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Are there any environmental acts that allow an HOA to skirt around old by-law provisions?

Started by RonW725 replies • 1888 views

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RonW7 (Ohio)
Posts: 122
Posted:
We have a community of 20 units (5 buildings with 4 units each). Our water is a common utility that is metered at each building and included in the monthly assessment. I want to change this by metering each unit rather than each building. Costs aside, the idea itself is good because, right now, units with the lowest water use are subsidizing units with the most water use. Couples with one or more kids are loving the fact that others are paying for their excessive water use and this is a huge problem to me. Plus, it makes people less conscious and accountable for the resources they use.

The by-laws require a majority vote for any capital improvement that exceeds $500, but the majority of the community is against this. I am convinced that it is the right thing to do regardless of the community opinion.

I am wondering if there are any environmental acts that would allow an association to skirt certain out-dated provisions in CCRs. I believe this decision would be economically sound, especially when it would make people more conscious of the water they use.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You need to talk to the water company FIRST and FOREMOST if this is even possible. We went to separate meters but we had separate homes. It cost us 20K to just to get the water company to install. We had to change our rules at a cost of almost 3K to reflect the change. That took 3 years alone. We also had to change our roads to be PUBLIC so the water company could come in and do the work. They had to dig up the entire neighborhood for awhile. The entire process took over 4 years to complete.

We had to have a special assessment to even get the 20K deposit with the water company. However, we were able to lower our HOA dues after the water meters went separate. We were able to shut people's water off for NOT paying their dues in our rules. All of which had to be changed and approved.

Your HOA is run by a MAJORITY of what the homeowners want. If they do not want separate meters, then you do not get them. That's because they are the ones who will be funding, approving, and agreeing to the change. Not an easy task to overcome if it's just your opinion....

Former HOA President
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By RonW7 on 08/15/2014 7:54 PM

I am convinced that it is the right thing to do regardless of the community opinion.

Ron,

You have posted on this subject before. You seem to be obsessed with this idea of spending hundreds and maybe even thousands per unit even though there is no proof that anyone's water bill (including your own) will go down.

If you are so damned convinced that individual metering "is the right thing to do regardless of the community opinion" then maybe your best option is to remove yourself from this community and find one that already has individual meters.

GlenL (Ohio)
Posts: 5,491
Posted:
The heck with the by-laws, the covenants are where you need to look, they usually lay out the method for setting assessments and what is to be included.

BTW our Covenants allow the Board to set up separate metering as long as we deduct the nominal amount that we have budgeted for water use from everyone's assessment but the projected cost savings vs putting the meters in and figuring everyone's bills, sending the bills, not to mention we still couldn't shut off non-payers since we are not a utility, plus the added bookkeeping and collecting costs would have actually ended up costing EVERYONE more in the long run.

Studies show that 5 out of 4 people have problems with fractions
JohnB26 (South Carolina)
Posts: 1,001
Posted:
I am convinced that it is the right thing to do regardless of the community opinion.


Thank God for the actual Covenants and the By-Laws.

You should be ashamed of yourself.

Mussolini would be proud of you.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
My experience with water billing is that there is a minimum fixed cost billed to each account that has a meter. Call it a "meter rental" if you will. It seems universal. I have encountered it everywhere I have lived, which has been in many places (over ten) and states. This charge is often pretty large when compared to the cost of water itself. About 1/3 of my present water bill is a fixed charge that never changes, no matter how much water I use. (Those of you with your own water meters might want to check yours to see what it is).

My point is that not only will there be the an extra cost associated with installing meters everywhere, which everyone will pay, including you, but everyone's water bill will go up as well, including yours.

Doesn't sound like such a hot idea to me. As they say, be careful what you wish for.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Yeah I did forget to mention that we did reduce our dues by $25 a month when we went to separate meters. My average water bill a month was $32 as a single person. Plus I was responsible for fixing any leaks from the meter to the house. Those type of repairs are costly but in a group it would be much more affordable if all chipped in overall.

So if your goal is to reduce dues, then by how much? It has to be averaged amongst ALL the owners. It can't be random. Finding out my bill is more than the decrease in dues, is a hard thing to rationalize.

Former HOA President
JohnB26 (South Carolina)
Posts: 1,001
Posted:
to repeat:

... but the majority of the community is against this. I am convinced that it is the right thing to do regardless of the community opinion.


The issue should have been DOA.

Who, exactly, does the "I" think they are?

DOH
RonW7 (Ohio)
Posts: 122
Posted:
Quote:
Posted By MelissaP1 on 08/16/2014 8:06 AM
Yeah I did forget to mention that we did reduce our dues by $25 a month when we went to separate meters. My average water bill a month was $32 as a single person. Plus I was responsible for fixing any leaks from the meter to the house. Those type of repairs are costly but in a group it would be much more affordable if all chipped in overall.

