HOA Dues for Vacant Lots (Owned, then resold)

Greg,

Exactly what is the initiation fee? Seems to me this should have been charged in '08 when the lots were sold. However, my first inclination would be to suggest that you consider dropping this fee but be firm on the yearly dues. However, in reality and IMO, it all depends upon what you gov. docs say. If the docs are explicit in saying each lot is charged an initiation fee and must pay yearly dues, then exceptions cannot be made.

Initiation fees are mechanisms to raise money on the backs of the new people. Often times they are started by developers for the sole purpose of getting the HOA financially independent more quickly. The only thing "fair" about them is when you continue to charge others what you were charged.

Now if you maintain the roads, it would be reasonable to charge a fee for the extra wear and tear created by construction.

Like Mary, I would say to hold to the annual dues. But charging a hefty fee for purchasing a lot is not fair practice and should not be done. Instead you should look to recover costs. That would mean that you charge a more reasonable transfer fee for each property transfer. Since it takes the same amount of time, effort, and materials for one lot or twenty, I would base it on the transaction and not the number of lots.

All that said, remember that you are actually in the position of power here. If you refuse to budge, then they will have to pay the fee. And if they refuse, then you place a lien upon the lots. Eventually you start foreclosure proceedings. There is a very low chance that these lots have much borrowed against them so the HOA's risk is much less.