Our HOA is charging $130/month. To mow and move snow! WHAT!

Our housing developement is currently in complete disagreeance with our association. Here's our problems. I have lived here for 3 yrs. My monthly fees started at $55. Now three years later they have increased our monthly fees to $130 thats right a month. There are 22 homes in the developement. We have a farm pond that was here before the developement. We have no other amenities... They are saying our budget for 2010 is $34,415.00. As i mentioned they mow and push snow, For $34,415.00. Either I'm in the wrong business or we are being blindsided. We have never had the oppurtunity as the homeowners to say who we want to mow our lawns. Nor any other voice in where they are spending our money. We currently had 6 or 7 houses go into bankruptcy because they were owned by an individual who was leasing them out. Our brilliant HOA manager decided that it was our responsibility to make up the difference by increaseing our fees. We have suggested that we mow our own yards and take care of snow removal. We do not need an HOA to throw our money away. The builder told us that he will not rid of the HOA because we might make some stupid rules on how to govern ourselves and he won't be able to sell any homes in here. In fact they are not trying to sell homes here because they completely stopped advertising homes for sale. Is there any suggestions on any of my topics to help further in stopping these jokers from living it up large.... Thanks

Tony,

Having lived in Wisconsin, I can tell you that snow removal just ain't cheap. Why don't you request a copy of the budget and see exactly what your budget items and their costs are? You also have common area which needs maintenance--aka pond.

You said that there are 22 homes. Does that mean that there are only 22 total lots or just homes finished for now? So we need more specific information from you please.

Tony,

From the statement you have made it's very apparent you don't know much about HOAs in general and operating one in particular. And, I don't say this in a nasty way as you are certainly not alone as that is the case for the majority of HOA members.

First of all, while the HOA is still under declarant control, the members don't have much say, if any at all, in the operation of the assn. Even after the members take over, it's the BOD who makes all the decisions with regard to service provider contractors.

With regard to the increase in assessments, in some states the developer must make up any shortfall in the budget thereby eliminating the need to increase the assessments, at least by the rate yours have been increased. Normally the developer wants to keep them low to attract buyers.

If you are in a condo community, then the assn would be resp. for mowing the yards and snow removal because the homeowners do not own the property upon which their units sit and the streets are most likely private so they are also resp. for snow removal. There are some communities of single family homes where the assn does the landscaping for the owners, but that can be changed and that would most likely result in a lower fee. But if the streets are private then snow removal should stay as the resp. of the assn.

There are a lot of other expenses associated with operating an HOA, not just landscaping and snow removal. Some of the expenses are: utilities (water and elec -- needed to maintain the landscaping), taxes, prop. mgmt fee, office supplies, insurance, postage, reserve funding -- to name a few.

Have you any idea how much longer the developer will be in control? Your CCRs should outline when the HOA should be transitioned to the members.

Tony,

Based on your post, lets take a look at what the funds might be spent on:

1. snow removal (implies the Association owns the roads)
2. Road maintenance (This requires a reserve fund to cover future replacement cost)
3. Utilities (if you own the road you probably pay for the street lights)
4. Pond maintenance (perhaps wetland requirements also)
5. common area maintenance (ponds, mowing, etc.)
6. Insurance (required by all Associations)
7. Management Company (HOA manager (unless you meant President of the HOA)).

As for methods to minimize future costs and have a say in mowing your own lawns etc.

Get involved in the running of your Association. Run for the Board, Serve on Committees, Attend meetings in order to offer alternatives, rally neighbors for support.

Hope this helps.

Tim