HenryM3 (Arizona)
Posts: 5
Posts: 5
Posted:
We have a contract for sewer service executed on June 2004. The new board has a problem with the following 3 issues:
1. The agreement indicates the sewer vendor can increase the fees yearly up to "ten percent (15%)". Note, the letters say Ten but the numbers say 15%. The vendor has never increased more than 10%. However, now there is a need to do 15%. The Board refuses to allow the minutes from the past that have approved the 15% increased. The HOA position is to only pay 10%. The fact that a previous board on a general meeting approved and acknowledged the 15% is clear. Will the minutes clarify the discrepancy with the contract? Which one is correct?
2. The second issue on this contract is the due date. The contract says payment is due on the 10th and past due by the 25th of each month. The vendor did not bill for the first 3 months as the HOA had limited funds and no reserves. The HOA board at that time requested via a general HOA meeting reflected on the minutes; to change the due date from the 10th to the 1st and past due by the 10th before the first billing. The vendor accommodated this request. All billings have been paid by the 1st but never after the 10th. The new Board paid the bill by the 24th and refused to pay a late fee. The new Board says that they are going by the original contract and they are not considering what the minutes reflect. This board has been informed by former Board members from that time about the changed of due date... Is the HOA liable for the late fee?
3. The CCR&R's have a mandatory 2 years construction clause for any vacant lot owner. This clause was considered when the contract of the sewer vendor was negotiated. The vendor knew that after X number of months, the vacant lots will have to be built or they will be in violation and fees and fines will apply. The Contract with the sewer vendor indicates that lots will be assessed a sewer fee upon a certificate of occupancy is issued. This has not happened with several lots because the lot owners never built within the time frame allowed. The HOA gave these lot owners around 2 years extension to built. Eventually, the Board on a general HOA meeting documented by the minutes; gave the lot owners 6 more months to start paying full HOA fees that would include the sewer fees. This is after 2+ years in violation of the 2 years construction clause. The new Board members feel the HOA should not continue to pay sewer fees on the vacant lots because the contract clearly specifies this will occurred upon securing a certificate of occupancy. Again, the Board is ignoring the minutes on this issue that clearly approved the payment of sewer on these vacant lots... is the Board wrong?
The contract was never modified to reflect these changes because the minutes are clear...
Thank...
1. The agreement indicates the sewer vendor can increase the fees yearly up to "ten percent (15%)". Note, the letters say Ten but the numbers say 15%. The vendor has never increased more than 10%. However, now there is a need to do 15%. The Board refuses to allow the minutes from the past that have approved the 15% increased. The HOA position is to only pay 10%. The fact that a previous board on a general meeting approved and acknowledged the 15% is clear. Will the minutes clarify the discrepancy with the contract? Which one is correct?
2. The second issue on this contract is the due date. The contract says payment is due on the 10th and past due by the 25th of each month. The vendor did not bill for the first 3 months as the HOA had limited funds and no reserves. The HOA board at that time requested via a general HOA meeting reflected on the minutes; to change the due date from the 10th to the 1st and past due by the 10th before the first billing. The vendor accommodated this request. All billings have been paid by the 1st but never after the 10th. The new Board paid the bill by the 24th and refused to pay a late fee. The new Board says that they are going by the original contract and they are not considering what the minutes reflect. This board has been informed by former Board members from that time about the changed of due date... Is the HOA liable for the late fee?
3. The CCR&R's have a mandatory 2 years construction clause for any vacant lot owner. This clause was considered when the contract of the sewer vendor was negotiated. The vendor knew that after X number of months, the vacant lots will have to be built or they will be in violation and fees and fines will apply. The Contract with the sewer vendor indicates that lots will be assessed a sewer fee upon a certificate of occupancy is issued. This has not happened with several lots because the lot owners never built within the time frame allowed. The HOA gave these lot owners around 2 years extension to built. Eventually, the Board on a general HOA meeting documented by the minutes; gave the lot owners 6 more months to start paying full HOA fees that would include the sewer fees. This is after 2+ years in violation of the 2 years construction clause. The new Board members feel the HOA should not continue to pay sewer fees on the vacant lots because the contract clearly specifies this will occurred upon securing a certificate of occupancy. Again, the Board is ignoring the minutes on this issue that clearly approved the payment of sewer on these vacant lots... is the Board wrong?
The contract was never modified to reflect these changes because the minutes are clear...
Thank...