Mismanagement and very high dues.

Started by JohnS6 • 8 replies • 2067 views

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JohnS6 (Washington)
Posts: 1

Posted:

We live in Washington state. Our condo' association consists of 16 units which ocupies approx 1.5 to 2 acres of land. Our property backs on to 10 acres of woodland which is owned by the assoc. Monthly dues vary depending on square footage, we occupy the largest unit at 2400 sq. ft. Our monthly dues are...$474/month!! When we purchased the unit in October of 2005 the monthly dues were $237/month. We never have any money, or at least very little, in reserves so when maintenance is needed we are assessed, the latest assessment is around $4000.00. I served on the board as president for one year and was amazed at the "no-can-do attitude." I know that previous boards continuously deferred maintenance and somehow spent the reserves elsewhere. I would very much like to disband this HOA as there seems to be no end to the financial burdens and inefficiency of association. Does anyone have any ideas as to this possibility? Should I simply talk to an attorney who specializes in HOAs, has anyone successfully challenged and disbanded an HOA?

hoatalk (California)
Posts: 603

Posted:

First, search this forum for: disband hoa
You will find discussion on this. (Click Search on the upper right of the forum.)

Second, Disbanding might be possible in a single family home community with no common area to speak of, if the city/county took over the common area. However, in a condo association with shared buildings and land, how would you ever disband the association? How would you then maintain the common land, amenities and buildings?

The dues are to cover actual expenses and reserves, as you know from being on the board, so the first step would be to study the budget and see where the money is going. All members are entitled to a copy of the budget and finances. Next would be volunteer to get back on the Board or join a finance committee and offer to help work on the budget.

It may be that the current board is building reserves now and that's why you saw the big increase.

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JoeW1 (New York)
Posts: 728

Posted:

JohnS6 - Your Assoc. has seen a 100% increase in fees plus a $4,000.00 assessment in 2 years!!! If you disband the HOA, who will pay for the items needed to be funded from reserves?

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By JohnS6 on 02/04/2007 2:48 PM
I would very much like to disband this HOA as there seems to be no end to the financial burdens and inefficiency of association. Does anyone have any ideas as to this possibility? Should I simply talk to an attorney who specializes in HOAs, has anyone successfully challenged and disbanded an HOA?

I seriously that you will ever be able disband the HOA. Why not spend your efforts becoming actively involved in the association and find out where the money goes. Perhaps you could get elected to the Board and try to improve the HOA while trying to decrease some expenses.

My experience has been that most owners will complain and run to an attorney but are never willing to participate in a constructive manner.

JoeW1 (New York)
Posts: 728

Posted:

RogerB - you missed the part where JohnS6 said he was on the board and served as President for a year. Therefore actively involved. Stands to reason the opportunity to provide solutions to the problems were in his grasp as President. Curious what happened.

RogerB (Colorado)
Posts: 5,067

Posted:

Thanks Joe, I did overlook the year he served as President. I too am curious as to what was accomplished while he was President and if he is still serving on the Board.

DeniseA2 (Washington)
Posts: 15

Posted:

John, I would recommend a few things. First off, effective July 2010. All property managers must be real estate licensed, which will provide some accountability on these companies. Background checks etc will need to be done to get a real estate license, which will identify if a individual is proper to be addressing your accounting matters.

Refer to:

RCW 18.85.011
Definitions.

(16) "Real estate brokerage services" means any of the following services offered or rendered directly or indirectly to another, or on behalf of another for compensation or the promise or expectation of compensation, or by a licensee on the licensee's own behalf:

(h) Performing property management services, which includes with no limitation: Marketing; leasing; renting; the physical, administrative, or financial maintenance of real property; or the supervision of such actions.

RCW 18.86.030
Duties of licensee.

You can check on the link below, to locate if your property manager is real estate licensed.

http://www.dol.wa.gov/business/checkstatus.html

DonnaS (Tennessee)
Posts: 5,671

Posted:

This one is 3 years old.

DeniseA2 (Washington)
Posts: 15

Posted:

Thanks Donna! Actually it is ok that the comments are aged or the participant is not even a member.....good for other current members to interject and communicate on past posts. I appreciate your comments though.

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