HOA won't pay the water bill

Started by RodarickH • 13 replies • 3871 views

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RodarickH (California)
Posts: 3

Posted:

My HOA has become delinquent on their LADWP bill. We have one meter for our entire community of 30 condos and the association pays the utilities. Many homeowners are delinquent in their dues and the entire community received letters from the association that the city would be shutting off the water unless a $15,000 dollar down payment is made. The association is demanding that each homeowner pay $500 towards the down payment. My dues are current and I feel I and any other homeowner who is current should not have to pay. Do I have any recourse? And how do I keep my water on? I have a renter and I need to keep her water on. Also, isn't the HOA responsible for paying the water whether or not homeowners are delinquent in their dues as the bill is in the associations name.

BonnieG1 (Nebraska)
Posts: 1,186

Posted:

What has the Board been doing about collecting the delinquent fees? I don't know how the homeowners who are delinquent paying their fees will come up with $500.00.
I feel anyone who is more than 3 months delinquent should have a lein placed on their property.

Since it is the city who shutting off the water, I can't think of a think you can do except pay the $500.00. Though even if you pay it, there is no guarantee the others will.

I would advise you to read your documents and request a meeting of the members per your document quidelines to discuss this situation. Please be aware the Board is allowed sometime (in our case 45 days) to respond to a members request for a special meeting.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Rodarick:

Welcome to HOATalk.

You have to understand the HOA is funded by its members; therefore, when some do not pay it can unfortunately unfairly put a burden on others. This is why in many states there are foreclosure methods for those who do not pay assessments. The HOA is responsible for payment of the water; however, they must have money to pay the bill. If they do not assess everyone equally for the $500 then how else do you propose they acquire the funds to pay the bill until they take other steps to collect the delinquent dues owed?

The bigger question should be what steps is your HOA taking to clear up the delinquent dues owed?

SusanW1 (Michigan)
Posts: 5,202

Posted:

Can the city shut off residential water supply? That would, in effect, condemn your households at least in this area, if does.

Are you saying that the HOA can not make payment arrangements?

What is the board's plan of action?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

The association is demanding that each homeowner pay $500 towards the down payment. My dues are current and I feel I and any other homeowner who is current should not have to pay.

Sounds straightforward to me. Dont pay and water gets shut off. Feelings on who is right or wrong have nothing to do with it.

Although you may want to get involved with your HOA to make sure this doesn't happen again.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't know why you don't feel you need to pay this assessment? There are no discounts or rewards for doing the right thing and paying your dues. Your reward is NOT being subject to late fees, liens, or foreclosure. You and everyone else have to pay this special assessment. If you don't you lose your water and subject to a lien or worst case for all a lawsuit.

I would try to open up the option of separate water meters for each unit. That is what we did. Cost us about 20K or $350 per person. We also had to update our CC&R's to reflect this change. That was another long nattle and over $2K in legal expenses. ALL well worth it in the end.

There is NO "They or Them" in a HOA...It is ONLY "YOU and your neighbors"...

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Rod

Steve and Melissa offer sound/real life advice. I suggest you follow it and preach it to your fellow owners.

BB5 (Missouri)
Posts: 145

Posted:

How long has it been since you had a meeting aren't the financials presented at meetings I don't understand how it could get to this point before anyone was informed.

RodarickH (California)
Posts: 3

Posted:

Quote:

Posted By BonnieG1 on 02/11/2012 6:05 PM
What has the Board been doing about collecting the delinquent fees? I don't know how the homeowners who are delinquent paying their fees will come up with $500.00.
I feel anyone who is more than 3 months delinquent should have a lein placed on their property.

Since it is the city who shutting off the water, I can't think of a think you can do except pay the $500.00. Though even if you pay it, there is no guarantee the others will.

I would advise you to read your documents and request a meeting of the members per your document quidelines to discuss this situation. Please be aware the Board is allowed sometime (in our case 45 days) to respond to a members request for a special meeting.

Exactly. HO's who have not paid their fees probably don't have the $500 to pay this assessment. I feel the HOA has been negligent in their duties. I just learned of this delinquency when my tenant found a handwritten note placed on the garage that the city would be shutting off the water if the downpayment was not paid. Obviously this bill has been accruing for some time now. (1) Why are we just now learning of this. (2) Why weren't liens placed on delinquent homeowners prior to this.

My major concern is what can be done to force the HOA to pay the water bill? There are many of us who are current on are fees, but not enough to pay off this bill in full. And point blank we shouldn't have the sole burden of carrying this bill. What have they been doing with our reserve to accrue such a high water bill. They obviously have not been paying the bill for some time.

RodarickH (California)
Posts: 3

Posted:

The board has obviously not paid the water bill in sometime and the payment arrangement that has been made with the city is for the board to pay a down payment of 15 grand to keep the water on.

Even if I were to pay this $500 assessment or even $1000, that does not assure me that others will pay, or that others even have the means to pay. That would in effect make my home unlivable for my tenant and other homes unlivable for their residents in the community.

BB5 (Missouri)
Posts: 145

Posted:

Call a "Special meeting" find out how much in arrears and where the remainder of dues has been going. I don't know the law on shutting off water for non payment apparently it can be done if the water company is going to. I would check and see how much it would cost to install a shut-off valve to EACH unit then the people who are current will not pay the price for those who aren't. I think I would also check the water co. bills (usage)to make sure there hasn't been a large increase in usage indicating a leak

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Liens are NOT going to collect the money for HOA in any kind of timely manner. Owners can spend years without paying off their liens. However, it is the BEST option for a HOA to use to collect. This special assesment if done properly can also be added onto the lien plus of course legal fees.

You want for your HOA to place liens on property you need to understand that process. Your HOA also needs to set up a rule to know when an account is deliquent to place a lien. Our limit was 6 months. It was established with ALL the membership so they could take steps to avoid the lien.

Some states it requires an attorney to file. Some states it is free. There can be time limits on how long they are good for. Your HOA has to shell out the money to pay the fees associated with placing a lien. That money comes from your dues/HOA budget. So if you can't afford to pay your water bill then why pay out money to collect on back dues? It is one or the other...It can't be both unless your willing to pay...

Former HOA President

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

That would in effect make my home unlivable for my tenant and other homes unlivable for their residents in the community.

If you really want to protect your income producing asset, your rental, I suggest you get involved with the HOA. If you dont want to get involved, expect more of the same from your dysfunctional HOA. Thats how it works.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

PS. If the HOA cant afford an emergency payment because the water is going to be shut off, its likely the water bill is only the tip of the iceburg. Your HOA probably has much, much bigger issues than this.

You may want to think about selling the unit before all these problems are known to all.

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