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Boat slips - limited capacity - who pays

Started by MarkK23 • 14 replies • 460 views

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MarkK23 (Washington)
Posts: 6
Posted:
How do HOA's handle the reserves or capital costs for a reserve component like Boat Slips when there are only enough for 10% of the members? Should all members pay into the reserves for that component or is there a way to assess only the members who have the life time use of their slip (or at least until they decide to stop using it and someone on the waiting list gets to have it). There is no mention of these slips in the bylaws or covenents.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Are the slips assigned, rented, rotate or first come first served?

If the slips are assigned, I suspect that they would be considered a limited common element.
As a common element, they would be maintained by the Association.

See: What Exactly is a “Limited Common Element?” from a CT atttorney

If the slips are open for all (first come first served), the it would be a common element.
As a common element, they would be maintained by the Association.

Depending when the slips were installed, and since your governing documents are silent about the boat slips, review past minutes and any resolutions that might mention the slips. These should provide additional info.

If the slips are part of a dock, then what does the governing documents say about docks?
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MarkK23 on 11/04/2023 10:46 PM
How do HOA's handle the reserves or capital costs for a reserve component like Boat Slips when there are only enough for 10% of the members? Should all members pay into the reserves for that component or is there a way to assess only the members who have the life time use of their slip (or at least until they decide to stop using it and someone on the waiting list gets to have it). There is no mention of these slips in the bylaws or covenents.

Who owns the slips?
MarkK23 (Washington)
Posts: 6
Posted:
The slip users pay an annual moorage fee that is about a fourth or fifth of the going rate in the area. Once you have a slip then you can renew annually. There is a waiting list to get a slip. Any member can be on the waiting list for $50 per year. One may need to be on the waiting list for 3-7 years before a slip opens up. So I guess it is first come first served. No rotating.

The developer put the marina in 60 years ago.

No mention of slips or docks or the marina basin in the governing documents.
MarkK23 (Washington)
Posts: 6
Posted:
The slips, docks, marina basin are all owned by the association. Only those with a slip have a key to the docks. There is also a boat ramp that anyone can use (for a fee).

My "issue" is that we need to replace the docks soon and there is no provision to include an assessment or depreciation expense in the slip fees. So all homeowners pay instead.
MarkK23 (Washington)
Posts: 6
Posted:
The slips, docks, marina basin are all owned by the association. Only those with a slip have a key to the docks. There is also a boat ramp that anyone can use (for a fee).

My "issue" is that we need to replace the docks soon and there is no provision to include an assessment or depreciation expense in the slip fees. So all homeowners pay instead.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mark

So the question is who pays for the boat slip replacements. The 10% who use/control them or the entire association?

TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MarkK23 on 11/04/2023 10:46 PM
How do HOA's handle the reserves or capital costs for a reserve component like Boat Slips when there are only enough for 10% of the members? Should all members pay into the reserves for that component or is there a way to assess only the members who have the life time use of their slip (or at least until they decide to stop using it and someone on the waiting list gets to have it). There is no mention of these slips in the bylaws or covenents.

In California Code of Regulations under subdivisions, there is a provision for members that use only a certain percentage of amenities. Maybe your state has something similar.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MarkK23 on 11/05/2023 5:26 PM
The slips, docks, marina basin are all owned by the association. Only those with a slip have a key to the docks. There is also a boat ramp that anyone can use (for a fee).

My "issue" is that we need to replace the docks soon and there is no provision to include an assessment or depreciation expense in the slip fees. So all homeowners pay instead.

