NC Planned Community Act

If the 'outside' sub associations have access to amenities within the gated community then they (the outside subs) must pay for their access to said amenities whether they actually use said amenities or not.

This would include the expenses of maintaining the gates.

If, however, the outside subs receive no benefits from amenities located within the gated community then they (the outside subs) need NOT fund said amenities (including the gates).

Just like your quoted Chapter states.

Since the out-club members' homes are not at all protected by these gates, they should not pay the same amount as the master assoc.

It sounds as though the out-club members have access to all the amenities inside the gates and the gates, etc., DO protect those common areas, so the out club should pay the same as the master for those.

The question is: how much SHOULD the out club pay given the gage, etc. do not benefit home & their homes outside the gates? They aren't receiving equal benefits.

We had a similar situation with our three "special benefit areas." A sq. ft. variable wasn't appropriate, our CC&Rs were unclear, and verbiage in our CA DRE (now BRE) Budgets had errors in them. We received a written letter from our HOA attorney, who concluded that we needed to find a "equitable" solution. He recommended a budget analyst whom we hired.

The latter got letters from our various vendors about the amount of time they spent in the SBAs. But this method won't wok in the OP's HOA. Still, I'm certain there's a way to make the fees equitable and my guess is they'll save the out club members a lot more than 10 cents a month. In our case, one group of owners had been paying about $15/mo. too much (in a high dues high rise condo).

On way is to start is to calculate the number of hours the amenities inside the gates are closed. Remember to factor in the reserve replacement costs for the gates and their motors.--- and the months $$ to run them when the amenities can't be used. These number all be learned by experts. I'll look up his credentials if anyone's interested.

Catherine, yes and that is my point.

The outsiders are deriving zero to minimal benefit from the primary security gates, systems, and processes. Kerry suggests there is some value derived as those systems do protect common are assets such as the pool. I agree with him conceptually but that benefit cost is exceedingly small compared to the total cost of the primary security systems and processes, hence the tongue in cheek example in my original post.

Who is complaining about this, the outsiders who believe they are paying too much or the insiders who feel the outsiders should pay more?

Your board may wish consider calculating this to the Nth degree, considering all operational, reserve, and other costs as Kerry suggests, develop a reasonable cost allocation method, and demonstrate to one and all once and for all what the allocated expenses are/would be.

Yes, it is complicated, Catherine. And our board had been quibbling about the topic for about 7 years. Our HOA attorney's opinion is 6 pages. As noted, he recommended we seek the services of a budget specialist. The attorneys observed that our original documents had errors re: assessment splits.

We asked if we may move parts of some assessment items from one special benefit area to another if there were errors in the original documents (we basically have 3 SBAs). His short-answer reply is yes: "...as an issue of fairness, and based on equitable legal principles, we consider that the Board should endeavor to correct any patently wrong attribution of expenses to a special benefit area when this has been discovered, and which cannot be reasonably disputed."

We paid $3,500 to a Certified Commercial Investment Member (CCIM) of which they're are 9,500 in the world. He reviewed all contract budget items that affected the issue of which we have many as we are twin towers. He had them write how much time they spend on particular SBAs. He calculated the amount of electricity consumed by our elevators re: one SBA, etc.

We changed the assessments and will amend our CC&Rs to reflect this, but don't need to right away.

Oh, I do think, Bill that the outsiders are paying too much and not just a little. Th thing is, there'll need to be calculation of how much time the uniformed 24/7 use protected the common areas in the inner circle and how much time protecting the homes inside the area. Do the officers also rove pathways? o outsiders use these paths?

And again, if the amenities inside are closed several hours a day, that needs to be factored in too as the outsiders won't use the gates then. Right?

Whether it's worth the expense of an attorney and a specialist depends in part on how many homes are outsiders and how may are inside.

While the $15/mo pr unit here may not seem like much, the inequity had been occurring for 15 years--it adds up.

Kelly

Are not your amenities behind the security gates? One could make the case you all should be paying something as the gate protect your amenities.

Also what is your monthly gate charge per home?

Thanks