the covenant statement. However, it is limited to the Owners and residents of the community lots. Now if the CC&R's provide that the assessment funds may be used for the "welfare" of the Owners and residents of Lots within the community, then I interpret that as the Board being able to grant some type of relief to the Iraqi soldier family who may be in need, and to a widow who may need some assistance to keep from losing her home. In my post I didn't say that the Board would arbitrarily determine to help a family. I said that I would move to appoint a committee to determine their needs, and recommend what could be done for them. Then I would send a letter of notice to the community stating the recommendation, and that this matter would be coming up to a vote, and request their attendance and input. At the meeting the community would have their input and the board would vote on the issue. The result would be a decision that is made (whatever that decision turns out to be) by an informed Board after input from the Community. The letter would have also asked the community to see what they could do for the family(s). The end result could be that the community would want to take on the project of offering moral, physical, and/or financial support on their own, and request the Board to not use the assessments, and the Board may vote that way. No matter how that or other similar issues may turn out, I see it as a legal option in our CC&R's, and an excellent way to bring a community together for the good cause of helping a community member in need. The thought of foreclosing on a good community members home because they are currently having financial problems just does not set right with me. And while the Board has the duty to collect assessments, it also has the duty to use the assessment funds in all of the ways described in the covenant such as the one in our documents.

BradP
(Kansas)

Posts:1742

01/28/2007 9:23 AM
William: I got beat up early for saying essentially what you are saying. I agree with you. I would not be able to live with myself if we coldheartedly foreclosed on a home of a member who ran into financially difficulty because of situations beyond their control. I am not talking about someone who bit off more than they can chew and is now facing hardship, I am talking about those few situations in life that is beyond control, death, serious illness or accident, military duty. People on here have compared HOA's to businesses and that we need to run a business here. I have seen it in many places where businesses are very charitable, in fact often when an employee is struck with hardship you will often see a business stick out a helping hand. I never said before that I would become dictator in my HOA and do this for anyone, but I feel if your association and it members agree on it then there is nothing wrong with it. I would be a strong proponate of helping out in the most extreme of cases if that is what our membership wanted. William, I do like your idea of a fundraising social. IF it is ok to use funds for social activites why can't you do that but add a donation part to it. People don't have to donate, they can simply enjoy the company and food. I hear the term "fidicuary duty" thrown around a lot on here. To me fidicuary duty means you need to do what is in the best interest of your association. That may mean different things for everyone on here. I know Glen has been a strong opponent to doing anything like this, and it may not be in the best interest of his association. Nor am I saying that anyone else should do it. However, no one knows the landscape of my association better than me, both from a personal and financial standpoint. I may be wrong, but I would bet money that if we had a need to help someone out our people would step up and do that. I by no means am degrading anyone's opinions, we all have them, that is what makes this country good. I am simply stating mine for better or worse, I understand there will be people who disagree and that is ok, I appreciate all comments.

CharlesW1
(Georgia)

Posts:821

01/29/2007 9:31 AM
Posted By JanM on 01/28/2007 7:49 AM Just to clarify a few things... Our dues are only $240 per year and I have no problem paying them. I live and budget within our means. I just got a phone call from the office out of the blue and I had no knowledge of it. I had actually already paid in advance! I live in a very conservative town where folks support our military and war efforts. If there was a military family who had problems paying their dues while deployed, all they would have to do is contact the JAG office and have them intervene. All they need is a copy of their orders. All other companies have to comply such as cell phone companies, utilities, and rental properties if someone is suddenly deployed. There was another post either here or on ahrc where a guy was getting fined for leaving his car parked at his home while deployed which is wrong, wrong, wrong. I haven't heard any end results but I also directed him to the JAG. I thought it was a nice gesture by my HOA and wanted to share. JanM, I apologize to you and anyone else I may have offended. I wasn’t saying you should or shouldn’t be grateful for what your HOA has done for you or anyone else in your community. I think that is the way HOA should be but it is difficult for the board to know of these situations to become proactive about them, unless the HO should happen to mention their financial hardship to the board. This doesn’t happen all too often. I would like to convey this type of gesture myself to deployed residents in my community. It’s obvious you didn’t need the help considering you paid in advance. How did they know? Was that information provided to the board or did they just hear from you or neighbors within the community, that your husband was being deployed? Do you have any idea of how I could find out if they are deployed or not? I’m have made this suggestion to my HOA board and I’m hoping we can get something together as well. The JAG program you mentioned is that a program to help with financial hardships. I would like to print this in our newsletter for the month of March. That way if they were in need of some help they would have somewhere to turn. Thank you for the idea. I appreciate it very much. It is a nice gesture by your HOA as well as anyone else’s. Chuck W.

