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ZachS2 (Michigan)
Posts: 3
Posted:
Hello all. I have searched through the threads and didn't find a similar topic, so I hope this is isn't a re-post.

The Board of our HOA has announced that all homeowners must switch to one trash pickup company, which has been chosen by the Board. Our covenants and bylaws do not reference trash pickup at all, nor do our annual dues contribute to trash pickup in any way. Each resident has their own contract with the provider of their choice. The Board is taking the position that multiple trash trucks result in more wear and tear on the roads, and since they have authority to maintain the roads (which are owned by the county), they say they have the right to mandate this change. Said change will result in a significant financial penalty to homeowners who have paid for the year in full, as well as older homeowners who will have to switch from putting recycling in a rolling container to using bags and hauling them to the curb.

The attorney on retainer by the Board naturally thinks this is fine.

Can a Board inject itself on a private contract when it has no financial stake in it? Can the Board be liable if a resident files suit against the mandated trash company down the road?

Thanks for your help.
Zach
GeorgeS21 (Florida)
Posts: 3,808
Posted:
If county roads, why would the HOA maintain them?

If they are private roads with HOA maintenance, the number of trucks could certainly matter.
DeidreB (Virginia)
Posts: 113
Posted:
ZachS2, Usually public roads are maintained by the county or state, not HOA's. Please clarify.

Are other communities serviced by the same streets your trash trucks use to service your neighborhood? If so, I suspect that wear and tear on roads will not be reduced by much if at all as the other trash companies will still be using the same roads to go to other homes.

Even if it were, I would think this would increase HOA assessments (something most people do not want even if it is minor). And homeowners will now have less say in their services (not everyone has the same needs).

With no mention of authority to consolidate services in CCRs, I think the Board is over reaching (especially if they don't maintain the roads -- I doubt they do if they are public but I may be wrong).

As for possible liability, some companies are safer than others so anything is possible although not likely IMO.

Seems like a case of the juice not being worth the squeeze.

ZachS2 (Michigan)
Posts: 3
Posted:
Hello George.

County roads, but they are 30+ years old and have been cracking for years. The HOA has an asphalt company come in every other year to seal the cracks with hot rubber in an effort to delay the county forcing an assessment to replace them. The roads are far from impassible and are actually in pretty good shape.

I can understand working to prolong the longevity of the roads before expensive replacement, but my concern is that by using vague "for the roads!" language in the absence of a bylaw or covenant - and mandating homeowner expenses which are NOT part of the annual dues - sets the stage for future abuse.

Thanks,
Zach
ZachS2 (Michigan)
Posts: 3
Posted:
Hello Deidre.

See above reply to George. Our 60-home neighborhood is self-contained with only two entrances off a 2-lane, 55mph paved county road.

The Board's attorney has essentially said that since the covenants allow the board to collect dues for, among other things, "to maintain roads," that they can enforce this action even if they don't include it as a part of the dues. This is where I think the legality breaks down. If they were to increase the dues and make trash collection a part of the assessment, they might have a valid argument.

Thanks again,
Zach
BenA2 (Texas)
Posts: 1,273
Posted:
I can't imagine they can legally cancel contracts between owners and trash companies, which is what they are essentially doing. I believe many states have free-trade laws that would prevent this also.

I would speak to an attorney. I'm sure you can find other owners who would join you.
DeidreB (Virginia)
Posts: 113
Posted:
Thanks for the clarification ZachS2. Concur with BenA2. This seems wrong. Using this logic they could mandate canceling any number of personal contracts that involve larger vehicles in favor of a single vendor on a single day. Also, not your question, but I would have an issue with my HOA maintaining public roads. I would think there would be liability in that if your HOA asphalt company screws it up in some way. Plus you are paying for something that is not a reserve component item. Like BenA2 recommend you consult an attorney.
CathyA3 (Ohio)
Posts: 6,299
Posted:
My community moved trash pickup into our monthly assessments at the request of homeowners because the group rate was significantly less than what we were paying as individuals (roughly 60% decrease). Our area is served by two different companies, so as individual customers we used both. One of the results of that was that pickup occurred on different days of the week, so it sometimes felt like there were always trash cans sitting out (especially around major holidays when schedules were thrown off).

I didn't experience any difference in service between the two companies. If a company were particularly bad or hard to deal with, I expect they'd put themselves out of business pretty quickly, leaving any remaining companies to be pretty comparable in service.

Our CC&Rs do have a restriction regarding trash disposal, but it only addresses hazardous materials and storing cans out of sight. Our bylaws give the association the right to include utilities in our assessments, and it mentions the possible effects of doing so - but they do not mandate it one way or the other. We're also a condo community with private streets, and wear and tear on roads is something our board pays attention to.

So it's likely that the OP's board is looking at the potential cost savings and convenience for homeowners as well as minimizing the noise and congestion resulting from multiple collections per week. All of these seem like good things.

However... I think the governing docs have to at least allow the inclusion of utilities in assessments, otherwise doing so may not be lawful even if it does provide a benefit to the community. Would have to do a deeper dive into the OP's actual governing docs as well as Michigan law to determine one way or the other. If the governing docs do allow it, it's always smart to get buy-in from the community ahead of time, though.

SheliaH (Indiana)
Posts: 6,964
Posted:
Cathy makes some excellent points.

If the documents don't state trash pickup is part of the HOA assessment, I agree the board doesn't have the right to mandate which service picks it up. On the other hand, different contracts from different homeowners may mean different pickup days throughout the week, which could cause a problem with traffic as well as the road condition (although that shouldn't be an issue either, if they're maintained by the county). If using one company can reduce the costs for everyone and perhaps set one date for pickup, that IS an improvement, as Cathy noted.

Zach didn't say if he went to the board with this, so that's the first thing I'd be curious about - and their reaction. Also, did they say this change is effective immediately or will be effective at a later date, such as sometime next year to give the current contracts a chance to expire and address the issue of elderly homeowners who may have trouble with the rolling carts.

(By the way, there are rolling carts designed for use by disabled people - in my community, people can call the city to get one instead of the usual carts).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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