Pomona, California
Starting back in March of this year I received notice from the property management company that there will be an increase in the monthly HOA fee for my condo from the existing $150 dollars to $225 dollars (a $75 dollar increase). At the time I thought maybe the increase was due to the rising number of foreclosures in the complex (so the remaining residents will have to pay extra to make up for their loss in revenue) as well as the increase in the cost of operations. Back then I wondered why the board of resident did not even reject such proposed increase given the downturn of the economy but I didn't pursue any further as I was too busy with other things. Thus I started paying the new monthly HOA fee of $225 dollars starting in March 2009.
Then just recently there has been a change in the property management company and I was then told the monthly HOA fee would have been kept at the $150 starting from October 2009 (when they take over). I then contacted the new property management company and asked as to why the monthly HOA fee in their notice was $150 instead of $225. To my dismay the new company told me that the fee increase proposed by the last management company was illegal for the following reasons:
1. In accordance with the California law the proposed increase in HOA cannot be more than 20%. Therefore the maximum increase in the HOA fee in my case should only be about $30 dollars (20% of $150) and the last managment company's fee was more than 20% (as 75 dollars increase is about 50%).
2. In order for the managment company to propose an increase in the HOA fee they would need to have a meeting with the residents in the complex and a vote and approval would be needed in order for them to proceed with the fee adjustment. However, I was told that the previous management company has never held any meeting with the residents in the last few years (or ever). Given there was no presence of any residents in any meeting on the issue of HOA fee increase it is clearly a violation of some California law for their "unapproved" HOA fee increase.
Last but not least as I didn't receive the notice of the change in management company in time I ended up mailing my October HOA check to the previous property management company. When I talked to the new management company I was told that they never received the check for the month of October payment (which is the month the new company is supposed to take over and the previous company should have forwarded the payment to). I called my bank this morning and found out from the online check image that the previous management company actually deposited and cleared my October 2009 HOA check (as I made the check payable to the same HOA name)
So the questions I have now is:
1. What are the specific California law or code which I can quote in a letter to demand the previous property management company to give me a refund of all the extra money I have been paying for the HOA fee from March 2009 to September 2009 ($75 x 6 months = $450) ?
2. If the previous managment company refuse to give me back the extra money I have been paying from March 2009 to September 2009. Which court can I file my claim to recover the money? What are the steps and procedures I can follow ?
3. If the previous management company refuse to credit me the October 2009 HOA check (as they have no right to deposit) or forward it to the new managment company, would I be held liable for not paying the October 2009 HOA fee? Should I just let the new management company to pursue the money ?
I would greatly appreciate the feedback and suggestion. Thanks in advance.
Starting back in March of this year I received notice from the property management company that there will be an increase in the monthly HOA fee for my condo from the existing $150 dollars to $225 dollars (a $75 dollar increase). At the time I thought maybe the increase was due to the rising number of foreclosures in the complex (so the remaining residents will have to pay extra to make up for their loss in revenue) as well as the increase in the cost of operations. Back then I wondered why the board of resident did not even reject such proposed increase given the downturn of the economy but I didn't pursue any further as I was too busy with other things. Thus I started paying the new monthly HOA fee of $225 dollars starting in March 2009.
Then just recently there has been a change in the property management company and I was then told the monthly HOA fee would have been kept at the $150 starting from October 2009 (when they take over). I then contacted the new property management company and asked as to why the monthly HOA fee in their notice was $150 instead of $225. To my dismay the new company told me that the fee increase proposed by the last management company was illegal for the following reasons:
1. In accordance with the California law the proposed increase in HOA cannot be more than 20%. Therefore the maximum increase in the HOA fee in my case should only be about $30 dollars (20% of $150) and the last managment company's fee was more than 20% (as 75 dollars increase is about 50%).
2. In order for the managment company to propose an increase in the HOA fee they would need to have a meeting with the residents in the complex and a vote and approval would be needed in order for them to proceed with the fee adjustment. However, I was told that the previous management company has never held any meeting with the residents in the last few years (or ever). Given there was no presence of any residents in any meeting on the issue of HOA fee increase it is clearly a violation of some California law for their "unapproved" HOA fee increase.
Last but not least as I didn't receive the notice of the change in management company in time I ended up mailing my October HOA check to the previous property management company. When I talked to the new management company I was told that they never received the check for the month of October payment (which is the month the new company is supposed to take over and the previous company should have forwarded the payment to). I called my bank this morning and found out from the online check image that the previous management company actually deposited and cleared my October 2009 HOA check (as I made the check payable to the same HOA name)
So the questions I have now is:
1. What are the specific California law or code which I can quote in a letter to demand the previous property management company to give me a refund of all the extra money I have been paying for the HOA fee from March 2009 to September 2009 ($75 x 6 months = $450) ?
2. If the previous managment company refuse to give me back the extra money I have been paying from March 2009 to September 2009. Which court can I file my claim to recover the money? What are the steps and procedures I can follow ?
3. If the previous management company refuse to credit me the October 2009 HOA check (as they have no right to deposit) or forward it to the new managment company, would I be held liable for not paying the October 2009 HOA fee? Should I just let the new management company to pursue the money ?
I would greatly appreciate the feedback and suggestion. Thanks in advance.
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