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WendyM5 (North Carolina)
Posts: 1,522
Posted:
just curious what yoru HOA charges to review ARC paperwork? Ours has been the same for 28 years, thinking its' time to raise it.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Why? Your a non profit. The cost spent is money that is charged.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
We've never charged. If it's a matter of everyone getting the same paperwork submitted by the homeowner, all you have to do is tell the homeowner to provide X copies of everything submitted with the ARC request - one for each person who will review it and one that will be placed in the homeowner's permanent file.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LoriM15 (Florida)
Posts: 1,009
Posted:
We are allowed to charge per our declaration but we don't. We are also allowed to pay ACC members, which would allow us to hire professionals to help with decisions. We would love to do that but we can't ever find anyone who wants to work with us on a case by case basis. If we did have to hire an engineer or architect, that cost is the responsibility of the owner requesting the change.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 04/03/2024 7:04 AM
Why? Your a non profit. The cost spent is money that is charged.

because 1120H tax forms allow "non profits" to make some profit.

To be eligible to file Form 1120-H, an HOA must derive at least 60% of its gross income from membership dues, fees and assessments from owners of residential units or residential lots. Additionally, at least 90% of the HOA's expenditures must be for the acquisition, construction, management, maintenance or care of association property.

Notice the numbers are 60% and 90% not 100% like you imply.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
And yet you still do not know how a HOA works...

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 04/03/2024 7:50 AM
And yet you still do not know how a HOA works...

it's funded by the people for the people! with ARC fees?
you can argue all you want, the tax percentages are not debatable. it's not what it isn't.

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
I'm fine with paying 30% corporate tax on it too, that means the HOA gets to keep 70% of the money! thats 70% more than nothing which I consider a win.

vis ta vie
NA1 (Massachusetts)
Posts: 190
Posted:
We just charge actual expenses, lif any.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
And yet Wendy that is not the purpose of an HOA...

Former HOA President
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/03/2024 7:43 AM
Posted By MelissaP1 on 04/03/2024 7:04 AM
Why? Your a non profit. The cost spent is money that is charged.


because 1120H tax forms allow "non profits" to make some profit.
I believe the law says that the HOA may not charge more than its actual expenses.

You have raised this issue before, in the context of HOA disclosure documents required at the sale of a home. Your position is that the HOA can charge pretty much whatever it wants. I continue to disagree.
ElleN (Idaho)
Posts: 4,420
Posted:
Of the three HOAs/COAs where I lived, none charged for ARC applications. All applications were reviewed by volunteers with sometimes, input from the manager, followed by denial; acceptance; or conditional acceptance.
ArtB1 (Florida)
Posts: 97
Posted:
Florida HOA and we have never charged
MarkM19 (Texas)
Posts: 1,459
Posted:
In Texas we charge $25.00 and it goes directly to the PMC who handles the reviews. No profit to the HOA.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
We are currently doing it for free, but corporate rental companies are refusing to use gmail forms because they don't want to make a free gmail account.
the google form keeps all the photos, application questions, and info in a neat database file. If they are going to make me reupload stuff then it is fair for them to pay an admin fee for that. No one else has had an issue with the form.

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 04/03/2024 8:37 AM
And yet Wendy that is not the purpose of an HOA...

I stand corrected. We will see how the rest of the board votes. My guess is to charge afee.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
That is on you and your conscious. Not on mine. Good luck because that is not a "win" any anyone's eyes to charge all your neighbors fees.

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
We're a multi-story condo bldg. so have strict ARC requirements. We charge nothing to applicants. If the ARC recommends it, like Lori, "...and we did have to hire an engineer or architect, that cost is the responsibility of the owner requesting the change.'
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By WendyM5 on 04/03/2024 11:23 AM
We are currently doing it for free, but corporate rental companies are refusing to use gmail forms because they don't want to make a free gmail account.
the google form keeps all the photos, application questions, and info in a neat database file. If they are going to make me reupload stuff then it is fair for them to pay an admin fee for that. No one else has had an issue with the form.

Well, some of you know how I feel about investor-homeowners in HOA communities – too many nickel and dime every damned thing because they want to make as much money as possible. I don’t know why they would refuse to upload all this via Google Docs – there are other similar programs out there.

