Posted: 9/12/2007 6:08:11 PM EDT
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Quick story - HOA writes me a letter telling me I can't park my car in the street. So I call the President of the HOA and ask how this is going to be enforced, and why after a year I get a letter. He couldn't really answer. I also asked if anyone else parking on the street got letters, he wasn't sure. I then wanted to know how the $50 in HOA fees I paid this year was being spent. I said I realized that the 3 or 4 traffic islands had been mulched, but 75 houses times @ $50 each was more than ample for $300 (at most) of mulch. I asked where is the rest of the money, and I'd like to see a statement. He said that this would cost money to create and time to produce. I said you can't just take peoples' money and not be accountable for it. I again asked where the rest of the $ was - he says it's in a savings account. I asked whose savings account - he couldn't say, nor could he say what it was being saved for. He then said I should have come to the meeting (I informed him I couldn't come, I was out of town and even if I didn't attend I have a right to know about the $). Am I out of line here? $50 isn't much, but it's still $50. On a side note, he told me to get involved in the HOA. I said I would, that my plan was to run for President and then disband the HOA. I also made an offer of copying and distributing the financial statement if they created it - no give on his end. |
Your HOA fee is only $50??!?!!?!?  Mine will be $305. You have every right to see the financial statements of HOA. I received copies from my HOA a month ago and I haven't even moved in yet. In fact, my escrow doesn't even close until September 17th. Read your CC&Rs. If it says in there "Residents may not park on the street", you're probably gonna have to find a new place to park. Lots of HOAs have this kind of thing in their CC&Rs. It sucks that they collect $50 from every resident and most of it goes into savings, but that's pretty much how this kind of thing works. They save up a bunch of money and (hopefully) perform upgrades and renovations to the complex. New BBQs, upgraded landscaping, new exterior paint, brothels, etc. Well, maybe not that last thing. |
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I don't have a problem w/ moving my car - already did it. No big deal. My problem is the selective enforcement. I also don't have a problem paying for the $50 fee, if I am being shown where it is going. I asked what they were saving for - he didn't have an answer. There are only a few traffic islands that are being maintained by the property. There are no other common areas owned or maintained by the HOA (no BBQs, playgrounds, etc). Snow removal and road maintenance is done by the county. Refunds should be provided once the mulch is paid for. |
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I wish my fees were only $50/year. Ours are $140/month. As an HOA president I would recommend that you to read your CC&R's thoroughly. The HOA should have a savings account set up in the name of the HOA that they use to pay any bills associated with the common areas of the property. In most states it is required by law that the HOA board provide a complete accounting of the monies that have been paid and monies that have been spent. It is typically not required for them to disclose who is late on HOA fees or has pending litigation against them such as liens, wage garnishments, etc. Your CC&R's that you signed when you purchased your home typically say exactly what the board has to provide to the owners. In our complex our CC&R's completely absolve the Board from any fiduciary duty to the owners. We as a board are in the process of changing the CC&R's legally to require all Board Members to have some liability. The last thing I want is someone in the future spending all of the reserves and then me having to pay a huge assessment when we need to replace a roof or something. Tell your president that you want to see a general accounting ledger for the HOA savings account, reserves total, and any current liabilities against the HOA. Make sure that the account is in the name of the HOA and not in his name personally. Also, ask for meeting minutes from the last meeting. If he keeps giving you the routine of "that costs money, that takes time to produce" it's really not that hard if they are keeping current on their accounting. It sounds more like he's hiding shoddy or incomplete accounting for whatever reason. Finally, a single owner cannot disband most HOAs. HOAs are legal entities that are set up with a master deed with the county or State. Since every owner is a signee on the HOA, because they sign and agree to membership when they purchase their home, it typically takes a unanimous vote. In the case of my complex, we cannot disolve the HOA unless every homeowner agrees, and the property is either sold or destroyed. |
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Utah_Sniper - Thanks for the info. I'm going to read into the covenants a little more. The neighborhood is almost 15 years old, so I really wonder how strong an association it is (especially since there is nothing really for them to do but mulch a few areas). There are some empty lots, but those are property of the son of the original developer. Since they are his property he pays to have them mowed, not the HOA. I know $50 is cheap compared to some places, but it is still people's hard earned money and the HOA should be accountable for it. However, there are roughly 75 homes here which means they are collecting $3750/yr. $3750 would buy nearly 6 to 7 times the amount of mulch they need. As far as I know they don't have pending lawsuits to pay for and have never filed any. |