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ClaytonG
Posts: 19
Posted:
Does a BOD in an HOA have jurisdiction to discriminate against maintenance of a Common Area they deem 'less popular' while funneling the majority of assessment revenue into the the common area they deem 'more popular'?

The Covenants clearly state the HOA will maintain all Common Areas through the collection of annual assessment fees and all homeowners are obligated to pay set assessment fees regardless of Common Area use.

The HOA is suppressing the assessment fees and failing to collect enough revenue to cover maintenance for all community Common Areas. They are 'forcing' seven homeowners who use the 'less popular' common area to pay a monthly $150 fee, $12,600 annually, for the Common Area upkeep.

I have no issue with paying a fee for use of this Common Area. I do however feel the HOA should raise the assessment fees to ensure each homeowner is paying their share of the "Common Area" maintenance and improvements.

By doing this, are they not circumventing the Covenants by exempting themselves and other homeowners from paying for a Common Area they choose not to use?

CharlieP2 (Utah)
Posts: 15
Posted:
Clayton - Wow. It sounds like you are sitting on a stick of dynamite with this.

CC&R's are designed to protect the common good of each individual homeowner. If there are issues concerning 7 homeowners as compared to all homeowners, that's a problem.

Fees for common areas should be managed by ALL within the HOA.

If I can help you in more detail, feel free to email or call me.

Charlie Peterson
[email protected]
801 521 2421
ClaytonG
Posts: 19
Posted:
After moving in, I became aware of this shadow arrangement that has been going on for years. It seems certain members of the community have been strong-arming the homeowners who use the 'less popular' (All woman I may add - real tough guys) with threats to tear down this part of the Common Area if they didn't go along. Needless to say, those days are about to end.
CharlieP2 (Utah)
Posts: 15
Posted:
Clayton, I would suggest a board meeting to resolve this issue. If there are potential lawsuits involved, make sure there insurance coverage in place takes care of that. Otherwise, there could be huge losses incurred with legal fees by the HOA for a dispute. In that scenario, EVERYONE in the HOA loses.

Charlie
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By ClaytonG on 04/25/2008 3:06 PM
After moving in, I became aware of this shadow arrangement that has been going on for years. It seems certain members of the community have been strong-arming the homeowners who use the 'less popular' (All woman I may add - real tough guys) with threats to tear down this part of the Common Area if they didn't go along. Needless to say, those days are about to end.

Clayton if these additional fees are for something that is open to all members at all times then yes the HOA should be paying for it from everyone's assessments. However if it is something with limited use like a boat dock i.e. only one boat can occupy a particular slip at any one time then the HOA is IMO within its bounds to charge a rental fee for an 'exclusive' use amenity.

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By CharlieP2 on 04/25/2008 2:52 PM
Clayton - Wow. It sounds like you are sitting on a stick of dynamite with this.

CC&R's are designed to protect the common good of each individual homeowner. If there are issues concerning 7 homeowners as compared to all homeowners, that's a problem.

Fees for common areas should be managed by ALL within the HOA.

If I can help you in more detail, feel free to email or call me.

Charlie Peterson
[email protected]
801 521 2421

Charlie yes we get that you sell insurance, you want/need people to buy insurance and if you want to post here you are welcome to provide information either pro or con to a particular thread but please stop trolling for customers as it's against the rules unless you are a sponsor.

Studies show that 5 out of 4 people have problems with fractions
ClaytonG
Posts: 19
Posted:
Thanks for your response. I may have failed to clearly state my concern.

Our community has has two common property amenities. Both of these amenities area identified on the original plat as Common Property. The HOA was issued a single Warranty Deed for these Properties.

There are also 16 homes in the community that have granted Easement Agreements to the HOA as Common Property. The Easements clearly state the Grantee, (HOA), is responsible for all easement maintenance and repairs.

Then we have the Declaration of Covenants. The Covenants clearly define the Common Property and states the HOA will maintain all Common Properties, which will be funded by annual assessments levied evenly against all lot owners. The covenants also state "No owner may waive or otherwise escape liability for the assessments provided for herein by non-use of Common Area."

As I knew prior to purchasing my home, the HOA charges $150 for use of one of the above Common Property amenities. What I didn't know is, the $150 monthly fee, $12,600 annually, being charged to the seven homeowners who use the amenity, is being used to pay for ALL the Common Property costs associated with this amenity.

It turns out the HOA is suppressing the annual assessment fees, they haven't been raised in six years, by requiring the seven homeowners to foot the bill for the full Common Property upkeep associated with this one amenity.

I sent an email to the Treasurer asking for an explanation. He\she actually admitted this was done because an undisclosed amount of vocal homeowners, who chose to move into a community this amenity was built around, complained they shouldn't be required to pay for Common Property expenses they don't care to utilize.

Therein lies my issue. I have no problem with being charged a 'reasonable' fee for use of the Common Property. But I believe the costs for maintaining all Common Properties should be collected through the assessments from each lot owner as stated in the Covenants.

It is my opinion that, this arrangement is a violation of the Covenants as it is exempting lot owners from paying for Common Property they don't use.

The seven members who use this amenity are paying a total of $2,025 for use of the community Common Properties while the remainder of the community is only paying $225. To really add insult to injury, the operating cost of the amenity the HOA is charging the seven members to use is half of what the other amenity runs.
GlenL (Ohio)
Posts: 5,491
Posted:
Clayton what specifically are the two different amenities? We had a poster a couple of months ago that had his knickers in a knot because he was being charged a monthly fee to board his horse in a common amenity, the Association's barn. He thought it was unfair even though his horse had the EXCLUSIVE USE of one of the stalls which he could lock, a storage area for his feed/hay and a place to dispose of the 'horse apples'. I personal think he was just upset because the fee didn't pay for someone to muck out the stalls and he had to clean up after his own horse.

Studies show that 5 out of 4 people have problems with fractions
PatrickH (California)
Posts: 204
Posted:
Hi Clayton,

Please take a minute and explain to us exactly what this particular "amenity" you keep referring to is, and why do just seven members use it? If it's a common area, why doesn't everyone use it?

Is it the easement you mentioned that might allow access to just those seven homes? Is it a playground, a park, a pond, parking spaces, a boat dock? We have no idea what this "amenity" is, so it's pretty hard for anyone to offer any suggestions.

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