If you have a website, there should be a way to set up an online form people can use and upload attachments if they don’t know how to use Google Docs. I’d probably tell them either mail in the documents, put it a USB drive, CD (if those are still around) or just drop it off at the office if they don’t want to use email. That should apply to everyone so they can’t squawk about being singled out.

I also like Lori’s idea about it being the homeowner’s responsibility to hire an engineer or architect if a homeowner is requesting a certain change. If they want the change, they’ll either find a way to make it work – or may be more inclined to listen to an architect who could explain why the idea is impractical.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DeanJ
Posts: 1,786
Posted:
Zero.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I know of no real reason outside of greed to collect fees for arc application unless it is replacing any costs incurred not administrative. The HOA board is voluntary. What you do on a board or committee is voluntary and your job.

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 04/04/2024 7:26 AM
I know of no real reason outside of greed to collect fees for arc application unless it is replacing any costs incurred not administrative. The HOA board is voluntary. What you do on a board or committee is voluntary and your job.

yep I'm greedy, that's why I spearheaded the reduction in dues by 50%. the real reason is these rental companies are annoying, saying they can't use free gmail accounts. fine, then pay a fee is the solution. I have better things to do than reupload photos to the ARC database so they can make a rental profit.

vis ta vie
LetA (Nevada)
Posts: 2,679
Posted:
Zero $$$ It's senseless to charge for an ARC application. I believe that money collected would be subject to pay income tax on.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By LetA on 04/04/2024 8:16 PM
Zero $$$ It's senseless to charge for an ARC application. I believe that money collected would be subject to pay income tax on.

Yep 30% income tax, which means we get to keep 70%! Already factored that into my suggested price to other board members.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Still worse way to run a HOA non profit. You never run one like your home budget. It shows lack of critical thinking skills if you can not see the difference.

If you are a non profit what are you saving money for??? Even a capital fund is savings for long term capital improvements to be spent...

Not doing anything but paying the tax man and lining your pockets. Bad taste.

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 04/04/2024 8:30 PM
Still worse way to run a HOA non profit. You never run one like your home budget. It shows lack of critical thinking skills if you can not see the difference.

If you are a non profit what are you saving money for??? Even a capital fund is savings for long term capital improvements to be spent...

Not doing anything but paying the tax man and lining your pockets. Bad taste.

blocking filter please!

vis ta vie
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By WendyM5 on 04/04/2024 8:22 PM
Posted By LetA on 04/04/2024 8:16 PM
Zero $$$ It's senseless to charge for an ARC application. I believe that money collected would be subject to pay income tax on.


Yep 30% income tax, which means we get to keep 70%! Already factored that into my suggested price to other board members.

Is the fee a rouse or other way to stop people from making additions to their home? A fee seems kind of drastic. If someone wanted to install
solar panels, you charge a application fee.. On the surface, that does not seem fair compared to someone wanting to install a patio enclosure in their
backyard.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The only reason to charge is to line someone's pocket. The HOA being a non profit could charge back any actual expenses it would take a licensed professional to do the work. However because you think lifting a finger to do anything in your HOA in a VOLUNTEER position is just all kinds of ick.

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By LetA on 04/04/2024 9:06 PM
Posted By WendyM5 on 04/04/2024 8:22 PM
Posted By LetA on 04/04/2024 8:16 PM
Zero $$$ It's senseless to charge for an ARC application. I believe that money collected would be subject to pay income tax on.


Yep 30% income tax, which means we get to keep 70%! Already factored that into my suggested price to other board members.


Is the fee a rouse or other way to stop people from making additions to their home? A fee seems kind of drastic. If someone wanted to install
solar panels, you charge a application fee.. On the surface, that does not seem fair compared to someone wanting to install a patio enclosure in their
backyard.

fee is for rental companies that refuse to use gmail to submit pictures to our online database. no one else has an issue with it, only them. I have better things to do than re upload photos.

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By LetA on 04/04/2024 9:06 PM
Posted By WendyM5 on 04/04/2024 8:22 PM
Posted By LetA on 04/04/2024 8:16 PM
Zero $$$ It's senseless to charge for an ARC application. I believe that money collected would be subject to pay income tax on.


