I'm really interested in HOA Fees. What they are. How they are determined. What formular(s) are used to calculate these fees.
I have done some research on this whole HOA system and am very concerned for our seniors older than myself. Some of these folks have been here for years and have politely worked out their budget to cover these fees even at a severe detriment to their cost of living and life style; howver, there are those who believe that the fees are a bit high and are interested in finding a favorable way to contain and or minimize the increased costs of these fees or possibly not have as many of the amenties that are being serviced by these HOA fees.
We have at present an HOA Board and although they are a fine upstanding group of folks I'm sure they have policy they have to follow and they must hold to what is required. Our HOA fees are aside of our utilities. Everybody I know does a wonderful job of maintaining a very smart use of energy and energy related appliances and usages throughout their homes.
Can you advise me where can I find useful information that will assist in presenting a viable, workable plan/fee structure that will be helpful to our folks.
Appreciate your comments and look forward to making a difference.
psaltee
HOA Fees
Moderators: Greg, Mark, mhrAJ333, JD
The structure of homeowner fees, and the rate at which they can be raised are usually set forth in the HoA's by-laws. You should read them several times to ensure you fully understand them. You will most likely find that the by-laws would need to be amended, or the Board of Directors would need to be replaced, for any meaningful change to occur.
Here is how it works in our association: Our by-laws state the fee that will be charged at the creation of the HoA. It then states that the dues may only be increased by a maximum amount that is found by referencing a CPI (Consumer Price Index) published by our state. The by-laws do not indicate that the dues will, or should be raised, only that they can only be raised based on the CPI. The ultimate determining factor for whether or not the dues are raised is the Board of Directors.
If you don't like the means by which the rate of increase is determined then you would need to amend the by-laws. In our association this requires a 2/3rds majority vote of all homeowners. We have 10% participation in our association, so this is never going to happen. Remember, it is the Board of Directors that actually calls for the rate raise. Replacing them with people who won't raise the rates is the other way of preventing this. This would require gathering enough votes at your annual meeting (where officers are chosen, and budget is set) to get your person of choice on the board. Getting these votes usually makes you the kid poking the bee hive with a stick. Sometimes you get honey, sometimes you get stung, badly.
You may also wish to consider that the HoA dues are very much needed to run the business of the association. Our association is responsible for maintenance of the common areas. Lawn care alone is 50% of the dues gathered, and only gets more expensive every year. No one on the board wants to be the treasurer, so we had to hire a book keeper. That's 25% of the dues gathered. I will admit, our dues are very small. $35 a month. They have doubled in the last 8 years. It seems like an insignificant increase, but you should hear the neighbors howl about fixed income.
25 years ago the association had a revolt. A group of homeowner hired a lawyer, gathered enough support, and legally overthrew the association that was in place. Had it dissolved and replaced with a new association. It was very unpleasant.
But to answer your question... Go to the meetings. Explain your position, have them explain theirs, try to come to terms. If they won't listen to you, or are unreasonable, there is very little you can do. Hiring a lawyer is an option, but may still have very little effect.
The most effective thing that works here is for everyone who wants to have a voice in how the system work here actually participate in the system. Go to the meetings. Every meeting. Give your input. It works.
Here is how it works in our association: Our by-laws state the fee that will be charged at the creation of the HoA. It then states that the dues may only be increased by a maximum amount that is found by referencing a CPI (Consumer Price Index) published by our state. The by-laws do not indicate that the dues will, or should be raised, only that they can only be raised based on the CPI. The ultimate determining factor for whether or not the dues are raised is the Board of Directors.
If you don't like the means by which the rate of increase is determined then you would need to amend the by-laws. In our association this requires a 2/3rds majority vote of all homeowners. We have 10% participation in our association, so this is never going to happen. Remember, it is the Board of Directors that actually calls for the rate raise. Replacing them with people who won't raise the rates is the other way of preventing this. This would require gathering enough votes at your annual meeting (where officers are chosen, and budget is set) to get your person of choice on the board. Getting these votes usually makes you the kid poking the bee hive with a stick. Sometimes you get honey, sometimes you get stung, badly.
You may also wish to consider that the HoA dues are very much needed to run the business of the association. Our association is responsible for maintenance of the common areas. Lawn care alone is 50% of the dues gathered, and only gets more expensive every year. No one on the board wants to be the treasurer, so we had to hire a book keeper. That's 25% of the dues gathered. I will admit, our dues are very small. $35 a month. They have doubled in the last 8 years. It seems like an insignificant increase, but you should hear the neighbors howl about fixed income.
25 years ago the association had a revolt. A group of homeowner hired a lawyer, gathered enough support, and legally overthrew the association that was in place. Had it dissolved and replaced with a new association. It was very unpleasant.
But to answer your question... Go to the meetings. Explain your position, have them explain theirs, try to come to terms. If they won't listen to you, or are unreasonable, there is very little you can do. Hiring a lawyer is an option, but may still have very little effect.
The most effective thing that works here is for everyone who wants to have a voice in how the system work here actually participate in the system. Go to the meetings. Every meeting. Give your input. It works.
Todd, Hi & welcome. The 2/3 vote rule can be amended to cover the problem of participation. What you need to do is simply make it 2/3 of the votes. If only 3 people show for a vote you can still have a 2/3 majority. We ran into the problem when I ran a youth soccer program with 700 players. In a GOOD year we would get 20 parents for the annual meeting.
Greg
Greg
"If I can't fix it, I can screw it up so bad no one else can either."
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bobfather99
- Posts: 195
- Joined: Fri Nov 13, 2009 2:09 am
- Location: Indiana
You get the HOA you ask for. Show up, and vote.
We had a rule against "commercial vehicles", had to be parked in the public lot and not at the owner's homes. It only affected 5 of us at the time. Once one of the trucks got broken into, we got our heads together and made our case before the board. 5 commercial vans/trucks parked in an unlit lot at night is asking for crime. Got the rule changed, and now commercial vehicles can park at the owner's homes where they can be better protected.
We had a rule against "commercial vehicles", had to be parked in the public lot and not at the owner's homes. It only affected 5 of us at the time. Once one of the trucks got broken into, we got our heads together and made our case before the board. 5 commercial vans/trucks parked in an unlit lot at night is asking for crime. Got the rule changed, and now commercial vehicles can park at the owner's homes where they can be better protected.
Tip your bartender.....
::Applause:: to Todzilla. Excellent post!
☯JD♫
Today is PERFECT!
All information and advice given is for entertainment and informational purposes only. The person doing the work is solely responsible to insure that their work complies with their local building code and OSHA safety regulations.
Today is PERFECT!
All information and advice given is for entertainment and informational purposes only. The person doing the work is solely responsible to insure that their work complies with their local building code and OSHA safety regulations.