So if your goal is to reduce dues, then by how much? It has to be averaged amongst ALL the owners. It can't be random. Finding out my bill is more than the decrease in dues, is a hard thing to rationalize.

We'd reduce the amount of dues by removing water from them altogether and then having the water company bill each owner separately. Also, BruceF1 brought up a good point about overhead costs for individual meters. This could indeed be a show stopper, but I have yet to find out the answer to that.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Ron

Tough love here but you are advocating individual water meters and do not have a vague idea what it might cost. I suggest you start at square one.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
That logic does not makes sense... Is it a fixed amount each month? If it is, then you remove that cost but still divide the new amount amongst ALL the owners. However, if it is a fixed amount that sounds fair to all.

If it is not a fixed amount, then it will never pass approval. Why would a family of 4 vote for separate meters if cost reduces only by $25 in dues? Their individual bill is most likely going to be $50 a month. A single person bill may pay $20 on an individual meter but still responsible for repair costs.

Sometimes the group water meter makes sense. Ours it did not as we are individual homes not condos. The purpose of a HOA is to SHARE the cost of maintenance and upkeep amongst ALL members. So yes some members will use more than others. Some will not pay at all. A good budget would resolve that.

Former HOA President
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By RonW7 on 08/16/2014 4:10 PM
Posted By MelissaP1 on 08/16/2014 8:06 AM
Yeah I did forget to mention that we did reduce our dues by $25 a month when we went to separate meters. My average water bill a month was $32 as a single person. Plus I was responsible for fixing any leaks from the meter to the house. Those type of repairs are costly but in a group it would be much more affordable if all chipped in overall.

So if your goal is to reduce dues, then by how much? It has to be averaged amongst ALL the owners. It can't be random. Finding out my bill is more than the decrease in dues, is a hard thing to rationalize.


We'd reduce the amount of dues by removing water from them altogether and then having the water company bill each owner separately. Also, BruceF1 brought up a good point about overhead costs for individual meters. This could indeed be a show stopper, but I have yet to find out the answer to that.

You'd have to actually run the numbers in your case to determine that. Start by contacting the water company to learn what their fixed monthly rates and actual water usage rates are. You can then do some estimating.

Earlier I had said that about 1/3 of my water bill was a fixed monthly charge. Well, it used to be when my wife was alive. I just checked and the fixed portion of my bill is about 2/3. I pay a monthly fixed service charge of about $22 per month regardless of how much or how little water I use. The water portion of my bill ranges from $11 to $13 per month which makes my average monthly water bill about $33 to $35 per month. When my wife was alive and my older daughter stayed with us to take care of her, my monthly water bill was about $47 per month for three people. Of course, rates vary considerably and will depend on where you live and how water is delivered. Still, fixed and variable costs are almost universal with all utility billing, including water, electricity, gas and telephone. Check your bills and see.

There is something in economics called "economy of scale." It means that fixed costs go down per user as the number of users increases. In other words, in your case, the fixed portion of the cost of your monthly water bill is being shared by four users instead of being paid for by just one.

We do the same thing in our community with trash collection. Instead of having each homeowner pay for trash collection individually, as is done with other private homes in the town, the association contracts with the trash collection company to pick up trash for the entire community. That total cost is then divided equally among the homeowners as part of the monthly assessment. Because of the "bulk buy," each homeowner actually pays less for trash removal than they would if they each contracted separately for it.
GeorgeR8 (Arizona)
Posts: 182
Posted:
If all unit owners are not year round residents, the year round residents will get a big hit on separate meters. The part timers, through their HOA fees, are paying part of your bill now.

I think you are looking for a solution when there is no problem.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GeorgeR8 on 08/17/2014 6:35 AM

I think you are looking for a solution when there is no problem.

Well, I do believe that Zach believes it's a problem.

However, as was pointed out by Zach and echoed by John, since a majority of the membership doesn't want individual meters, it's simply not going to happen without support.

Therefore, my suggestion to Zach is:

Quit looking for loopholes like environmental acts, etc.
Instead, as others here have suggested, start gathering the figures. Find out what it will cost and what the actual impact would be to the average owner. Then use those facts to gather support to make the change happen. If, after explaining the facts and figures to others, there is still not enough support to make the change, I would suggest that you place your time and energy into other more enjoyable things or start to find property that already has individualized meters.

JohnB26 (South Carolina)
Posts: 1,001
Posted:
The part timers, through their HOA fees, are paying part of your bill now.


EXCELLENT POINT
JohnB26 (South Carolina)
Posts: 1,001
Posted:
TimB, you are sooooo polite. And my role model.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By TimB4 on 08/17/2014 8:47 AM
Instead, as others here have suggested, start gathering the figures. Find out what it will cost and what the actual impact would be to the average owner. Then use those facts to gather support to make the change happen.

