Our neighborhood did not have a homeowners association until this year. The developer took care of everything and we knew eventually there would be a homeowners association once 90% of the lots were sold.

Then everyone in our neighborhood received a notice in the mail last week that the developer has started the HOA up and we owe fees for 2021 and 2022.

I don’t mind paying for 2022, but 2021 is over and we were never notified that we owed. The management company handling the HOA admits this but still insists we owe for 2021.

I want to make sure I am reading my deed restrictions correctly because I don’t think they are allowed to collect more than one year’s assessment. And assessments must be communicated for the upcoming year by December 1st. I brought this to the management company’s attention and they blew me off as not being a lawyer, I must be reading the deed restrictions wrong, and said I can pay or they can file a lien on the house. My call.

So how do the lawyers of Arfcom read these deed restrictions? Am I on the right track? Section 5 lays out the assessment policy.

Attached File


Here is the same section with my highlights

Attached File


So are they SOL on collecting 2021 fees? And this is happening to all homes in our development so I know I didn’t miss last year’s invoice in the mail.

While I think your correct, if HOA needs the money now they could just do a special assessment now instead, or raise rates for next year.

A special assessment usually requires a positive vote by a majority of the home owners.

If you aren't going to read all of the text, pay a lawyer to do it.

For example, our community pool needs a repair.  The repair is $180000.  There isn't enough reserve fund to cover it and $1000 per home owner is required to cover it.  Our board can not vote for the special assessment, because it is written that 75% of the home owners need to vote on it.

We are also limited on how much we can raise rates. We can't raise them enough at this point to get ahead of inflation, so the pool will remain broken.

See if that language is in your CCR/bylaws.

I’d be looking at verbiage on changing the management company!

This will also stop any sales, pending sales and re-fi’s cold in their tracks. The management company / HOA must sign off on all of all sales and provide estoppel letter to the bank and the buyer. Even if the buyer is willing to waive is doubtful the bank as they have to protect their underlying loan asset. That should provide enough pressure to get the residents to pony up.

ETA. - former board member and treasurer of 150 home HOA with 3 million annual budget.

HOA dues was $20k/home?

Did you goof a zero?

Unfortunately no goof. Luxury golf community but HOA did cover all insurance, Club, lawn care, cable tv, garbage and recycling.  South Florida has plenty of communities where monthly HOA exceeds $2k a month and up, easy. Throw in a few $100K assessments and now it is a party

It says no later than Dec 1st for the following year.  If they just made that determination, isn't it for the following year (2023)?

Is there any language about the first year of HOA management in the sections that discuss the transition from builder managed to HOA managed?

I will never understand people that buy houses with an hoa.

The invoice for the fees says 2021 and 2022.

The HOA turns over to the residents when 90% of the lots are sold in the development. No clue how close we are at this point.

How much money are we talking?  If it is  not worth getting a lawyer for just yourself, you could talk to a few neighbors and go together to have a lawyer review

$225 for 2021 and $200 for 2022. I have been contacted by a few other home owners about possibly chipping in $20 to have a lawyer write a letter explaining we won’t be paying 2021 when the contract says we should have been notified of the assessment in December of 2020. 16 months late is ridiculous. I also have no intention of going to court over $225. If a letter doesn’t solve the issue I will probably just pay.

My bigger concern is if this sets a precedent for charging for prior years. When do we get the bills for 2019, 2018, 2017 …

Just got the second notice with interest and a late fee tacked on. The letter also mentions a lien may be filed and ultimately foreclosure on our home. So far the company running the HOA has not responded to five phone calls and two emails. Quite a few residents are meeting with a lawyer on the 12th of this month to discuss options. I just don't see how they can expect payment for past years they never invoiced us for. Lesson learned, HOAs suck.

When our subdivision was being built, the builder had a management company running the HOA affairs until all the house were built and then it was turned over to us to run.  Looking at the covenants you posted, I would say you are correct unless you are missing the part where it says "developer maintains blah blah blah...until turned over to owners".

Once the HOA is turned over to the homeowners the Board can fire the management company.  It can also refund 2021 fees paid.  Would likely be cheaper than litigation.

The management company at my last house dragged their feet for over a year on the getting new board members established process when it was turned over. It was part of the reason we sold.

You didn't have an HOA until this year, and that paperwork does not compute.

Either that paperwork was in effect when you bought, or someone came up with it after you bought.  If it was there prior to purchase and you agreed to it, pay up.  If it came out after you bought, hopefully you didn't sign an agreement.....

This.

Their attitude "pay or we put a lien on your house" SCREAMS -> Sell NOW, GTFO it will only get worse.

Well the Developer and the management company emailed everyone in the neighborhood to announce they would be waiving the 2021 fees. The developer mentioned he was getting a lot of calls from residents, and after he talked with the management company he found out no one was invoiced for 2021 back in December of 2020 like they should have been.

So I am satisfied with the results and will pay the 2022 fees. Wife and I are going to start looking for another home though, I don't want to deal with the eventual Karens that will run the HOA once the developer turns it over to the residents.

Glad it worked out for you and the other homeowners, and the builder/developer owned up to their error.
HOA's are only as good or bad as the board members. Unfortunately, there are no standards in place to have board members obtain enough education about their duties, and what is contained within their documents, to properly serve the residents. I'm on my third stint as president of our HOA, and it's only because the previous administration spent 44k of HOA funds to pay for work that was the responsibility of the homeowners, and they proposed a huge dues increase to fund drainage issues that were actually the counties responsibility, without doing the research. I couldn't let them continue using our money, due to their incompetence.

I’m no lawyer but looks like they’re SOL for 2021 fees, AND since they missed the Dec 1 deadline for assessing 2022 fees that they’re SOL for 2022 as well.