Unlikely or amusing reasons why the HOA cannot raise fees

I don't know about you but I've seen quite a few strange and often amusing reasons given by homeowners why the HOA cannot raise fees.

One homeowner claimed that the developer or salesperson promised him that HOA fees would go down over time. He demanded that the HOA follow through on this promise.

One homeowner said that he thought that there was an (unspoken) understanding in the HOA that fees would never be raised. Curiously, this person never attended an Association meeting and the Board, unaware of this understanding, didn't agree.

One homeowner claimed that she lived in another development that had really low fees. Since that development had nicer amenities, the HOA should have lower fees than that other development.

One homeowner claimed that an additional $20 per month would drive many homeowners into foreclosure. Curiously, no homeowner ever asked for a payment plan or made any other indication that the increase was causing them hardship.

One homeowner claimed that some Directors who voted for the fees were newly elected and the elections were flawed and invalid. Her husband turned out to be the Election Inspector and had already signed a document that certified the elections as valid. (The new Directors had also run unopposed.)

One homeowner sent out an e-mail poll and many homeowners "voted" to reject the fee increase. No need to bother with notices, quorums, the double-envelope system or any other voting procedure. Several homeowners could not understand why the Board refused to accept the "vote" and lower the fees. (The HOA even offered to have the management company help the homeowner launch a legitimate vote but the homeowner angrily refused.)

The same homeowner who sent out the e-mail poll started an e-mail revolution. No homeowner who objected to the increase attended the next Board meeting, though, not even the angry homeowner and her husband (who happened to be a Director on the Board).

A homeowner voted in the e-mail poll to reject the fee increase. At the Board meeting, her husband lobbied to have the HOA build a project near their home. When it was explained that money was tight (er, that's why we had the fee increase), the husband said that he had "no problem" with the fee increase. Gee, if all homeowners pay to build something that a single homeowner would get the lion's share of the benefit from, I guess that fee increases are ok.

One homeowner claimed that the fee increase was unfair because some homeowners were delinquent (usually due to foreclosure). If somebody is delinquent and thus pays $0/month, how are low HOA fees fair?

One homeowner claimed that reserves are unfair. Why should they pay for something that broke when they no longer lived in the complex? The kicker: "Will I get a refund for my portion of unused reserves when I sell?"

One homeowner claimed that reserves should be used for emergencies. "A fee increase is an emergency, right?"

One homeowner railed about how the Board insulted her. But I was there. First, only the developer's representative had spoken to her and he left the Board more than a year earlier. And, second, I guess some people consider the word, "no," to be an insult.

Several homeowners voted against an straight-forward Bylaws amendment to bring our Bylaws into conformance with state law. Uh, we still have to follow state law, anyway, guys. (I guess that either they didn't understand it or it was their way of "stickin' it to the Man".)

Anybody else have some stories?

Any of these that you find particularly amusing? Or ring true?

Daniel--it's sad and true---but all of your examples here are one's we've all heard and had to deal with. They're examples of what all boards deal with on a daily basis---having people buy into HOA's with NO CLUE as to what it means to be a member of one.

Each question, comment, statement, plea, etc., deserves an explanation and an answer, which takes up so much of board member's time. If people did their homework when they become a member it would be so much easier.

Just when we think we've got everyone educated someone else asks the same question or demands the same explanation and we have to start all over again.

But that's WHY we want to be Board Members and volunteer all of our time, energy, sanity and give up our privacy, RIGHT?!? Am I right? Anybody else agree with me??? Hello?!? Oh...and don't forget...the pay is fantastic, isn't it everyone?!?

Why do I feel so "alone"? LOL

Merry Christmas everyone!

Gina,

First of all, it's not uncommon for an HOA to not have a physical address especially if there is not a clubhouse or office in the s/d. A P.O. box is probably the norm for most HOAs.

I suggest you thoroughly review your gov docs to determine if there is a limit on the amount the assessments can be increased and if they can be changed during the year. Since you don't mention whether you live in a condo or a POA I took a peek at both sets of TX statutes but couldn't see anything about increasing assessments. You may want to check them out yourself. AZ state law prohibits an increase greater than 20% w/o a vote of the members. However that law only pertains to HOAs and there is no such law regulating condos.

It's not uncommon for the members to only have one meeting each year; the annual meeting which is held primarily to elect board members. However, the board normally does meet on a regular basis to conduct the business of the assn. I did find that that the Uniform Condo Act (Title 7, Chapter 82 of the TX Property Code) 82.108(b)does state ". . .meetings of the association and board must be open to unit owners. . .". And 82.108(f) states: (f) An association, on the written request of a unit owner, shall inform the unit owner of the time and place of the next regular or special meeting of the board. If the association representative to whom the request is made does not know the time and place of the meeting, the association promptly shall obtain the information and disclose it to the unit owner or inform the unit owner where the information may be obtained." Of course this only pertains to condos formed after the Uniform Condo Act became law. There is no mention of meetings in the TX Residential Property Owners Protection Act -- Title 11, Chapter 209 of the TX Property Code.

"---having people buy into HOA's with NO CLUE---"

If a first time HOA buyer were told ANYTHING (by the seller) about what a HOA entails they would probably NOT PURCHASE.

Most first timers (myself incl.) actually believed they would retain their 'constitutional rights' after purchase ... so they/we did not do 'due dilligence'.