Yep 30% income tax, which means we get to keep 70%! Already factored that into my suggested price to other board members.


Is the fee a rouse or other way to stop people from making additions to their home? A fee seems kind of drastic. If someone wanted to install
solar panels, you charge a application fee.. On the surface, that does not seem fair compared to someone wanting to install a patio enclosure in their
backyard.

fee is for rental companies that refuse to use gmail to submit pictures to our online database. no one else has an issue with it, only them. I have better things to do than re upload photos.

vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/05/2024 10:10 AM

fee is for rental companies that refuse to use gmail to submit pictures to our online database. no one else has an issue with it, only them. I have better things to do than re upload photos.
What fees a HOA may charge is in the governing documents. You have made clear there is no such provision for charging owners (rental companies or otherwise).

Your board will bill at its own peril.

If I were you, and knowing you got on the board because you thought the prior board was so inept, I would do what you hoped prior boards would have done: Comply with the governing documents.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
section 6.3 allows us to charge fees for ARC review.

vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyM5 on 04/05/2024 10:27 AM
section 6.3 allows us to charge fees for ARC review.
Please quote it verbatim.

You know why.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I have been a member of 6 associations and on the ARC and BOD's on some and I have never seen an association charge for an ARC review.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By WendyM5 on 04/03/2024 6:51 AM
just curious what yoru HOA charges to review ARC paperwork? Ours has been the same for 28 years, thinking its' time to raise it.

I'm late to the party but I'll chime in:

Our PMC recently decreed that we would be moving to a new portal - I can't say the name but it's something like a breath freshener. Along with that was a new ACC form, a new as-yet-unknown ACC process, and a $25 fee for every ACC application. We weren't given a choice nor asked to provide input, with only a one month notice. It's a corporate-wide changeover (and despite some growing pains, it might be a good thing in time).

But the $25 fee for an ACC application made me see red. Our ACC Chair{1} didn't have a problem with it: "well, people who are repairing or adding to their house are used to paying fees". A manager at our PMC{2} just out and told me "it's a use fee, it's standard industry practice." To be clear: our ACC is all-volunteer; it's a simple case of "charging a fee because we can".

Anyhow, not much of a story except that I had to go to FB and play whistleblower to get people to write and express their unhappiness. And in the end, I think it was a phone call to our new PM's boss that made them back down off of the fee. A minor victory, and I don't know how long it will last. What blew my mind was how many people didn't seem to care: "*I* don't have to submit an ACC form". Yeah, you don't have to submit one *now*. Among other things, I think a lot of people in my 'hood suffer from a serious form of "I've Got Mine".

The insidious thing about these kinds of fees is that once they sneak in the door, it's impossible to make them go away.

Thank you.

Bill

{1} He's an ass.
{2} He's an ass, too, but at least he's an honest ass.

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
KerryL1 (California)
Posts: 14,550
Posted:
I can't imagine that an HOA or MC can start charging a fee without Board approval. BillD is a board member. The ARC chair has ZERO authority in this regard. Nor should a "new form" for ARC be without Board approval.

Wait----maybe this typical in Texas????
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By BillD16 on 04/08/2024 3:05 PM

But the $25 fee for an ACC application made me see red. Our ACC Chair{1} didn't have a problem with it: "well, people who are repairing or adding to their house are used to paying fees". A manager at our PMC{2} just out and told me "it's a use fee, it's standard industry practice."
To the manager: Nonsense. Worse, this manager has zero command of the reality that if a fee is not authorized in the covenants, then it cannot be billed to owners.

Quote:
Posted By BillD16 on 04/08/2024 3:05 PM
To be clear: our ACC is all-volunteer; it's a simple case of "charging a fee because we can".
Sounds like it. Though they "can" only as long as no one challenges the board on the point and demands proof of where the governing documents permit the charging of such a fee.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ElleN on 04/08/2024 5:30 PM
Worse, this manager has zero command of the reality that if a fee is not authorized in the covenants, then it cannot be billed to owners.
I mean it cannot be //lawfully// billed to owners.

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