Sub Associations

Started by SteveH20 • 6 replies • 8106 views

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SteveH20 (South Carolina)
Posts: 32

Posted:

Has anyone had any experience with sub associations?

This term is defined in our CC&Rs and is referred to regarding lawn maintenance but I am curious regarding the formation, function, need, etc.

PetunkaM (Florida)
Posts: 1,009

Posted:

Steve,

Usually, there is a master association with Covenants which apply to all. The sub-associations have their own By-laws, BOD, etc. The sub-association assessments are paid directly to sub-associations. This is because every sub-association may have a different set of amenities. Not sure if this is your question?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Steve,

My Florida HOA has 3 "sub" associations with seperate Boards, ByLaws,rules and budgets and all are under the CC&Rs of the Master Association. We pay assessemnts to our sub association for all of the expenses regarding care and maintenance of the common area within the sub. Those are also some amenities such as the gates, pool. street lights, telephone for the entry and all expenses within the area.

We also pay a lesser amount to the Master Association which covers the entry sign and landscaped area, electricity for the lights out there, road maintenance and repair, taxes for this area and any other costs to maintain this area. Be it large or be it small, someone must pay these expenses and in this case, all 3 subs divide the cost among the 3. The Master pays for the website which is divided into 3 seperate sections, one for each sub.
There are also 14 "lakes" or retention ponds in reality which are huge expenses. These are scattered among the 3 subs but are interconnected in order to keep the streets from flooding during Florida rains. Therefore, the Master has the responsibility to maintain and pay for this system to keep all working in sync.

The State has many strict rules as well to keep this operation working well and it is very expensive and is divided equally among the 3 subs.

The President of each sub association sits on the Master Board so that each sub is represented on the Master level. With all of the shared and each of the individual expenses to keep this operation running smoothly, you must know that it works best to have equal say in how the Master operates.

PetunkaM (Florida)
Posts: 1,009

Posted:

Steve,
just wanted to add: If the community is large and there are several developers involved it is also possible for each sub to have their own covenants.

CarolF (Florida)
Posts: 435

Posted:

Steve - I live in a large PUD (Planned Unit Development) in Florida - 1600 voting units. There is a master association - as part of the "POA" (Property Owners Association)everyone pays an assessment to that association. Then, there are about 6 different condo associations within the POA, each paying assessments to that association as well as the POA. There are also several different "Homeowners Associations" that provide different amenities, etc. and assessments are paid to that association, as well as the POA.
We are a private, gated community taking care of our own roads, ponds, storm water management system and have 24 hr.private security........plus lots of other goodies.

EdC5 (Florida)
Posts: 117

Posted:

Quote:

Posted By DonnaS on 08/30/2011 1:11 PM

Steve,

My Florida HOA has 3 "sub" associations with seperate Boards, ByLaws,rules and budgets and all are under the CC&Rs of the Master Association. We pay assessemnts to our sub association for all of the expenses regarding care and maintenance of the common area within the sub. Those are also some amenities such as the gates, pool. street lights, telephone for the entry and all expenses within the area.

We also pay a lesser amount to the Master Association which covers the entry sign and landscaped area, electricity for the lights out there, road maintenance and repair, taxes for this area and any other costs to maintain this area. Be it large or be it small, someone must pay these expenses and in this case, all 3 subs divide the cost among the 3. The Master pays for the website which is divided into 3 seperate sections, one for each sub.
There are also 14 "lakes" or retention ponds in reality which are huge expenses. These are scattered among the 3 subs but are interconnected in order to keep the streets from flooding during Florida rains. Therefore, the Master has the responsibility to maintain and pay for this system to keep all working in sync.

The State has many strict rules as well to keep this operation working well and it is very expensive and is divided equally among the 3 subs.

The President of each sub association sits on the Master Board so that each sub is represented on the Master level. With all of the shared and each of the individual expenses to keep this operation running smoothly, you must know that it works best to have equal say in how the Master operates.

My HOA also has "sub" associations, of which, I am the president. Unfortunately for us, the "master" association's dues are more than twice our village dues. Recently the developer decided to have community "representation" on the master board; this was accomplished by handpicking 2 residents from 1 of the villages and 1 from another. Needless to say, this did not endear the developer to the other 3 village associations.

Edward J Cooke, CMCA, LCAM

DonnaS (Tennessee)
Posts: 5,671

Posted:

Ed,

Sorry to hear that and I am aware that this happens often when a Developer controls much of the association business.

Some may say that our developement was done without much interferance from the Developer because it was done by a very large HOA builing corp. They have "The Plan", they build, do turnover and are gone out of our lives. There were many pros and many cons to buying into an organization like this but they did everything quickly to get out and in the end, that did benefit the homeowners.

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