Or, Ron may discover that that the financial impact would be negative, including to himself.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Oops,

I said Zach. The original poster was Ron.

My apologies to both.
RonW7 (Ohio)
Posts: 122
Posted:
Quote:
Posted By MelissaP1 on 08/16/2014 4:41 PM
That logic does not makes sense... Is it a fixed amount each month? If it is, then you remove that cost but still divide the new amount amongst ALL the owners. However, if it is a fixed amount that sounds fair to all.

If it is not a fixed amount, then it will never pass approval. Why would a family of 4 vote for separate meters if cost reduces only by $25 in dues? Their individual bill is most likely going to be $50 a month. A single person bill may pay $20 on an individual meter but still responsible for repair costs.

Sometimes the group water meter makes sense. Ours it did not as we are individual homes not condos. The purpose of a HOA is to SHARE the cost of maintenance and upkeep amongst ALL members. So yes some members will use more than others. Some will not pay at all. A good budget would resolve that.

I think it makes perfect sense. It's not going to be a fixed amount. It will be billed directly to the homeowner.

Also, there isn't much different between a home and a condo. Just because it's a condo doesn't somehow mean that all utilities have to be shared. Would you recommend that the community also share a common electric bill just because it's a condo and not a house? People in condos get billed separately for their electric, so why can't the same be true for the plumbing?

You're right about the family of four not wanting to vote for this, though. It would make their bill skyrocket. If single Joe uses $25 a month for water and the family of four uses $100, shared water will average out both of their bills to $62.50. Joe would love individual meters because his monthly expenses would drop by $37.50 whereas the family of four would see in increase of $37.50.

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By RonW7 on 08/17/2014 3:56 PM
You're right about the family of four not wanting to vote for this, though. It would make their bill skyrocket. If single Joe uses $25 a month for water and the family of four uses $100, shared water will average out both of their bills to $62.50. Joe would love individual meters because his monthly expenses would drop by $37.50 whereas the family of four would see in increase of $37.50.

Your estimate for a family of four is excessively high when you consider the fixed costs. I've already provided you an actual example where the water costs for three people were less than $50 per month. Are you trying to say that one more person doubles that amount?

Stop guessing. Go out and get the real numbers and then do the real math. You may be in for a surprise.

As a real life example, we are considering replacing our existing hot water system in our clubhouse with a tankless, on demand, hot water heater because of the alleged savings in energy costs. In fact, I sponsored the idea. After I have done considerable research, I learned that such a solution, because of the annual maintenance required, was not at all cost-effective and , that in fact, we would never recover our initial investment.

Don't proceed based on impulse. Research! Research! Then do more research! Get the facts and the actual numbers; do the math; then decide!
KerryL1 (California)
Posts: 14,550
Posted:
I agree with Bruce, Ron. You shouldn't move forward based on "common sense," or a "feeling" of injustice. Research is your only logical & rational approach. the data are available!
LarryB13 (Arizona)
Posts: 4,099
Posted:
The very first step should be to contact the water company and find out if they will even allow individual meters. In my area the water company is the city and their policy is one address, one meter.

If the water provider will not mess around with individual meters you can still install individual meters but someone is going to have to read them on a regular basis and prepare some sort of bill for each unit.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Bruce... Look into a water heater with a condenser unit on top. They are a bit more expensive than a regular one but the efficiency cost may be worth it. A good option over the tankless system when can not afoord it. A few plumbing companies have them but not all. It is a special request type item. It is basically a heat exchanger which works like a central unit. Go to This Old hous wevsite and look up that option.

Former HOA President
GlenL (Ohio)
Posts: 5,491
Posted:
Ron, why are you harping about families of four? How about the single who takes multiple showers or extra long showers and runs the dishwasher with minimal loads, you might actually be surprised who in the building wastes water. But if your Covenants require water to be included in the assessment, that would be the first hurdle you need to jump, amending them which it sounds like you'll come up short.

Studies show that 5 out of 4 people have problems with fractions
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By GlenL on 08/18/2014 1:02 AM

you might actually be surprised who in the building wastes water.

In many places the biggest water user of all is the association itself as it waters its landscaping. (My philosophy with landscaping is that if you have to water it you planted the wrong stuff.)

Just to give a baseline guess as to how much water a home might use at a minimum, I live in a single-family detached home. We do not water our "lawn" or other landscaping but we do have a dishwasher and a washing machine. With just my wife and me we use an average of 100 gallons per day or 3,000 gallons per month.

Our washing machine is one of those high-efficiency front loaders and I cannot guess how much or how little water it uses but seems to use less than an old top-loader. I am not convinced that the dishwasher uses any more water than we would use if we washed by hand.

JohnB26 (South Carolina)
Posts: 1,001
Posted:
re: auto-dishwasher water use

study after study have shown that the machine saves water if 'fully' or even 'well' loaded

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