40% HOA Increase with no input from owners - Is this legal?

Hi. I am new to the HOA world. Let me give a quick overview of my situation. Then my questions. Please help..we have a board meeting which I am going to attend on Tuesday and I want to be prepared.

I bought a condo in SC 2 years ago. I really haven't been involved in any of the HOA issues/meetings etc. Since owning..the HOA fees have went up both years. The first year...I just paid it.

This year..I received a letter that informed me of changes that were being made for 2008. I am not happy about any of these and I have questions.

1) My 2007 HOA fees were 239.36 per month. I was informed for 2008 they would now be 332.91 per month. A 40% increase! Is this legal? The board didn't get any input from the owners on this increase. Shouldn't we have voted on an increase this large? If it is legal, how can we change this so that the owners have input on anything larger than cost of living? I can't afford increases like this every year.

2) Another new rule added for 2008. The previous common parking area that was used to store boats, trailers, etc...is now becoming a "lease" for $100 dollars a month per parking space. (I have a boat there). Again, how can they do this without owners inputs? I bought this place specifically because it had a place to store my boat. Now with the added fees for 2008, my increase has reached 70%! Also, another owner mentioned they are doing this to build up a reserve to repair roofs down the road. How can they charge for use in one common area..and not charge for others...for use of pools, gyms...etc. Why do boat owners have to "build the reserve" to repair everyones roofs.

3) I do not rent my condo, but the third new rule for 08 is "due to damage being done to the common areas when recent tenants have moved out, a new fee of $500 per tenant change will be imposed". Again, A big reason we pay HOA fees is to maintain common areas. How can the board make this change without owner input? Every tenant is not going to cause $500 worth of damage.

It seems these changes are outrageous, ludicrous, unethical. It is going to make selling these units impossible.

Any advice, help, suggestions?

Go to the meeting and ask sensible accurate questions. Don't be a winer or a weener. By the way most things do go up every year electricity,roofs,repairs, materials are a killer. Electrical wire has gone up over 200 percent due to the 3 gorges dam in china.
BODs have to pay for all the things you list. Without the docs its very hard to give you an answer bt they sound logical to me. But then I have only been making the budgets for my hoa for the past 10 years

TammyR: You and other residents are between a rock and a hard place here. It would appear what the Board is doing is realizing the high cost of keeping common areas repaired and maintained, and guess what? That's us.

Now, we can admit that all costs are increasing, everywhere for everything. Also keep in mind if you are a new assn., the developer usually would have 'lowballed' the assn. fee at the start to entice new buyers, and now, 2 yrs. later, the resident-Board is faced with an income vs. expense insufficiency and they must plan to come out in the black not the red; thus, increased fees.

1) A 40% increase is rather high--what additional expenses show up on the budget to warrant this increase from last year's budget? Have new contracts been signed, new contractors at higher rates? additional enhancements to the community? Increased landscaping/mowing or snow removal for the new year?

2) Common area parking spots for rec. vehicles now being leased. What do your docs state re this parking area? It would seem that if one does own a boat, trailer, then it would make sense that they also assume a fee for storing it. Don't know of anyplace where you can store for free.

3) This is a tenant fee which the condo owners would have to give input on, but it would seem it is fair. There are other posts on this site re
a tenant move in-move out fee, so it is not unusual, and sometimes tenants are not as responsible or careful as owners. Perhaps you can suggest the fee be charged at move-in, but returned provided no damage has been done and all is in order at move-out.

Each of these changes are valid and worthy of your concern. Normally, a Board will ask for 'ratification' of the new budget and it is at that time members can question why the need for increases and are there areas which can be trimmed. Hopefully, a copy of the budget will be distributed to you so residents can see firsthand where the changes have been made.

Hi,

I am a condo/homeowner is Maryland. I've lived in my home for one year. My HOA fee just went up from $65 to $150 and topped with a $400 special assessment fee. I also just found out that the HOA was recently transferred over the homeowners. I'm not sure when the HOA board voted on this significant increase but I wouldn't think that homeowers would actually vote to increase the HOA by $85. Can the residents remove the HOA company and/or the HOA period?

Thank you

Tam

It's very likely that the developer increased the fees just prior to the turnover. That is something that happens quite frequently and, unless your state laws indicate otherwise, it's most likely quite legal.

After transition/turnover then there is generally a prescribed method for increasing the assessments and/or imposing special assessments that does involve a certain percentage of the homeowners/members voting on it.

It might be in your best interest to familiarize yourself with the covenants and by-laws of the corporation (the Homeowners Association).