dual HOA fees

Started by JimA19 • 9 replies • 296 views

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JimA19 (Georgia)
Posts: 54

Posted:

florida HOA are considering raising HOA fees for new entrants to community after an approved date. which would mean residents would paying 2 different fees.
is there a problem with this

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By JimA19 on 03/20/2022 3:22 PM
florida HOA are considering raising HOA fees for new entrants to community after an approved date. which would mean residents would paying 2 different fees.
is there a problem with this

The HOA's governing documents (Declaration and Bylaws) determine what the assessment is. I doubt this HOA's governing documents allow two different rates of assessment to be charged to owners, with one rate pertaining to newer owners and the other rate, to older owners.

I do wonder if per chance you are referring to a one-time payment by new owners into the reserve fund. Governing documents often have such a requirement.

LetA (Nevada)
Posts: 2,679

Posted:

Is this a special assessment?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Need more details. If you raise dues, it has to be all not just for some. This sounds like a different type of "fee" being charged. It does sound like "dues".

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Need more details, but I agree with Augustin. Your CC&Rs/Declaration will specify how assessments should be calculated, and the board has no authority the change that. It would require an amendment to the CC&Rs that's approved by a majority of homeowners, often a super-majority (eg. 67% or 75%). Some amendments may also need unanimous approval from the membership, and something like assessments *may* be one of those things.

In general, it's possible to have different HOA assessments, but there has to be some concrete reason tied to the property for doing so. For example, in condos it's very common for owners of the larger units to pay more. In HOAs there may be different assessments based on lot size. Or in some larger communities with individual sub associations, owners in the subs may pay an additional assessment because they receive additional services such as lawn care.

A one-time payment into the reserve fund is a pretty common form of assessment (we have that in my community). But it is also listed in our CC&Rs in the article dealing with assessments and it is charged to everyone, no exceptions.

I've never heard of different assessments based on purchase date, and I expect that it would be an invitation to a lawsuit. And note that this will not work long term. At some time in the future, all of your earlier buyers will be gone and all of the current homeowners have purchased after the magic date - and this change becomes pointless.

MarshallT (New York)
Posts: 414

Posted:

If this is for regular fees/dues, then this could create legal issues for the association. Charging higher fees to owners who are new simply because they are new seems arbitrary and incorrect.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jim

Our Covenants say that all annual assessments will be equal thus we could not do different without an amendment One way to skin this cat is have a "buy in" fee for new owners. Typical is 1 to 2% of purchase price.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

There is a moral problem with the dual fee strategy. The current residents are utilizing or enjoying the benefits of the amenities in equal weight to any new homebuyer that arrives. There is no reason base HOA operations should be more expensive for a subset of the population unless there are amenities that are exclusive to buyers who arrive after a given date. Also, there is no rationale for allowing legacy homeowners to enjoy discounts on HOA services and property maintenance.

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By JohnC46 on 03/21/2022 11:21 AM
way to skin this cat is have a "buy in" fee for new owners. Typical is 1 to 2% of purchase price.

... which would most likey require a supermajority of owners to amend the Declaration to permit such a fee.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By AugustinD on 03/22/2022 5:56 AM

Posted By JohnC46 on 03/21/2022 11:21 AM
way to skin this cat is have a "buy in" fee for new owners. Typical is 1 to 2% of purchase price.

... which would most likey require a supermajority of owners to amend the Declaration to permit such a fee.

If one is going to consider doing so, and the practice is very common, then I hope they are smart enough to have their attorney look at how to do.

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