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Merging Adjacent lot For Just One HOA Fee

Started by JB7 • 19 replies • 13888 views

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JB7 (Georgia)
Posts: 10
Posted:
Hi,

New here..

My question:

Bought an undeveloped lot next to my home and now I pay two HOA fees.

(currently arguing with them about the interpretation of the covenants on this issue BTW)

So anyway, If I merge them into one, is it realistic for me to "assume" the HOA will be reasonable, and not charge me the fee on the merged empty lot?

Any input is appreciated...Thanks in advance.

J. Black
DonnaS (Tennessee)
Posts: 5,671
Posted:

JB7,

When a develope,ment is platted, it is divided up into units with a County. If there are 100 lots, the dues and finances are usually defined in your governing documents to read that each unit will be assessed equally. That means, 100 lots divided equally by the expenses. You owe for 2 lots unless a provision in the documents says that empty lots will be assessed at a lower rate. I own 2adjacent lots and will be paying equally for both of them.
SusanW1 (Michigan)
Posts: 5,202
Posted:
So what do the CCRs say? (about combining lots and the fee)
JB7 (Georgia)
Posts: 10
Posted:
6.03 Resubdivision of Property. No Lot may be split, divided, or subdivided for sale, resale, gift, transfer or otherwise without the prior written approval of the ACC of plans and specifications for such split, division or subdivision. Notwithstanding the foregoing, nothing herein shall prevent Declarant or the Owners of any Lots from combining two or more Lots into one Lot for construction of a single Residence thereon; provided, however, that such combined Lot rnay not be subdivided thereafter; and provided further, that the Owner of the Residence on such Lot shall be responsible for annual and special assessments based upon the number of Lots
combined into one Lot.

No HOA fees, right?

JB7
BrianB (California)
Posts: 2,820
Posted:
donna is correct, typically, extra lots/empty lots are still lots in the count for assessments. Combining the two lots can be done at a county or state level, but that doesn't always change the HOA assessments. Most HOA's are reluctant to merge and lower lot counts, because that increases the assessment for everyone in the HOA a bit.

On the plus side, you should get two votes at the annual election, one for each paid lot assessment!
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sorry JB, you are not interpreting this right. It says that despite any combining a lot, you will still be responsible for the number of individual lot assessments.

"however, that such combined Lot may not be subdivided thereafter; and provided further, that the Owner of the Residence on such Lot shall be responsible for annual and special assessments based upon the number of Lots
combined into one Lot."

It means that #1. If you buy a lot, you may NOT subdivide it at a later date.
#2 The owner of the residence on the lot SHALL BE Responsible for annual and special assessments based on the NUMBER OF LOTS combined . Means that if you have 2 lots, you pay for 2.

FredS7 (Arizona)
Posts: 927
Posted:
> that the Owner of the Residence on such Lot shall be responsible for annual and special assessments based upon the number of Lots combined into one Lot.

I think you should assume nothing. That sentence only speaks to the possibility of combining lots FOR (which I take to possibly mean before) construction of a house. This is not your situation. And it says nothing about the way HOA fees are charged. Seems to me you are in unknown territory. Certainly it would be lawyer time for the HOA to determine what to change, and how to change it.

JB7 (Georgia)
Posts: 10
Posted:
Ouch! Oh well, I see must pay no matter what.. Thanks everybody..

J. Black
KellyM3 (North Carolina)
Posts: 2,239
Posted:
JB7,

I might be worth the extra dues to control the property next to your house! Nice work.
GlenL (Ohio)
Posts: 5,491
Posted:
On the bright side, you should now get two votes at the annual meeting, one for each lot.
Studies show that 5 out of 4 people have problems with fractions
DonnaS (Tennessee)
Posts: 5,671
Posted:

Glen reminded us about that factor of voting. If you own 2 lots, you get 2 votes. 15 lots, 15 votes.
BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By DonnaS on 07/27/2011 4:35 AM

Glen reminded us about that factor of voting. If you own 2 lots, you get 2 votes. 15 lots, 15 votes.

