Member Not Paying HOA Fees

Started by SandraS10 • 12 replies • 1711 views

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SandraS10 (Georgia)
Posts: 4

Posted:

The developer allowed at least one member of the HOA to not pay HOA fees and assessments for more than 10 years. (Other members have probably been exempted but so far we have not proven how far this has gone.) The current Board does not want to collect back payment of fees and this amounts to about $10,000. How can the paying members force payment on this issue since the Board wants to appease the developer and the nonpaying homeowner?

AmandaR2 (South Carolina)
Posts: 566

Posted:

Can you add any more background and details? Are you under declarant control still would be most important to know?

SandraS10 (Georgia)
Posts: 4

Posted:

Our HOA is no longer under declarant control and it has long been suspected that other HOA members have been exempted from paying fees. The membership only has proof of the one.

MarkM31 (Washington)
Posts: 556

Posted:

You are probably limited by statute on how far back you can go. Certainly 10 years is unreachable, and you may be limited to only the future.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By SandraS10 on 03/15/2015 10:26 AM

How can the paying members force payment on this issue since the Board wants to appease the developer and the nonpaying homeowner?

1) Gather support and get yourselves elected to the Board so you are in the seats that make these decisions.

2) If you have proof of non-payment, at the next election make sure that those members who have not paid (are delinquent) had there voting privileges suspended. This is done by asking about those you know about.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Oh, forgot to add that another option is to simply bypass the Board. Since forgiven debts are considered income, you could simply provide the documentation to the IRS. You may even get a reward if they determine that taxes are owed.

MarkM31 (Washington)
Posts: 556

Posted:

Quote:

Posted By TimB4 on 03/15/2015 1:28 PM
Oh, forgot to add that another option is to simply bypass the Board. Since forgiven debts are considered income, you could simply provide the documentation to the IRS. You may even get a reward if they determine that taxes are owed.

You must also supply the HO with Form 1099-C, which will also discharge this debt, and make it formally impossible to collect upon.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sandra

What you have is suspicions. Unless you have some verifiable proof there is nothing to collect. Prove it. Bring it to the BOD's attention. If the BOD refuses to take action then replace the BOD and/or take legal action yourself.

AmandaR2 (South Carolina)
Posts: 566

Posted:

Be sure to check your declaration to be sure of the exact wording concerning "voting privileges and suspending them" what grounds etc; it could get complicated and you want to be the one doing things correctly. Always double check details and laws for your state that may apply.

CherieA1 (California)
Posts: 1

Posted:

Here is my dilemma and welcome any advice .. I'm a homeowner at a hoa and recently at a board meeting my two acc and landscape request were approved by the board to proceed with having a at risk tree trimmed at my home and seeding added to my yard since the committe decided to stop watering my yard to save on water and now grass is dirt .. A week later I was told by our management team that the board changed their mind .. Two questions can they change their mind after already ruling an second can I stop paying dues to pay the tree company and landscaper ??

NpS (Pennsylvania)
Posts: 4,216

Posted:

Q1: Probably. But if you contracted with landscaper and tree co at some time between the approval and the reversal, maybe not. Can you provide more detail?
Q2: No.

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Cherie,

It's best to start a new topic then to place a new topic/issue in an existing thread. this is done by clicking on the words "add new topic) above and to the left of the blue banner over the topics list.

If you have incurred expenses because of the approval, you may be able to seek to be reimbursed for those expenses because of the Board's change of mind. This would be done through the courts (small claims could work) or, sometimes, simply a demand letter from an attorney.

As for the "at risk" tree, if it isn't pruned, you have placed the board on notice and if any damages occur because they failed to prune the tree, the Association could be responsible for that damage. Make sure that you keep all written notifications and, if they were verbal, ask that they be placed in writing. This is so you have documentation in the future if you need it.

As for assessments, that is a completely different issue. It is a contractual obligation you entered into when you purchased your property. Failure to pay assessments on time can have some dire consequences. DO NOT STOP PAYING ASSESSMENTS OVER THIS ISSUE.

KerryL1 (California)
Posts: 14,550

Posted:

Cherie, please start a new thread.

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