Water Usage Surcharge Based On Occupancy

We are a 24 units "single family" HOA condo complex in Dallas, TX. with only 6 resident/owners - rest are rentals. Majority of our units have 1 or 2 occupants (City ordinance is maximum of 5). However, one owner owns 7 of the 24 units. He was ousted from the Board last year (that he chaired solo for 12 years) by a "mutiny" - I am a member of the new 5 member BOD.

As a revenge tactic - we believe he is deliberately jamming his 7 units to max. occupancy. Our HOA pays monthly water/sewage and trash removal for all units, and our expenses are skyrocketing - due to this increase of flushing, laundry, showering and trash generation by more people than we typically have/had on property (or have budgeted for).

Can we as a BOD, charge extra monthly association dues to units/owners who have more than 2 people? We want to use an escalating scale: 3 tenants: +$15, 4 tenants: +$25, 5 tenants: +$40.

Thoughts and comments are sought and appreciated.

LindaM5: I agree with previous poster, it depends on what your documents state on how the water usage is to be paid for. Realistically, though, it makes sense if most of the units have 2 occupants, and others (rentals or owners) have max. of 5, then they should by their usage pay a higher fee.

You may be able to take an all-membership percentage vote to change the CC&Rs to an amendment which would state, water usage per unit is based on number of occupants. This is a common sense approach to the problem, with those owners with rentals absorbing the HOA increase through their increased rental fees. With only 6 owners residing, and the rest renting out (which is the majority), you may not get the percentage needed to pass an amendment to address this.

Hi Linda,

WE have 136 units in 34 x 4plexes, and are in a similar bind.

You may be able to install single use water meters for your units, and then the problem will solve itself. I can be expensive but will probably be worth it.

Also to change your rules you need to look at state laws as well as your own CC&Rs
Lt us know how it works out.

AdrianC

All, thanks for the input. I'll check on costs (and try not to collapse in sticker shock) to convert to single meters. That's probably cost prohibitive. Budget is so full of "pink ink" it makes me want to cry.

So, do you think I could do an all owner vote for an ammendment, because this issue is not "specifically" addressed or covered? If I acquire adequate "yeas" to proceed - do we need an attorney, or how do we officially change our documents?

Wish I had the experience and knowledge that ya'll had...but thanks for tolerating and assisting the HOA village idiot.

LOVE THIS WEBSITE!!

Yes, we need 2/3 (16 votes) for an amendment.

I checked with City Utilities and they will NOT do/allow single meters, we have to maintain current bulk billing. Unless we install sub-meters and read them ourselves to determine individual usuage to divide the bill.

The guy that owns 7 units is a multi millionaire - and he is pouting since the "mutiny" - he has never been challenged. He owns tons of office space and other condo's within a 15 mile radius. He is loading up his units (not sure if he charges per head) - he does get $1,000 deposit +$850 per month, and very few tenants get that returned (because of wear n tear). They leave, and he brings in his "crew" to clean, paint and recarpet in a matter of hours. It's a 3 ring circus.

As far as occupancy, we do require "landlords" to provide lease/tenant information, i.e. who, vehicles, pets, etc. Plus 2 of the 5 BOD members live on property, and we welcome and introduce ourselves to all new owners/tenants (and verify headcount). We're a compact complex, and for security we keep a pretty close eye on the comings and goings, and know who lives where. It's pretty simple to be aware of occupancy. Right now we are 53% 1-2 residents, and 47% 3-5 residents (we have 3 vacancies). Historically we have been +80% 1 or 2, 10% with 3, and barely 10% with 4-5. Those are the stats, and that's why utilities are increasing (water/sewer/garbage).

With these occupancy and consumption increases, we have to do something soon that is proactive and equitable. We already raised dues Jan. 1 by the max 10%, but right now operating expenses are absorbing 80% of our monthly income. We've negotiated/acquired reduced contracts for all HOA paid services (we also have a pool).

We have variable expenses (maintenance wish list) projects to do. Plus, we do not have a reserve fund, and MUST do that too. No owner will support a flat, special assessment (like $300 per unit to put in the budget kitty)>that suggestion/vote failed miserably at All Owner meeting.

If we seek and acquire 2/3 votes for an amendment change...do we need an attorney or how do we "officially" change our documents?

Thanks so much!

Again, between resident owners (and some darn good tenants), we live in peace, and everyone (without being nosey or rude) keeps an eye out for "strangers" or trouble. All owners/tenants know me (and I know them) - most will tell me if they see anything/anyone out of place. That's a nice relationship.

Regarding the pool, we tried to launch an annual "usage fee" but that was rejected by owners. Again, because no one has cared or paid attention in the past, we did have historic trespassing and abuse issues. So BOD announced and enforces a "Fine Without Warning" system ($50 per infraction)regarding pool rules. That worked great this past summer. Each owner received a gate key (again, I know all tenants), and all pool rules are door distributed prior to pool opening, posted at the mailcenter and on pool fence. Someone (who cares) is usually at the pool, and we monitor closely for fence jumpers. I'm retired - so I'm lounging there most of the time during the season. The new pool system is working - we only had 2 violations this past year. Even tho maintenance, water and chemical expenses are drowning our budget.

Back to my original posting dilemna regarding Occupancy Surcharge for Water/Sewer/Garbage - our BOD has been bantering and we've decided to try for an amendment. We'll seek 2/3's vote to adopt.

My final question is: Will we need an attorney..or how do we officially change our Declarations if this passes?

Thanks to all for your contributions to my cause. If my lack of HOA knowledge : ) or services can help anyone - let me know.