Do Nothing Board

JamesJ17,

In Minnesota, the only mechanism for forcing the board to comply with statutes and the covenants is through either (1) a threat of a lawsuit and as needed, an actual lawsuit; or (2) getting on the board with people who feel as you do.

The courts say that the covenants and bylaws are contractual terms, enforceable in the courts.

If you keep reading at this forum, you will see that amateur, unskilled boards who cater to those who do not want to raise the assessment (and so let the grounds fall into disrepair) are common. It's a terrible legal structure. But it has provided housing over the decades.

If you cannot either move, get good people on the board, or afford a lawyer, then you have to find a way to live with this.

You're in a situation that's being faced by many condo associations: not enough money to do what they need to do.

It can be hard for owners to know exactly where the money is going without digging through the financials. Owners usually have a right to inspect these records, which should include bank statements as well as more general information.

There are a number of normal expenses that homeowners don't see. The big one is insurance on the common area. A community can't do without it. Premiums have been spiking across the country, and your board would not be the first to prioritize that over things like keeping up with weeding and trimming. (I'm in a 74 unit condo community, just under 20 years old, no amenities, and insurance is our single biggest budget item.)

Raising assessments when some of the owners can't afford it isn't always a clear cut decision. If you do, then those owners will very likely stop paying assessments, Then the board has to pay legal costs for filing liens, collection actions, and possibly foreclosure. These legal expenses can really add up and can exceed the amount of money that the delinquent owners owe. The smaller the community, the greater the impact. It sounds like your board has decided that raising assessments could potential cost money in the long run.

Long story short, this isn't a simple or easily answered question. Because it definitely sounds like raising assessments is needed and your community is living on borrowed time - but this could make things worse in the short run.

I'll quote what I often tell people: your personal options will boil down to live with it, fix it, or move. Living with means betting that the place won't totally fall apart before you get out. Fixing it, as I said, means raising assessments and probably elect board members who are willing to do so. Lots of work, difficult and unpopular decisions. Or you believe that things realistically can't get any better and you sell before they get worse. The one thing I would rule out is legal action: that will only dig you and the association even deeper into the financial hole, and the person filing the lawsuit often becomes the community pariah and ends up moving anyway.

I'm sorry that this isn't a more hopeful answer.

Cathy,

Thanks so much for your great advice! You have taught us a lot.

Jim

ElleN,
Thanks for your input!
Jim

Can you clarify raising the rent? A HOA typically does not rent property. They raise dues. A HOA is only funded by it's members for it's members.

Melissa,

I meant to say raise the dues.

Thanks,

Jim

Melissa,

I meant to say raise the dues.

Thanks,

Jim

Melissa,

I meant to say raise the dues.

Thanks,

Jim

Melissa,

I meant to say raise the dues.

Thanks,

Jim

Melissa,

I meant to say raise the dues.

Thanks,

Jim

Wendy,
Thanks for your input. Most of the owners here do nothing either. At our next meeting in September I hope some of the new owners will step up and replace the current board.
Jim