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BB5 (Missouri)
Posts: 145
Posted:
The officers of our HOA reduced the dues on three properties because the lots are empty and they don't use the water or trash they are charged $100.00 for "road access" (the association does not own the roads) these are all private homes most of which are second homes on a lake so my question is shouldn't the people who only use their home 6 months out of the year be given the same break for the 6 months they aren't using the water or trash.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Sounds fair, but it may not be that simple.

There may be a requirement in state law or in your CCRs that all occupied lots be assessed equally. The board may have reduced the dues on the unoccupied lots because the CCRs permitted them to do that. You'd have to check your documents to see if that was allowed and whether or not the board is permitted to reduce the assessment on units that are occupied for only a portion of the year. In our community that would not be possible because state law requires all units to be assessed equally.
BB5 (Missouri)
Posts: 145
Posted:
There is nothing in our CCR's that allows this. I forgot to mention two of the lots belong to the V.P.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Then you need to read your CCRs to see what it says regarding exactly how lots are to be assessed. You might also check your state laws.

If you can show that the CCRs or state laws were violated when the board reduced the assessments, then I would recommend writing a letter to the board pointing this out, quoting "chapter and verse" to back up your claim. You might want to send it certified mail, return receipt, with a copy to the property manager (if there is one) and the association's attorney. If the association does not have a mail address (it should) then send it to the president of the association.

If they do not correct the situation to be in compliance, then you would have to take the association to court to force compliance.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
I might add we had a similar situation with our community a few years ago. Some residents are away during the winter months and they wanted to have their assessments reduced while they were away because they didn't have trash removed or needed their driveways plowed. State law and our CCR's require all units be assessed equally. Not plowing driveways was not recommended because it would be an indication to potential burglars that the owners were away. We could accomodate the trash situation by removing trash pick-up as an association provided service and reducing everybody's assessments equally to comply with the CCRs and state law. But that would then require that everyone contract for their own trash removal at greater cost to the individual homeowners. As you can guess, the majority of homeowners who stay here year-round wouldn't go for that.
TimB4 (Tennessee)
Posts: 21,059
Posted:
BB5,

Typically the method of making assessments are located within the CC&Rs or the Bylaws. Decisions of the Board can not be in conflict of these documents. If they are the Documents will be the controlling document and must be complied with. Of course, the documents can be amended. However, until they are amended the current language must be complied with.

IMO, the language is located in the CC&Rs as a separate subsection titled "uniform rate of assessment".

If your documents require the lots be assessed equally, I would recommend sending a certified letter to the Board explaining that this decision by the Board is not in compliance with the documents and, therefore, should not be enacted or enforced. If the Board chooses to ignore this letter, then the only other option would be to file legal action. I suspect that once the action is filed, the board will comply vs. spending money to defend something that their attorney would (should) advise them they can't defend.

Side Note:

BB5, Thank you for bringing this issue up. As I just discovered that the language within my documents could be interpreted different ways. The specific language is:

"Both annual and special assessments must be fixed, at a uniform rate for all lots and shall be collected on a monthly basis, unless the Board of Directors shall otherwise determine."

By using the compound sentence, a future board could interpret the above passage indicating that the Board can determine a non-uniform rate for assessments. A simple case of a need to use better language and/or change the compound sentence into two sentences.

Goes to show that you can still find things that can be done better if you take the time look.

Tim

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