Asking a master association for financial help.

Hello Everyone. I live in a subdivision of 75 homes that belongs to a master association with several hundred homes and some businesses. My subdivision has our own set of financials, costs with a monthly assessment fee of $44 per month. The subdivision also pays $70/quarterly to the master association.

Over the last few years, the subdivision finances have not been able to support the community pool and private streets (not accessible to all homeowners in the master association, that is why there is a $44 assessment for just the subdivision). We are at a point of doing an $800+ special assessment.

One solution is that the current board is approaching the master association board to request assistance. We are asking that the master include the subdivision common area in the weekly landscaping service… a $400 monthly saving to the subdivision. The reason why we are asking is that the subdivision does not get the full benefits of the master association. The subdivisions quarterly assessment is put into the same accounts to pay for the master associations property management and landscaping.

Can anyone help me on helpful hints that I can hit during this meeting to win my case? The master association is well over $130K in funds, as the subdivision only has $38K (needing $45K for the streets and $30K for the pool repairs). Any help would be appreciated. Our property manager (which is separate from the masters) laughed and said the master board would not agree. Has anyone ever been in this situation and had a positive outcome?

Hi Tara:

I read Roger's reply, and I think he is correct. The private common areas in your sub-association do not benefit the master association; your sub-association needs to assess sufficiently for both operations and reserves to take care of the long-term maintenance items. The master's responsibilities do not include maintenance of sub-association assets.

My guess is that either your PM has not done his job sufficiently, or there have been previous boards who didn't want to raise assessments, or both, and thus, your sub-association finds itself needing to do a special assessment.

The other members of the master association have no responsibility to bail out your sub-association; and if you think about it, their property values would not necessarily benefit from it, either.

I work for a master association, we have ten sub-asssociations (condo and Townhome associations), plus about 1200 single-family homes. I cannot imagine that one of the subs would even think of asking money from the Master, let alone that our board would even consider such a request.

One thing to consider, would be for your board to make the assessment due at once, but payable over time (generally with either a discount for paying up front or interest if paying over time). In such cases, if a property sells, the special assessment is due and payable at closing (and the unpaid amount is then folded into the cost of the home for the purchaser). Another would be for your sub to take out a loan, and raise the general assessment to pay the cost.

J. Patrick Moore, CMCA

I would say it might be a good idea if your individual common area maintenance could benefit from the master association's contract. IE: If you can get a better rate by combining to a larger contract then it makes sense.

I think the concept that having money makes one responsible for others is really dragging down our nation right now.