Collecting HOA Dues

Started by RustyM • 3 replies • 2304 views

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

⚡ Takes 30 seconds

Already a member? Log in

RustyM (Georgia)
Posts: 1

Posted:

This is my first time here so take it easy on me.

I live in a 73 unit townhome community. The community is more like a condo community because all the land outside the units is considered common area. The county we live in requires developers to install master water meters as opposed to individual water meters for each unit. The HOA pays for the all the water used in the neighborhood. In addition to the water the HOA is responsible for paying for lawn maintenance, electricity for common areas and etc... This is the first year of the neighborhood and we already have $9,000.00 in delinquencies. It is hard to watch homeowners who are delinquent recieve services they aren't paying for. I was wonder if anyone has heard of an HOA shutting off the water for delinqent homeowners until they have paid owed dues or set up a payment plan? Your help would greatly be appreciated and thank you for your time.

GeraldT4
Posts: 1,022

Posted:

Hi RustyM - Welcome. Am not coming down hard on you. Just friendly comments. ; ) Since this is the 1st year of the neighborhood expect that many of the costs will increase from what was presented to the owners by the developer. If the HOA is responsible for all the watering, as you state it is, than the amount collected in maintenance fees from the homeowners/individual units needs to increase. If $9,000 additional is required than you can do the math.

Just a short story to show you how common your experience is. Our developer in my HOA provided us a annum cost for utility bills. The utility bill for street lighting was approx. $18,000 per annum. Well, wouldn't you know it was discovered that our developer was only paying a partial on the lights, apprx. 1/3rd of the total cost. Fast forward to 2 years later when this was discovered. We were being back billed by the utility company for the years the other 2/3rd's of the lighting was installed and being used to the tune of $100,000.00. Thankfully I saved the utility cost letter we were submitted by the developer. And our Treasurer succeeded in getting the utility company to give us a huge break.

Now, as for shutting off water, you must follow due process. All maintenance fees must be increased to cover the true cost of running the association, OR the revenue that is generated from maintenance collections needs to be shifted from here to there to cover the necessities and forgo the desires, if that's possible. Try to avoid what's called special assessments, one-time fees to cover expenses. Always best to raise maintenance than special assessments. Sends a red flag to savvy potential buyers. Back to due process, have these delinquent owners been sent letters of their arrears in maintenance? If not, denying them water may be an issue.

CharlesW1 is in Georgia as well, maybe he can offer some advise that pertains to Georgia state law that governs your association.

Best of luck and Welcome!!!

BrianB (California)
Posts: 2,820

Posted:

the HOA i lived in back in Kansas had a master meter, and was also in charge of reselling the water. Yes, you can shut off water to delinquent payers, but you had better check the laws of your state. Water can be considered a critical utility (not always, but possible), and there may well be rules and procedures you must do to shut it off properly and legally. Learning those rules now will save you plenty of headaches.

GlenL (Ohio)
Posts: 5,491

Posted:

Brian's right check with an attorney while I believe it is legal to do this in Virginia it isn't in Ohio. I know because we looked into it too.

Studies show that 5 out of 4 people have problems with fractions

🎯 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