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July 5, 2010
HOA Fees for This and That - What is Legal?
What can boards charge for?
Maintenance? Probably. This is generally described in the CC&Rs assessment section.
Insurance Premiums? Probably yes, for the common area. The documents will describe whether the HOA or Condo Association can charge for insurance for the homes in the development.
Move In-Move Out Fees? It depends on what the governing documents say (should appear in the CC&Rs if it appears at all.)
Security Deposit for Tenants? Same answer.
Damage to the common area? There may be a reimbursement assessment allowed in the CC&Rs and that would usually describe it if the association can charge, and also if the association can lien for the charges if not paid. Associations commonly can lien or foreclose for nonpayment of assessments. This one is one for which someone should seek legal advice as it is complicated.
Failure to maintain a townhome (by an owner)? Probably, and again, the documents would dictate whether the board could collect any charges or reimbursement costs if the association did the work like an assessment or would instead have to treat it as a personal debt.
Pool fee? Depends, the bylaws or CC&Rs may allow for a fee. Commonly everyone in a condo association or HOA shares the cost of maintaining the pool equally, even if some people to not use the pool. However, issuing pool keys or passes may involve a fee or charge or even security deposit paid back upon return of the key, or a key replacement charge.
Fine? There are a myriad of requirements to charge a fine such as the requirement of circulating and adopting a fine schedule and a hearing. Most HOAs have some kind of warning letter first, before the hearing.
Fee for a having a pet? Probably not, but there might be a provision in the documents that allows for it. It is better to treat costs related to having a pet as a reimbursement cost for any damage rather than a set fee for having a pet. This would probably not pass muster with the courts, unless there was justification through some fee or cost to the association in allowing pets.
Fee for having teenagers or small children? (No, would be discriminatory.)
Extra fees for extra vehicles? Depends on the governing documents.
Did I cover everything?
Probably not, but its a start. The bottom line is that the governing documents provide authorization for what the board can and cannot do and what obligations it has, and if a fee is not described in any of them as being authorized, there is probably a problem if the board charges.
Posted by Beth Grimm at July 5, 2010 8:25 PM