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Potential HOA issue, advice???

 
Anonymous Coward
User ID: 29108744
United States
12/05/2012 11:38 PM
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Potential HOA issue, advice???
I live in a neighborhood with 31 homes that all share a single water meter and are billed under a common HOA that handles the payments for the city Garbage, sewer and water.

Three of these homeowners are more than a year behind on their payments. The CC&R's state that it's the sole responsibility of the homeowner for those fees, and if they become delinquent interest charges accrue up until such point where they're sent to collections / lien placed on their home.

It's come to my attention that the 28 of us who ARE paying our bills are actually paying for the amount the 3 who are NOT paying through an increase in the monthly amount we are being billed from by the HOA.

This smells very fishy of me and since I see absolutely NO mention in the CC&R's stating that the people who pay must cover the people who don't pay, I further smell something illegal going on.

Anyone have any experience in this and able to offer any input? Much appreciated! Thanks GLP!
Anonymous Coward
User ID: 29172481
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12/05/2012 11:41 PM
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Re: Potential HOA issue, advice???
I wonder what 3 home home owners are behind? The president and vice president of the HOA?

.
Anonymous Coward
User ID: 1054379
United States
12/05/2012 11:42 PM
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Re: Potential HOA issue, advice???
You don't pay for those three, they cut off all your water
Anonymous Coward
User ID: 29182760
United States
12/05/2012 11:45 PM
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Re: Potential HOA issue, advice???
You don't pay for those three, they cut off all your water
 Quoting: Anonymous Coward 1054379


How is that legally bound though from the homeowners association though and how does that get passed on to the people in the neighborhood if it's not said that you must pay your neighbors bill if he doesn't? I understand the city's point of view because it's a single meter, but they have 31 people behind that meter. I'm pretty sure that the meter wouldn't stay off for long.
Anonymous Coward
User ID: 29182760
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12/05/2012 11:53 PM
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Re: Potential HOA issue, advice???
I'm the OP, got banned for making the post and for my reply. Have to pay money to speak apparently! :-)

Anyways, I don't necessarily see that the corporation managing the HOA is doing anything nefarious, but something doesn't seem right about charging those of us who actually DO pay for those in the neighborhood that do NOT pay.
Anonymous Coward
User ID: 27352798
United States
12/06/2012 12:19 AM
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Re: Potential HOA issue, advice???
Usually an HOA has a contigency fund or "unexpected expenses" fund, and the portion not paid by the three homeonwners should be paid out of that and repaid into that same fund at such time that the homeowners pay or when their lien is cured.
milehighmike

User ID: 339344
United States
12/06/2012 12:28 AM

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Re: Potential HOA issue, advice???
I just finished a 2 year term on my HOA, and we had a budget similar to a small business (92 lots, 90 houses) and we definitely had bad debt over the two year period. We cleaned it up by negotiating, liens, fines & foreclosures. We did write off some "bad debt" to the foreclosures. It's common practice for the payers to be subsidizing the non-payers, but NOT for an indefinite period of time. What are your HOA dues?

BTW, we had a professional management company as well...

Last Edited by milehighmike on 12/06/2012 10:31 AM
"Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, 'What's in it for me?'" — Brian Tracy: Personal and business training author, speaker, and consultant

"We are all, right now, living the life we choose." -- Peter McWilliams, Author

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T-1000
User ID: 18959534
United States
12/06/2012 12:39 AM
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Re: Potential HOA issue, advice???
Don't join a HOA under any circumstances.

All the advice needed...
milehighmike

User ID: 339344
United States
12/06/2012 12:49 AM

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Re: Potential HOA issue, advice???
Don't join a HOA under any circumstances.

All the advice needed...
 Quoting: T-1000 18959534


Too late for that, he already lives in one...
"Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, 'What's in it for me?'" — Brian Tracy: Personal and business training author, speaker, and consultant

"We are all, right now, living the life we choose." -- Peter McWilliams, Author

"The bad news is time flies. The good news is you're the pilot." -- Michael Altshuler
Anonymous Coward
User ID: 29182760
United States
12/06/2012 12:51 AM
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Re: Potential HOA issue, advice???
I just finished a 2 year term on my HOA, and we had a budget similar to a small business (92 lots, 90 houses) and we definitely had bad debt over the two year period. We cleaned it up by negotiating, leans, fines & foreclosures. We did write off some "bad debt" to the foreclosures. It's common practice for the payers to be subsidizing the non-payers, but NOT for an indefinite period of time. What are your HOA dues?

BTW, we had a professional management company as well...
 Quoting: milehighmike


HOA dues are only $30 a month. What I want to know is how it's legal to subsidize the non-payers if it's not written into the contracts you've signed.

I wouldn't even be blinking twice if there was something in there that said something to the layman interpreted tune of "I agree to pay my delinquent neighbors bills when he doesn't pay them".

Nothing even remotely like that exists. Quite the opposite actually. It says very specifically that being delinquent will result in fines, liens or other legal remediation's for you personally.

In the end I'm trying to get a better understanding of how the neighborhood HOA operates since we will very soon be allowed to elect our own officials ( new development, just now being populated enough that the current declarant wants out ). Before I put my foot in my mouth though I wanted to know what other peoples experiences were, like yours ( Thank you! ) to be better equipped to have a voice.
Anonymous Coward
User ID: 9231012
United States
12/06/2012 01:28 AM
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Re: Potential HOA issue, advice???
Why the hell would you ever think of moving into a one meter neighborhood in the first place?! OMG! Your an idiot! Sell and get the hell out.
Anonymous Coward
User ID: 6383062
United States
12/06/2012 01:32 AM
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Re: Potential HOA issue, advice???
Why the hell would you ever think of moving into a one meter neighborhood in the first place?! OMG! Your an idiot! Sell and get the hell out.
 Quoting: Anonymous Coward 9231012


+1
Anonymous Coward
User ID: 29182760
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12/06/2012 01:46 AM
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Re: Potential HOA issue, advice???
Why the hell would you ever think of moving into a one meter neighborhood in the first place?! OMG! Your an idiot! Sell and get the hell out.
 Quoting: Anonymous Coward 9231012


A lot of neighborhood developments are run this way. It's not ideal, but it has the potential of functioning well. I rented a house where we paid the water based on our own meter. We spent 30% more per month than we did when we moved in to this neighborhood. The cost of our water is split amongst everyone in the neighborhood.

Sucked for us in theory because there were only 3 people living in the house; my wife, myself and our 2 week old boy but it worked out that we spent about the same ( it felt like we saved more at first, but as time goes on it feels like we spend more... more because of the dead-beats who don't pay their bill ) because even though we were neighbors with a house of 4 and a house of 2 across the street it averaged out well.

Sure it sucks that the people with 7 kids pay as much as the people that have no kids, but we knew very damn well of those liabilities BEFORE we signed the line.

Distributing the cost of water / sewer amongst everyone in the neighborhood was very well agreed upon by everyone living in this small neighborhood. Picking up the tab ( potentially illegally? ) of the deadbeats is something we did NOT account for. This is what I'm researching.
Anonymous Coward
User ID: 1487396
United States
12/06/2012 02:35 AM
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Re: Potential HOA issue, advice???
Damn. I thought this was gonna be a thread about the Horn of Africa and I geeked out because I'm deploying there next year.

Anybody wanna start a thread on HoA for me to comment on?
Anonymous Coward
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12/06/2012 12:23 PM
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Re: Potential HOA issue, advice???
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