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MaryM59 (Texas)
Posts: 11
Posted:
I have lived in my community for 18 years and am writing on behalf of a neighbor who wants to paint his home. He understands there are approved colors etc. There has never been a fee associated with requests to make changes to the exterior of one's home. We simply completed a form and submitted it on-line to the management company or even in person, and waited for our ACC committee (committee of 3 homeowner volunteers) to review it and render their approval or disapproval. They provide their decision to the management company who then communicates with the homeowner. Obviously the board has no say in these decisions unless a homeowner wants to appeal. The committee members do not communicate to homeowners directly, just report decisions or ask for additional information through the management company. In essence, the Association is currently paying for these requests (out of operation funds---association dues).

We recently changed management companies. In our research and interviews each of the 5 companies we researched and interviewed, each company presents an ACC Fee. We now charge a fee of $25. If there are multiple changes, each request is $25--very low considering today's standards. People want to know what exactly is included in the cost of the $25 fee. "Administrative costs is the common response; but what exactly does that mean? Somebody with management company entering data into the homeowners account? Printing? Mailing (if they send correspondence through the US mail? Making a few copies?

Most understand "the cost of doing business", but there are those who have become really vocal and suggest that this is a money grab. If I am spending thousands of dollars to paint my house or build a new fence, another $25 isn't going to kill me. But as I said there are many who have lived here since the mid 1970s who are really mad about it! Is this a money grab?
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By MaryM59 on 07/10/2025 9:11 AM

We recently changed management companies. In our research and interviews each of the 5 companies we researched and interviewed, each company presents an ACC Fee. We now charge a fee of $25.
If this is the fee the management company (MC) charges, then it is what it is. The Board can always say, "No thanks" and try to find another MC that overall, it likes more.

Is it a money grab by the MC? Only in the sense that we live in a capitalist society and businesses charge as much as they can to stay competitive and maximize income.
SheliaH (Indiana)
Posts: 6,964
Posted:
Have you AND your neighbor attended board meetings and asked them directly about this? If so, what was the response? If not, why not? In fact, if there are others concerned about this, all of you should attend the next meeting and express your concerns.

You didn't say how recent the company changed hands,, but did you read previous board meeting minutes to see if there were discussions about this? Was an announcement sent out to the community so no one would be surprised?

You also said 5 companies were considered- everyone has their price and I would hope the board looked at the costs vs the amount of work that would be required. Maybe the volume wasn't enough to offset the expense. Or it could be a novel way of making more money for the property manager. Either way, the question on whether this is a money grab is subjective. You choose to accept it or look elsewhere. Such is capitalism.

The property manager works at the board's direction, so if the new company is charging this fee, it would be appropriate to explain what goes into it. You mention administrative costs, which could consist of entering the request in a database, forwarding copies of the requests to the committee members (I'm sure there's more than a form stating a homeowner wants to replace a fence), back and forth between committee members, the property manager, the board (or a designated member),and the homeowners (because there's may be more than one request to juggle). All of that takes time and the property manager may have to pay someone to keep all this in order.

You may be right that $25 may not be an issue to some people, but no one works for free. The committee members aren't being paid, so it makes sense that they get some help in wading through all this stuff.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
BillD16 (Texas)
Posts: 971
Posted:
Our PMC attempted a $25 ARC fee a couple of years ago, on the occasion of forcing us to move over to their new portal software. I asked our PM’s boss, who said “it’s just an add-on fee, it’s an accepted industry practice”. Which is to say: it’s a money grab, there is no added value to the fee. I guess it’s nice that she was honest, but I was shocked that she didn’t see it as any big deal (until I asked her to drop it{1}). I managed to raise enough hell that they made an exception for us. But the amount of apathy over it was shocking. I’m not sure if it’s just my neighborhood or if it’s universal, but it’s like: nobody cares - until *they* get charged a fee.

TL;DR: It’s a money grab. You might be able to talk them out of it.

{1} one of my many pet peeves is when someone tries to squeeze money out of me with “but it’s only $25!” “Really? Then if it’s only $25, it will be easy to remove the fee!” (Alternatively: “Okay: give me $25 right now. I mean, it’s only $25, right?”)

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
DeanJ
Posts: 1,786
Posted:
The management company and the board do not get to establish fees unless the fee is provided in your declaration.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By DeanJ on 07/10/2025 2:23 PM
The management company and the board do not get to establish fees unless the fee is provided in your declaration.

BINGO! There's not $25 in labor associated with submitting an ARC form to then share with the Review Committee. Such logistics should easily fall within the realm of normally contracted services and is not "additional" to a property manager's job.

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