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JosephK8 (North Carolina)
Posts: 4
Posted:
Can HOA board change the yearly dues commencement date without amending the filed Declaration? Our annual dues commencement date is August 1 but board stating dues increase going into effect in February 1. Besides violating Declaration terms it’s over-billing half a year.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi Joseph,

Welcome to the forum. What I'm going to write, you probably won't like.

Can they do it (raise assessments mid-year)? Obviously, the answer is yes - per your posting it is happening.

Should they do it? In my opinion, unless it's a special assessment, no.

Is it legal for them to do it? Honestly, I don't know. It will depend on the language in your governing documents and applicable statutes.

What are your options?

1) Gather support and recall the board - likely won't stop the increase but might get some to pay attention.

2) Spend some money and seek a legal opinion (I'd suggest an attorney versed in contract law - as the covenants are considered a contract).
If the legal opinion says that it's not legal, have the attorney write a letter on your behalf. Of course, considering that today is 1/27 and the increase takes place in 4 days, the increase might occur and may or may not be rescinded by the board (who may want their own legal opinion). After hearing their opinion, you will need to decide how far you want to take this (time, money, mental energy) if the board disagrees and does it anyway.

3) Live with the decision but gather support and replace the board so it doesn't happen again.

4) Simply live with the decision (an option)

I would expect that the Board gave a reason for the unexpected increase. Depending on the reasoning, it might be more appropriate for them to have a special assessment. Even if the Board did do a special assessment, the cost would be the same to you.

Again, not great options.

Hope it helps.

Tim
SheliaH (Indiana)
Posts: 6,964
Posted:
It seems odd that assessment due dates would be in the declaration - do you know if the documents were updated in this regard and you're reading an old version? Read the rest of the documents and see if there something else addressing assessments.

And did you ask the board about this - if not, why not? If so. What was the response?

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JosephK8 (North Carolina)
Posts: 4
Posted:
Thanks for the welcome and the replies. I plan on seeking a legal opinion. Reasons for the increase are not the issue, it’s the ignorance of the declaration and bylaws procedures in general. The Declaration has no other provision to change the annual cycle. It can be amended but only formally by membership vote. Procedurally and agree, it would be correct to do a special assessment for the initial increase then raise dues following the correct annual calendar stated in the Declaration.
JosephK8 (North Carolina)
Posts: 4
Posted:
The version of the Declaration is original, filed, current and actually provided by the HOA. No other Declaration article or bylaw gives the board authority to make the change. Board disagreed without any specific justification other than to say they’ve been doing it that way a long time. Doesn’t make it valid IMHO.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Yep, "this is the way we have always done it" indicates, to me, that no one on the board has taken the time to read and understand the governing docs and applicable statutes.

Just because it was always done that way doesn't mean it's the correct way to do things now.

I wish you luck and please keep us updated.

Tim
JosephK8 (North Carolina)
Posts: 4
Posted:
I think you nailed it. Will update as things develop. Thanks

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