Special Assessment Payment plan with fees

Started by JenniferB14 • 18 replies • 611 views

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JenniferB14 (Colorado)
Posts: 148

Posted:

During the middle of the Covid crisis our HOA held a tainted and insecure internet vote where only the board member who created the initiative received and counted the "ballots."It is for $4500 due immediately for the purposes of installing fiberoptic cable through our very rural community. Each homeowner is responsible for this stiff assessment even if folks don't want the service and have other broadband internet access. At any rate, the association ended up offering a payment plan of 6 months (required by CCIOA state law) however added $125 set up fee and an additional $15/month in service charges in order to pay using a payment plan.

Our Collections policy does not provide any authority to charge additional fees or charges above the principal balance, nor does the contract with the management company. These fees have come out of no where. We have personally taken over a 30% pay cut due to Covid, AND there is ANOTHER lawsuit filed against our association because it doesn't even appear the HOA has the authority to create a utility, nor to improve anything other than a common element which the fiber is not, nor is it being installed on the common elements.

Anyhow, really I want to know if anyone has tried charging additional fees on top of the principal balance in order for a homeowner to set up a payment plan. Again, CCIOA nor our governing documents mention any such fees (but do mention delinquent fees and applied interest for delinquent accounts). I did find this regarding the Colorado Fair Debt Collection Practices Act that states "A debt collector or collection agency shall not use unfair or unconsionable means to collect or attempt to collect any debt, including but not limited to, (a) The collection of any amount, including any interest, fee, charge, or expense incidental to the principal obligation, unless the amount is expressly authorized by the agreement creating the debt or permitted by law."

I would love any input on this process or input regarding other HOA payment plans and related fees.

SueW6 (Michigan)
Posts: 814

Posted:

This could be terms set up by an outside agency that is handling the financing of the entire project. I doubt if it’s an in-house management Fee from your own HOA. Find out.

JenniferB14 (Colorado)
Posts: 148

Posted:

The board has stated these are the fees our HOA management company is charging each homeowner in order to set up a payment plan. There is no outside company handling the financing. I have the management company contract and the section under Payment plans does not mention or discuss any fees charged to the owner for a payment plan.

AugustinD
Posts: 5,144

Posted:

-- To me, the problem is your HOA is trying to collect payments for what sounds like an unlawful (under the covenants), new utility, possibly voted in unlawfully as well.

-- So your board is presumably looking in its governing documents for the authority to bill X dollars extra for a utility that is not even mentioned in the governing documents.

-- Your board is making up cr-p as it goes along. Since they made up a covenant to provide this utility, they may as well also make up a similarly unlawful payment plan. Seriously. I am glad there is a lawsuit in progress on the subject. Hopefully the lawsuit settles whether the utility is legitimate. Report back when the lawsuit is settled.

-- "initiative" is a fancy word for a board making up cr-p as it goes along.

JenniferB14 (Colorado)
Posts: 148

Posted:

Totally agree! This is par for the course for this board honestly, and it is the second major lawsuit regarding such unlawful items that are currently pending. Interestingly enough, the self appointed "ad hoc" internet committee member is a venture capitalist in small telecommunications companies such as this small company installing the fiber. It is sickening

SheliaH (Indiana)
Posts: 6,964

Posted:

If no one likes this idea (especially if the vote was "insecure"), why are the rest of the homeowners just sitting there and letting this happen?

Before I'd pay a dime, I'd rally together my neighbors and call for a special homeowner's meeting to discuss all this (read your documents to see how that's done). Before we even get to this special assessment, maybe there should be a discussion where the board (all of them) would respond to questions like (1) did anyone express concern about the security of the balloting BEFORE the election? If not, why not? and (2) Why weren't other people recruited to help with the counting to ensure security? (3) What was done if someone didn't have internet access?

If you and everyone else hates what you're hearing or there's lots of double-talk and evasiveness, perhaps the next step is to recall one or all of these board members (starting with the one who ran the election) and elect a new board (one of the new members may have to be YOU). Then you can revisit the issue and look at the contract for this service to see if it can be postponed or canceled (you'll have to have the association attorney take a look). If there's a cancellation cost involved and you find previous board members didn't do their due diligence regarding the special assessment vote, you may need to consider legal action against THEM to pay those costs.

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

JenniferB14 (Colorado)
Posts: 148

Posted:

Yes SheliaH... some of this is in process, and several folks did actually bring up the security. The board member used an insecure survey platform that he uses for his personal company to receive homeowner responses, and they will not provide those "ballots" to me no matter how I quote the law and cite our governing documents. The board now states the vote was just a survey and not a vote, though previous to the vote the baord had a unanimous vote with an emailed motion to the homeowners stating they would take a vote of the association before proceeding to budget ratification. The budge ratification did pass however, though per state statute it is designed to pass. Nevertheless now they are saying the vote/survey is irrelevant since the budget ratification passed with the special assessment as part of that budget. It's just the usual shit show of our community. There is enough discontent in this community now and most people's eyes have opened to understand what the board has been doing.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

If there is that much widespread anger, collect the bucks and hire an attorney.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jenn

I would consider this a Capital Improvement thus requiring owners to vote on it. Try that course of action.

