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HOA dues refund after house fire

Started by GeoffB1 • 10 replies • 2504 views

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GeoffB1 (Georgia)
Posts: 1
Posted:
I lived in a subdivision of approx 125 single-family homes. Our house burned and was declared a total loss 6/2011. Our HOA dues were paid 4/2011. Since we moved to remporary housing, we did not use any ameneties (neighborhood pool & tennis) for 2011. For various reasons, we did not rebuild and returned the lot to "its natural state."

Around 1 month ago, I received a letter from the HOA saying we owed full dues for 2012. I happened to know the covenants state dues are reduced to 1/4 for an undeveloped lot. (I did not respond to the HOA until I could get a copy of the covenants.) 2 weeks ago, I received an updated invoice for 1/4 normal dues.

If we paid a full year's dues and did not have a home - should fall under undeveloped lot - am I due a refund?
Since I year full dues = 4 years "undeveloped land" dues then we should be credited for the next 3 years.

Can anyone shed some light on this? I done quite a bit of searching and can't find much on this topic.

Thanks in advance.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Geoff,

Dues for an HOA are usually established and made payable on January 1 of each year. At that time the amount owed by the owner of each Lot is fixed and the budget is established by the Board. So if something happens in mid-year, it wouldn't affect the rate established at the beginning of the year.

For instance, if you sell your home in mid-year, the Association does not give you a refund for the remainder of the year and ask the new owner to pay for their part of the year. Any credit for dues paid is negotiated between the seller and the buyer at closing -- as far as the Association is concerned the owner as of January 1 pays the full year's dues.

So on January 1, 2011 you had an improved Lot and owed the full dues for that year.

On January 1, 2012 you owned an undeveloped lot, and owe 1/4 dues for 2012.

It is unusual, but your Association may have a fiscal year that doesn't align with the calendar year. Check your governing documents. Whenever your fiscal year starts is when the dues become payable.

BrianB (California)
Posts: 2,820
Posted:
You can always ask the BOD to reduce/credit your payments for the previous year. You have some logic on your side, they might. Or, they might not, as pointed out.

If I were to argue FOR the HOA, I would state that you still had access to, and could have used, all the amenities. The fact that you chose not to is within your control, not theirs. You still could have gone, enjoyed, etc., you just didn't. The dues are for the option to enjoy, not the actual time spent enjoying.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Geoff:

I paid school taxes last year but I have no kids in school. What are my chances of getting a refund of my school taxes?

BTW, there was a recent thread on this forum about charging owners of undeveloped lots a much higher assessment to encourage them to either build on the lot or sell it to someone who will. Count your blessings.
MattG2 (Kansas)
Posts: 16
Posted:
Just a thought,

When you defend your actions by comparing them to a governmental function with taxing authority, you might want to re-think your case.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By MattG2 on 06/22/2012 12:47 PM
When you defend your actions by comparing them to a governmental function with taxing authority, you might want to re-think your case.


Matt,

In many ways, a homeowners association is exactly like a governmental function with taxing authority. Both can make rules that you are compelled to obey, and both can issue fines and other sanctions. Both can invoke the county sheriff or marshal to enforce its mandates, or haul you into court to answer charges. The only difference between them is that a government agency can put you in jail while an HOA can only throw you out of your home.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Here's a novel idea...Why not ask or make a request to your HOA for consideration of your situation? I'd send the board a letter if you don't want to attend a meeting explaining your situation/idea. They are the ones who ultimately will have to decided if your lot now degrades you to the other level of membership. It may or may not. It's not for us to debate but your boards.
Former HOA President
KellyM3 (North Carolina)
Posts: 2,239
Posted:
The board should compare the circumstances against the rules it is obliged to follow. This is the only way to serve the community with equality. Hardship provisions, if they're in the documents, should be offered. If not, the HOA needs to adhere to the dues agreement and be as flexible as permissible.
MattG2 (Kansas)
Posts: 16
Posted:
Quote:
Posted By LawrenceC1 on 06/22/2012 1:20 PM
Posted By MattG2 on 06/22/2012 12:47 PM
When you defend your actions by comparing them to a governmental function with taxing authority, you might want to re-think your case.


Matt,

In many ways, a homeowners association is exactly like a governmental function with taxing authority. Both can make rules that you are compelled to obey, and both can issue fines and other sanctions. Both can invoke the county sheriff or marshal to enforce its mandates, or haul you into court to answer charges. The only difference between them is that a government agency can put you in jail while an HOA can only throw you out of your home.

Lawrence that may be case, but in general, does the HOA really want or need that reputation?

I think alot of the difficulties experienced related to HOA's involve one party (be it a member or the board)acting irrationally. Or perhaps some individual scheming to use the HOA as a vehicle to settle a dispute in which it has no business being used for.

A frequent poster on these forums likes to always bring up that the HOA consists of you and your neighbors, this comment applies to directors as well as the homeowners.

LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By MattG2 on 06/25/2012 10:03 AM
I think alot of the difficulties experienced related to HOA's involve one party (be it a member or the board) acting irrationally.

Matt,

You are right about there being a good measure of irrational behavior by homeowners and board members, but I don't think that this represents the largest portion of the problems faced by HOAs. IMHO, most of the problems faced by HOAs stem from homeowners not realizing that they have entered into a binding contract when they bought their house -- a contract that restricts their freedom of action and mandates certain behavior.

In my experience, many problems start with homeowners saying that the HOA has violated their "rights" and that they will fight the "unfair" limits to their freedom, when in fact the "rights" they reference were given up voluntarily when the parties entered into a contract.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Lawrence, you nailed it! HOA payments and HOA rules are something OTHER people should follow to preserve MY property value and community quality of life!

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