Sewer Plant

Started by LaurieL1 • 17 replies • 1783 views

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LaurieL1 (Missouri)
Posts: 5

Posted:

Hello I am new to this so here goes. Our subdivision holds 20 homes. We have a Sewer Plant. I have been here 5 years and am
on the board. Problem, several people do not pay the Sewer bill of 30.00 a month. We have to pay monthly for someone to come
out and test and remove grass. Plus we pay for someone to cut the grass around it. We have put liens on homes and nothing has
helped. We don't have any money in the fund so we can't hire anyone for collections. We are a small subdivision we all have kids and no one wants to stir the pot. Does anyone have any solutions how to collect this money? We have a outstanding balance of 2500.00 One of the families has never paid and we do have a lein on their house. Now they have moved and the parents are living there. Our president is not a good one, but no one wants the job. I can't do it due to I don't want my
child bullied. I hope someone can help with this matter. Our problem is funds.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Are you sure you have a Sewer Plant?

Sounds like a pumping station.

What if the board discontinued its use, since it is not being funded by members.? What would happen?

LaurieL1 (Missouri)
Posts: 5

Posted:

We live in a rural area. It is a sewer plant. Was made for our subdivision. There is no way to cut off service. We all have septic tanks also. The water is tested every month. The grass has to be pulled and it has to be kept clean. Everyone is to pay 30.00 a month. Their our people in here who dont see it as a bill. This has been a problem since subdivision was
built. Problem is until recently we didn't even put liens on homes to collect. Now we are. We send out monthly reports on
what they owe,but no one cares. MODOT said we will not be getting a public sewer anytime soon. The president has threatned
to make us all get differnt septic tanks at our homes and get rid of sewer plant, but that would be a cost of 20,000. for each home.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You know what you have to do, your just not doing it.

Do this for free. Send a letter out to the people who owe. Let them know you will be turning over the debt to a lawyer who will start foreclosure process on their homes. The lawyer will attach their fees to the foreclosure lawsuit which typically runs about $6,000. So they will owe, back sewer fees, and the lawyer fees, etc. Payment is due within 60 days if they do not want this to process to happen.

LaurieL1 (Missouri)
Posts: 5

Posted:

Steve Im sorry Im not sure I understand your response. So, are you saying if someone doesn't pay their sewer bill you can
forclose on them? We do not have any money for lawyers, another problem. Six years ago something went wrong with sewer plant I was not living here,each family had to give 700.00 to fix. The problem is some of the families moved without paying their
share. I know who ever was in charge did not do their job. So we still have this loan that we keep rolling over. Why they didn't go after these people is beyond me. One family is still in town,but they refuse to go after them. Thanks everyone keep
the ideas coming. I just put together a letter and am planning on taking a walk this weekend. Now its time for 75.00 yearly dues (Great). Wish us luck.

FredS7 (Arizona)
Posts: 927

Posted:

Quite apart from the question of lawyer fees, it may not possible to foreclose for unpaid fees. (Seems to me you are talking about an HOA fee since the HOA is running the sewer system).

You have a highly dysfunctional HOA and this is probably not going to end well. At some point it will not be possible to maintain the sewer system any more. Either the sewage backs up into everyone's basement or the health department will condemn all the properties or both.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Laurie

20 homes/families is small enough to put things on a one to one personal level. Maybe draw up a spreadsheet showing how the deliquent payers are hurting all. Do not mention names maybe just letters like A owes $xxx.xx, B owes $yyy.yy, etc.

Make it a personal and polite, we are all in this together and if we do not address it there is a potential that "local/state health officials" could shut down the treatment plant. If this happens then each home would be faced with having to install their own septic system at so an cost, thus it is less expensive for us all to get our deus caught up to date so worst case does not happen.

Hope this helps.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

So, are you saying if someone doesn't pay their sewer bill you can
forclose on them? We do not have any money for lawyers, another problem.