JenniferB14 (Colorado)
Posts: 148

Posted:

It is really the payment plan with set up and monthly fees that I want to know about. Something can't be a Capital Improvement if it is not a common element and the Association does not own it, plus the installation is on private property, each individual 5-35 acre unit.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By JenniferB14 on 10/25/2020 1:57 PM
Something can't be a Capital Improvement if it is not a common element and the Association does not own it, plus the installation is on private property, each individual 5-35 acre unit.

Wow, toss trespassing into the mix. Now things are getting serious. You folks know you can go to the police and ask to have whomever "trespassed" from your private property, right? See what the police say.

I agree that, if the item proposed is not a common element already listed in the Declaration, then it's not a capital improvement.

ChrisE8
Posts: 454

Posted:

Quote:

Posted By JenniferB14 on 10/25/2020 11:19 AM
The board has stated these are the fees our HOA management company is charging each homeowner in order to set up a payment plan. There is no outside company handling the financing. I have the management company contract and the section under Payment plans does not mention or discuss any fees charged to the owner for a payment plan.

That is ridiculous. It doesn't cost the HOA management company anything much to set up a payment plan.

You might wish to dispute the entire charge and try an "accord and satisfaction". That will result in a battle with the HOA but you may win.

JenniferB14 (Colorado)
Posts: 148

Posted:

It really isn't trespassing because the homeowner, though still required to pay the assessment must sign up for the service, and then permit the company to access their land for installation. The run to the home from the street are varying degrees from a few hundred feet to 1/4 of a mile or so depending on the size of the lot. Each homeowner must pay the same amount, thus our 75 foot run to the home pays for the neighbor who's run in 1/4 of a mile. I'm glad you all see the major issues with this deal. It's funny how I'm not getting the "suing is suing yourself and your neighbors" LMAO. There are at least 50 homeowners whom have not paid and are refusing to and many more who protested but paid because they feel they had no choice.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Paying or not paying may not get to the heart of the issue - if there is one.

If the community wants internet access - as some obviously do, and others apparently don’t - and both are adamant, then time to head to court.

Will be expensive on both sides - and, everyone will pay twice - so, sure you are suing yourself, but progress happens this way sometimes.

JenniferB14 (Colorado)
Posts: 148

Posted:

A neighbor has already filed a suit with the District court and is also seeking Injunctive and Declaratory relief. So we will see. Everyone in the neighborhood has internet access and the super majority of the homeowners have speeds seen by federal and state institutions as broadband. We are mostly line of sight but some have DSL and others satellite.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Sure, Jennifer.

Let us know.

ChrisE8
Posts: 454

Posted:

Quote:

Posted By JenniferB14 on 10/25/2020 3:01 PM
A neighbor has already filed a suit with the District court and is also seeking Injunctive and Declaratory relief. So we will see. Everyone in the neighborhood has internet access and the super majority of the homeowners have speeds seen by federal and state institutions as broadband. We are mostly line of sight but some have DSL and others satellite.

I think that your HOA tops them all in number of lawsuits filed against it.

JenniferG11 (Texas)
Posts: 667

Posted:

Quote:

Posted By JenniferB14 on 10/25/2020 10:58 AM
During the middle of the Covid crisis our HOA held a tainted and insecure internet vote where only the board member who created the initiative received and counted the "ballots."It is for $4500 due immediately for the purposes of installing fiberoptic cable through our very rural community. Each homeowner is responsible for this stiff assessment even if folks don't want the service and have other broadband internet access. At any rate, the association ended up offering a payment plan of 6 months (required by CCIOA state law) however added $125 set up fee and an additional $15/month in service charges in order to pay using a payment plan.

Our Collections policy does not provide any authority to charge additional fees or charges above the principal balance, nor does the contract with the management company. These fees have come out of no where. We have personally taken over a 30% pay cut due to Covid, AND there is ANOTHER lawsuit filed against our association because it doesn't even appear the HOA has the authority to create a utility, nor to improve anything other than a common element which the fiber is not, nor is it being installed on the common elements.

Anyhow, really I want to know if anyone has tried charging additional fees on top of the principal balance in order for a homeowner to set up a payment plan. Again, CCIOA nor our governing documents mention any such fees (but do mention delinquent fees and applied interest for delinquent accounts). I did find this regarding the Colorado Fair Debt Collection Practices Act that states "A debt collector or collection agency shall not use unfair or unconsionable means to collect or attempt to collect any debt, including but not limited to, (a) The collection of any amount, including any interest, fee, charge, or expense incidental to the principal obligation, unless the amount is expressly authorized by the agreement creating the debt or permitted by law."

I would love any input on this process or input regarding other HOA payment plans and related fees.

An assessment that is due immediately is delinquent if not paid by the date specified, and therefore could subject to fees for a payment plan.

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