Is Your HOA Nickel and Diming You to Death?

Is your HOA charging you for expenses over and above your regular dues?   Do you feel nickel and dimed by the board and watch in disgust as they spend 36K on a very ugly monument sign that doesn't match the Spanish Revival style of the community?  You may not be responsible for them regardless who voted on it.  

If you live in a condominium community read your declaration closely.  You may see something that looks like this on the first page of your declaration.  It may say, that certain areas of the property (called common areas) , including recreational facilities, private streets, landscaped areas and other areas are intended to be for and shall be for the use and benefit of all of the owners or residences, members or their families, their tenants and guests, in accordance with the CC&R.  These portions of the property are shown and designated as Tracts on the Map. 

Then it may go on to say that these CC&Rs run with the property, and shall burden and benefit each and every portion and parcel.  With the "property or development" being described as being all of the real property shown on the map. 

Now that you know how common areas are defined and identified and that all real property shall benefit and burden you all.  You can move on to what expenses are common and what aren't.  If your declaration is silent or very broad on this topic read the entire declaration carefully to make sure you have the entire document with exhibits and maps.  Then if it still isn't addressed look to the state laws.

If your declaration reads like mine below then your board cannot charge owners an additional fee on top of regular dues for common expenses,

 "for administration of the common area and the development (including but not limited to legal, accounting, and management fees); utility service for the common area, insurance required hereunder and otherwise as determined by the board; costs of maintenance, operations, repairs, replacement, and betterment of the common areas (including but not limited to painting, landscaping, repairs, replacements, alterations, additions, reconstruction, services, supplies, labor, materials, equipment, and other related items); any valid charge against the common areas, including real estate taxes and assessments; and any other cost or expense properly payable for the common good of the development (including but not limited to ALL COSTS OF ENFORCING COMPLIANCE WITH THIS DECLARATION, deficiencies due to non-payment by residence owners, and such costs are all deemed necessary to meet the purposes of the association)."

Now that is how my declaration reads, yours may be different.  Mine goes on to say that if an owner fails to perform maintance, repairs, and replacements which are his obligation then after written notice the board can have those things performed and charge the owner.  If the owner fails to pay for the repairs or fails to perform the maintenance and the board sends it to the attorney.  The owner can be charged for attorney fees and court costs but only if a judge orders it.   Then it also says that if any owner, his family, guests, or tenants willfully causes damage to the common areas that the association can make the repairs and those costs then becomes part of that owners assessments.

If your HOA like mine is trying to bill you for account statements, coupons, or other remittance the management company requires to make sure your payments are posted correctly, they need to think again.  Your HOA cannot charge you for expenses in the administration of the development or for charges assessed by the management company. 

Do not forget where your Declaration is silent that is when you look to the state laws.

Also, keep in mind;

1. the declaration is the contract between you and the HOA;
2. the articles of incorporation tell you how the association is structured;
3. the bylaws tell you the duties, powers, & responsibilities of the officers on the board.