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How does 44-unit HOA share cost of utilities fairly?

  
  
  
  
  
We have 44 homeowners in our Illinois association. We have 8 duplex homeowners, there is a 20 unit condo building and 4 quad buildings. The association wants to make the duplex homeowners pay a portion of the utility bills for the condo and quad buildings even though we have our own individual meter we pay separately. The condo building has a master meter for those 20 units and the quads have a meter in each of their buildings. In the past,only those 36 homeowners who used those meters paid into the utility reserve portion in the budget. They now want the duplex owners to pay almost 4% each of that expense. Is this a common expense to all 44 homeowners when the 8 duplex homeowners receive their own bills and pay directly. We do not have any access to these buildings or use of the utilities. Why should we have to pay our own water bill and electric bill and then a part of theirs too?

Comments

This one is rather simple...costs are shared on a per door basis. Calculated based on percentage of ownership by square foot.
Posted @ Monday, January 03, 2011 1:09 PM by cebo
Is any of the water used for any common areas? for ex lawn?
Posted @ Monday, January 03, 2011 1:09 PM by Victor
There are no drinking fountains, lawn sprnklers or a pool on this meter. It is only for their personal use in those buildings. 
 
They all even have their own washing machines.
Posted @ Monday, January 03, 2011 2:37 PM by dawn smith
doesn't sound like anything I would pay - u have been paying your own bills up until now and now why the change ? why not separately meter the 20 units ?
Posted @ Monday, January 03, 2011 2:41 PM by LAINE
Round up the other owners and go to your next meeting and ask the board why you have to pay extra for something you don't use and it's not common ground related. Have them show you something in your bylaws that state they can do this. By the way have your read your bylaws?
Posted @ Monday, January 03, 2011 3:35 PM by Victor
For the answer of whose expense it should be, look to your condo docs. Perhaps in the condos the expense is a limited common expense, which outlines those who reap the benefits have to pay and the current board is not interpreting it properly. It is very strange that the board is suddenly expecting the entire association to pay for utilities to which only one building reaps the benefit.
Posted @ Monday, January 03, 2011 3:38 PM by Joyce Nord @ bestcondomanager.com
You may get your anaswer if you download and read your state HOA law. This law takes precendence over bylaws if there is a conflict between them.
Posted @ Monday, January 03, 2011 4:56 PM by Scott
We had a similar situation here. Penthouse owners had their own HVAC units, but were paying for central heat and AC in their assessments - even though those units were not connected to the central system. 
 
For many years, there was some archaic electrical credit applied in an attempt to make things more fair, but Electrical costs vacillated in a way that was simply not related to heating fuel costs - so it seemed quite arbitrary. 
 
In our case, rather than use different assessment calculations for each unit type, we chose to switch the fuel and electrical costs for heating and cooling the penthouse units to the association, so that everyone paid for heating and cooling all units. This made assessments more fair, with the only disadvantage being that any conservation efforts by the penthouse owners were distributed to the association as a whole.
Posted @ Tuesday, January 04, 2011 12:46 PM by Michael Hogan
Scott, 
 
In Florida at least, state law doesn't always trump the condo docs. One of the specific areas is in the proportionate share and what is designated as common elements, limited common elements, and unit elements. 
 
Secondly, you reference HOA...but even townhouses, or houses can actually be legally considered condos. Based upon the fact that there is a building unit of condos, it is very possible the entire project is condos, and not HOA. HOA's and condos have very different laws which are applicable.
Posted @ Tuesday, January 04, 2011 1:09 PM by joyce@thecondocommando.com
State Laws 
 
 
 