Charles E. Wafer Jr.

SidneyP
(Florida)

Posts:292

01/29/2007 4:51 PM
These are very good gustures but suppose you live in a large Military town. You could end up with 5/10 or more family members being deployed from one neighbor. How could the association handle losing all those assessment fees. I know my community couldn't survive w/o this money....If a community wants to look out for the "welfare" of those HO's in need than they should take up money to pay their association fees not forgive them. I was a military family, we had six (6) children and we had many hard times in your early years but I never wanted my neighbors to know we were having financial trouble. This is personal and how would you know these people needed/wanted help. I can only state how I would feel and I wouldn't want my neighbors talking about me and the problems they may think I have.

JanM
(Texas)

Posts:142

01/29/2007 5:23 PM
I wasn't offended Chuck, like I said, I just wanted to share. My husband is well known in our community for both good and not so good, shall we say, way of thinking?? Some people like him, some hate him, sometimes both at the same time. Thats beside the point. Your office may know who is serving and you could contact that family yourself I suppose. But like the lady said, they may not want anyone knowing of their situation if they are in need. The military has financial services for those needing help paying bills and most military families help each other out. Your local newspaper may also have a list of names of families or soldiers to "adopt" while they are deployed and you could compare names to your member list. The JAG office is the legal dept.

CharlesW1
(Georgia)

Posts:821

01/30/2007 12:27 PM
Posted By JanM on 01/29/2007 5:23 PM I wasn't offended Chuck, like I said, I just wanted to share. My husband is well known in our community for both good and not so good, shall we say, way of thinking?? Some people like him, some hate him, sometimes both at the same time. Thats beside the point. Your office may know who is serving and you could contact that family yourself I suppose. But like the lady said, they may not want anyone knowing of their situation if they are in need. The military has financial services for those needing help paying bills and most military families help each other out. Your local newspaper may also have a list of names of families or soldiers to "adopt" while they are deployed and you could compare names to your member list. The JAG office is the legal dept. JanM, I would assume a HO in any sort of financial bind would ask for assistant, but that’s just my thought process, not saying its right, but……It only makes sense. “IF” you need help you ask for it! Thanks for the idea, I appreciate it Chuck W.

Charles E. Wafer Jr.

RobinS1
(Louisiana)

Posts:10

02/12/2007 8:57 PM
Goodness, you guys quite talking about dues....... So...I am starting an association Thursday. I am wondering how much to charge, to vote on I mean, and our neighborhood guidelines in place from teh developer says that you will pay $5 a month.....can we have this changed? $5 A MONTH WONT PAY FOR JACK. There is 200 occupied lots with 25% of our neighborhood RENTERS. What do you suggest? Can we go up from the restrictions we all signed when we got the homes, and if so what should we charge? We have three detention ponds...a huge section of power lines that has to be mowed, several street (about 5) with ditches that need to be mowed, front that needs to be mowed, landscaping that needs to go up, we need lawyers, insurance, and I think we will not get a management firm, and we want common areas and at least one park, maybe a basketball/volleyball court. What do you suggest?

JohnN3
(North Carolina)

Posts:6

02/13/2007 6:11 AM
We pay $400 a year in our 1500 single family unit POA. We have a clubhouse, office, several lakes, beach, marina, pool, tennis, basketball. We have on the ballot this year a proposed increase of $100 per year for the next 3 years. We are running into the same issue with our assesments being so low. We have to maintain almost 30 miles of blacktop, and our road fund will dry up in a few years so we are asking for the increase. Coupled with our (20+ yr old) infrastructure (buildings, boardwalks) has also been neglected and require replacement for the most part. The BOD in the past has been very frugal in spending money to maintain our community (bubble gum and duct tape).Its tough getting increased assesments, even when you justify and provide the community the data to support it. I have a feeling we'll have to go back to the drawing board if it fails next month. We are near Ft Bragg, NC and have a large Military population, many on the BOD are retired military or active duty. We do not provide any discounts to military. We did however fund a Veterans Memorial (flagpole & memorioum stone) at our Marina. Also we are trying to get some veterans to start a grass roots club to help active duty dependants when spouses deploy.

