Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

Condo association getting "double taxed" by master HOA community

  
  
  
  
  
This is a 55 and over gated community in South Carolina. There is a master HOA which has 251 single family homes and a sub-HOA with 24 condos. Therefore there are two budgets. The condo owners have to contribute to the master budget but not the other way. There are line items on both budgets which the condo owners have to pay, so the 24 condo owners pay double. I cannot seem to get this fixed by the board because it doesn't affect their pockets but the 24 condo owners are paying double. Is there any recourse for us? We have been bullied by the master association of 251 to keep quiet and go with the flow. But they are gouging our money. Please send me advice on how I should proceed. I have done the math by all they tell me its in 'percentages' and complicated.
Tags: ,

Comments

Are you the only one aware of the problem? Have you talked to the other condo owners? 
 
The 24 owners should get together and hire a lawyer.
Posted @ Wednesday, November 24, 2010 9:12 AM by Victor
When you say you're paying double, do you mean that you're paying for the SAME service, amenity, etc., to the Master HOA that you're already paying for to the Sub? Usually the Master HOA is responsible for caring for amenities, common area, etc., that benefits the entire Master community, and so the assessments are spread across the entire Master community, whereas the Subs usually only have to pay assessments for the ocmmon area, amenities, etc., that service/benefit the sub members only. If you're paying an assessment for the SAME service/amenity/common area to the Master that you're already paying to the Sub, there's definitely a problem. If that's the case, are you approaching the Master Board as homeowners? Or are you asking the Sub Board to approach the Master Board?
Posted @ Wednesday, November 24, 2010 9:23 AM by Melissa M. Garcia
Sounds like you may live in a PUD - do you have walking trails, one main pool for the entire single family & condo area, ponds,etc.... In Green Trails in Lisle, Illinois the condo owners pay for the walking trails, pond maintenance, pools for the main Green Trails and then they have their condo units within the PUD (planned unit development). So they would have a small fee of $80.00a year plus their own condo fees of $x amount of dollars.Maybe this is want you have ??????If so you should have a set of Docs for both associations....
Posted @ Thursday, November 25, 2010 7:53 PM by Judith
Yearly, each association should provide a draft budget covering anticipated expenses, including reserves, for the following year. The members should be advised of the dates for each association board discussion prior to establishing assessments for the following year. These are normally routine repeated expenses year-to-year based on the obligations each association has as stated in THE DOCUMENTS.  
While categories may appear to be the same, the actual expense may be for different obligations. Insurance is a good example. Each association must maintain general liability insurance, including building coverage as required. The HOA may have a community center to insure, the condominium has entire buildings to insure. Both associations most likely are required to carry Directors and Officers insurance and a fidelity bond which may extend to the management companies involved.  
Both associations will budget for legal expenses; auditor and tax preparation. The costs sometimes are similar; however, they are not duplicates. Attend both meetings and read all the materials thoroughly. The members of the condo board are your neighbors and are no more interested in paying additional unnecessary fees than all of the other condo owners. If the condo establishes a finance committee, volunteer if this areas of expertise is your strong point (same for the Master HOA if it has a finance committee).  
 
Posted @ Friday, November 26, 2010 1:37 PM by Nancy Jacobsen
Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics