I need your advice and/or suggestions.

I need your advice once again. I’ll try to give you all as much information as I can without making this too long of a post. For me to receive the advice many of you have given to me and others in the past. It is imperative that I explain my situation in great detail.

Our community is faced with a financial quandary. After the treasure and our Property Manger prepared the 2007 budget, we were advised by our Property Manager that we should allocate this unforeseen expenses to the entire community as a “special assessment” We called this assessment “special” because it wasn’t our typical yearly assessment of $320.00. (Very inexpensive as a tennis and pool community). We also figured since the yearly assessments hadn’t been increases in the past 3 years, we would increase the assessment to make the “special assessment” that we imposed, not so difficult to pay. We increased the assessments the 10% stated as a limit for increase without a community vote. Making our assessments now $350.00 due January 1st.

After being advised by the property management, the board decided to mail a letter to homeowners informing them of this unforeseen expense. Our assessments are due on January 1st and later if received after the 10th. With the holidays so close to our yearly assessments, we felt it would be very considerate of us to give all our neighbors a “heads-up” about the increase in assessments and the “special assessment” prior to receiving the coupon in the mail, saying that the assessments had been increased due to inflation and that the board had subjected the entire community to this additional $100.00 (due by March 1st)

With all of the excellent advice many of you have given to people just like me. I carefully re-read the CC&Rs and by-laws and saw that there was a special assessment and a specific assessment.

To make a very long story short we had an HOA meeting (PowerPoint presentation, it was presented very well by our treasure to whomever attended) to educate members of the community and to show them where the money that had been collected was going to and why. The presentation was going well until a member of the meeting said she had some question that needed to be addressed now, because she was leaving and would like for her concerns to be answered before she left.
So, with the help and expertise of our property manager we attempted to answer all of her questions and concerns. It became a “free-for-all” people all over the room chiming in with different comments. We (the board) have accepted that we made a mistake and as the board it is our duty to fix this problem. Obviously if we knew there was a specific assessment we would have never been confronted with this type of predicament. But since we didn’t and the letter had already been mailed we are now dealing with the mistake (that we had been advice by PM, that the wording was good)

The problem we are faced with now is the pool resurfacing is a must the county will not open the pool this season because of the black allege. We felt that since a homeowner had brought this mistake to our attention that a vote of 2/3 is required before the board can impose a “special assessment” of any kind. I’ve turned to this discussion forum for advice. If you feel it would be in my best interest to speak to an HOA attorney we can do that as well. We would prefer to settle this as inexpensively as possible.

We have discuss this in great detail with the property management and we have decided to hold a meeting, and to proceed with this as a “special assessment” We have found it very difficult to reach quorum (as many of you know), let alone 2/3 vote to approve or disapprove a “special assessment”. What can we do or what should we do. Again, I’m sorry for the long post. I hope this will help you all to give me the advice, I so desperately am seeking.

Thank you all
Chuck W.

BradP,

I appreciate your quick response. I have enclosed the difference between special assessment and specific assessment. I have no idea why there were both listed in the CC&Rs. The repairs are for an amenity of the community, not something I personally want. This is in the best interest of the entire community, IMO, besides being a board member. I purchase a lot here because it was a tennis and pool community, “if” this doesn’t get approved it will literally cost us (association) more money to pull the pool and fill it in, landscape and sod the surface, than it would to pay to resurface the pool. We have explained this to the homeowners and it is like “beating a dead horse”

I understand that it is after the fact, but it’s always helpful for me to know what could have been done.

Thanks
Chuck W.

Charles, I agree with Brad on the specific and special assessment. I would go ahead with the meeting and getting the 2/3 vote. If you cannot get the 2/3 vote, then exercise your specific assessment right. Explain that if the money is not collected the pool will not open. You will probably get more response if residents know there will not be a pool for the summer.

Do you have a reserve study and fund? Pool resurfacing should be part of this. Ours is approximately $25,000 and will be done in a few years. We have been working toward this so that we will not have to have a special assessment. Also, you made a comment about filling in the pool and doing away with it. Check your documents...ours state that we have to keep things the way the developer left them for 20 years. Doing away with the pool may not be an option.

You said that there wasn't an increase in HOA dues for the past three years and from your other posts, I'm assuming your neighborhood is not that old. How old is the pool? Is there a warranty for the work or could you go after the company who installed the pool?

Also, assessments should increase a little bit each year to cover the 'cost of living' so to speak...everything goes up. Since you cannot increase your assessment more than 10% annually this could cause a problem collecting enough money to cover major expenses, especially if you do not have a reserve fund. One solution could be an initiation fee, as we did....not sure if you have one or not but most metro-Atlanta HOA's have an initiation fee. You may want to look into this.

Another option if you cannot collect for the pool resurfacing would be to get a loan...you would want to check this carefully since you have the 10% limit on annual assessment.

As for the meeting turning into chaos...I would have continued with the presentation and taken questions later, setting time limits, etc.

Let us know how it goes....and good luck!

JulieS,

I apologize. I realized that I had asked for advice but had already “jumped the gun” by mailing the letter out. The other board members and I have discussed this in great detail and have been trying to figure out what would be best for our entire community.

We too decided to proceed with the special assessment. The board and I scheduled and wrote the ballot late last night. We plan on mailing this ballot to all homeowners on February 1st. To all eligible homeowners we will enclose a self addressed stamp envelope, in hopes of a quick return.

Our pool is approximately 6 years old. The builder installed the pool so I’m not sure if there is any sort of warranty now or not.

We do have a reserve fund, and unbeknown to the community we may have to use it. The board’s intention is to continue to build the reserves. This expense will deplete the funds in our reserves account, but I guess that is what it is for. Last year we started the initiation fee, to all new home buyers in the amount of one year’s assessments, or we will “pro-rate” the amount if the homeowner moves in midway through the year. This has helped with expenses that accumulate throughout the year.

I have enclosed the letter we had written. I would appreciate it if you all could take a look at it for me, just to make sure that the wording is right and proper. I would like to have great success with this Special assessment ballot.

Thank you once again for all you advice as always
Chuck W.

Charles,

On a side note you said the initiation fee is pro-rated...typically assessments are pro-rated since it is billed annually. Initiation fees are a one time flat fee for membership, etc. You may want to check on that.

I would have a chat with your pool company on this issue and find out why you have black algea. Also, it shouldn't have happened overnight...were past board members advised of the situation in which they didn't act? We have a couple of areas in our pool we are watching and know that we will need to resurface in a couple of years (which would make the pool 10 years old). We are planning for this with reserve funding, etc.

I do like Brad's idea of $50 special assessment and using some reserves. This might help.

Good luck!

MarieG,

Many of the quotes we received were from reputable pool resurfacing services and we also went as far as too ask for recommendations. We have been told that because of the sever “pitting”, that the pool would need to be drained and then an acid wash would be required, ensuring the best results for getting rid of the Black algae. The service we determined was the best choice for us is also going to be our new pool service . He will personal maintain the pool and be held accountable during the curing process. He and others who gave us quotes told us it was crucial to do a proper curing process on a resurfaced finish.

Proxies are permitted here in Georgia, in conjunction with the ballot, I enclosed in a earlier post, we should be in good shape.

I’ll keep you updated as to our success.

Thank you
Chuck W.

Chuck,

I don't think that your pool would fall under the "specific assessment" ruling. I imagine that ruling to be more like this. The sewer main serving 4 houses breaks and needs to be repaired. The assessment for repairs would be paid by all owners even though the benefit would only be to the 4 houses.

And as far as comparing your fees to other associations? Forget it, each complex is unique as to buildings and amenities, quality of workmanship, etc. Unit owners may like to compare fees and make their choices by that but board members should know better. Sometimes people look at a particular association and say how there fees are so low, yet they don't know that the particual associantion has special assessments every other year.

And Chuck, don't be proud that you have not had a fee increase in 3(?) years. Guess what? You're doing something wrong. Everything goes up every year, electricity, insurance, you name it.

If I remember right, your pool repairs equal $14,900 with $100 assessment per unit so I'm figuring you have 149 units/members. Your association is maybe 6 years old? With the full completion being 4 years ago in 2003?
And you said that taking the money from reserves would wipe it out? So you seem to be putting in $2,500 or a bit more per year into reserves? That seems awfully low to me. But at this point, I don't know how your documents read as to what the association is responsible for. But if only a few years in repairing the pool calls for either an assessment or the need to wipe our your reserves - you guys are in trouble. What happens when the tennis court needs work next year?