Typically, in a situation such as yours, all members of the sewer are mandatory members of the HOA. They have no choice, its the only reason the subdivision was approved. HOA's are secured debt, meaning if you dont pay, the HOA can foreclose on your home.

You dont need money. Most lawyers will take over HOA past due debt cases on 100% contingent basis. They know no one will get their house foreclosed on over a small bill. So they tack on $6,000 plus $75 in sewer dues. So the HOA gets $75 plus and the layer gets $6,000.

The goal is to get people to pay to maintain the sewer, a critical function in a house. If you never collect dues, people will continue to not pay. There is no incentive for it. This gives them a reason to pay on time, every time.

Basically, you just hand it over to the lawyer and they do all the work.

BrianB (California)
Posts: 2,820

Posted:

personally, I would just start upgrading the sewer system. that might involve some digging in yards, and some inconveniences for a while, while we repair pipes, valves, etc.. Sometimes stuff happens, and we encounter a problem that will take a bit longer to fix, say, a week to get the part and piece and get it done right and glue dried and tested... You do all that, and sometimes, it still breaks again or doesn't work.

And it would be a mere coincidence that such delays, which would of course, cause the owner to have to do something other than use his toilets, sinks, probably laundry, etc. for a week or two always seemed to happen to those homes who are in arrears.

Weird coincidence, isn't it?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would consider having a special assessment. Look at your documents on how this should be done. Trying to pass the assessment may wake people up to what is going on. You will need a specific cost related to the special assessment such as an upgrade or piece of equipment. I don't think randomly selecting a number from the sky to pay off debts will fly very well. The cost has to be divided evenly amongst all the owners. One owner can't pay more than the other.

Providing a cost breakdown of the maintenance and operation to the owner should also help in shedding some light on the situation. Seems people are NOT aware of their responsibilities. A HOA is ONLY funded by it's members FOR it's members. Get that message across. Show them the cost if they were NOT part of a group sharing the expense of the system and one with them paying.

I am unclear if this is a separate fee of the HOA dues or is part of the HOA dues? Is it all the HOA is responsible for and thus is the dues payment? That needs to be defined more. That is because the HOA may not be able to lien/foreclose if it's like an separate operations fee. It should be directly related to the HOA dues to enforce I would think.

Some states don't require an attorney to file a lien. Plus some states liens can be filed for free. If you do use and attorney to file, those costs can be part of the lien expense to be paid back. Make sure proper notice of liens has been sent out to the owners. Certified letter and continue to send a letter every few months updating them on the total amount owed plus interest, legal fees, and such till they get the point. Once they realize they have a lien or potential of getting one they may do something about it.

Former HOA President

LaurieL1 (Missouri)
Posts: 5

Posted:

Thanks to all for responding. Please keep them coming. I am sending them all to the President of the HOA. First of all yes
the HOA does not do well collecting, this is due to know one whats to stir the pot since we are a little neighborhood. Our
street is one circle. Now I am going to throw you another question We have a lot in front of sewer plant that was purchased
10 years ago, it is still sitting there. The HOA does not make this person who lives in Kirbyville pay for sewer. Plus we have to mow that lot. What do you all think? They said he doesn't use it? To answer another question our 75.00 yearly due
also goes to sewer plant. I really don't get that one. We need new sign, we have no lights on streets. All the HOA cares about in here is sewer the president does nothing about any other issues. They have let one families debt get to 2500.00 WTH
We have no money except to pay for maintance of sewer and it is litte. We started posting a report with the names of everyone who owes gets e-mailed to each home owner. We wanted to start putting the names out there so maybe people would pay. I myself would like to post a sign at the front of the entrance with their names. We do not send out a monthly bill to remind people of the 30.00 a month. If you choose you can pay upfront for the year and get one month free. Thats what I did
until no one else was paying. Now I go monthly. I am wondering if I could put a legal letter together and hand it out with the report? We go after them with a lien now when bill is over 500.00 We have a family that is in hardship and we are letting them pay a little at a time. I still don't get how people can't afford 30 a month. I highlited the report the other day and attached a letter to a new home owner and brought it to his house he has lived here since Dec 2011 and hasn't paid a dime. Im wondering if anything can be done when they are closing for the house? Sorry to go on and on but its a unique situation and Im getting really frustrated.

