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Can a Mgt Company raise monthly fees anytime they want?

Started by WendyM5 • 31 replies • 411 views

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WendyM5 (North Carolina)
Posts: 1,522
Posted:
Our contract states:


Term of Agreement
Association appoints Agent as the exclusive manager of the Property as of August 1, 2017 for a period of one year. This agreement will renew for successive one year (twelve month periods)

Compensation for Management Services
The Association agrees to pay Agent $XXX.00 per month for its services herein. ..... Failure of the Association to make payments under this agreement to agent in the time frame indicated will result in a five percent per month surcharge on all
amounts then due until payment is made in full. Any increase in compensation for Agent’s services will be indicated to Association via the proposed budget submitted to Association.

The Mgt company wants to raise dues and emailed us stating that the dues would increase beginning June, not August when the current renewing agreement expires.
I emailed them back stating the contract states they need to indicate the increase via a budget proposal a few days ago.
Interestingly, the manager told me to direct any questions to the President of the Mgt Company. He has not emailed me back either and any attempts to call the president are met with a customer service firewall.
vis ta vie
SheliaH (Indiana)
Posts: 6,964
Posted:
When was the last time the fee was increased? Have you asked the property manager to tak on more duties since that time? If so you should have been told what those would cost- that may be part of the reason the monthly rate is increasing.

You have a month before this takes effect, so you should be able to push back on June vs. August. I also wonder if there isn't some language buried somewhere in the contract that allows this. Get your attorney on this immediately- you may need to consider changing some services to reduce the increase (you probably won't get away with keeping the same rate).

As for the email, you said YOU sent the email- did you have authorization from the board? You didn't say when you sent your email, so you probably wouldn't get a reply the next day or two, although it would've be polite to at least acknowledge receipt of the same.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By SheliaH on 04/29/2023 1:56 PM
When was the last time the fee was increased? Have you asked the property manager to tak on more duties since that time? If so you should have been told what those would cost- that may be part of the reason the monthly rate is increasing.

You have a month before this takes effect, so you should be able to push back on June vs. August. I also wonder if there isn't some language buried somewhere in the contract that allows this. Get your attorney on this immediately- you may need to consider changing some services to reduce the increase (you probably won't get away with keeping the same rate).

As for the email, you said YOU sent the email- did you have authorization from the board? You didn't say when you sent your email, so you probably wouldn't get a reply the next day or two, although it would've be polite to at least acknowledge receipt of the same.

Fee was increased 15% last year. Also done 2 months early by the way.

No BOD has not asked property manager for more duties. IN fact the opposite, we no longer asked them to attend board meetings. I've read the whole contract and do not see any other buried language. No one would read the whole contract so I just posted the important parts.

No one on the BOD needs authorization to ask our manager some simple clarification questions.

The contract mentions the approved budget several places. It seems odd to me that they do not follow thier own contract language.

I'll be emailing the lawyer asking them . I'm guessing they will say no way in hell do they want to get involved with a contract dispute between an BOD and Mgt Co.
vis ta vie
CathyA3 (Ohio)
Posts: 6,299
Posted:
They have to comply with the terms of the contract, period. Does the contract give them any ability to raise their fee mid-contract? If no, then they can't, so read the entire thing carefully.

Is this a pretext for getting rid of your association as a client? They likely know that it would cost you more to fight this legally than it would to cough up the extra money.

(We dumped a management company that was charging us what they thought the contract should say instead of what it actually did say. The contract was poorly written but in our favor. I saw their point, but that isn't how you solve problems like this.)

WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By CathyA3 on 04/29/2023 2:10 PM
They have to comply with the terms of the contract, period. Does the contract give them any ability to raise their fee mid-contract? If no, then they can't, so read the entire thing carefully.

Is this a pretext for getting rid of your association as a client? They likely know that it would cost you more to fight this legally than it would to cough up the extra money.

(We dumped a management company that was charging us what they thought the contract should say instead of what it actually did say. The contract was poorly written but in our favor. I saw their point, but that isn't how you solve problems like this.)


thanks for input. Contract does not specifically state they can increase rates mid contract only what I previously copied:
Any increase in compensation for Agent’s services will be indicated to Association via the proposed budget submitted to Association.
The proposed budget in this sentenance refers to the annual budget they are supposed to put together for us.

If I'm willing to file a small claims court action against them and represent the HOA, then I think they would have more to loose in legal fees.

and Yes it probabaly is pretext for getting rid of us. They are probably tired of me pointing out a handful of times they are not following the contract. I'm sure most other HOA's just let them get away with it.
vis ta vie
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By WendyM5 on 04/29/2023 1:09 PM
Our contract states:


Term of Agreement
Association appoints Agent as the exclusive manager of the Property as of August 1, 2017 for a period of one year. This agreement will renew for successive one year (twelve month periods)

Compensation for Management Services
The Association agrees to pay Agent $XXX.00 per month for its services herein. ..... Failure of the Association to make payments under this agreement to agent in the time frame indicated will result in a five percent per month surcharge on all
amounts then due until payment is made in full. Any increase in compensation for Agent’s services will be indicated to Association via the proposed budget submitted to Association.

The Mgt company wants to raise dues and emailed us stating that the dues would increase beginning June, not August when the current renewing agreement expires.
I emailed them back stating the contract states they need to indicate the increase via a budget proposal a few days ago.
Interestingly, the manager told me to direct any questions to the President of the Mgt Company. He has not emailed me back either and any attempts to call the president are met with a customer service firewall.

1. Are you certain you’re looking at the current active agreement?

2. Are there any appendices or schedules that are “subject to change without notice”?

3. How does the BoD feel about this?

Bill
HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By BillD16 on 04/29/2023 4:35 PM
Posted By WendyM5 on 04/29/2023 1:09 PM
Our contract states:


Term of Agreement
Association appoints Agent as the exclusive manager of the Property as of August 1, 2017 for a period of one year. This agreement will renew for successive one year (twelve month periods)

Compensation for Management Services
The Association agrees to pay Agent $XXX.00 per month for its services herein. ..... Failure of the Association to make payments under this agreement to agent in the time frame indicated will result in a five percent per month surcharge on all
amounts then due until payment is made in full. Any increase in compensation for Agent’s services will be indicated to Association via the proposed budget submitted to Association.

The Mgt company wants to raise dues and emailed us stating that the dues would increase beginning June, not August when the current renewing agreement expires.
I emailed them back stating the contract states they need to indicate the increase via a budget proposal a few days ago.
Interestingly, the manager told me to direct any questions to the President of the Mgt Company. He has not emailed me back either and any attempts to call the president are met with a customer service firewall.


1. Are you certain you’re looking at the current active agreement?

2. Are there any appendices or schedules that are “subject to change without notice”?

3. How does the BoD feel about this?

1. yes
2. no
3. I"ll find out in a month. so far 12 homeowners are against it.
vis ta vie
SheliaH (Indiana)
Posts: 6,964
Posted:
You said earlier that you plan to email the attorney - since attorneys can and do charge for everything, please run this by the board first, otherwise you might wind up paying for this yourself.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
If I were on the board and facing a similar situation, I'd read the writing on the wall and put my energy into finding a new management company and getting prepared for the transition. August will be here before you know it, and I view this as the top priority. We'd also give our attorney a heads-up. A sternly worded "knock if off" letter may get the current company to back off for now.

I'd also take the long view on this. The management company may get a few months of higher fees, and in exchange they'll lose any hope of a decent referral from you. Word of mouth can be important for a management company, and you don't have to do anything besides tell the truth. You just have to be careful to stick to the truth or else be vague ("we didn't like how they did business"), or you may find yourselves on the receiving end of legal action.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/29/2023 2:32 PM
If I'm willing to file a small claims court action against them and represent the HOA,
I think the claim would be "breach of contract." The latter is not a subject over which small claims courts in NC have jurisdiction. Also so far there are no damages (as the law defines "damages"). I do not think this situation qualifies for NC small claims court.
KerryL1 (California)
Posts: 14,550
Posted:
RE: the MC wanting to raise fees. BillD asked: 3. How does the BoD feel about this? Wendy replied: 3. "I'll find out in a month. So far 12 homeowners are against it."

Did you, Wendy, send a survey to Owners without Board approval? You also wrote that the PM might be tired of you correcting "a handful" of their actions. But, it's the Board that should be "correcting" their errors, not a lone director.

WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 04/30/2023 8:17 AM
RE: the MC wanting to raise fees. BillD asked: 3. How does the BoD feel about this? Wendy replied: 3. "I'll find out in a month. So far 12 homeowners are against it."
Did you, Wendy, send a survey to Owners without Board approval? You also wrote that the PM might be tired of you correcting "a handful" of their actions. But, it's the Board that should be "correcting" their errors, not a lone director.

thanks for the reminder to try and be inclusive.

I called a special board meeting over this, and specifically said a survey would be sent out to help guide the board decisions. Even pointed out the way a survey is worded can effect the results and it would best to have others input. no response over a few days. The other board member said they did not have time to do any special meetings and can only commit to the 4 quarterly meetings + annual meeting per year.

in a perfect board, each member would be ready to jump on this as a top priority.
However in my BOD, for the last year, no one has ever contributed even a major agenda item to the meeting, much less had any question they wanted on a survey. One member has told me a few times, she wants to discuss some (non-executive) things in private.

You would think a vendor change that puts our budget negative $5000 in the hole or require back to back 10% dues increases, would be a major concern, apparently not?

You think the other board members have even read the Mgt Co contract? or the bylaws for that matter? People cant' correct things they are ignorant of. those corrections were approved by a survey of membership, of which other board members were asked for input and didn't give any.

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By ElleN on 04/30/2023 7:44 AM
Posted By WendyM5 on 04/29/2023 2:32 PM
If I'm willing to file a small claims court action against them and represent the HOA,
I think the claim would be "breach of contract." The latter is not a subject over which small claims courts in NC have jurisdiction. Also so far there are no damages (as the law defines "damages"). I do not think this situation qualifies for NC small claims court.

https://www.nolo.com/legal-encyclopedia/free-books/small-claims-book/chapter2-3.html#:~:text=The%20agreement%20can%20be%20written,frequently%20in%20small%20claims%20court.

above website says breehc of contract is allowed in small claims court.
I myself have previous experience with small claims breech of contract case. So I know it can be done
Is there some legal loophole the HOA attourney would try to pull and get the case dismissed I'm missing?
vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/30/2023 10:56 AM
Posted By ElleN on 04/30/2023 7:44 AM
Posted By WendyM5 on 04/29/2023 2:32 PM
If I'm willing to file a small claims court action against them and represent the HOA,
I think the claim would be "breach of contract." The latter is not a subject over which small claims courts in NC have jurisdiction. Also so far there are no damages (as the law defines "damages"). I do not think this situation qualifies for NC small claims court.


https://www.nolo.com/legal-encyclopedia/free-books/small-claims-book/chapter2-3.html#:~:text=The%20agreement%20can%20be%20written,frequently%20in%20small%20claims%20court.

above website says breehc of contract is allowed in small claims court.
When money is owed for whatever reason, and the dollar amount is below a certain amount, then you are correct that NC small claims court has jurisdiction. I guess just about every instance where money is owed is based on a contract, so I amend my former post.

But I think the problem still remains: The HOA would not be suing for money. Instead what you seem to want is a court order saying that the MC cannot require the HOA to pay xyz dollars. Which brings us back to NC small claims courts not having the authority to provide non-monetary injunctive relief.

Why not simply refuse to pay what the MC wants? If the MC threatens to terminate early, then you can revisit a possible lawsuit.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By ElleN on 04/30/2023 11:32 AM
Posted By WendyM5 on 04/30/2023 10:56 AM
Posted By ElleN on 04/30/2023 7:44 AM
Posted By WendyM5 on 04/29/2023 2:32 PM
If I'm willing to file a small claims court action against them and represent the HOA,
I think the claim would be "breach of contract." The latter is not a subject over which small claims courts in NC have jurisdiction. Also so far there are no damages (as the law defines "damages"). I do not think this situation qualifies for NC small claims court.


https://www.nolo.com/legal-encyclopedia/free-books/small-claims-book/chapter2-3.html#:~:text=The%20agreement%20can%20be%20written,frequently%20in%20small%20claims%20court.

above website says breehc of contract is allowed in small claims court.
When money is owed for whatever reason, and the dollar amount is below a certain amount, then you are correct that NC small claims court has jurisdiction. I guess just about every instance where money is owed is based on a contract, so I amend my former post.

But I think the problem still remains: The HOA would not be suing for money. Instead what you seem to want is a court order saying that the MC cannot require the HOA to pay xyz dollars. Which brings us back to NC small claims courts not having the authority to provide non-monetary injunctive relief.

Why not simply refuse to pay what the MC wants? If the MC threatens to terminate early, then you can revisit a possible lawsuit.

becuase none of the board members have signatory status on the bank account, the MC controls all our funds, I asked for signatory paperwork over a month ago, and have yet to receive it. Im guessing this is why this Mgt Co does not like me. I ask for stuff like this that they typically don't do and it causes them extra work. they are good at keeping their well oiled machine working, but any out of the ordinary request has basically been ignored. We have not gotten the termination fee of $1500 (soon to be $3000) removed from our contract yet either due to our bylaws not allowing it.
vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/30/2023 11:39 AM
We have not gotten the termination fee of $1500 (soon to be $3000) removed from our contract yet either due to our bylaws not allowing it.
The bylaws are one contract, between owners and the corporation. The agreement with the MC to do abc is another contract. Which contractual term (bylaws or agreement with the MC?) controls? This is not a small claims court issue.

I think the HOA is the one stuck lawyering up.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By ElleN on 04/30/2023 11:54 AM
Posted By WendyM5 on 04/30/2023 11:39 AM
We have not gotten the termination fee of $1500 (soon to be $3000) removed from our contract yet either due to our bylaws not allowing it.
The bylaws are one contract, between owners and the corporation. The agreement with the MC to do abc is another contract. Which contractual term (bylaws or agreement with the MC?) controls? This is not a small claims court issue.

I think the HOA is the one stuck lawyering up.

well that is the beauty of telling them you want to continue working with them. you looked and even though their rates are increasing you still think it is best to stick with them due to great service, etc, you just need a new contract without that clause. are they naive enough to oblige?
vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/30/2023 12:28 PM
Posted By ElleN on 04/30/2023 11:54 AM
Posted By WendyM5 on 04/30/2023 11:39 AM
We have not gotten the termination fee of $1500 (soon to be $3000) removed from our contract yet either due to our bylaws not allowing it.
The bylaws are one contract, between owners and the corporation. The agreement with the MC to do abc is another contract. Which contractual term (bylaws or agreement with the MC?) controls? This is not a small claims court issue.

I think the HOA is the one stuck lawyering up.


well that is the beauty of telling them you want to continue working with them. you looked and even though their rates are increasing you still think it is best to stick with them due to great service, etc, you just need a new contract without that clause. are they naive enough to oblige?
If the board signed a contract with a termination fee, knowing the bylaws do not allow such a fee, then I would call the board naive.

If this ended up in court, I think the management company might very well prevail on this point.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By ElleN on 04/30/2023 12:37 PM
Posted By WendyM5 on 04/30/2023 12:28 PM
Posted By ElleN on 04/30/2023 11:54 AM
Posted By WendyM5 on 04/30/2023 11:39 AM
We have not gotten the termination fee of $1500 (soon to be $3000) removed from our contract yet either due to our bylaws not allowing it.
The bylaws are one contract, between owners and the corporation. The agreement with the MC to do abc is another contract. Which contractual term (bylaws or agreement with the MC?) controls? This is not a small claims court issue.

I think the HOA is the one stuck lawyering up.


well that is the beauty of telling them you want to continue working with them. you looked and even though their rates are increasing you still think it is best to stick with them due to great service, etc, you just need a new contract without that clause. are they naive enough to oblige?
If the board signed a contract with a termination fee, knowing the bylaws do not allow such a fee, then I would call the board naive.

If this ended up in court, I think the management company might very well prevail on this point.

yep, I wasn't president when it was signed. but lets see if they give us a new contract with out that BS termination fee.
I'm willing to bet they knew it was agaisnt our bylaws and did it anyways. maybe an ethical complaint to CAI will get them to give us a new contract ASAP?
vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/30/2023 12:44 PM
yep, I wasn't president when it was signed. but lets see if they give us a new contract with out that BS termination fee.
I'm willing to bet they knew it was agaisnt our bylaws and did it anyways.
Is someone holding a gun to the directors' heads and forcing them to agree to a contract term that violates the HOA's bylaws?

At the time of signing, the board should line out this contract term and initial and date it.

KerryL1 (California)
Posts: 14,550
Posted:
I'm glad you try to get the Board to contribute, Wendy. I guess the best part of our board of 7 in my HOA is that usually 2-3 are willing to read our documents, etc. A present there is one director who's been on 2-1/2 years without contributing agenda item and he doesn't seem to want to learn. A second, on for 1-1/2 years is the same.

But you poked my curiosity, will you cite your Bylaws on the prohibition of termination fees? Thanks.
BillD16 (Texas)
Posts: 971
Posted:
One thing, real quick: I don’t know why my questions above are in bold-italics like they are. On re-read, it’s not a stretch to read it as some kind of sarcasm. That was not my intent. - Bill
HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By ElleN on 04/30/2023 12:49 PM
Posted By WendyM5 on 04/30/2023 12:44 PM
yep, I wasn't president when it was signed. but lets see if they give us a new contract with out that BS termination fee.
I'm willing to bet they knew it was agaisnt our bylaws and did it anyways.
Is someone holding a gun to the directors' heads and forcing them to agree to a contract term that violates the HOA's bylaws?

At the time of signing, the board should line out this contract term and initial and date it.


Almost all management companies have auto renew clauses and 2 to 3 month requirements to terminate in advance. Some boards don't have their shit together to plan that far ahead. At least that was the case last year when i was only on the board for 5 months. this year we have options because I'm better prepared for it.
vis ta vie
KerryL1 (California)
Posts: 14,550
Posted:
Will you cite your Bylaws on termination fees, Wendy?
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 04/30/2023 6:42 PM
Will you cite your Bylaws on termination fees, Wendy?

Management Contracts. The Association is authorized
and empowered to engage the services of any person, firm or
corporation to act as managing agent of the Association at a
compensation level to be established by the Board of Directors
and to perform all of the powers and duties_ of the
Association. Provided, however, that the term of any such
agreement with a managing agent shall not exceed one (1) year
and shall only be renewed by agreement of the parties for
successive one year terms; Any such contract shall be
terminable by the Association with or without cause upon
ninety (90) days prior written notice to the manager without
payment of a termination fee.
vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We are NOT talking raising dues to the homeowners. It looks like the monthly fee being paid to the MC is changing. Let's make sure that is what is clear here. What I read in the original statement was the MC was getting a raise by raising THEIR monthly dues. It did not mention the homeowner/members paying more. That would require the HOA board to raise dues or special assessment if the HOA is owner owned.

So let's not confuse the issue. If do not want to pay the MC more money, then find another contract or negotiate the one you have with them. they are a paid contractor to the HOA. NOT a HOA member.
Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Wendy, Interesting.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 05/01/2023 4:41 AM
We are NOT talking raising dues to the homeowners. It looks like the monthly fee being paid to the MC is changing. Let's make sure that is what is clear here. What I read in the original statement was the MC was getting a raise by raising THEIR monthly dues. It did not mention the homeowner/members paying more. That would require the HOA board to raise dues or special assessment if the HOA is owner owned.

So let's not confuse the issue. If do not want to pay the MC more money, then find another contract or negotiate the one you have with them. they are a paid contractor to the HOA. NOT a HOA member.

yep you are right, I should of wrote fees.
the Mgt Fees and the Member dues are directly related in our HOA.
in this case a 20% increase in fees will make the dues 20% more expensive.
we are only allowed to raise dues 10% a year automatically and it was voted down last year when we wanted to raiase it 11%.

board met and sent termination letter, which will just make more work for the board. Wish it was different, but with no response to our emails and breaking the contract what do they expect.
vis ta vie
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By WendyM5 on 05/01/2023 9:24 AM
Posted By MelissaP1 on 05/01/2023 4:41 AM
We are NOT talking raising dues to the homeowners. It looks like the monthly fee being paid to the MC is changing. Let's make sure that is what is clear here. What I read in the original statement was the MC was getting a raise by raising THEIR monthly dues. It did not mention the homeowner/members paying more. That would require the HOA board to raise dues or special assessment if the HOA is owner owned.

So let's not confuse the issue. If do not want to pay the MC more money, then find another contract or negotiate the one you have with them. they are a paid contractor to the HOA. NOT a HOA member.


yep you are right, I should of wrote fees.
the Mgt Fees and the Member dues are directly related in our HOA.
in this case a 20% increase in fees will make the dues 20% more expensive.
we are only allowed to raise dues 10% a year automatically and it was voted down last year when we wanted to raiase it 11%.

board met and sent termination letter, which will just make more work for the board. Wish it was different, but with no response to our emails and breaking the contract what do they expect.

A 20% increase in management fees would not equate to a 20% increase in member dues.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MaxB4 on 05/01/2023 6:28 PM
Posted By WendyM5 on 05/01/2023 9:24 AM
Posted By MelissaP1 on 05/01/2023 4:41 AM
We are NOT talking raising dues to the homeowners. It looks like the monthly fee being paid to the MC is changing. Let's make sure that is what is clear here. What I read in the original statement was the MC was getting a raise by raising THEIR monthly dues. It did not mention the homeowner/members paying more. That would require the HOA board to raise dues or special assessment if the HOA is owner owned.

So let's not confuse the issue. If do not want to pay the MC more money, then find another contract or negotiate the one you have with them. they are a paid contractor to the HOA. NOT a HOA member.


yep you are right, I should of wrote fees.
the Mgt Fees and the Member dues are directly related in our HOA.
in this case a 20% increase in fees will make the dues 20% more expensive.
we are only allowed to raise dues 10% a year automatically and it was voted down last year when we wanted to raiase it 11%.

board met and sent termination letter, which will just make more work for the board. Wish it was different, but with no response to our emails and breaking the contract what do they expect.


A 20% increase in management fees would not equate to a 20% increase in member dues.

yeah, I agree not typically, since there are other items in the budget like lawn care, insurance, etc, but the numbers happen to work out that way.
vis ta vie
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By WendyM5 on 05/01/2023 7:31 PM
Posted By MaxB4 on 05/01/2023 6:28 PM
Posted By WendyM5 on 05/01/2023 9:24 AM
Posted By MelissaP1 on 05/01/2023 4:41 AM
We are NOT talking raising dues to the homeowners. It looks like the monthly fee being paid to the MC is changing. Let's make sure that is what is clear here. What I read in the original statement was the MC was getting a raise by raising THEIR monthly dues. It did not mention the homeowner/members paying more. That would require the HOA board to raise dues or special assessment if the HOA is owner owned.

So let's not confuse the issue. If do not want to pay the MC more money, then find another contract or negotiate the one you have with them. they are a paid contractor to the HOA. NOT a HOA member.


yep you are right, I should of wrote fees.
the Mgt Fees and the Member dues are directly related in our HOA.
in this case a 20% increase in fees will make the dues 20% more expensive.
we are only allowed to raise dues 10% a year automatically and it was voted down last year when we wanted to raiase it 11%.

board met and sent termination letter, which will just make more work for the board. Wish it was different, but with no response to our emails and breaking the contract what do they expect.


A 20% increase in management fees would not equate to a 20% increase in member dues.


yeah, I agree not typically, since there are other items in the budget like lawn care, insurance, etc, but the numbers happen to work out that way.

Only works IF the management fees were the only expense on the budget.
TerriS6 (California)
Posts: 3,284
Posted:
In California, small claims court has authority to give injunctive relief if a statute specifically provides for it.

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