Mandatory hiring of a specific contractor

Started by JimM29 • 8 replies • 1337 views

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JimM29 (Texas)
Posts: 1

Posted:

My HOA has decided to require everyone to hire a specific trash company. We were told to cancel our current service and to individually hire the selected company.

The section of the CCRs that addresses this reads as follows:

"The Association may, at its option, require each Lot Owner to purchase trash service from one service and charge for such service as part of the assessments described in Article XI"

The boards position is that the second part of that sentence is optional. That is, they can require the use of a specific company, but have the individual residents pay the trash company directly. Some residents are interpreting the word "and" to mean that if they require the use of a specific contractor they also much pay for it through the annual Assessment.

Is the board's interpretation of this clause correct?

Thanks.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By JimM29 on 04/14/2016 1:42 PM
My HOA has decided to require everyone to hire a specific trash company. We were told to cancel our current service and to individually hire the selected company.

The section of the CCRs that addresses this reads as follows:

"The Association may, at its option, require each Lot Owner to purchase trash service from one service and charge for such service as part of the assessments described in Article XI"

The boards position is that the second part of that sentence is optional. That is, they can require the use of a specific company, but have the individual residents pay the trash company directly. Some residents are interpreting the word "and" to mean that if they require the use of a specific contractor they also much pay for it through the annual Assessment.

Is the board's interpretation of this clause correct?

Thanks.

Welcome Jim.

Different interpretations are possible, but it's the board's responsibility to do the interpreting.

If you don't mind my asking, what's the nature of the objection?

Sikubali jukumu. Read all posts at your own risk.

SueW6 (Michigan)
Posts: 814

Posted:

Looks like it's two different actions, either or both MAY be taken by the Board.

(I see a compound sentence connecting two complete thoughts with the word ". . . and . . .")

TimB4 (Tennessee)
Posts: 21,059

Posted:

Jim,

When there is a difference of opinion on the interpretation, the parties either:

Come to a compromise
One side simply agrees to the other interpretation
One side seeks a ruling by a court

DouglasK1 (Florida)
Posts: 2,046

Posted:

I'll add to Tim's answer that a step before a judge's decision could be an attorney's opinion. Getting a judge's ruling is likely to be expensive and time consuming, but that would give you the ultimate answer.

Escaped former treasurer and director of a self managed association.

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By JimM29 on 04/14/2016 1:42 PM
. . "The Association may, at its option, require each Lot Owner to purchase trash service from one service and charge for such service as part of the assessments described in Article XI" The boards position is that the second part of that sentence is optional.Is the board's interpretation of this clause correct ?

Jim M29 : correct or not, if the association's common expenses are covenanted or legislated to require their calculation only on the basis of a formula within the Declaration or applicable document, then folks might - might - note a very loose end :

that the collection fee also unavoidably has to be calculated by that same % formula. Dependent on wording it may preclude equal collection fee.

Conversely a locked-in formula may preclude surcharge for amounts & types of waste that seem to exceed a typical residence . .

Worth asking this checked . .

MarkM31 (Washington)
Posts: 351

Posted:

It's not a winable battle, or more properly not an issue that fighting will make a difference

1) The garbage company picks up your garbage and you foot the bill
2) The garbage company picks up your garbage and you foot the bill thru your HOA.

Nothing you can do can change who picks up the garbage, and the final bill should stay the same.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By MarkM31 on 04/15/2016 8:01 PM

and the final bill should stay the same.

Not necessarily.

My Association gets a better price then an individual does.

Jim's association didn't negotiate a price. They simply insisted on this one company (wonder what made them pick this company over others). They are insisting that each individual enter into a personal contract with that company rather then negotiating a contract themselves. It's not the typical way of doing things.

SylviaS4 (Virginia)
Posts: 1

Posted:

Why on earth would you want different companies in there on different days and trash on the curb every day of the week?

One company, known trash days, cheaper by the number.

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