Who would have thought the constitution gave one the right to waive one's rights WITHOUT ANY WRITTEN WARNING?

Where, at any real estate closing, are the covenants and restrictions actually presented along with the deed (except by reference) PRIOR to signing?

Even the Miranda Rights requires 'informed consent' and/or the advice of councel to waive the right.
The police must document 'informed consent' not merely an 'I do' before questioning.

Where was our 'informed consent' prior to ?!involuntarily!? joining a HOA?
An obscure (to a first timer) document merely referenced in the 'mumbo-jumbo' of a deed?

Dues doubling and tripling suddenly and/or special assessments due to previuse BODs fiduciary incompetance are common ... Would you purchase again knowing what you know now?

Sorry for the rant ............................ John B

Here we go again.

You have not lost any "constitutional rights" after your purchase, any more or less than you have lost them due to zoning restrictions or any other contracts into which you enter that place restrictions on you or your actions.

Not only would I purchase again knowing what I know now, I regret that I fell for my father's claptrap about HOAs years ago and hesitated buying into one because of it.

The only people in my development, or others whom I know personally, who do not like living in an HOA environment are the ones who never wanted to follow the rules to begin with, who think they can do whatever they want on their property regardless of where they live, and that includes not following even local zoning restrictions and ordinances.

In short, they are people who I would not and do not want as neighbors.

And good riddance to them!

and I disagree with you, so there we are. Standoff, yet again.

Please note MY caveat -- IN MY DEVELOPMENT and OTHERS WHOM I KNOW PERSONALLY.

The "problems" associated with HOAs can mostly be boiled down to people problems.

HOAs are not inherently good or bad.

I have not run into number 1 on your list.

Numbers 2 and 3? Too bad.

The problems within our HOA are all based upon the attitudes of the few people who don't want to follow the rules and don't care whose rules they are. Period.

These are people who should never have purchased into an HOA.

When push comes to shove, they will admit that they knew about the "rules," but were told by their builders or real estate agent that the restrictions are never enforced or are unenforceable.

The people who didn't know or didn't understand rarely have issues once they DO understand.

HOA living is not for everyone. But I have no sympathy for people who don't know what they bought into. None.

And I have little tolerance for people who moan about their "constitutional rights" after having purchased into a deed-restricted community.

These same people enter into contracts of all sorts and types their entire lives. They also have no real understanding of exactly what their "constitutional rights" are and are not.

God bless'em.

Daniel,
Add to the replies to yor OP.
Owner purchased property five years, ago, pays assessments drifts in and out of unit, rents during season. One time he comes down and finds someone in his parking space, calls the manager number and wants to know what he can do aqbout it. told the process and the board is mentioned as willing to field issues at a board meeting. His response................what board?

The vast majority of Directors of not-for-profit corporations are volunteers/unpaid ... that does NOT relieve them of their fiduciary duty ... especially BECAUSE they volunteered

John,
I agree most people don't read what they have to read or get enough knowledge to make a wise purchase and if they did, may not buy. However, the majority of owners in HOA don't pay enough attention anyway, and live in HOA for years comfortably without a thought to what makes things tick. They move on and repeat the same routine at another HOA. It is only the very minority that makes the wheels turn or cause the most trouble. I suppose it is not funny, but, this is a hell of a way to run a railroad, might be even worse than the federal government.

I lived in an HOA, couple of them for years and never gave it a thought until I felt I was singled out and then the process started that continues to this day, learning how to be effective in an HOA.........still learning.

Back to the original topic.... These are a board member's reasons (contained in an email) for not wanting to raise condo dues: Given the economy I really don't think raising condo dues is a reasonable idea right now. I had to reduce my rent to get my new tenants. That tells me that this condo needs some repairs and that we need to have a more active condo association before we think of an increase. I personally don't want to see an increase given my current expenses.

Well, Kayden, I doubt there will ever be a time when raising fees is convienent. All of us have expenses (I'm a govenment worker and going another year without any pay increase.) But a house or condo is usually one's most valuable asset - don't you think it's better to raise them a little bit now, than to be hit with all types of expensive repairs, not having the money for them and then having to deal with a fee increase AND possibly a special assessment? Why cut off your nose to spite your face??

And if the association doesn't make repairs, no one will want to rent your condo and then you'll have trouble making payments.

As for the rental piece, you made the decision to rent the place out, and I know many people are doing this because they're trying to stay financially stable until they can sell the house, but I for one think the board's decisions should be based on the needs of the community (or building in your case), not necessarily private business. And I lean towards the owner occupants.

We have a board member who rents out units (he and his family own several townhomes) and you're right, they have been known to whine about fee increases because it cuts into their profits. Happily, this board member has seen the problems we're dealing with and while he isn't thrilled with fee increases (none of us are), he does understand why they're necessary.

As for your fellow homeowners, well, unfortunately, things will slowly fall apart to the point that they'll demand something be done - but by then, they will STILL have to open their pocketbooks for fee increases and possibly special assessments. And they'll have no one to blame but themselves.

I suspect they think they'll sell the unit before the caca hits the fan, but everything I read about today's real estate market suggests it'll be another two-three years before home values begin to turn around. However, repairs have a knack of making themselves necessary when you least expect it or have the money on hand.

So keep talking to them and consider joining the board yourself - maybe you can run against the board member who won't raise fees because he/she rents out the place - in my opinion, such a board member isn't thinking about the welfare of the entire building and should be tossed.