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  1. #1
    kickinmhl is offline Junior Member
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    Jan 2011
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    HOA "special assessment" to make up for others not paying dues???

    What is the name of your state (only U.S. law)? OREGON

    Our home owner's association has imposed a $150 "special assessment" fee to all owners to make up for the deficit caused by a number of owners who have not been paying their normal yearly dues.

    Our yearly dues are ~$265 a year. Only a 10% increase per year is allowed, and there is a $41,000 deficit, due to those X number of people not paying year after year.

    If the increase were due to major repairs, it would be one thing. But, can they really make the responsible owners pay for the irresponsible owners dues?

    Do I have any legal recourse? By refusing to assume the responsibility of others, my financial/legal well being is compromised. I don't see that this is fair at all. What can I do here?

    Thank you for any advice.What is the name of your state (only U.S. law)?
  2. #2
    antrc170 is offline Member
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    Norman, OK
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    A lot will depend on the by-laws of the HOA. You need to obtain a copy and seek counsel for further specialized advice.
  3. #3
    Kiawah is offline Senior Member
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    Read your HOA bylaws, which should determine the legal course of action they have to execute.

    Ours state the Homeowner who is deficient gets sued to recover, and our HOA has done that in a couple instances.
  4. #4
    FlyingRon is offline Senior Member
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    The suggestion I had for my HOA is to lien 'em and then foreclose. While we will win nothing out of the foreclosure for past dues likely, we will substitute an owner who is more responsive to paying in the future.
  5. #5
    HomeGuru is offline Senior Member
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    May 2000
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    Catatonic State
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    Quote Originally Posted by kickinmhl View Post
    What is the name of your state (only U.S. law)? OREGON

    Our home owner's association has imposed a $150 "special assessment" fee to all owners to make up for the deficit caused by a number of owners who have not been paying their normal yearly dues.

    Our yearly dues are ~$265 a year. Only a 10% increase per year is allowed, and there is a $41,000 deficit, due to those X number of people not paying year after year.

    If the increase were due to major repairs, it would be one thing. But, can they really make the responsible owners pay for the irresponsible owners dues?

    Do I have any legal recourse? By refusing to assume the responsibility of others, my financial/legal well being is compromised. I don't see that this is fair at all. What can I do here?

    Thank you for any advice.What is the name of your state (only U.S. law)?
    **A: did the Board hire legal counsel to go after the people not paying? The collection procedures should already be spelled out in your condo docs.
  6. #6
    nextwife is offline Senior Member
    Join Date
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    24,363
    Quote Originally Posted by FlyingRon View Post
    The suggestion I had for my HOA is to lien 'em and then foreclose. While we will win nothing out of the foreclosure for past dues likely, we will substitute an owner who is more responsive to paying in the future.

    Foreclosing as a secondary lienholder is iffy in a down maket. More often than not, the prior lienholders balances exceed the value. And would need to be paid off in a FC action by a Jr lienholder.

    In most associations these days, the deficits are due to unpaid assessments/liens that were wiped out in foreclosure actions and are uncollectable.

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