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LinB (South Carolina)
Posts: 1
Posted:
We have a strange situation. I am a Board Member on our HOA (for nearly 2 years) and about 12 years ago when the subdivision was built, the builder, some homeowners and an attorney developed the HOA making dues-paying 'voluntary' (if you can believe!) instead of mandatory. I have only lived here for two years but it is a nightmare paying the electric bill for the lights and for lawncare for a common area at the entrance to the subdivision (parkway).
According to the covenants, we cannot change anything until December, 2015; however, we can only collect each year from approximately less than half of the neighborhood so each year, half of the residents pay to keep the lights on and the parkway looking nice to help all 75 homeowners. We pay because it is the responsible, RIGHT thing to do; however, we are running out of money and probably won't make it until the fiscal year begins in August.
We have just terminated lawncare in order to not have all the street lights turned off in a couple of months and we're probably going to keep the parkway trim by volunteers working it.
Is there any way to change the covenants to make it mandatory? Or, can we declare bankruptcy (Chapter 7 not 11), and start a new HOA with mandatory dues?
We have tried EVERYTHING to encourage non-payers to pay, but nothing seems to work. Any thoughts or ideas would be very much appreciated. Obviously we have no money for attorney fees unless there is something we can do ourselves through the court (filing with the magistrate, etc.). We would be willing to pay a little out of our own pockets if it meant getting dues from all homeowners, but are literally at our wits end.
The part I truly do not understand is that it is a very nice neighboorhood with custom homes - and it's beyond me why these people are not more concerned about their property values.
Thank you.
DianaB4 (Oregon)
Posts: 13
Posted:
Shouldn't your state have clearly defined rules around things like maintaing a reserve account, etc? Sounds like you need a lawyer skilled in HOAs to look at this.
GlenL (Ohio)
Posts: 5,491
Posted:
Generally speaking (not an attorney) you would need to amend the declarations to make it mandatory which in this particular case IMO would require 100% yes votes to be binding. I have heard in other vol-man conversions the non-payers were offered the option to remain vol until their property sold at which time the new owner would then become a mandatory member.

Studies show that 5 out of 4 people have problems with fractions
RogerB (Colorado)
Posts: 5,067
Posted:
LinB, if the homeowners in your community pay for their own trash collection you may be able to resolve your problem by having a HOA (group) contract with a trash company.
For example:
1) Your HOA could negotiate a contract with a trash company for about half the cost relatedto single homes. Trash companies do this because it is more efficient - less travel, less time/pickup, one billing/month, etc.
2) Voluntary HOA members dues may be set at less than the balance of the cost of single home trash pickup.
3) Thus, the total cost can be less than paying for individual trash service, i.e., paying voluntary HOA dues and selecting the option of having trash service through the HOA.

We manage an association which is currently doing this. The HOA amended their Covenants 2 years ago and are in the process of conversion from voluntary to manditory as each property is sold. This was initiated as soon as the Covenants allowed amending (just like your HOA). Manditory members pay an assessment equal to the dues of voluntary members and have the same option of selecting trash service through the HOA.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Lin - would you post your declaration that says you can't amend them until 2015? (exact words)

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