Waiving assessments due to berreavement

Started by ChrisE3 • 14 replies • 1326 views

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

⚡ Takes 30 seconds

Already a member? Log in

ChrisE3 (Utah)
Posts: 2

Posted:

I am a member of the BOD of our HOA. Recently a homeowner died and several members of the Board suggested we should waive the spouse's assessment. I am not sure this is a legal use of HOA funds. Does anyone have any experience with this or a policy on waiving assessment fees?

SusanW1 (Michigan)
Posts: 5,202

Posted:

I am sorry, but this new policy could be a slippery slope.
How about for someone who is ill? Out of work? The list could go on.

Besides, do the bylaws give the board power to "waive" dues?

The board will know soon enough if this widow is having financial problems. Perhaps an in-person visit after a while will help out, if it is deemed necessary.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Chris,
That is a very nice gesture on the part of the neighbors but this probably is not allowed by your documents. It also is a very bad precedent to establish. If the neighbors want to chip in together to pay her assessment, then that would be wonderful but the association (your corp) cannot allow any waiving of equal assessments for members. What if 7 deaths occur in a given year. There will be a loss of income for the operating budget and then where would the shortage come from.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

In some circumstances, such as a serious family issue (such as this), we'll forgo any legal actions we might take (after 180 days in arrears), but the dues and accumulated late fees remain in effect until eventually paid. To waive either of the latter would be against our ByLaws and unfair to the HOA and its Members.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Chris,

I think it's nice of the board to want to do something for this person; however waiving the assessments is not what should be done. As others have pointed out, it may be in violation of your declaration and could snowball into a very uncomfortable situation.

Most declarations state the assessments will be levied equally on all members meaning one cannot pay diffent than another or not at all. If this person is unable to pay the assessments the board may waive the late fees and offer a payment plan until she gets on her feet. John states the late fees cannot be waived; however, I feel that depends upon the wording in your declaration. Most say late fees "may" be levied meaning they do NOT have to be charged.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

This is our official position:

XX HOA
Resolution regarding Late Dues

WHEREAS, Article V, Sec. 5.9 of the XX HOA Bylaws empowers the Board with the power to assess late charges for homeowners who do not pay assessment dues as due to the HOA,

IT IS RESOLVED,

1. Effective 01 April 2008, the current late fee of $15 per quarter is increased to $20 a month, that is, beginning 30/31 days after payment is due. The date will be determined by either a postmark on payments mailed to the PO Box or by actual delivery to one of the Board members.
2. If a household goes 180 days without tendering dues on or before the due date, or is otherwise in arrears, starting 02 January 2008, the matter will be transferred to a 3rd party for collection. Under the Bylaws, this process will cover not only the quarterly dues, amounts in arrears, and any late fees, but also all costs of collection.
3. The Board realizes that there may arise situations (financial setbacks, family illness, etc.) in which action should not be taken, so, by a unanimous vote by the Board, on a month-to-month basis, the Board may delay acting as described in Paragraph 2, though late fees will continue to accumulate.

RESOLVED & ENACTED by the Board this _____ day of ___________, 2008.

MikeF4 (Texas)
Posts: 26

Posted:

We looked into do this as a board after the same sort of situation and were advised that we could not legally waive dues because they are required by the deed for each lot.

We compromised and the 2 of us who were interested in helping got together and paid their dues ourselves, out of our own pockets.

www.silveradohoa.com

DanaB1 (Connecticut)
Posts: 319

Posted:

Mike summed up my answer, those that feel the fee should be waived should pay the fee themselves if they feel that strongly about it. The fee has to be paid.

I don't mean to minimalize your generosity but this to me is a classic example of how big government thinks when the money is not coming "directly" out of their pockets.

MicheleD (Kentucky)
Posts: 4,491

Posted:

As with the others, this is a generous and well-intended idea, but it could ultimately create a whole slew of unintended consequences that could be detrimental to the HOA in the long run.

Besides, it's highly likely that your governing documents do not allow for such a waiver.

I would investigate the possibility of giving an extended "grace" period, with reduced or no penalties, or the possibility of others (non-board members) paying for them.

ChrisE3 (Utah)
Posts: 2

Posted:

Thank you all for your excellant input. You are greatly appreciated. ChrisE3

AnnaD2 (Florida)
Posts: 960

Posted:

Let me give a prospective of the other side; being a widow who's husband died.

My husband died and I (in no way) expected anyone to grant me a "grace period" for my bills. We planned accordingly (before he died) and I was well aware that all bills would continue to come due.

I could not (reasonably) expect ANY creditor to grant me a "grace period", and my bills would be due or become delinquent.

It SUCKS being a widow....and it sucks WORSE to be dealt a blow when it's unexpected. But I never, ever, expected the "system" to grant me a "free pass"> Not the phone company; not the electric company; not the mortgage company; NOR the association for dues. They were all bills that were due.

A person in this situation cannot expect the power or the light or the gas or the association "company" to make an exception for poor planning. I've been there. There are no "excues" when a company wants their money.....even if it WILL come when the estate is settled.

It's unfortunate that we (being human people that members can actually SPEAK with) have to make the decision to follow the laws. But a lot of times, WE are the only people they can connect with. But we can't act like a "neighbor" when we're being a "business".

FrancescaM (Washington)
Posts: 264

Posted:

Quote:

Posted By ChrisE3 on 01/01/2009 10:34 AM
I am a member of the BOD of our HOA. Recently a homeowner died and several members of the Board suggested we should waive the spouse's assessment. I am not sure this is a legal use of HOA funds. Does anyone have any experience with this or a policy on waiving assessment fees?

This is a sad situation.. however... would any other business let someone slide on thier obligations due to a death in the family? No. My car can still be repossed if I stop making payments due to the death of a loved one.. The obligation still stands..

RobertR1 (South Carolina)
Posts: 5,164

Posted:

The consencus is strong and the exception is worrisome.
Can a BOD make this kind of a legal change to the documents by resolution? I doubt our documents allow this kind of judgement by the BOD. It would help to know if what was printed as a change to the documents by resolution of the Board is actually recorded in the courthouse. I do believe strongly as far as the BOD directors changing the documents would not fly here. It would require a vote of the members and further in a condo, I believe it would be impossible even with 100% of the vote. The budget is by law dependent on the assessments as apportioned. In other words, the assessments are charged to the units by apportionment, not to the individual owners, they just have to pay the bill as calculated.

Susan says, "slippery slope." Is it ever.

DanaB1 (Connecticut)
Posts: 319

Posted:

Quote:

Posted By AnnaD2 on 01/01/2009 4:13 PM
But we can't act like a "neighbor" when we're being a "business".

Anna, your quote above nails it on the head and I'm now printing it to put above my desk.

I am sorry for your loss.

Dana

MaryA1 (Arizona)
Posts: 7,043

Posted:

I believe Robert is right in his thinking. This policy could not be enacted by a mere resolution of the board, IMO, it would most likely require a vote of the members to amend the declaration. I doubt the required % could be attained for such an amendment, as most people would not vote to exempt anyone from paying their assessment, no matter the reason. Boards must be very careful when they adopt policy measures. Every action they take should be for the betterment of the whole community not just for one or a few of the members. I'm sure the bereaved spouse would appreciate -- and most likely wouldn't expect more than -- a nice sympathy card. If the board wants to do more than that the board members can individually do so keeping in mind that whatever they do in the name of the assn for this one member must be done for all members. One other little bit of "food for thought". Who really knows the financial status of anyone? This person could be a millionaire!!

🎯 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