Get your funds in order now while you are still a young community!!!!!!! It is far too hard to play catch up like so many communities 20 years old are having to do now with $million dollar$ assessments.

Make sure that Brenda takes control at meetings. She needs to be a strong leader to keep people in line. Buy a gavel, they work.

Good luck

Dana

BradP,

That is a good idea, “IF” it does get disapproved or we don’t receive enough ballots or proxies to meet quorum. We can, afford to use the money out of our reserves but our intent was to be able to fall back on it when needed, like “IF” the approval doesn’t happen.

Thanks once again
Chuck W.

DanaB1,

I don’t really follow what you are saying about the “special assessment”. It is are duty as board member to maintain all the amenities and this amenity is in need of repair.

You may be correct in your theory about assessment and “how low they are” I have compared our sub-division and it’s amenities with other sub-divisions in the area. We are the lowest. I’m not saying that is a good thing, because if that was the case we wouldn’t need to resurface it.

I wasn’t being “proud”! I was just stating the facts. Being my first year as a board member, I wasn’t the one doing “something wrong” apparently it was the previous boards. That is how I view that.

The gavel is definitely worth mention to Brenda. I’ll have forwarded you post to her.

Thanks a bunch
Chuck W

LanceT,

We convene with and received plenty of “letters of recommendations” His quote wasn’t even the lowest but we had gotten plenty of excellent recommendation from his other clients. He also will be are new pool service company.

The board has assessed all homeowners, even though we know by looking at the delinquency list that a little less than half will not pay. It a horrible situation to be confronted with, we look like the bad guys.

I’m glad to see your post once again. I have to admit I learned a lot from the other site and from many of you. I got to read both sides of an HOA. It was just too difficult for me to “argue” the way I felt with people that felt my opinion was wrong. It got to the point where the discussion weren't anything beneficial to the conversation. The moderators here at HOATalk are all very helpful and “on the ball” They don’t miss a beat.

There are a couple of members of AHRC website that post frequently on HOATalk. Your knowledge of HOA will be much more helpful to people like me. I would like to see posts from others that still post on that site but….. You like me, will be amazed at the response you receive from members of this discussion forum. This discussion forum is amazing, to say the least. Any given day there will be twenty to thirty posts, where as the other site you may receive 10 all week.

See you around
Chuck W.

DanaB1,

Apology accepted, I hear where you are coming from. I too have read many discussions relating to low assessments.
If the meeting got to a point where it was uncontrollable that probably would have been an option for us, but since it wasn’t all that bad, just a lot of disrespect. It’s extremely difficult to hold my tongue. I’m the kind of person who will gives respect when I feel I’m receiving it. Being a board member I must always present myself respectively all the time, even when disrespect is directed my way.

I clearly hear what you’re saying about “specific assessment” and “special assessment” Exactly when would this play a part in our sub-division? Why it even be listed in our CC&Rs if the board couldn’t impose it on the members. It’s called an amenity, but the board and hopefully 71 other people feel that this is also what would be best for them and their families. We have the community in our best interest.

I’ll keep you all posted as this unfolds.
Thank you once again
Chuck W.

Thanks Patrick! I missed you all too. It took me a bit to "sneek" back onto the other site to find out where everyone had gone. They had "busted" me twice on that website for my "Pro-Homeowner" stance. Hence, I had to lie about my Identity and location. That eventually made them soo mad that they kicked me off again. Who knew you couldn't lie about your identity on the internet of all places? ;) (By the way, my real name is Melissa. I am using Lance Tome so my previous contacts can find me here).
I tried to email you a few times. It didn't work. I think I am really going to like this website much better. I can already see the education level is sooo far beyond the other one. Still NOT big into posting "legal" quotes from law books since I am NOT a lawyer. So please forgive if I just give my answers in "Common sense" or "Real world" scenerios. The other website was really heavy into "Internet arm-chair lawyers" who couldn't translate a law they typed! However, I did study Criminonology and Business Law in college and we didn't live on legal quotes there either.
I just had to get that off my chest since those seem to be the 2 issues that I got "attacked" on the most on the previous site. I feel this website I can put that behind me and start posting from the heart again.
It's great seeing you "old" pals again! Hope to keep posting here!