Money Matters
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WWMMD - HOA Fee

I debated about where to put this since it's home related, but not home purchase related...sorry it's long, I tried to stick to the facts :)

We own a townhome in a community w/ single family homes that is split into "neighborhoods". We pay $735/yr to the main HOA and an additional $125/month to the townhome HOA (totally separate budget). The homeowners have no control yet of the HOA and the board is made up of the original developer who bankrupted and is not involved in the community.

Got our bill for 2013 for main HOA and budget same as always. Comes out to $735/home. But the total due is $835 with no explanation of the total. 

I email HOA rep and she says this is for alleyway maintenance (the private drive for our garages) and cites the CCR. I'm quite familiar with our CCR, and it specifically states that this maintenance is responsibility of the "neighborhood" (in this case being the townhome) HOA. It is not to be collected in the general fund and is supposed to be a part of our neighborhood (townhome) budget/account, which it was not included on. I reminded her of this; I'm sure she appreciated it ;)

My biggest concerns are (1) this company is collecting funds not accounted for on either the general or neighborhood budget. Where is the money going? How is it being monitored? (2) If they are putting them in a separate account, but not budgeting the funds, when the homeowners take over in 2015 the money is likely to get rolled into the reserve since there's no paperwork accounting for it. No one can prove they paid money for a particular use if they have nothing to back them up. (3) I'm taking the word of 1 woman with no bill to back it up. Who would ever pay a bill without any detail what the total was for?

I told her as soon as received either a neighborhood budget accounting for the funds or a notice of assessment explaining the charge I'd be happy to pay the extra. She did not take this well and so far no mail from them. Bill is due 3/1. She was kind enough to remind me that if I don't pay in full there will be an additional late fee, potentially liens, legal fees, etc.

 

So, what would you do? 



mutt_zps2fb5f039-1_zps7220f27c
BFP 11.8.12 * EDD 7.17.13 * MC 12.20.12
Whiskey Tango Foxtrot, over!

Re: WWMMD - HOA Fee

  • That just seems like a heck of a lot for HOA dues.  Here I am complaining about the $100 we pay every year, but I literally feel they do nothing in our neighborhood except a little landscaping.

    I honestly don't know what I would do in your situation, but I do know that they will put a lein on your home if you don't pay your dues.  Maybe if there is someone above her, like a manager, ask to talk to that person for the explanation and budget to prove it 

    Baby Birthday Ticker Ticker
  • I just want to echo the PP that dang, that is a lot of HOA bills. I hope you're getting your money's worth.

    Let me make sure I've got the gist of the problem right - you get two HOA bills, and the general fund this time around includes a collection for something that should be the responsibility of your smaller/townhome HOA. Specifically, for repaving/maintaining the alley behind your homes.

    It sounds like that actually works out in your favor. They are asking the whole neighborhood to chip in for maintenance on something that benefits you instead of just the smaller section of townhome owners.

    Given that, and the fact that the hundred bucks is just a 20th of your overall HOA fee (again...wow) and the fact that legally HOAs have the upper hand, I don't think it's adviseable to try and take a stand on your own here. They can and very well may put a lein on you for not paying. I do agree with you that you should be able to get it in writing what the purpose of this money is for. So both HOAs are still run by the developer? The best suggestion I have is to take a petition around the neighborhood requesting transparancy on this issue from the developer, and potentially joining the HOA board yourself when it gets transferred to the community.

    Lilypie First Birthday tickers
  • The only thing I can think of is to send them a separate check for the extra $100 so at least you can show you paid it if there's ever a question.  And put in the memo line what the money is for.  
  • I am pretty sure that HOAs have boards and then they are supposed to have separate third party property management companies that handle things like finances. At least, that's what I have heard.

    Perhaps this isn't the case since the developer is still involved.

    I also know that once a certain number of lots are sold to home owners, the developer is supposed to turn over the "board" to the homeowners themselves. It's some percentage of homes sold, which could vary depending on the area.

    As to not get feathers ruffled, I would pay the money - in separate checks as the PP mentioned, and then do your investigating.

    My question is: desipite the super high fees you pay, are you getting the services/ammenities that are owed to you and the other homeowners? Or, are they taking but not producing?

  • I would pay it (you're legally obligated to and won't ever be able to sell until it's resolved), then b*tch and moan and drive them crazy.  We get a statement every year that says the total amount collected and what each penny was used for.  Either way, pay it so they have no recourse first.  They're people just like everyone else, if you call them every day, they're going to get sick and tired of you and may give you the info you want.  I agree with everyone else that your HOA bills are sky high, I hope you've got some excellent amenities.  We pay $400/year for landscaping, sprinkler system, plowing, pool, playground, street lights, and tennis courts (that are in desperate need of repair).
    GSx1 - 05/13/2013
    babybaby
  • What do your HOA bylaws say?  Chances are if you are concern about the charges so are your neighbors.  
  • Sorry I took so long to come back around; I was laid out with the flu all weekend. I'll answer your questions in one post for the sake of not making this twice as long. I know you're all shocked at our dues; they weren't this much when we bought. If you're curious, here's the main amenities:

    Primary HOA - 2 pools, 2 lakes, trails, fitness center, clubhouse with activities/classes, 8 tennis courts, playground, amphitheater (they don't use if for anything, lol), maintain streetlights, signage, trees, etc.

    Townhome HOA - maintain exterior structure including roof, paint, etc., sprinklers, front yards, termite control

    Oh, and we also had to pitch in nearly $500 last year in special assessments for painting due to poor financial planning.  

     

    Arcadian - it unfortunately doesn't work out in our favor to collect in the general fund because only the homes with private drives are being charged the additional fee, not the neighborhood as a whole. I'm fine with it being taken up in the general fund, so long as it's budgeted and accounted for. The previous developer and, I believe, his son, make up the "the board", but are not involved. The management company has told us the board is "in name only" and has refused previously to give contact info for them. Far as I can tell, no one is managing the management company.

    MommyLiberty - While there's a lot of amenities critical areas are being neglected (paint, inspections, etc.) Our money is managed very poorly, IMO.

    Mama-bear - I agree this is the way to go about it, pay now, then fight it out. 

    Ariel-06 - I pretty much summarized what is says about this particular maintenance above. I do know others are concerned about this and other areas and will complain loudly to each other when things initially occur, but most roll over pretty quickly and won't make a fuss to the HOA. 

     

    I've sent them their payment, two separate checks clearly noted with what they are for. I will continue to fight them to provide me something in writing regarding the charge. I can't wait until we can kick this company to the curb.


    mutt_zps2fb5f039-1_zps7220f27c
    BFP 11.8.12 * EDD 7.17.13 * MC 12.20.12
    Whiskey Tango Foxtrot, over!
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