New Thread: Use of Assessments for Cable TV

When I had to go to court for our foreclosure, what our dues covered was asked. The other side's lawyer asked if we included "Cable Tv" in our dues. Found that kind of interesting to have been included/assumed. I told them "no". What is included in our dues was paying for Insurance, garbage/recycle pickup, pool/clubhouse maintenance, lawncare (including weed control), and other associated HOA OPERATIONAL expenses. Cable TV does NOT count as "operational" expense nor provided to the owners. We allowed the cable companies to install/maintain their equipment but we in no way provided/paid for it.

Our water used to be in our documents because we did pay for water. If you did not pay your bill, we could turn your water off. Also written in the CC&R's. We went to separate water meters. Owners/members were responsible for their own water. We had to modify our CC&R's to reflect this change. That way new members/owners would not think that the HOA paid for water or water repairs.

Cable TV is set up in each HOA differently. It may be that it is something the HOA provides and pays for. If so, then that does need to be disclosed and part of the documents to reflect this.

I agree that when the CC&Rs are out of date due to changes in technology, an amendment is the way to go rather than ignoring them. The only instance where you could get away with it, as far as I know, is satellite dish installation since FTC rules override governing docs.

In general, we follow the FTC's guidelines for utility installations of any sort: we won't prohibit owners from having utility lines run through the common elements, but we have the right to control how the installation is done.

Our association absolutely does not pay for individual owners' services with the exception of water. The only reason we do so is that the condo buildings have a single plumbing system - unlike the townhomes which are served individually - and it would be cost prohibitive at this time to separate each condo unit. However, a steep rise in water costs could very well result in something like that happening in the future, thus removing all utility costs from our monthly assessments. By the way, I've found that square footage doesn't correlate all that well with the number of occupants. Just as garage size does not correlate with the number of cars the owner has. Condos, eh? :-)

I think one of the things you need to look at is the difference between something like water vs. cable TV. There are certain utilities that must be provided in order to get a certificate of occupancy (a builder must obtain one before he can sell a new home). These include water, electricity, plumbing, and the like - things that are considered essential for preserving life and limb. Cable TV is not essential since you can get your news and entertainment in other ways, or live without them altogether if you choose to do so. That said, most builders pre-wire their new homes for cable, security and "smart home" systems because they are desirable features.

Whether cable TV and/or internet services are required services today is what has me a little torn. With forest fires, hurricanes, and pandemics on the apparent rise, and with the economy currently re-shaping to allow for work and school from home (online classes for all grade levels, and so on) I think the need for these services is higher than ever. They help ensure safety. That these services are educating many of our kids is huge. More.

I keep in mind the reports that say that kids without these services (in impoverished communities or in rural areas) are massively deprived and are falling further behind in their schooling compared to those who at least have decent internet services. Imagine what the private school kids in New York City are getting vis-a-vis the public school kids in, say, rural Nebraska.

JohnT38, noted, re 5G.

I figure a covenant amendment would have to be worded to give a board a lot of latitude to accommodate changes in technology. One day some latitude might be necessary for whether a board can judge that such technological service is a type of essential service.

I don't understand how an HOA can legally have a statement in their CC&Rs that permits them to engage cable tv contracts for the interior of each unit, which is privately owned. It is not a common area expense. Same if there is a statement in the CC&Rs permitting the HOA to purchase a sofa once every 7 years for the interior of each unit. Both are for the interior of each unit, are completely optional services/products and unlike water, are not relevant to operations, health, maintenance and safety. Cable tv is not an essential service and a sofa is not an essential product. Why should the HOA mandate each owner to indirectly purchase a product for their interior walls, which they privately own that they might not want or need?

It's too bad such statements in CC&Rs have been ruled illegal by courts.

It is irresponsible from a fiduciary position for a Board to enter into a long-term contract for an aging and outdated service such as cable tv, especially if an HOA's reserves are underfunded.

Geno,

Are these for HOAs and COAs both? I can kinda see the reasoning for condos.

One of the original threads I saw involved a Florida community for which the builder negotiated the original contract, so it makes sense. I haven't come across something similar in my state.