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AlanG2 (South Carolina)
Posts: 5
Posted:
I have recently become President of our Homeowner's Association and our Board needs to resolve a homeowner issue.
This individual owns 2 adjoining lots, has paid fees for both lots for about 12 years, however 5 years ago he had the lots combined into 1 lot for tax purposes. He never told the HOA he combined the lots in 2007 and now he is asking for the extra lot fees he paid, to be refunded to him.
The Board generally agrees with allowing him to pay for only 1 lot from now on but do not think the HOA should refund past overpayments because it was the homeowner's responsibility to notify the HOA about the consolidation.
Just wondering if there are any legal precedents or what your HOA would do or has done in this situation.
BrianB (California)
Posts: 2,820
Posted:
i wouldn't even allow him to get by with one payment in the future, let alone back/regressive.

He owns two lots. he has two votes in the HOA. he pays two annual assessments. It doesn't matter what he does with the lots, he owns two, he pays two, he gets two votes.

why should his neighbors pay more because he wants to pay less?
AlanG2 (South Carolina)
Posts: 5
Posted:
Personally, I agree. The problem is we already have some homeowners with a single house on 2 adjoining lots being charged 1 homeowner's fee. Not sure how we change the rules now.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Alan, what do your CC&Rs say on the topic? Ours state that if Owners combine condos, they still must pay HOA fees for each "lot." We're a high rise, but of 200+ units, there are four that have combined units; they pay two sets of HOA dues, and have two votes each
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Posted By AlanG2 on 01/07/2013 12:08 PM
Personally, I agree. The problem is we already have some homeowners with a single house on 2 adjoining lots being charged 1 homeowner's fee. Not sure how we change the rules now.

Depends on what the lot fees are paying for. If its landscaping, then it costs double to mow his lot, than all the others, yet he pays the same.

How do your CCR's read? If the ownership of the HOA is setup at 100 lots, with each person owning 1% of the HOA, and that is what the dues were based on, you have an issue. If someone has two lots, it seems to me they should pay two lot fees, or 2%.

So now the problem isn't refunding the guy who combined his two lots, the problem is now charging the other guy more because he has only been paying for 1 lot, yet he has two.

I would look at your original CCR's to help guide you.
AlanG2 (South Carolina)
Posts: 5
Posted:
This is from the CCR:

NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that the Developers have agreed upon, fixed, attached to and imposed upon, and do hereby agree upon, affix, attach to and impose upon, each and every lot hereinafter described and upon each and every grantee of any such lot, their heirs and assigns, the following protective covenants, restrictions and conditions, to-wit:

and:

Said Association shall be responsible for common area maintenance special assessments for capital improvements, and operation and control of subdivision amenities. Each lot owner shall be required to pay annual dues for these costs.

It appears all assessments are on a "per lot" basis regardless of adjoining lots would be my interpretation.

What do you think?
BrianB (California)
Posts: 2,820
Posted:
just to be clear....if I came to your HOA, and bought 99 out of 100 lots, I would pay 1 annual assessment, and the other people would pay 1 annual assessment?

So if our annual budget was $20,000, I would pay $10,000 for my 99 lots, and the other guy would pay $10,000, for his single lot.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
It appears so. You still need to do more digging, but you may need to asses back dues on all the combined lots done years ago, and bill out per "original" lot. So if someone had 2 lots combined as 1, they still owe for two lots.
AlanG2 (South Carolina)
Posts: 5
Posted:
When expressed in those terms, it does seem fairly obvious what the answer should be.....

Thanks to all for your input as it has been very helpful.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Side note.....

Dont try and waive all the past dues for those combined lots. Because the board does not have the legal authority to waive dues, no one does, a savvy new president/board 8 years from now could foreclose on those homes for non payment of dues including interest, lawyer fees, etc. They must be paid.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Re: the two-lot situations where the H'owner is paying feels for only 1 lot: I'd check with your HOA attorney on whether you should go after the past dues that should have been paid. Or whether they should pay from now on. Based on your CC&Rs, it seems they should pay for two lots. It was your HOA's error to only charge them for one lot, not those owners' errors. And everyone else was charged a bit more? a great deal more? So would each of them get a refund??

When our MC here accidentally overcharged about 1/5th of Owners for about 3 years, the MC did refund--our of its pockets-- the $$ to them based on how many months they'd owned their condos during the previous 3 years. But the MC did not ask the rest of us to "make up" for the fact that we unknowingly underpaid. Our HOA received the accurate total amount of dues for each of those 3 years, so the HOA did not suffer.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By SteveM9 on 01/07/2013 1:35 PM
Side note.....

Dont try and waive all the past dues for those combined lots. Because the board does not have the legal authority to waive dues, no one does, a savvy new president/board 8 years from now could foreclose on those homes for non payment of dues including interest, lawyer fees, etc. They must be paid.

Statute of Limitations may prevent that from happening. You will need to research the issue, but I would recommend making an attempt to recover the fees back to the time that the SOL kicks in.

Another problem, however, is that the association, acting on behalf of all homeowners, assessed one fee when two were due and the owners of the combined lots relied on that. It would be a hard sell to convince a judge that those owners should be penalized now because at some time in the past they paid the exact amount the HOA asked for.

A better approach may be to request voluntary payments for the fees from the owners of the combined lots and take no further action if the owners do not pay up. Let sleeping dogs lie. Technically they may owe the money but the association has a lot of discretion in how much of its resources to consume in trying to collect.

My association is made up of parcels that were originally 36 acres or larger. We have many owners who purchased adjoining parcels but, because we assess per acre, there is no advantage to combine parcels. A single 80-acre parcel owes the same assessment as two 40-acre parcels. Out of 1600 parcels, I know of none where the parcels have been legally joined to form just one.
AlanG2 (South Carolina)
Posts: 5
Posted:
I would like to sincerely thank each and every one of you that replied to my posting.
Your perspectives on the situation were very helpful in determining the fairest course of action for all parties.
Thanks again for your help....Alan
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Out of 1600 parcels, I know of none where the parcels have been legally joined to form just one.


Typically abutters are always notified of someone who wishes to subdivide a lot, and a public hearing takes place. But abutters are typically never notified of combining a lot.

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