HOA fee error

Started by RobertW31 • 7 replies • 545 views

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RobertW31 (New York)
Posts: 41

Posted:

Without going ito the weeds on this I have discovered that increased Hoa fees were imposed on a small segment of our townhomes in 2014 based on an attorneys proposed amendment to our offering plan that was never voted on by the community.

The board at the time approved the increase without really understanding the lack of a legal basis for doing so.

As the President of the HOA I believe we owe the extra fees as a refund to the homeowners and then should get a community wide vote on the amendment as should have originally occurred.

I am waiting to talk with our property management and will likely talk with our attorney.

Any pitfalls anyone sees with what I consider to be a straight forward approach?

AugustinD
Posts: 5,144

Posted:

Respectfully, I think if you want constructive input on this one you will have to go into the weeds somewhat more.

Else my first impression is that this sounds complicated enough that I would want an attorney's opinion both on what was done in 2014 and whether what you propose is okay.

SheliaH (Indiana)
Posts: 6,964

Posted:

Have you spoken to the rest of your board about this? If so, what was the response? If you're going to talk to the actor about this, that will cost money and You should do it without a discussion and authorization from your colkea. You may be president, but you're not God- you have one vote like everyone else.

You say the board that approved this didn't really understand the legalities -did you talk to them? I'm not saying you don't have a point,especially if it was based on a proposed amendment - did anyone object when the board started this increase? Are YOU one of the affected homeowners - one could argue you have a conflict of interest in pursuing this, and perhaps someone else should take the lead in pursuing the issue.

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

SheliaH (Indiana)
Posts: 6,964

Posted:

Thunder thumbs on the tablet strike again! I meant to say you need to discuss this with your board before pursuing tbis. It's ok to talk to the property manager, but remember, the manager works at the board's direction, so that's where this conversation should begin.

You'll also want to talk to former board members, namely the ones who made the decision. Why did they believe they could push this through if this was an issue that required an amendment to the doe, and therefore homeowner approval? Or was there a workaround someplace else - have you read previous board meeting minutes when this was discussed?

Finally, a chat with the attorney costs money and You said nothing about discussing this with your board colleagues to get its approval on this expense because this will not be a brief conversation. You may be president, but unless you're going to pay the legal fees yourself, you cannot be a lone ranger on association.

And if you were one of the affected homeowners, I smell conflict of interest, although you may have a legitimate issue. Better to express your concerns and let someone else take the lead to give it a better chance of getting the matter reversed.

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

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am a bit confused on the situation. Why would only a select group been subject to the increase versus all? Did they bring some kind legal expense onto the HOA by their request?

Why isn't this being presented to the entire HOA for approval as most decisions in a HOA are to be done?

What role does the property manager have in this that you have to consult them on a decision? This is a HOA decision. Property Management is a paid contractor of the HOA and isn't to be making HOA decisions. They do what the HOA decides.

What lawyer are you going to be talking to and what questions going to ask?

This is just some of the things I need clarity on. Thank you.

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By RobertW31 on 11/04/2020 10:50 AM

Any pitfalls anyone sees with what I consider to be a straight forward approach?

Did anyone sell between when the fees were raised and your desire to refund?

If yes, then you are not able to refund as those who paid would not be available unless you have their new address.

SueW6 (Michigan)
Posts: 814

Posted:

Opinion: Never refund cash - give a credit For the upcoming assessment year.

Submit checks Only to previous owners, if you have a forwarding address.

See if in your state Assessments are allowed to be raised by a certain amount each year at the discretion of the board without a vote of the membership for COL.

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