💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

LindaW7 (South Carolina)
Posts: 1
Posted:
Our board is stating the the Property Management is stating they can up the association fees without the homeowers.
GeraldT4
Posts: 1,022
Posted:
LindaW7 - The best place to generate revenue to cover operating costs is from an increase in monthly, quarterly, or annual association fees. Rather than special assessments to fund the amount needed. Your board may or may not be subject to restrictions on the amount it can increase. Restrictions should be outlined in your governing documents, or maybe even state law. But look to your docs. first, and let us know what you find.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
I've never heard this one before. Ask them to show you where in the governing documents (bylaws, CCRs or Declaration, state laws, etc.) it says they can do this. I would be surprised if it's in there.

Your fees should be based on your budget. I can't speak for who can do this or how it's done in your case, but I would think it's by some combination of board and homeowner approval. My guess would be that the board would establish and vote to approve a budget (thereby setting the fees) followed by an approval of some sort by the homeowners. I can't see why the property manager should be involved at all.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Linda,
As Gerald has said, you will need to look into your Bylaws or Articles of Incorp to see what your procedure is for increasing your fees. If you do not have it in your own Docs, the California's Davis/Sterting Act has it in there. Your association may allow your Board of Directors to do the raise in dues without a membership vote but it also may require the membership to vote for the increase.. That is why you need to read the requirements. I would like to assume that your P.M knows what she is saying and the increase is done without a vote.
GeraldT4
Posts: 1,022
Posted:
BruceF1 - An approval of the homeowners may not be required. A board vote to approve the budget is appropriate, done in my association, and probably required in everyone else's. Though never say never, there are some docs out there that are kind of wacky, or very dated. : )
BruceF1 (Connecticut)
Posts: 2,535
Posted:
GeraldT4,
Yes, it all depends on whats in the governing documents. We requre an approval of the board and ratification by the homeowners (that's an interesting one; too lengthly go to into here). We may not agree on everything, but as for having wacky things in documents, I'm with you on that one.
GeraldT4
Posts: 1,022
Posted:
BruceF1 - Our Board has percentage thresholds for capital expense improvements in any given budget year, and since our 2005/2006 budget year, the Board has raised the maintenance apprx. 28% without the need for a vote of the community. There have been no special assessments since inception, we have a written article for a one-time working capital fee to new homeowners upon purchase in the community.
HaroldS (Arizona)
Posts: 906
Posted:
Well of course you should know how much your documents allows you to increase your annual assessments without approval of the members, but more importantly you should know if your state has a limitation too which might supercede your documents.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Good point Harold. We had the California poster who had the 10% limit in her docs and California has a 20% limit. Florida has a limit too so the State Statutes should also be viewed for limits, of course after the association documents.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
I believe we're getting away from the original question here. I don't think it's how much boards can raise fees, or make special assesments, or whatever.

I think the original problem was that LindaW7's board has made the claim that the property manager has the authority to raise association fees without homeowner approval, or something to that effect. LindaW7, is that what you are asking?

My response was that in my experience, and in everything I have read, I've never heard that claim before. It may be true, but it strikes me as unusual.
I'm suspicious that the property manager has any such authority.

Borrowing on advice I've received from others, whenever someone makes a claim that you don't believe to be true, ask them to show it to you in writing (ie. in the bylaws, Declaration or CCRs, statutes, whatever). If the claim is not true, they won't be able to show it to you.

I don't know what the correct procedure is in LindaW7's case is; I only what the requirement is for my HOA. Anything is possible. Make them show you and then you will know.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
What does California's Davis-Stirling Act have to do with South Carolina?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Bruce,
My error. I thought that Linda was from Cal.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Bruce,

Linda's post was written in poor grammer so it is difficult to know who says what with the sentence. We don't know who "THEY" are. I'll bet she means "THEY, meaning the Board.

Her post-- "Our board is stating the the Property Management is stating they can up the association fees without the homeowers."
BruceF1 (Connecticut)
Posts: 2,535
Posted:
DonnaS,
Yes, it's easy to forget where people are from. I have to keep checking and rechecking too.

Hmmm. Reasonable interpretation. This does change the entire meaning of the sentence. I took it to mean THEY referred to "property management".

Using your interpretation, it sounds like the property manager is advising the board that they (the board) can raise fees without homeowner approval. That is entirely reasonable and believable. We can (sort of) do that too.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Still waiting for Linda to clarify who "THEY" are but it makes sense to me that "they" are the Board. My associations documents allow their Boards to increase fees up to a certain percent without a vote by the membership.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here