HOA horror story - help needed

[ScoPro]

An Austin friend posted this outrageous story on another board. Can any of you lawyers help out with how to deal with it? His modest neighborhood (east of Austin) home price range is in the 120k-180k bracket:

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[Holden]

Seems outrageous. I would not pay it and encourage my neighbors to do the same.

If that didn't work, I would insist on the HOA installing pools in everyones back yard complete with flagstone surround.

 

[TxEx2x]

Could it be that the builder was subsidizing costs while in the construction phase and now that it's been turned over to the HOA they are having to build up their reserves, or that they encountered a big (possibly legal) expense? Just a thought... If it were me, I'd find out who is on the board of the HOA, call them and ask why the big raise... Did your friend get HOA by-laws during the buying process? Reviewing those to see what it says about the process for raising dues might also be a good first step. In my previous two HOAs, it took a quorum of the owners to have a meeting to raise dues, and then a majority of those present must be in favor...

 

[Bernard]

Run for president of the association.

Bernard

 

[hornian]

Are you sure that its not $218 a year (up from $180 a year), not per month?

Also, I'm pretty sure that legally a HOA can't raise dues more than 20% in one year.

 

[HornOnTheBayou]

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[AUinAustin]

Well the first thing someone should do is read the HOA rules. They specify what can and cannot be done. My HOA can increase the dues 5% without a vote. This jump may not be allowed by the rules or it is a typo

 

[shorty]

Sounds like a great reason to get rid of the HOA to me.

 

[BA93]

If it really is going up to 218/mo, then it would be interesting to understand for what that is paying. I could only think that building a neighborhood pool and full time security could even come close to costing that much.

I'm in an old neighborhood. HOA dues are $25/YR. And its voluntary. Actually there is another fee that most of the sections charge: when a house is sold a .75% fee is charged to the new owner. The higher of the official appraisal value or selling price is used to determined the fee. My section opted out of this fee so I didn't have to pay it. As the neighborhood has gone thru a tremendous upswing in prices over the past few years, a very large nest egg has been collected.

 

[OrangeBlooded]

have the financial statements sent to you.

 

[ScoPro]

Turns out it was a typo in the letter that was sent out. It's $218/year.

My friend said the HOA secretary was a bit frazzled after getting scores of irate calls.

 

[NCAAFBALLROX]

$ 18.17 per month... that seems like an odd number. Why not $ 18.50 or even $ 19.00 even?

Glad it was a typo...lesson learned, I hope?