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JoeS35 (Maryland)
Posts: 3
Posted:
Our Association has been incorporated for over 70 years.....it is actually a Civic Association, but we do have legally binding covenants, bylaws and a board.
The bylaws give instructions on dues for members, but they have always been considered voluntary.
How do we determine if our community association dues can be determined to be mandatory? Other associations claim to have mandatory dues with similar by-laws. Does there need to be specific verbiage?
ElleN (Idaho)
Posts: 4,420
Posted:
Please quote exactly what the bylaws and covenants say about dues.

Please describe any property (real estate or otherwise) that this association owns.

Please identify whether this association is incorporated.
JoeS35 (Maryland)
Posts: 3
Posted:
The Association is Incorporated, and does not own any significant property....

ARTICLE XIII - DUES
The dues of Regular Members and of Associate Members of the Association shall be Twenty Dollars ($20.00) per household per year. Seniors, persons 62 years and older, dues shall be Ten Dollars ($10.00) per household, per year, payable to the Association on or before June 30th of each year. Failure to pay the Association dues on or before June 30th will result in the inability of any member to vote at a General Meeting of the Association, after June 30th of any year, and pays the appropriate dues within ninety (90) days of settlement of the property, shall be entitled to vote at the next General Meeting of the Association.

SECTION 3. Membership in good standing is contingent on payment of any and all annual dues imposed by the Association upon its Members, as specified in Article XIII hereafter.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
The dues are mandatory. But if thr only drawback is not voting then I would not pay. Perhaps your bylaws give the board the power to put a lien on a home??? $20/year is a pathetic amount of money. Why even bother?

vis ta vie
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By JoeS35 on 03/20/2023 7:46 PM
The Association is Incorporated, and does not own any significant property....

But they do own property?

Realistically, you will need to check with an attorney who can review all the documents (covenants, articles of incorporation and bylaws) and has knowledge of applicable statutes to determine if your dues are mandatory or voluntary.

If the dues are mandatory, I doubt the only penalty is losing your vote at the general meeting.
If the dues are mandatory, it's likely legal action can be used to collect past payments.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JoeS35 on 03/20/2023 7:46 PM
The Association is Incorporated, and does not own any significant property....

ARTICLE XIII - DUES
The dues of Regular Members and of Associate Members of the Association shall be Twenty Dollars ($20.00) per household per year. Seniors, persons 62 years and older, dues shall be Ten Dollars ($10.00) per household, per year, payable to the Association on or before June 30th of each year. Failure to pay the Association dues on or before June 30th will result in the inability of any member to vote at a General Meeting of the Association, after June 30th of any year, and pays the appropriate dues within ninety (90) days of settlement of the property, shall be entitled to vote at the next General Meeting of the Association.

SECTION 3. Membership in good standing is contingent on payment of any and all annual dues imposed by the Association upon its Members, as specified in Article XIII hereafter.
Do consider reviewing the meaning of "covenants." When you quote the covenants or bylaws, please indicate from which you are quoting.

I presume Article XIII is from the covenants (also known as "Declaration" and "CC&Rs"). Covenants typically have verbiage stating that they "run with the land," meaning they are hard to get rid of. The courts say covenants are "contractual terms" that the owners of this land may enforce using the courts, either neighbor to neighbor or HOA to owner.

The dues are a contractual term. The courts say all agreed to this contractual term when they bought their lot with covenants (on record with the county).

If you elaborated on what maintenance responsibility the corporation has, then this would help explain the costs the dues are supposed to cover.

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