Hey everyone,
First thanks for any help! I think our HOA is illegally raising our fees based on a false interpretation of our covenant agreement. I am pasteing what the board member sent me today and then after this I include the article from our covenant documents that pertains to his email.
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For 2017 we raised our dues approximately 16%. This increase was due to higher maintenance costs. An owner challenged this at our January meeting, claiming that we should have asked the membership for approval based on what is in Section 3 of Article IV of the covenants.
The Board has interpreted Section 3. to mean we could raise the dues in any year to the maximum allowed had we been raising the dues 5% per year since the HOA inception. If the Board had raised the dues 5% every year since the beginning, the current monthly dues would be $349.27. The monthly dues for 2017 is $215.00, thirty dollars more than the 2016 dues. We are below what we think is allowed by Section 3.
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Here is the part of section 3 article 4 that the board is speaking about
"The maximum annual assessment per Lot for the first calendar year during which an assessment is made shall be $540. The maximum annual assessment against any Lot for any calendar year thereafter shall be one hundred five percent of the maximum annual assessment for the preceding calendar year, whether or not such maximum annual amount was assessed in such preceding calendar year. "
I interpret the second sentence as saying the fee can only be raised to 105% of the previous year, regardless of what sort of assessments have taken place in the past. I would be interested to here a lawyers opinion before I speak to a lawyer in person and have to pay a huge fee. Also what would be your suggested next step?
Thanks again!!
Joe
First thanks for any help! I think our HOA is illegally raising our fees based on a false interpretation of our covenant agreement. I am pasteing what the board member sent me today and then after this I include the article from our covenant documents that pertains to his email.
"
For 2017 we raised our dues approximately 16%. This increase was due to higher maintenance costs. An owner challenged this at our January meeting, claiming that we should have asked the membership for approval based on what is in Section 3 of Article IV of the covenants.
The Board has interpreted Section 3. to mean we could raise the dues in any year to the maximum allowed had we been raising the dues 5% per year since the HOA inception. If the Board had raised the dues 5% every year since the beginning, the current monthly dues would be $349.27. The monthly dues for 2017 is $215.00, thirty dollars more than the 2016 dues. We are below what we think is allowed by Section 3.
"
Here is the part of section 3 article 4 that the board is speaking about
"The maximum annual assessment per Lot for the first calendar year during which an assessment is made shall be $540. The maximum annual assessment against any Lot for any calendar year thereafter shall be one hundred five percent of the maximum annual assessment for the preceding calendar year, whether or not such maximum annual amount was assessed in such preceding calendar year. "
I interpret the second sentence as saying the fee can only be raised to 105% of the previous year, regardless of what sort of assessments have taken place in the past. I would be interested to here a lawyers opinion before I speak to a lawyer in person and have to pay a huge fee. Also what would be your suggested next step?
Thanks again!!
Joe
