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Started by BrianM21 • 17 replies • 570 views

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BrianM21 (North Carolina)
Posts: 1

Posted:

Hello everyone,

Just had a quick question on how to approach this situation. I live in a small community in a rural area, we finally have a decent offer for internet to be installed into our community as a bulk deal, requiring payments be made to HOA vs individuals at a term of 10 years. Not everyone is on board with This, and we seem to be at a stand still. How do I go about getting a vote on this. Can I, just a regular member of the community recommend this be voted on and majority wins? Or does only the HOA vote on this.

Thanks

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Typically, its a bad deal for consumers especially deals that involve paying the HOA for service. I'd never signup for it. Sure its a good deal for "you" but how about all the people who dont have internet? Or the people who use cell phone only, or cell phone hotspot, or the fact that SpaceX high speed satellite will be online in less than a year.

Your HOA docs will say how many people will have to vote for it.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Off the point of the OP’s question, but I think the issue will be with the 10 yr period.

A lot changes in even 3 yrs ... Space X won’t be as fast as common terrestrial copper, but things do change. Just an example.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Space X won’t be as fast as common terrestrial copper, but things do change. Just an example.

Fast? LOL. Netflix HD streaming is only 5mbps.... cable companies marketing 100mbps, or even 1 gig per sec is complete overkill for most peoples needs. Its like a water company trying to sell you a 4 foot wide water pipe when you only need a half inch water pipe for your needs.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Nope. Not with three kids sucking data, working spouses researching and streaming movies.

GenoS (Florida)
Posts: 4,276

Posted:

SpaceX's Starlink satellite internet business is still at least 2 years away and probably several more after that. Legal challenges are almost certain to crimp their planning, too.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Posted By GenoS on 11/14/2019 7:39 PM
SpaceX's Starlink satellite internet business is still at least 2 years away and probably several more after that. Legal challenges are almost certain to crimp their planning, too.

air force is already using it. plans to offer it in 2020.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

No reason not to ask the HOA about the idea. However, it's most likely going to be turned down. No one wants their dues to increase to pay for the cable. Most would not want their HOA to provide cable. It also may have to written into your documents stating the HOA pays for cable with the dues. A 10 year plan is a bit much to be stuck in a cable system. Sounds more like the cable company is trying to get you all to pay for their cost of installation of their product.

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By BrianM21 on 11/14/2019 4:06 PM
Hello everyone,

Just had a quick question on how to approach this situation. I live in a small community in a rural area, we finally have a decent offer for internet to be installed into our community as a bulk deal, requiring payments be made to HOA vs individuals at a term of 10 years. Not everyone is on board with This, and we seem to be at a stand still. How do I go about getting a vote on this. Can I, just a regular member of the community recommend this be voted on and majority wins? Or does only the HOA vote on this.

Thanks

What does this "offer" entail? Will the company be running communications lines throughout the community (ie., on common area), which means the board must approve? Or does it mean installing equipment/cable lines on people's personal property? Who will be paying for this? What sort of maintenance will need to be done in the future, and who will be responsible for making it happen?

My opinion could change depending on the answers to my questions. But in general, I think HOAs should stay out of something like this. If there are any kinds of problems, then the HOA will be expected to fix them even if it's not the HOA's responsibility. And there is no guarantee that anyone is the community will have the knowledge and experience to make it work.

On the other hand, this offer could be made directly to the homeowners, without the HOA as the middleman, and see what sort of interest exists.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By CathyA3 on 11/15/2019 4:53 AM

Well said.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

HOAs contract for trash pickup, natural gas installation, etc.

Why wouldn’t an HOA contract for another commonly used commodity? Sure, everyone may want to use their own source ... UNTIL the hardwired copper or fiber service is available less expensively or as a far better solution.

I think the issue here is the term of service, and perhaps the mandatory nature of inclusion.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By SteveM9 on 11/15/2019 4:34 AM
air force is already using it. plans to offer it in 2020.

The DoD is using it for limited testing at the moment. There will eventually be 12,000 satellites in the first phase to provide complete coverage. There are about 120 satellites in orbit. At 60 new sats every 2 weeks, full coverage is a ways off.

JenniferB14 (Colorado)
Posts: 148

Posted:

oh my, our community went through this exactly. 10 year repayment, HOA had to take out a loan to pay comcast upfront, comcast would own the network after we paid almost $2M etc. etc. We are rural as well and let me tell you it was such a debacle. It would have been $10.000 per homeowner. We also weren't allowed to see the contract. Imagine that, we want you to pay $10,000 and we won't even allow you to see the contract because of NDAs. Long story short, we voted it down, but the association spend thousands in the process to include legal fees to move it forward.

MarkM19 (Texas)
Posts: 1,459

Posted:

I spoke to another Board President while living in Ca. a few years ago and they did something similar to this and their community had 4500 SFHs. She was very happy with the choice because she said if a owner does not pay dues they had the ability to turn off their Cable and Internet. We were at a Conference so I really did not have a chance to ask her many questions but thought is what interesting. The only way I would take this any further is if it allowed people to opt in or out over the life of the Contract.

As other have mentioned I doubt this will pass any type of vote from your owners. As a board member I would have an issue with signing a 10 year Contract and maybe only being on the board for the start of the contract. What happens if any of the new tech advancements get going and totally changes the way Broadband and TV is handled. How many people actually thought nearly every human over the age of 10 years old would have a iPhone in their hands today?

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Sounds like this is a bad idea because of the time period ... might be a good idea if you have no ISP, and if for a shorter time period - and, if the vendor was bearing the risk vice the consumer.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

How quickly people forget the foreclosure crisis......

The cable companies love deals where the HOA pays them per house no matter what. Guaranteed income. Now lets say internet is $75 per house and we go through another foreclosure crisis, we all know the banks dont pay HOA dues, so lets say 100 houses are owned by owners in financial crisis or bank owned and not paying dues, the cable company still gets its $75 per house no matter what. They dont care that they are not paying dues. So the HOA owes the cable company $7500 per month for non-paying members.

And that is a huge financial problem for the HOA......

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By MarkM19 on 11/15/2019 1:58 PM
The only way I would take this any further is if it allowed people to opt in or out over the life of the Contract.

Yup.

Sikubali jukumu. Read all posts at your own risk.

GenoS (Florida)
Posts: 4,276

Posted:

There's an interesting carve-out in Florida's HOA law that lets homeowners vote to cancel any HOA contract for phone, cable, or internet services. It's the only type of contract where the homeowners are permitted to do that. I'm not sure, but I believe that shows that the legislature recognizes how shady cable salesmen are and how easy it is for boards to be tricked by a slick sales pitch into a "good deal" which is actually a terrible deal once you really take a look at it.

I personally wouldn't want anything to do with such an arrangement or contract. You sign a 20 year deal and if the technology shifts significantly in 10, then you're on the hook for something that no longer serves your needs. No thanks.

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