Heck, I did that, a month earlier!

Where's my attaboy?
DonnaS (Tennessee)
Posts: 5,671
Posted:


ATTABOY!!!!
ValerieS2 (Michigan)
Posts: 244
Posted:
We are struggling with this same issue. Our CCRs do NOT address the situation at all. We asked the developer, no response. Getting to be a major issue any help is welcome. We are in Michigan.
BrianB (California)
Posts: 2,820
Posted:
don't struggle with it Valerie, just don't allow it.

When someone gets double the lots, but doesn't pay double the assessment (and get double the votes), that means the burden for paying is shifted slightly to all other home owners. That's not fair to them.

If they buy two lots, they get two votes, pay two assessments. What they do with the second lot is up to them, but the HOA didn't force them to buy it and do anything with it. I shouldn't have my assessment raised because some other guy suddenly wants a larger yard.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By ValerieS2 on 07/27/2011 8:59 AM
We are struggling with this same issue. Our CCRs do NOT address the situation at all. We asked the developer, no response. Getting to be a major issue any help is welcome. We are in Michigan.

Valerie,

There most be SOMETHING in your CCRs that defines the boundaries of a unit or a lot, and/or there is a plan (ie., a map) on file with either the state, county, or municipality that graphically shows the boundaries of each unit or lot. From there, it's quite simple, own one lot, pay one fee and get one vote. Own two lots, then pay two fees and get two votes. This would be especially true if the CCRs say nothing about combining or merging lots.
ValerieS2 (Michigan)
Posts: 244
Posted:
Good advice Brian and Bruce, thank you.
LarryB13 (Arizona)
Posts: 4,099
Posted:
My association has the exact opposite problem.

Our development consists of about 100 square miles (yes, 64,000 acres) in northern Arizona. Each lot was originally 36 acres or larger and were sold undeveloped. Assessments are based upon acres owned and the current assessment for a 40-acree parcel is about $130 per year. The POA's sole function is to maintain the roads (almost 300 miles of dirt roads) and two water wells.

At present few of the parcels are occupied and the owners are literally scattered around the world. The only effective way to comunicate with the owners is by mail, making mailing expenses a significant part of the budget.

Some owners have subdivided their parcels. They can go down to as little as 2-1/2 acres per county zoning rules. Since we are required to send certain notices to each owner, we are faced with the prospect of having many more owners with no increase in the amount of property we may assess. A 2-1/2 acre parcel will pay only $8.13 per year, which will just barely cover the cost of postage.

We have had a proposed amendment to our CC&R's floating around for several years that would change the assessment from per-acre to per-parcel. That has yet to pass. One sticking point is that our CC&R's also allot one vote per acre and that would not change under the proposed amendment, so many feel it is unfair to charge the little guy the same assessment but not give him equal voting power.

This is not really responsive to the OP but I thought it would be interesting to see the other side of mergers and splits.
RickS6 (Florida)
Posts: 1
Posted:
We are finding that the answers given in the forum are on target...UNLESS provided for in the Covenants, merging of two adjacent lots, where each lot is a "member" lot, does not lead to paying only one assessment. Assessments would have to be paid for each lot as originally defined at the time the Covenants were created and EACH lot was linked to the Covenants. Note that if the new adjoining lot were NOT a member lot that there would be no assessments owed on that lot. These comments are consistent with what our Association attorney advised.

Here's a CAUTION, though. Emotions would dictate that if you pay for two assessments for two lots that you should have two votes. In a small association like ours (12 members) if one person buys up enough lots then that person's voting power will rule every time there is a vote. You couldn't even reverse that because it would go against that person's interest. Think of why there are only two Senators, no matter how large the State. Having only one vote no matter how many lots are owned protects the little guy from always being out voted.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Rick,

Welcome to the forum.

You had some good information there.

It's typically best not to reactivate old threads (this one is over 5 years old) as what was good information in 2011 may be bad information today (due to changing laws).

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