MikeS1

Posts:0

02/13/2007 6:19 AM
Robins1 - It sounds like you need to establish a budget and Reserve Study first. You can't make comparisions between disimilar communities.

RobinS1
(Louisiana)

Posts:10

02/13/2007 6:25 AM
Im not making comparisons, I am asking for help. We dont know how to do a budget or anything else, just looking for a figure to start at. Mainly wondering if we have to stay with 5 if the origninal paperwork says that, can I have that changed when we meet with director thursday to more money?

RogerB
(Colorado)

Posts:3726

02/13/2007 7:08 AM
Posted By RobinS1 on 02/13/2007 6:25 AM Im not making comparisons, I am asking for help. We dont know how to do a budget or anything else, just looking for a figure to start at. Mainly wondering if we have to stay with 5 if the origninal paperwork says that, can I have that changed when we meet with director thursday to more money? No you do not have to stay with $5/month. It is probably that the amount can be changed and if a small amount it could be paid yearly, quarterly, etc. to reduce bookkeeping. Read your By-laws and Declaration to determine what is allowed. If a controlling document restricts you, then that document can be amended. If no one on the Board knows how to create a budget you need outside help. And I wonder how each of you manage your own personal budget

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

BrianB
(California)

Posts:1748

02/13/2007 7:35 AM
Robins1: Of course, your prices may vary based on where your HOA is at, but here's what we pay, roughly. We have retention basins and an area that needs landscaping, so that may be similar. $1600 year for liability insurance, directors E&O insurance, etc.. You will pay more if you have a volleyball court, basketball, etc.. I would plan for $2000, and start checking around. $500/month for landscaping. $250/year for property taxes on your land (probably very high estimate, but i have no idea what land is worth there). $100/month for utilities, if you have water or power to your sprinklers, lighted courts, etc. $40/month for postage, printing, receipt books, office supplies, incidentals. Don't forget po box rental, probably $40/year? $?/month for paying accountant, etc.

DouglasD
(Texas)

Posts:8

02/14/2007 4:40 PM
We have 214 condos, two out door swimming pools and one indoor, marina, lake front, two tennis courts, 5 elevators, restaurant, bar, heath club, three hot tubs security gates, 5 fountains, 5 boilers, four pumps for pulling water out of the lake for heating and cooling and the list goes on. The average COA fee’s are any where from 200.00 to 650.00. This is all based on square footage of the condo. We just rasied the fee's by 10% so we can make sure we keep enough in our reserves...yes it was pain full.

ChrisB3
(West Virginia)

Posts:7

02/14/2007 7:23 PM
368 households 2 retention ponds with fountains and pumphouse 5 acres of common area on a hillside 2.5 miles of road .5 miles of underground drainage and drainage ditches West Virgina $10.50 (about $20 a month too low)

TravisJ
(Utah)

Posts:6

02/16/2007 4:15 PM
I'm the HOA President of a small 112 single family home developement in South Jordan, UT. Our monthly assessment is $110.00. This includes maintenance of our common area (approx. 5 acre park), streets (snow removal, street lights, sweeping, resurfacing, etc.), yard maintenance of all homeowners (front and rear yard care along with flower bed/shrub/tree maintenance, and sprinkling systems), and all entrance gates (private gated community). Upon taking over from developer approx. 1 year ago, who left us with a negitive bal., we have since been able to set up a liquid reserve of $17,000.00 and currently have an operating acct. of appro. $15,000.00.

LisaD1
(Arizona)

Posts:1

02/17/2007 7:37 AM
We have 67 units in our complex. At the end of 2006, we were withholding payment from vendors because there was NOTHING in the operating or reserve accounts. Our dues were $120/month which did not meet monthly operating expenses and past board members didn't feel the fees needed to be increased. The current board was able get the community to vote for an increase to $145/month, although it was like pulling teeth. It barely meets operating costs,however, there is nothing left to set aside for reserve. The current board also got a $1500 assessment passed by the community, after a walk-through of the property, in order to fix maintenance issues that have been left neglected for years. In other words, the current board is the "bad guys" trying to clean up everything that the past boards have deemed inconsequential. Bad guys in the sense that we keep asking for money. The board would like to increase the dues again to $186/month, which really is where it should be in order to have reserve monies. My question to all of you is this: Is $186/month too much? The dues are used to pay for the following: 1300/month insurance water/sewer trash pickup landscaping/cleaning of parking areas pool care (cleaning/maint/supplies) 800/month prop mgt fees 50/month attorney fees PS- I'm really glad I found this website. It's been very informative! Thanks Lisa

