DanielL3 (Louisiana)
Posts: 65
Posts: 65
Posted:
QUESTION: If a community's Articles of Incorporation state specifically the dues amount and the HOA would like to increase the dues then what would be the procedure?
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DUES
Started by DanielL3 • 7 replies • 1159 views
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GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
That is an unusual place for that to be. If there is no mechanism for raising dues addressed in the Covenants, the By-Laws or state law then you need to contact an attorney for legal advice.
Studies show that 5 out of 4 people have problems with fractions
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
I agree that is unusual to have that addressed in the Articles of Inc. But, then, we're talking about LA! (I can say that, I once lived there! LOL) But, if the Articles have a provision to amend (which they should), I would suggest pursuing an amendment. If the board goes that route, they may want to consider amending it to read that the dues will be set at an amount designated by the board and not specify an actual amount.
I know of an assn. in my area that is required to raise their dues by 10% each year. For 2 years they have tried to pass an amendment to abolish this requirement (they just don't need the $$$!!), but have failed to get a quorum. Major apathy when the members can't be bothered to vote on an issue that will save them money!
I know of an assn. in my area that is required to raise their dues by 10% each year. For 2 years they have tried to pass an amendment to abolish this requirement (they just don't need the $$$!!), but have failed to get a quorum. Major apathy when the members can't be bothered to vote on an issue that will save them money!
SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
Daniel,
Don't your Articles have a provision in them instructing how to change (amend) any part of them? If there is no provision for amending it, you may be in deep do-do.
Don't your Articles have a provision in them instructing how to change (amend) any part of them? If there is no provision for amending it, you may be in deep do-do.
MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
Wow, Mary, that's just amazing.
We have a provision that if we don't get a quorum, we can close the meeting and reschedule at least 3 days later, at which time we can vote on the item again and we only need a majority vote of those present for it to carry.
Yes, that means conceivably 3 people can amend the CC&Rs that that entire HOA will have to abide by.
Fortunately, we've never had to engage that provision!
We have a provision that if we don't get a quorum, we can close the meeting and reschedule at least 3 days later, at which time we can vote on the item again and we only need a majority vote of those present for it to carry.
Yes, that means conceivably 3 people can amend the CC&Rs that that entire HOA will have to abide by.
Fortunately, we've never had to engage that provision!
DanielL3 (Louisiana)
Posts: 65
Posts: 65
Posted:
There is a provision in the Articles of Incorporation addressing the amending of the Articles...requires a vote of 75% of members present. What member will vote for a dues increase?As of now, we have Articles stating the dues amount and the residents paying more than what is stated. This increase occurred in June, 2007.
DanielL3 (Louisiana)
Posts: 65
Posts: 65
Posted:
Oh, by the way, the Articles also state the Association's Board will consist of 6 members. Presently, we have 7 members.
SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
Wow! How are they getting away with that? Membership asleep?
Our bylaws state the amount of the assessment in them. They can only be changed by a vote of the Members. All Members watch that number like hawks.
Our bylaws state the amount of the assessment in them. They can only be changed by a vote of the Members. All Members watch that number like hawks.
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