Initiation Fee without board vote?

Started by ErwiC • 1 replies • 1096 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

ErwiC (Texas)
Posts: 1

Posted:

Can an HOA condo management company impose a new regulation without an HOA board vote?

They have been collecting an Initiation Fee on new owners now for the past 2 years without the board knowing. The management company just emailed the board saying that we have to pay this money back to the owners who were charged this fee.

We have a meeting tomorrow and I’m going to suggest the Management company pay these fees back out of their pocket to the owners. Can we expect them to pay this and or sue the management company for false representation. (not sure if that is what it is called?)

Please advise.

CarolR11 (Colorado)
Posts: 2,563

Posted:

Welcome to HOATalk, ErwiC.

At first glance, and not having anything to do with the legal profession, I agree with you that the MC should reimburse the owners who paid this fee.

But, a couple of questions:

1. Have you seen the letter or whoever, that asks the MC to pay back the owners? If not, I'd sure want to read it!! You want to know if your HOA is implicated, who the demand for payback is from, e.g., a court of law?, etc.

2. Is it possible that your contract with your MC states that they can charge this fee? If you haven't read it lately, and/or any amendments to it, now's a good time.

3. How does your MC justify that it wants the HOA to reimburse this fee??!!

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here