overpayment of fees

there actually are two hoa's within our subdivision. The 'master' which consists of single family homes and what is termed 'benefitted neighborhood' of 21 condos. The 'bn' has cc&r's and must also be under the thumb of the 'master' cc&r's. Both groups have a budget. On the budget for the master the bn has to contribute monies but the master does not contribute to the bn--benefit neighborhood. There are items on the master budget for which there is not any benefit to us (such as landscaping, pressure washing of housing ect...) but we are required to pay for?? How do we in the "benefitted neighborhood" stop this overcharging by the master group? They refuse to make any changes. I can see paying our share for the upkeep of clubhouse and pool which we have access to to but on the bn we also pay landscaping so we have to pay for that service twice. I know this is a very confusing issue but would really appreciate anyone's input. This is in SC

Marilyn,

What you need to look into is all common property and area. There must be a road into the subdivision, roads to the pool and clubhouse and don't forget that lovely liability insurance for the general areas. That is a large number to add into the equasion.

Master Associations generally are more expensive than the sub associations because they cover entrances , roads and common areas leading into the developements. You should have a copy of the Master budget so that you can see where your money goes. The Master is never financially responsible for the bn.You need to compare both of the budget sheets in order to know what money goes where.

Hi Marilyn,

I live in what sounds to be a similar situation to yours – condo HOA which is also part of a Master HOA. We actually have 2 condo HOAs each with their separate governing docs, Boards, and assessments. Then there is the overarching Master HOA comprised of the 2 condo HOAs plus the single family HOs. Everyone pays the Master assessment (same amount). Each of the smaller HOA BODs have a rep on the Master HOA (5 positions total).

The Master HOA is responsible for common area landscaping, common area walking path snow removal, entry signs, and ponds and other storm water detention areas. We have no amenities otherwise nor own the roads (no clubhouse, pool, playground.) Single family HOs do own their homes and are responsible for their own home/grounds maintenance. All roads are public.

Both condo HOAs have separate common area landscaing they each are rsponsible for. These areas are physically separate and distinct from the Master HOA common areas.

We looked into leaving the Master HOA, but per the governing docs, this would require an amendment to them which would require 75% of the HOs agreeing (I may misremember the percentage but would require most of the single family HOs to agree). Of course this would mean their assessments would be raised if our HOA (or both condo HOAs) were to leave. The single family HOs, in our opinion, would not agree to such, and it wouldn’t get by the Master Board as we are outnumbered. So we dropped it.

The Master HOA was set up by the developer and, as I understand, required by our Village in order to address the requirements for storm water management (among other things). Since the changes to the Clean Water Act to address storm water management, the Village has required all new development ownbers (residential and commercial) to be responsible for their storm water.

Does your Master HOA have storm water management areas? Their upkeep benefits all of your HOs. This is not usually readily apparent to most people – in our case folks thought rain water went down the storm drains in the streets to the Village waste water treatment plant or the nearby river. All storm water is actually collected and diverted to the areas set aside for it on the Master common property, not to the waste water treatment plant nor to the river.

Your Master governing docs should address how they may be amended, and based on the info you have provided, IMO, that is likely how your BN would go about being removed from the Master HOA.

Also, your Master governing docs likely specify how the assessment amount is determined for each HO. In our case, it is the same amount for each HO regardless of type/size of home.

Bonnie