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KathyH16 (Florida)
Posts: 2
Posted:
I am a homeowner in a Florida HOA, we are self managed without a management company. We have a clubhouse owned by all homeowners that can be used for private parties by a homeowner. There is a deposit required in case there is any damage when reserving the clubhouse and is returned after the event is over. They now want to charge the homeowner $25 for electrical use for a party. Since we are non-profit I am wondering how they can charge homeowners when we are all paying for the use of the clubhouse with our monthly dues. How could they possibly know if a homeowner was using $25 worth of electric for a 2-3 hour party? Would anyone know if this is legal?
KerryL1 (California)
Posts: 14,550
Posted:
You are paying into reserves to repair or replace item in your clubhouse like carpet window treatment, furniture and, roofs. but how do you as a owner pay to clean if after your use.

Our HOA urges owners refundable deposits and a fee to use such a room. It varies depending on the # of expected guests. It covers cleaning the room, which has a kitchen inside the fridge, etc., re-setting the furniture, emptying the trash, and cleaning the nearby rest room. he room does have AC.

Do your owners do their own clean-up? charging for electric seems a little trivial, but I suspect the fee covers other things and should be spelled out for users.
AugustinD
Posts: 3,698
Posted:
KathyH16, I doubt the electricity costs even $10 for three hours of use of the clubhouse lights and appliances. But the way I see it the board wants to put more of the cost of maintaining the clubhouse on those who actually use it.

A HOA's covenants often say that a Board can make reasonable rules for the use of common areas. Florida HOA/COA statutes may say similar. I think a $25 charge for using the clubhouse is reasonable.
KathyH16 (Florida)
Posts: 2
Posted:
The deposit is mainly for any damage that may occur during an event. The homeowner cleans up after themselves. This has never been an issue.

My question is mainly around now charging us $25 for electric, and it is specifically identified as electric usage. How can they determine what a homeowner is actually using? I know this may seem trivial but this is just one of the questionable things this board is doing? I had to start somewhere.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I think a small charge to use the clubhouse is appropriate versus increase dues for all.
SheliaH (Indiana)
Posts: 6,964
Posted:
Well, electricity is going up, and if you're using electricity for the kitchen (assuming you have an all electric one), the DJ's sound system, party lights and what not, I can respect the board's looking for a way to control costs.

That said, I think it would be simpler to charge a rental fee. We have one for our clubhouse along with the rental deposit. The deposit is refunded if the clubhouse inspection after the event doesn't find any problems.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
BenA2 (Texas)
Posts: 1,273
Posted:
I think it is odd they would charge you a fee for electricity rather than just charge a general fee for the use of the clubhouse. I don't see anything improper about it. Yes, all the owners "own" the clubhouse and part of your dues probably go to its maintenance, but its fair that those who reserve it for exclusive use pay for the privilege.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By KathyH16 on 10/24/2021 11:01 AM
The deposit is mainly for any damage that may occur during an event. The homeowner cleans up after themselves. This has never been an issue.

My question is mainly around now charging us $25 for electric, and it is specifically identified as electric usage. How can they determine what a homeowner is actually using? I know this may seem trivial but this is just one of the questionable things this board is doing? I had to start somewhere.
I take it to be poor communication skills by the Board.

An outside chance exists that your covenants or possibly Florida statutes say the Board cannot bill as you describe. But if this is the case, then you get to hire an attorney. It's no fun.

If there is more you question, then from experience, the best recourse for owners who feel as you do is to run for the board with a like-minded group of owners and try to win a majority of the board seats.
HenryS7 (Pennsylvania)
Posts: 336
Posted:
$25 worth of electricity is something like 250 kilowatts of power. Unless your particular party was a bitcoin mining operation where everyone brought their favorite coin mining equipment, you did not use $25 worth of power.

You should ask for your full deposit back. If they refuse, I would encourage you to look up small claims court and let them know you will handle it there. They will almost certainly roll over and give you your money back.

I hate it when HOAs make up rules that don't exist and aren't published.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Our HOA it was required you be a member in Good standing. We charged $100 damage deposit. Returned if no damages. It was $25 to rent. Keep in mind it's NOT just utilities when one rents. There is also toilet paper, cleaning supplies, paper towels, and other hidden costs. You can never tell how some events may go. Some may be all inside small meeting. Others may be a big blow out birthday party. Which people tend to open/close doors a lot. Running the air/heat up.

So no you can't get it down to the "kilowatt" of usage. However, a general rental fee is acceptable. We budget it as a clubhouse expense. It's how we paid for all the supplies we needed for the building.

Former HOA President
MaxB4
Posts: 3,513
Posted:
Kinda, like, well, having to pay rent at the house you own. I would compare the common area electric cost for the month prior to your rent and the month you rented.
LetA (Nevada)
Posts: 2,679
Posted:
That's pretty tacky to change for the electricity. You might run into some legal issues like reselling public utilities if someone really wanted to push the issue. I would just charge a non-refundable cleaning fee
and be done with it.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I think the BOD was not bright enough to go with something like Wear and Tear charge.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By JohnC46 on 10/25/2021 10:02 AM
I think the BOD was not bright enough to go with something like Wear and Tear charge.

Wear and Tear?
KerryL1 (California)
Posts: 14,550
Posted:
Agree with JohnC & Augustin that the Board was probably sloppy with the name they gave to this fee. I do believe that many HOAs charge residents to use clubhouses or party rooms and also charge a refundable damage deposit. The use fee is not income as it is, indeed, for operation expenses like electricity (our room has no windows that open so AC runs all of the time when used), water, trash removal carpet stains & fridge & maybe stove cleanup.

For our appx. 700 sf. room with kitchen, big screen TV, upholstered furniture & nearby bathroom the fee is $10 for 10 or fewer guests; $25 for 10-25 guests and $50 for 25- 50 guests. The refundable deposit varies too depending on the size of the group.

Did the Board vote on this new fee at a meeting? Did owners object at that time? How did owners find out about the fee?

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