If the slips/dock are owned by the association, usually there is a high percentage of member votes required in order to give a member exclusive use of a part of the common area. They are getting exclusive use of the slips, it seems, without a vote of the membership.
MarkK23 (Washington)
Posts: 6
Posted:
Exactly. The current practice is that the entire association pays, because we all own them. Exclusive use and control is only in the hands of the 10%. Once you have a slip you have it for life or until you cancel. It seems reasonable to me that the reserve components that are exclusively in the hands of the members who moor boats should be assessed in part or completely to them. I could be wrong about this.
MarkK23 (Washington)
Posts: 6
Posted:
Well as a practical matter only one boat can be put into a slip. They have to be allocated somehow to individuals to use. The process for being on a wait list and then being assigned a slip eventually is open to all. I don't agree with the $50 fee, but that is not the issue I am asking about. I am looking for something we can vote on to allocate reserve costs for the HOA components that are exclusively for the slip owners to those users instead of the entire association. I assume this would be done in the bylaws. So is this something that happens in HOA's and how do they do it?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MarkK23 on 11/05/2023 6:42 PM
Exactly. The current practice is that the entire association pays, because we all own them. Exclusive use and control is only in the hands of the 10%. Once you have a slip you have it for life or until you cancel. It seems reasonable to me that the reserve components that are exclusively in the hands of the members who moor boats should be assessed in part or completely to them. I could be wrong about this.
If this seems reasonable to you, then the correct approach is to petition for an amendment to the governing documents saying as much.

Until then, all the HOA has is a set of board-created rules concerning use of a rather unwieldy common area. These rules may or may not be within the four corners of the governing documents.

I will say that without an amendment, and because of what the covenants currently say, I cannot see billing just the slip owners for this common area.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ElleN on 11/05/2023 6:55 PM
Posted By MarkK23 on 11/05/2023 6:42 PM
Exactly. The current practice is that the entire association pays, because we all own them. Exclusive use and control is only in the hands of the 10%. Once you have a slip you have it for life or until you cancel. It seems reasonable to me that the reserve components that are exclusively in the hands of the members who moor boats should be assessed in part or completely to them. I could be wrong about this.
If this seems reasonable to you, then the correct approach is to petition for an amendment to the governing documents saying as much.
The specific governing document to amend is the Declaration of Covenants (not the bylaws, and not the Articles of Incorporation).
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MarkK23 on 11/05/2023 6:49 PM
Well as a practical matter only one boat can be put into a slip. They have to be allocated somehow to individuals to use. The process for being on a wait list and then being assigned a slip eventually is open to all. I don't agree with the $50 fee, but that is not the issue I am asking about. I am looking for something we can vote on to allocate reserve costs for the HOA components that are exclusively for the slip owners to those users instead of the entire association. I assume this would be done in the bylaws. So is this something that happens in HOA's and how do they do it?

I would scour your governing documents and your state law. There is probably something already there to protect you.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MarkK23 on 11/05/2023 5:22 PM
The slip users pay an annual moorage fee that is about a fourth or fifth of the going rate in the area. Once you have a slip then you can renew annually. There is a waiting list to get a slip. Any member can be on the waiting list for $50 per year. One may need to be on the waiting list for 3-7 years before a slip opens up. So I guess it is first come first served. No rotating.

The developer put the marina in 60 years ago.

No mention of slips or docks or the marina basin in the governing documents.
I am betting this HOA is under the older Washington HOA statute, known as RCW 64.38. In particular, what Mark posted above seems consistent RCW 64.38.020 :

Association powers.

Unless otherwise provided in the governing documents, an association may:
...
(6) Regulate the use, maintenance, repair, replacement, and modification of common areas;
...
(10) Impose and collect any payments, fees, or charges for the use, rental, or operation of the common areas;

See https://app.leg.wa.gov/RCW/default.aspx?cite=64.38.020..

If memory serves (and it may not): RCW 64.38 is the older Washington HOA statute. It does not treat the subject of limited common areas or converting common areas to limited common areas. The newer Washington HOA statute is RCW 64.90, and it does treat the latter subjects. I thought TerriS6 was on the right path, but so far it appears to me the age of this HOA translates to the Declaration and applicable Washington statute not being very helpful to the situation (unless the Declaration is amended).

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