My condo association recently increased our dues - I am personally affected by an additional $40 a month for 2008! I will be paying $382 for a 2 bed/1 bath condo in Fremont, CA with a 'average' community upkeep for a 20 year old property. High energy costs, mortgage rate issues, and a need for increased reserve have been sited as reasons. Is this normal? What can I do to educate myself more? Do I have any options? What are my rights?
2007-12-13 08:45:25 · 6 answers · asked by Tina 1 in Business & Finance ➔ Renting & Real Estate
Your only 'rights' show up if you decide to seek a seat on the HOA. Other than that, you're bound to what the board decides, since you signed the contract to be so when you purchased. If you don't pay according to the requirement, the HOA can and WILL file a lien on your condo. Welcome to the world of condo associations and HOA's.
2007-12-13 08:51:04 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
I'm not familiar with CA condominium law, as I'm in FL and was previously on a condo board in VA. Here's what I do know, and there's a link at the bottom for info on California condo law.
As an owner in the condo association, which is basically a corporation, you have a right to see the financial records. You should be able to see the breakdown of costs by category. You can then compare the increase based on actual and future estimated expenses.
Increased energy costs would obviously be related to lighting, heating/cooling, irrigation, etc. of common areas.
I'm not sure I understand the mortgage rate - is the condo association paying on a mortgage? The only reason I can think of that there would be a mortgage payment is if some major repairs were needed and the board chose to obtain a mortgage rather than place a special assessment on the owners.
Since your community is 20 years old, making sure there are sufficient reserves for capital repairs and maintenance makes sense. It increases the salability of your unit if the buyer is comfortable that the association has the $$ for needed maintenance and improvements.
A couple of other common reasons for increase in condo dues are increased insurance premiums and increased property taxes.
My best advice to condo owners is to attend the monthly board meetings...by law you are welcome to attend board meetings. In FL and VA, the board is required to have an annual owners meeting, where the financials and other items of interest/concern are reported. By law the ondo owners must be notified of these meetings a certain length of time before the meeting date and offered an opportunity to vote on any items that will be up for vote.
If you go to the meetings and don't like what you hear, you may want to consider running for a seat on the board!
2007-12-17 07:08:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
the amounts you cite as HOA fees are reasonable in the climate of California.
Way back when [probably before you were a voter], California passed a limit on property taxes ["2%"]. The result of this was that all government paid work in support of new construction in most parts of California ended and every new development [or re-development] was told that they'd have to fund their raods, sewers, water lines, street lights, etc. themselves.
This caused the creation of HOAs which built the improvements required by funded them by borrowing the money and assessing dues sufficient to make their payments.
After this, every HOA organized in Ca has high dues and every buyer has to pay them.
It also had the effect of raising the prices of existing houses that aren't subject to such dues -- as you'd expect -- which means that the average homeowner who voted for the 2% tax cap got a $20,000 increase in the value of his property [back in the 1970s or so -- it is more like $50k now.]
government is the problem. you are the victim.
welcome to the way things are.
8-)
2007-12-13 09:03:26 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋
As stated above, in order to stay informed, you should be attending your HOA meetings. This is where you will receive info on what the HOA plans to do in the future, as well as a time to vote for those who will be on your board (yes, you also have the right to vote!)
Just a guess on my part, but if your property is 20 years old, and still has the original roof/shingles, your HOA may be considering the fact that your roof may soon need to be replaced.
2007-12-13 11:24:32 · answer #4 · answered by Anonymous · 1⤊ 0⤋
You are a member of the condo association, so attend meetings, ask questions and ask to see the financial reports. That is your right.
2007-12-13 10:49:16 · answer #5 · answered by Anonymous · 1⤊ 0⤋
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2016-11-03 04:14:21 · answer #6 · answered by mccumber 4 · 0⤊ 0⤋