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Subject: Interpretation: Your Input
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Author Messages
ReneeD
(Illinois)

Posts:201


01/24/2006 10:00 PM  
I am curious and interested in others' interpretation of the following--from our Decs:

INITIAL CAPITAL CONTRIBUTION: Upon the closing of the first sale of a Dwelling Unit by the Trustee to a purchaser for value, the purchasing Owner shall make a capital contribution to the Association in an amount equal to three (3) months’ Community at the rate in effect with respect to the Dwelling Unit as of the closing. Said amount shall be held and used by the Association for its working capital needs.

I interpret this to mean each new homeowner is obligated to contribute 3 months' worth of community assessment regardless if it was prior to the turnover date (our HOA is 20+ years) or after. As written it is vague; I've not found anything more on this subject referenced in any other section. Also, it is my understanding that any changes should/must be noted in the margins as well as including any future amendments attached to original which there are none.

Thanks. -r
RogerB
(Colorado)

Posts:5067


01/25/2006 7:03 AM  
ReneeD, if that is your current Declaration with no amendment then it is still in effect. Obviously the purpose was to build an initial reserve fund. It is up to the HOA to enforce, ignore, amend, or perhaps your Declaration allows the board to waive (because your HOA has existed for 20 years)? I would not charge this after 20 years.

RogerB
ReneeD
(Illinois)

Posts:201


01/25/2006 11:50 AM  
Roger, this has never come up for discussion at any BOD meetings. At this time, there is no sense going retro to collect if even that matters; however, for the present and future new homeowners this should be done. But, there still should be some record on file as to why this Association-more importantly, this management company isn't communicating this information. Just who is negligent in performing their fiduciary duties? Can either or both be held liable for not upholding our Decs/ByLaws? As a matter of fact, our current Prz has been on the BOD for 12+ years and has only referred to these documents twice--unrelated to this subject and, both times interpreting what SHE believes to be correct and true and never in the best interests of the homeowners. And, as much as I have voiced my opinions to others in this community--they are good listeners but, no one really wants to get involved. As they say, "unless it affects their pocket-book..." Do you have any suggestions?

And, unrelated to above if you don't mind my saying this but the only time homeowners are allowed to speak up about anything is at our Annual Meetings but here is the clincher: we can't even do that because at the beginning of the meeting it is announced that no other business will be considered as this meeting is only to elect officers. What to do!
JennieC


Posts:0


01/25/2006 2:41 PM  
I agree with RogerB. As you state, the working capital contribution was for the FIRST sale of the home from the Trustee (I assume this was the developer.) It's not a license to charge 3 months fee every time a home sells.

Realty Times had a couple of articles on charging fees to buyers after the first sale. This is the one that seems most relevent:
http://realtytimes.com/printrtpages/20040728_feefairness.htm

ChristineM
(Texas)

Posts:1


01/25/2006 5:38 PM  
I have to agree with Roger and Jennie, sounds to me like the FIRST sale of a property.

ChrisM
LisaS
(Illinois)

Posts:341


01/27/2006 5:47 PM  
Agreed as well- usually 'trustee' is referred to in your documents by name as well, or as the Bank that holds the trust for the developer.

We charge $100 for each transfer of title in our association, but our documents are clear as to when/how/who pays.

Lisa
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Forums > Homeowner Association > HOA Discussions > Interpretation: Your Input



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