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HOA Dues Waived.. Oklahoma

Started by KarenG8 • 13 replies • 2821 views

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KarenG8 (Oklahoma)
Posts: 5
Posted:
I am working with my son regarding some issues with the HOA. Single family units. I am very familiar with the Florida HOA laws after spending 7 yrs on my own HOA. Not so familiar with Oklahoma. So here is one of many questions I have. There are two (2) homeowners who claim to have a waiver from paying dues. One cleans the Association's pool, so he feels he does not have to and is not required by the Board to pay dues. The other just purchased their home. The previous owner had a waiver from paying dues. (reason unknown) So, the Board agreed to pass this on to the new homeowner as well... There is no Management company involved.

Any feedback would be greatly appreciated. My son is in the process of getting all copies of the Documents pertaining to the Association.

Also, there are activities with the finances in question as well...
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Dues being waived is a BAAAAAD thing. Should NOT be done. Even if that person is doing work for the HOA, they should NEVER EVER waive or forgive dues. That could make a legal rabbit hole. I would NOT like that arrangement.

Your son is NOT a member of the HOA. He's a potential one until he's an owner. CC&R's and Incorporation documents are PUBLIC information available at the local courthouse. Financials and by-laws are internal HOA documents. It would be a courtesy if they provided them. It is NOT required to disclose only to actual members.

Does your son want to be involved in the HOA or just be aware of it? Depending on the level involvement and effort he wants to put in it, that should be how much to find this information out. He may want to be involved and make changes. He may just want to see the health of the HOA and learn how much to pay in dues. I moved in and got involved almost immediately. How much involvement do I want to make and is it something I am interested in pursuing?
Former HOA President
KarenG8 (Oklahoma)
Posts: 5
Posted:
My son is a homeowner and he wants to get involved. He and the others want to get their ducks in a row before approaching the Board. First, the homeowners are not being informed of meetings. Homeowners have not been given yearly, alone monthly, financial reports, budgets or meeting minutes. He has asked me for my help since I'm an accountant and have held the position of Treasurer, HOA, for 7 yrs, although in a different state. I know that laws can differ from state to state. I've done internet searches for OK HOA laws.. They seem to be vague.. I really need to see the Association Docs..

Thanks for your feedback... much appreciated.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Sorry if my response made not alot of sense. Call it a BAAAD computer glitch. It somehow keeps back tracking and erasing some of my sentances...

Anyways, your son is NOT a HOA member until he finishes the purchase. This means he is not entitled to have access to the financials of the HOA. If they provide this, then it is a courtesy. Keep this in mind when requesting information about the HOA before the final sale. The seller may provide some information but not always required to do that either. CC&R's and Incorporation documents are PUBLIC. All else could be privy only to HOA members.

Your son just needs to decide if he wants to be involved in this HOA or not. It's all in the involvement. Decide is it worth the challenge or just sending a check in?
Former HOA President
KarenG8 (Oklahoma)
Posts: 5
Posted:
Okay... Son has been a homeowner there for close to 4 years now.. He and group of other homeowners have gathered with similar concerns and are trying to make sure they do everything by the book before approaching the Board, ie, their rights to what information by law, etc. There seems to be a tight hold on info from the Board. In the past, no one wanted to get involved for fear of repercussion from the Board. Thus, the reason to get as much info gathered as possible...
KarenG8 (Oklahoma)
Posts: 5
Posted:
Okay... Son has been a homeowner there for close to 4 years now.. He and group of other homeowners have gathered with similar concerns and are trying to make sure they do everything by the book before approaching the Board, ie, their rights to what information by law, etc. There seems to be a tight hold on info from the Board. In the past, no one wanted to get involved for fear of repercussion from the Board. Thus, the reason to get as much info gathered as possible...
CarolR11 (Colorado)
Posts: 2,563
Posted:
Karen, can you say a little more about your HOA? Size? Age? # of Board members?

I'd agree with Melissa. Dues shouldn't be waived.
KarenG8 (Oklahoma)
Posts: 5
Posted:
Approx 200 homes... 3 board members (been on the Board for years).. Development close to 10 yrs old...

Thanks Carol
TimB4 (Tennessee)
Posts: 21,059
Posted:
Karen,

Until you have access to all the paperwork in the Association files it's hard to offer advice on the one new owner not paying assessments.

Typically, the Board may not waive anything within the CC&Rs unless the CC&Rs (or State/Federal law) specifies they can. This goes for assessments as well.

For the individual cleaning the pool, they should pay the Assessments and the Association should write a check for the pool cleaning services provided by the individual. If the amount is equal or above $600 a 1099-misc should be issued by the Association to the individual for tax purposes (a copy of the 1099-misc is also filed with the IRS).

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Karen,

Two things -

First, waiving HOA dues may be illegal. In Connecticut, for example, by law. all units must be assessed in accordance with the allocations set forth in the Declaration (CCRs). Since the board has no authority to waive the terms of the Declaration, the board has no authority to waive assessments.

Second, as a professional tax preparer, I can tell you that receiving a monetary benefit, such as relief from paying assessments, in exchange for providing goods or services (cleaning a pool) is what is known by the IRS as "barter income." Is is fully taxable income to the individual the same as wages, interest, dividends, etc. The value of the income in this case is the value of the assessments. That income is required to be reported to the IRS. Failure to report that income can subject the individual to penalties if discovered by the IRS. Furthermore, if the value of that income exceeds $600 in a year, the HOA must file a 1099-MISC with the IRS, or the HOA may be subject to penalties as well.

The proper, and legal, method is for the individual to pay the assessments as required, and for the HOA to pay the individual, by check, for the value of the pool cleaning services. If the value of the cleaning services happens to equal the value of the assessments, so be it. Any attempt to conceal income by "barter exchange" is, obviously, illegal.
RogerB (Colorado)
Posts: 5,067
Posted:
KarenG8,
Read your Declaration of CC&Rs. I doubt that anyone or any body in the HOA has the authority to waive a manditory assessment on their property. Every lot (unit) is required to pay assessments. No Board can waive assessments and no assocation can waive assessments. If someone does work for the association they may be hired as an independent contractor and paid by the HOA for work done. Never can work done be traded in lieu of paying the assessment on their property.

However, for a voluntary HOA where each owner may chose whether or not to pay DUES (which is not the same as ASSESSMENTS) then other conditions may apply.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By RogerB on 08/16/2012 8:30 AM
KarenG8,
Read your Declaration of CC&Rs. I doubt that anyone or any body in the HOA has the authority to waive a manditory assessment on their property. Every lot (unit) is required to pay assessments. No Board can waive assessments and no assocation can waive assessments. If someone does work for the association they may be hired as an independent contractor and paid by the HOA for work done. Never can work done be traded in lieu of paying the assessment on their property.

However, for a voluntary HOA where each owner may chose whether or not to pay DUES (which is not the same as ASSESSMENTS) then other conditions may apply.

Semantics, semantics, semantics. Unfortunately, some use dues and assessments to mean the same thing. It's hard to tell, sometimes, what someone is actually referring to.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bruce

Add Regime Fees which is an expression for monthly dues in SC........LOL
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
If its mandatory assessment, and because "no one" has the authority to waive assessments, a new president can simply demand the person pay all back assessments or face foreclosure.

However, for a voluntary HOA this is not the case.

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