How to get your HOA BOD to follow the CRRs regarding restrictions on increasing the annual assessments

Started by FranN • 14 replies • 1758 views

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FranN (Maryland)
Posts: 8

Posted:

What resources (Statues, laws, government offices) are available in Maryland to protect the rights of homeowners under their hoa's CRRs?

I live in Maryland and I noticed when I read the CRRs on my HOA's website that one section said the association may not levy against any lot without the membership's (homeowner's) approval any annual assessments in an amount which exceeds 110% of the immediate preceeding year's annual assessment. The members must vote on this assessment which requires according to the CCR authorization by two-thirds of the membership.

The 2009 annual assessment exceeds 110% of the 2008 annual assessment and only the board members have voted on it. The homeowners have received the bills for first quarter of 2009 with the increase due by January 1, 2009.

I sent the property manager of my hoa community a copy of the bylaw from the hoa website that showed the restriction, but she said the budget has been approved and the annual meeting in January after the deadline to pay the new assessment, is just for elections.

GlenL (Ohio)
Posts: 5,491

Posted:

There is no regulatory agency in Maryland that I'm aware of, in most cases like this your option is the court system which can be expensive but if you prevail the HOA may have to pay your legal expenses but this is not a given. While not condoning the BOD's behavior in this matter the chances are that even if you took them to court and won and they had to reduce the assessment to 110%; more than likely they would then levy a special assessment to make up for the budget shortfall and any legal fees.

Contrary to the PM's statement that the annual meeting is just for electing Board members; you as a member of good standing have every right to ask the Board why they violated the CC&R's.

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

TonyM3 (Arizona)
Posts: 170

Posted:

That's some strange language. Is a 110% increase double plus 10%?

DwightT (Idaho)
Posts: 664

Posted:

I don't think so. I had to read it a couple of times myself, but it's probably along the lines of the dues in any year may be no more than 110% of the previous year's dues, which would mean no more than a 10% increase. So if the dues were $500 last year, the dues this year could not be more than $550 without a vote of the members.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Fran,

I believe MD does have state laws that regulate HOAs. Also, if you live in Montgomery Co, there is the Commission on Commo Ownership Communities (www.co.mo.md.us/CCOC/) where you can lodge a complaint if your HOA violates its covenants or state laws.

JeanneK3 (Maryland)
Posts: 562

Posted:

Or, if you live in Prince Georges County, there is a Common Ownership Community office you can call or e-mail. Also, file a complaint with the Office of Consumer Affairs, OAG, Maryland. Contact information for both offices is under "Dispute Resolution" on the www.marylandhomeownersassociation.info web site. Good luck. There's nothing worse than a Board that won't adhere to its own documents so maybe you need a new Board.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Jeanne,

I've never heard of the Prince Georges, Co office. Can you give us the website? The Montgomery Co. Office has been in operation for quite some time.

GeorgerwilliamsW (Indiana)
Posts: 975

Posted:

http://www.princegeorgescountymd.gov/Government/AgencyIndex/OCR/mediation.asp

MaryA1 (Arizona)
Posts: 7,043

Posted:

Thanks for the link, George. I checked out the website. PG Co's program for HOAs is not as comprehensive as Montogemery Co which offers dispute resolution performed by a panel of professionals. PG only offers to assist with mediation. But both offer educational programs which is good.

JeanneK3 (Maryland)
Posts: 562

Posted:

FranN: If you are in Prince Greorges County I would definitely get in touch with that office. As part of their educational effort they will pull your association's documents from the land records and do a workshop as to what your documents do and do not allow. This might be just what your community needs.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

JeanneK,
I had heard Maryland was trying to make some changes in the HOA business. use to live there. I am hearing from you that this is being handled by the Counties, is that right?

Anything more you can post about how to get copies of this legislation. From your post you seem to suggest this is a program that works, at least in PG County. Does it? As you are aware there is damn little anyone can turn to the States for support in most states. Certainly Florida is supposed to be the leader and they have all kinds of problems administering their programs, lot of unhappy campers in Florida. This site seems to indicate state help is minimal in general and in general what works most of the time is for people to sit down and work it out, or work something out. I am sure if this was not happening this whole process may just grind to a halt, due to sheer volume.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By MaryA1 on 12/31/2008 11:49 AM
Thanks for the link, George. I checked out the website. PG Co's program for HOAs is not as comprehensive as Montogemery Co which offers dispute resolution performed by a panel of professionals. PG only offers to assist with mediation. But both offer educational programs which is good.

Robert,

You must have missed my response, copied above. It's not the state, but only a few counties. Montgomery Co has had the CCOC for at least 10 years, don't know when PG adopted their program but it doesn't appear to be anywhere near as comprehensive as Montgomery Co's. You can check them both out at the following websites:

Montgomery Co: www.co.mo.md.us/CCOC/
PG Co: www.princegeorgescountymd.gov/Government/AgencyIndex/OCR/c_o_communities.asp?

I've never lived in MD, but met a gal, online, who was a past member of the Mont.Co commission and she sent me reams of info. At the time AZ was looking into HOAs and searching for ideas re: effective legislation.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Mary,
I suppose I was mistaken but I thought there was some new legislation, maybe in 2008 or 2007 that Maryland was trying to adopt that allowed for state oversight or something. I left there twenty years ago so nothing I experienced really applies. However I have seen some newspaper articles and some Condo managers reports that all this legislation is not very effective. They were/are suffering from the same overload Florida is. Although Florida just seems a haven for lawyers and HOA legislation that is forever being tweaked to cost the owners and inrich the admin and feed the coffers of the lawyers. I suppose California is somewhat the same and Nevavda seems to fall in that category. I really don't know of any state that has a easy process for resolutions of HOAs problems. It is coming but it is now just pieces and bits.

On the other side if SC had current legislation that allowed for arbritration hearings I would have been in line a time or two. There is way too much Board and Board Lawyer decisions that are accepted as fact, as far as I am concerned. Yet, we on this Board admit that many Boards are comprized of folks that just don't and couldn't possibly have a good handle on how to do an effective job, but we tend to credit the Boards with more knowledge than the owners. I do it and I am very critical of the Boards in general, although I am fully aware it is a thankless job and if we wanted to see trouble, have all the BOD resign from all HOA boards. Good managers fall in this category also.

JeanneK3 (Maryland)
Posts: 562

Posted:

RobertR:
The Maryland 2008 legislative session had about 2 dozen bills related to homeowner rights in HOAs and Condos but most were either withdrawn or squelched by CAI, Columbia Association and Montgomery Village paid lobbyists. Very hard to get justice for the little guy in Maryland since the little guy can't afford high-paid lobbyists. However, I was very happy that state foreclosure protection laws were passed in 2008. The texts of the proposed HOA/Condo/Co-op bills can be found under Past Sessions on the MD government page. http://mlis.state.md.us/2008rs/subjects/homeowa.htm

RobertR1 (South Carolina)
Posts: 5,164

Posted:

JeanneK,
Lived in Montgomery Village in the infancy and crossed swords a couple times there. Knew I was out of my league and hunkered down. I am not surprized to see MV is so powerful, back then, believe it or not AARP was very powerful in the State House and the Local AARP, (my wife was president years ago, was welcomed at Annapolis) Times change. In SC there was legislation to restructure the condo laws but, as Maryland it never made it in 2008, ? for 2009 and I'm not so sure it bothers me as it may be that the same influences are at work in this SC legislation. I honestly think these people are just filling a vacuum as this whole business is new all over again due to sheer numbers of residents.

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