Thanks

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By BrianB on 03/30/2012 12:19 PM
personally, I would just start upgrading the sewer system. that might involve some digging in yards, and some inconveniences for a while, while we repair pipes, valves, etc.. Sometimes stuff happens, and we encounter a problem that will take a bit longer to fix, say, a week to get the part and piece and get it done right and glue dried and tested... You do all that, and sometimes, it still breaks again or doesn't work.

And it would be a mere coincidence that such delays, which would of course, cause the owner to have to do something other than use his toilets, sinks, probably laundry, etc. for a week or two always seemed to happen to those homes who are in arrears.

Weird coincidence, isn't it?

Brian:

Great idea! Right out of the SEAL Team Six operations manual.

I see no reason why the HOA should continue to provide sewer service to those who do not pay. Disconnect their pipes from the main line.

I would do it on a rainy day when the ground is so soft that the backhoe just sinks in, makes really deep ruts, and slings mud everywhere. I'd drive that backhoe all over the front yard looking for just the right place to dig. Might have to dig a few test holes. Pile the dirt (or mud) on the driveway right in front of the garage. I would dig out the pipe connecting the home to the sewer and advise the homeowner to rent a port-a-potty or just use the restroom at the gas station. Tell him you will be back whenever the HOA has enough money to finish the job. Hopefully, the first place you do this is a house that everyone has to drive past whenever they enter or exit the community.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By LaurieL1 on 03/29/2012 7:59 AM

The president has threatned to make us all get differnt septic tanks at our homes and get rid of sewer plant, but that would be a cost of 20,000. for each home.

That sounds awfully high. The prices for septic tanks in rural Arizona range from about $4000 to $6000 for an average home.

BrianB (California)
Posts: 2,820

Posted:

Larry, it may well be illegal to disconnect someone from a utility or service.

However, it is rarely ever illegal to do upgrades, repairs and fixes. The timing may be inconvenient, but hey, contractors, you know?

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By BrianB on 03/31/2012 5:37 PM
Larry, it may well be illegal to disconnect someone from a utility or service.

They do it here in the big city all the time. Don't pay your water bill for a month or two and you find you have no water. Same for electricity. (Our water comes from the city, electric from private enterprise. Both have no mercy for those who do not pay.)

Electric meters and water meters can be shut off easily by locking the handles in the off position. I have never heard of a sewer meter or sewer switch, so digging the pipes up may be the only way to remove a non-payer from the system.

But you know the old saying: One man's disconnection is another man's improvement project.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Laurie

As far as the empty lot, the HOA is providing services to it. Granted not as many services as it does to a home, but service to it none the less

I say there should be HOA Dues on that lot, all be they reduced.

LaurieL1 (Missouri)
Posts: 5

Posted:

Thanks again for your responses. I really don't think I am explaining this right. Big sewer plant. Water is controlled by
another town. We checked into it no way to turn off water. No money in fund. Yes we all have one septic in yard already for
waste. Yes we could make homeowners get on, but I know I don't want to shell out any money for that when I have a working Sewer plant. I did print out a report with a letter and collected from one owner this week 240.00 the treasurer was very excited. Im thinking about a way I could put out a monthly bill. Maybe the HOA could just pay for the stamps? Question if someone doesn't pay can I put some sort of legal letter with the bill? Also please continue to respond about empty lot? The owner tried to sell for many years, but as I said its in front of sewer plant. I wish the HOA could purchase and make a park...yeah right...lol. Maybe some day. I myself am waiting for the market to get better and then Im outta here.

Thanks

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Laurie

Bill quarterly with it being due within 15 days. Monthly is to much paperwork. Send overdue notices 30 days later.

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