Should member's lot assessment include trash service when he doesn't live there?

Started by DavidC1 • 10 replies • 1389 views

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DavidC1 (Virginia)
Posts: 4

Posted:

Hi All,

We are a new BOD of a 20 lot HOA in Virginia that was recently handed over from the developer and are trying to get things going correctly.
Our annual lot assessment includes trash service and has been set at the same amount for each lot.
One lot has not been built on, and the owner contends he shouldn't have to pay the full assessment because he doesn't use trash service.
The CC&Rs do not specifically state that trash service shall be provided by the HOA, but seems to give some discrecionary authority in the matter.
The CC&Rs state the annual lot assessment shall include "...all items included in the budget...."

Should this member be charged a full assessment?
Are the Board's hands tied due to the language in the CC&Rs?
Does the Board have the authority to contract for the trash service if not specifically stated in the CC&Rs?

Thanks for your opinions.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You could come up with a separate set of dues for un-built lots, but keep the same price for everyone who has an un-built lot. Come up with a single figure in respect to your expenses. Once a building permit is obtained, the lot could go to full price.

I strongly suggest not allowing the owner to pick and choose what dues he should pay and what dues he should not pay according to his personal use of services. This precedent will create a nightmare for you

OR

To encourage people to build homes on their lots to finish the development, charge them full price on dues like everyone else. This will encourage the owner to build on it or sell it. Otherwise they may just sit on it forever which makes your neighborhood look terrible.

GlenL (Ohio)
Posts: 5,491

Posted:

David, I too would recommend that all assessments remain equal but the big question is what do your CC&R's say about it? If they allow for a lesser assessment on an undeveloped lot then you can charge him less but if that is not in there then he needs to pay his full share. Your question as to whether the HOA is to provide or can provide trash service should be in the CC&R's also.

What you may be able to do is remove the trash fee from everyone and then charge it as a separate fee, The downside to this is you could have a lot of H/O's contracting for their own pickup; meaning you could have multiple vendors and trucks roaming through the HOA on different days and at different hours. There was a post here within the past two months or so of a HOA that went the other way. They contracted with one vendor and prohibited H/O's from choosing their own service because multiple trucks were tearing up the HOA owned roads.

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

GlenL (Ohio)
Posts: 5,491

Posted:

PS Whatever the Board does, someone will be unhappy about the decision; that to is part of HOA life.

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

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By GlenL on 04/20/2010 6:30 AM
David, I too would recommend that all assessments remain equal but the big question is what do your CC&R's say about it? If they allow for a lesser assessment on an undeveloped lot then you can charge him less but if that is not in there then he needs to pay his full share.

This is the most important part, not whether he gets trash pickup at that lot or not.

Please check your documents thoroughly because our HOA would not be allowed to do that:

Section 8. Uniform Rate of Assessment. Both annual and special assessments shall be fixed at a uniform rate for all lots except those owned by Developer. The Board of Directors may not waive or reduce the assessment for any year or part of a year for any lot not developed or, if developed, not occupied.

BuddyJ (Maryland)
Posts: 37

Posted:

We are a 79 lot development with 50 homes currently built and our dues include the trash service so we only have one trash company in our community (and a competitive price). We were challenged by the un-developed lot owners previously for lower dues and we reach a compromise that the HOA would pay someone to mow the grass in the 20 foot utlity easement in front of all the empty lots. This has worked well for everyone.

DanielH1 (California)
Posts: 482

Posted:

You may not know how to swim but you still have to pay for the swimming pool.

Just the same here: You may not need trash service but you still have to pay for it.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Daniel,

I agree! And if the BOD caves in to the undeveloped lot owners, as Buddy's assn has done, then next month is may be another group of assn members demanding a reduction in their assessments.

Bottom line is that it depends upon what the CCRs say:

Is there a lower rate for undeveloped lots; or are all lots assessed the same rate?

SusanW1 (Michigan)
Posts: 5,202

Posted:

Yup - don't itemize out the dues,

The next thing he'll want a reduction because he doesn't use the roads as much (yes, we had that tried on us)

You want one carrier in your HOA and if each owner has control over their own garbage pickup, then you'll have multiple trucks running around (yes, we have that, too.0

DavidC1 (Virginia)
Posts: 4

Posted:

Guys,

Thanks for all of the good advice. The CC&Rs do not address assessing undeveloped lots differently.

Under the Covenant For Maintenance Assessments section, they state that a lien and personal obligation of assessment is created by ownership of the lot and the owner agrees to pay the Association the:

"Annual General Assessments, or charges, which are defined as follows: All those assessments to set forth in a proposed budget for the Association which are to include, but not limited to, the following:...."

and goes on to mention common land upkeep, insurance, snow removal, repairs, admin costs and reserves, but does not specifically list trash removal.

Under the Discretionary Powers of the Board section they say the Board has the authority to: "employ from time to time such agents, servants and laborers as the Association may deem necessary in order to exercise the powers, rights and privileges granted to it and to make contracts, and to contract for trash and refuse removal.." The party involved interprets this to mean the Board contract for trash and refuse removal in a case where a lot owner is not keeping his lot clear. I'm not sure what the intent here is.

I just thought I'd throw a bit more info out there to muddy the waters.

Dave

MaryA1 (Arizona)
Posts: 7,043

Posted:

David,

IMO, the section on "discretionary powers" definitely gives the board the power to decide whether or not to contract for trash removal for the whole assn. If it was intended to only mean for those lots that are not being maintained by the prop. owner, then, IMO, it would be stated under the "maintenance of lots" article.

I'm sure your CCRs give the board the power to interpret the gov docs. An individual member does not have this power although they are free to try and sway the thinking of the board. And, this is what this individual member is doing. The board needs to know and understand the gov docs and proceed accordingly -- regardless of what one individual member is saying. If they give into him, there may be 10 more people standing in line asking for a lower assessment for a particular service they don't use. My assn has a number of lakes that are for aesthetics only -- no fishing, boating or swimming allowed. I suppose every member of my assn could ask for a reduction in assessments because they cannot use the lakes! Anyone can ask for anything, that doesn't mean they'll get it!!

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