BH4 (Ohio)
Posts: 1
Posts: 1
Posted:
Hello - I have a question regarding Ohio's Planned Community Law (Chapter 5312).
Our CC&R say nothing about the ability to collect late fees/interest/individual assessments. The board hired a management company who gets ~40% of any late fees/interest/assessments they assess, so it is in their best interest to fine, fine, fine. In our CC&R it says payments later than 60 days will have a lien filed on their property. The payments are for common expense liabilities (to maintain common areas). To make matters more confusing, the management company set payments due on March 31 (annual payments), however last year's payments were good until May 31. We have had several members of the community that paid late (end of may, beginning of June), yet within the 60 day window. (SEE TEXT BELOW FOR OFFICIAL VERBIAGE)
After going to the annual meeting, we requested a fine schedule, and the management company said one was approved by the board. This has not been distributed or incorporated into any official documents with the county. The only notice is at the bottom of the annual statement that says "late fees and interest may be charged."
Questions:
1. Are the late fees and interest legal charges since the CC&R make no mention of individual assessments or would the only fines/fees be for those associated with attaching a lien?
2. Do the fines/late fees/interest rate have to be recorded with the county like the CC&R & bylaws?
3. There are also new fees to sell your house, which are not mentioned in the CC&R. Are these legal or would they be a "common expenese" of hiring the management company to transfer records?
Thanks in advance for your input.
Text from CC&R
The Architectural Control Committee will be empowered to levy, assess and collect an amount not to exceed Fifty
Dollars ($50.00) per year from each and every lot owner in XXXXXXXXX as necessary for the carrying out of its responsibilities under this paragraph as well as the other provisions of this Declaration of Restrictions; and provided further that said limit of Fifty Dollars
($50.00) for the annual assessment may be increased: i) in proportion to any increase in the Consumer Price Index of the United States Bureau of Labor Statistics from the base period of February, 1993; or ii) upon a majority vote of all owners/members of the Homeowner's Association established pursuant to paragraph 24 as follows, such vote being in compliance with the charter, bylaws, and regulations of such corporation. Any amount so assessed or levied shall become a lien on each lot. In the event any amount so assessed or levied is not paid when due and remains in arrears for more than sixty (60) days, the Architectural Control Committee, or a majority of the members
thereat may cause to be filed with the County Recorder a Notice of Lien describing the lot and the amount due and executed in accordance with the formalities then required to record a lien against real estate.”
Our CC&R say nothing about the ability to collect late fees/interest/individual assessments. The board hired a management company who gets ~40% of any late fees/interest/assessments they assess, so it is in their best interest to fine, fine, fine. In our CC&R it says payments later than 60 days will have a lien filed on their property. The payments are for common expense liabilities (to maintain common areas). To make matters more confusing, the management company set payments due on March 31 (annual payments), however last year's payments were good until May 31. We have had several members of the community that paid late (end of may, beginning of June), yet within the 60 day window. (SEE TEXT BELOW FOR OFFICIAL VERBIAGE)
After going to the annual meeting, we requested a fine schedule, and the management company said one was approved by the board. This has not been distributed or incorporated into any official documents with the county. The only notice is at the bottom of the annual statement that says "late fees and interest may be charged."
Questions:
1. Are the late fees and interest legal charges since the CC&R make no mention of individual assessments or would the only fines/fees be for those associated with attaching a lien?
2. Do the fines/late fees/interest rate have to be recorded with the county like the CC&R & bylaws?
3. There are also new fees to sell your house, which are not mentioned in the CC&R. Are these legal or would they be a "common expenese" of hiring the management company to transfer records?
Thanks in advance for your input.
Text from CC&R
The Architectural Control Committee will be empowered to levy, assess and collect an amount not to exceed Fifty
Dollars ($50.00) per year from each and every lot owner in XXXXXXXXX as necessary for the carrying out of its responsibilities under this paragraph as well as the other provisions of this Declaration of Restrictions; and provided further that said limit of Fifty Dollars
($50.00) for the annual assessment may be increased: i) in proportion to any increase in the Consumer Price Index of the United States Bureau of Labor Statistics from the base period of February, 1993; or ii) upon a majority vote of all owners/members of the Homeowner's Association established pursuant to paragraph 24 as follows, such vote being in compliance with the charter, bylaws, and regulations of such corporation. Any amount so assessed or levied shall become a lien on each lot. In the event any amount so assessed or levied is not paid when due and remains in arrears for more than sixty (60) days, the Architectural Control Committee, or a majority of the members
thereat may cause to be filed with the County Recorder a Notice of Lien describing the lot and the amount due and executed in accordance with the formalities then required to record a lien against real estate.”