JoyceS1
(Indiana)

Posts:107

02/17/2007 8:26 AM
Lisa Whatever it takes to cover the costs of maintenance plus setting aside reserves based on a reserve study performed is not too much! The trick is, how to get your average homeowner to understand that? I feel for you. We had to up our contributions to Reserves by $25 per person per month because for 15 years we barely were funding it. Then, our board did something totally idiotic.....after raising the fee $25......they promised not to raise the fee the following year....no matter what. Never mind that our operating costs were falling farther and farther behind. Basically, our operating costs have gone underfunded for three years in a row, which means now we are taking money out of reserves to pay for the shortfall which totally defeats the purpose of attempting to boost our reserves. The fact that you had a special assessment should pound home the need for adequate funding......however, having similar experience with homeowners as yours....people want everything taken care of, but don't seem to grasp where the money comes from..... This site is a blessing, isn't it. We can all understand one another's frustrations, and even acquire some good knowledge through the experience of others to boot. Good Luck, Lisa. Joyce

TomH2
(California)

Posts:2

02/17/2007 9:25 PM
We have 84 detached Townhomes in our community which was built in 1976 and our dues are $190.00 month and will go up $20.00 month next year. That includes Landscaping in "Common Areas" , pool, street paving throughout complex,watering in common areas, and outside painting (every 7 years). We have a Management Company that oversees the Complex and each owner has to maintain fences, outside maintance on homes--dry rought, termite etc, plus pay own water and PGE. We changed management companies 3 years ago but unfortunately the one we changed to (Associates Communication) have fallen short of expectations. In Fact, they are starting to suck big time. They won our business by stating they were a botique Management Company and only wanted to Manage a few properties. Well they are now up to 30 properties and pissing everyone off. We are going to attempt to get out of contract in next 60 days.

YolandaW1
(Georgia)

Posts:6

02/18/2007 8:24 AM
I am the VP of the association in Georgia and we are going over our previous budget and we do not have enough we are at 150 and it looks like we are going to have to raise it probably to 300.00 to be able to maintain. the previouse board did not take into considerations all the leagal etc we are 87 homes. Interesting

PaulM
(Pennsylvania)

Posts:1347

02/18/2007 9:49 AM
RandalR: It's very difficult to understand the particulars of how your HOA is run, based on your post. Do you have an HOA manager to assist with the HOA management? How old is your HOA? Do you have a reserve fund established? What do you mean by a 'voluntary HOA'? Why would you create an unrealistic fee of $215 which you have admitted will not cover your expenses? And if you have already created a deficit with the fee too low, how does your association propose to make up the shortfall? I don't want to sound harsh, but these are valid questions for you to answer when creating an annual budget and in setting the monthly dues to fund it. It almost sounds like you picked a figure and raised the dues to $215 but with no use of formula or justification of total expenses needed. You have not mentioned your HOA having an Executive Board or a Community Manager from a reputable management company to assist you in establishing an annual budget of accurate operating expenses (including the pool, tennis courts & volleyball) as well as the reserve fund for repair of capital improvements. There is no realistic way for you to decide on a fee without knowing the line items that go into your HOA's operating expenses. This is an interesting thread and one I have enjoyed following. PaulM

RobinS1
(Louisiana)

Posts:10

02/18/2007 11:37 AM
I can understand not having a management firm, how can you unless you have an uperclass subdivision. I mean face it, my neighborhood is middle class, dues are $20 a month, this is starting in April (brand new association for a brand new neighborhood. It took everything I had to convince some of these people to pay $20. I got a quote on a managment firm of about $20 per house for the fees. That is ridiculous. I would rather make accounting errors then give them all of our money. We have 214 lots, only about 190 homes, so I plan on getting 40,000 per year. Insurance is $3,000 a year and lawyer is 2,500 retainer. The rest of the money will be spend on pumps for the ponds, landscaping, etc... I want to use all the money to make the neighborhood better, not pay someone to keep up with money.

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