Vicious Circle

This is the scenario. HOA has about 25 standalone homes. The HOA funds are low but the dues and assessments are low at $375 per year total. Some of homes are lived in year round others are part-time summer users. A portion of HOA property is enclosed by a split rail fence. The fence constantly needs repairs, is old and quite ugly but beauty is in the eye of the beholder. After expenses are paid, there are no available funds to repair the fence. Some of the HOA homes are located directly behind the deteriorated fence. This is the problem. The homeowners want the fence repaired and refuse to pay dues and assessments until the fence gets fixed.

The bylaws require member approval for a special assessment to raise money. The members will not likely approve a special assessment to repair the fence. Most of the homeowners don’t care because the fence is either not directly in front of their property and they are occasional summer users of their property. The BOD can raise the dues without member approval. They likely will not raise the dues to fix the fence because many of them are part-time summer users. As a part-time occasional user of the property, they must pay the minimum rate for their utilities, property taxes, plus pay their HOA dues and assessments at the same rate as the full-time residents. Some have the attitude that they pay enough and will not pay out any more.

I say to just remove the fence but others do not agree. I am not passionate about either option but there are people here that want to keep it but do not want to pay more money to fix it. There is some nostalgia attached to the fence. It was first erected way back in the 70’s when the area was first developed. I’m sure it looked quite attractive then but it looks really tacky now. I may have a different attitude if my home was directly behind the fence.

Any ideas? Thank-you.

It is entirely within the board's discretion as to what gets fixed and when. The homeowners do not have the right to demand a particular asset repaired and have no right to refuse to pay their assessments just because work they want done is not being done. This is a fact of life they accepted when they purchased property within an HOA. If they are unwilling to behave like adults then take them to the woodshed and let them learn the lessons of living within an association.


Special assessments are a hard-sell to members. Here are a couple of alternatives:

1. If your board has the authority to raise assessments even by just a little without owner approval, do it. The owners will grumble but since most are not willing to serve on the board themselves they will pay. Do that as often as the law allows, if allowed at all, until you begin to have a reserve fund.

2. The problem with the fence repair is that most owners do not see it as their problem, so divert funds budgeted for other projects and fix the fence. Make sure that whatever was robbed is something that effects everyone. Let the roads go unrepaired, for example, and let them become impassible. Then ask for approval for a special assessment to repair the roads. You just might get owner approval if everyone is effected. Or the angry villagers may storm your castle with pitchforks and torches.

Listen to Larry's feedback. It's spot on target.

Listen to Tim's feedback on determining money you need to save.

Owners don't make demands and don't financially hijack the HOA with a refusal to pay. However, boards shouldn't take the easy way out and not maintain objects served to seasonal residents.....the payment demands are NOT seasonal requests.

Two things about Reserve Funds bewilder me:

1. That it took several years for me to truly understand their necessity in an HOA.

2. That so few people don't understand reserve funds now that I understand them and think it's a simple concept (after the fact).

Banks

Work to get elected to the BOD and bring about change.