http://www.condoassociation.com/state-condo-laws/tabid/88661/Default.aspx
Posted @ Tuesday, January 04, 2011 3:00 PM by Scott
Our bylaws say that the master metered utilities get paid out of the common expense. The Il condo act says they can maintain a master metering of utilities according to the rules of the Illinois tax utility act. The way I read the rules its says that only those that use the utility, not everyone in the association, are billed for that utility. The legal definition of common expense, says what can be legally assessed. I don't think they they can make the 8 duplex homeowners pay a portion of 36 other condo owners water bills and also electric bills for heat and lights on their buildings. In addition other fees like fire alarm panels/monitoring/inspections/repairs, janitorial for cleaning of their hallways, lightbulb replacement, carpet cleaning, garage maintenance, ....all these things come out of the general maintenance fund that the duplex homeowners pay their proportionate share into...We never incur these charges and we pay for our lighting, garage maintenance. Of course, we sit on the most property and have the highest proportionate share. One board member who owns a condo unit who rents it no less, has found a glitch in the bylaws. The attorney he hired recommends an amendment be drawn up....but we don't have a majority and these people already received new coupon books lowering their assessments $100.00 per month, while raising the duplex owners assesment $100 - $150.00 per month. Its insane! The budget was never approved but yet the management company went ahead and sent them their new coupon books but didn't send the duplex owners until a couple days before xmas. All very underhanded.
Posted @ Friday, January 07, 2011 7:37 AM by dawn.smith1001@sbcglobal.net
Joyce--I don't understand your last post. Please explain why the state law is not dominant.
Posted @ Friday, January 07, 2011 8:03 AM by Scott
NOTE: When I comment it is with regard to requirements under Florida Law. 
 
HOA's in Florida are not affected by the same laws as Condos. Condos are governed under F.S. 718. HOA's are governed under 720. 
 
If the poster's "property", whether or not it contains duplexes, is a condo, (under Florida Law) it would be governed by 718. If it is an HOA, it would be govered by 720 
 
In 718, and the FAC (Florida Administrative Code) there are several portions of the law which defer to the condo docs, i.e., late fees and assessing in proportionate share as designated in the condo docs. Meaning state law wouldn't be dominant as it would be referring the person back to what the condo docs say.  
 
If the condo docs designate the utilities referenced as a common expense, all have to pay according to their proportionate share. If the condo docs designate the utilities as a limited common element and say that only those who use the limited common element have to pay, those who use the limited common element have to pay.  
 
Laws should be read in conjunction with the condo docs and not assumed to be dominant. There are several other areas throughout 718 which reference what is stated in the condo docs. There are also portions which state if condo docs do not contain certain things, they are deemed to state certain things. 
 
Again, it's all about reading the state laws in conjunction with the condo docs, and in florida in conjunction win FAC as well.
Posted @ Friday, January 07, 2011 9:17 AM by Joyce Nord @ bestcondomanager.com
My comments are based on my condo association and the Washington State Condominuim Act. 
 
 
 
Are all 44 owners part of the same association, or are there different associations within those 44 units?  
 
 
 
If it is one association and it is an association bill that is being paid, regardless of what it is for or who benefits, it is a shared expense. What if part of one roof needed to be repaired...who would foot that bill?
Posted @ Tuesday, February 08, 2011 12:32 AM by Mark hannay
I have a simple question. We own 1/2 of a duplex at the shore in NJ. We live here full time, and there are 2 of us. The other owners are here in the summer and on occasion (2 adults and 2 children). This is a secondary beach duplex/condo for them, and our full time residence. We have a master deed (hard to understand). We have a problem: the owners of the other unit refuse to pay 1/2 the water bills for the cold weather months stating that they aren't here that often (but they are at times, and certainly COULD BE HERE). Originally they had paid 1/2, then last year they paid 1/4 of the water bills, which was our mistake. We had agreed last year feeling that possibly it was the KIND and fair thing to do, and WE lost out, since the service portion is far greater than usage. 
 
All insurance and water bills come to us (my husband's name). We are the first floor unit. We paid the hazard insurance and 6 months of water bills, sending the other owners the copies (we make) and their portion due. We email these and send them too. They have thus far refused to pay at all (for anything) and are seemingly ignoring our requests for payment and conversation too. We have written emails (saved) several times since April 4th. We have now placed a few phone calls, reaching them once. The rest are met with answering machines (do not return the calls), and the 1 call was answered and they state do not agree. We called the water company and added up all of the amounts showing our loss last year is greater than the fight this year. Ordinarily we get along fine. This is getting out of hnd, and needless to say, we need the money. We haven't included the TIME and MONEY for copying/calls/paying the bills up front. What would be the best advice without a full out war? We hate to see that happen. Oh, I forgot to mention, we do ALL of the yard work...grass cutting/snow shoveling, etc...since we are here full time. They have done NONE. 
 
Please help. Thanks.
Posted @ Wednesday, April 20, 2011 9:14 PM by Susan
Susan from NJ your better off starting a new subject rather than asking a different question in an old subject.
Posted @ Wednesday, April 20, 2011 11:37 PM by Victor
If monthly and annual fees of an association are determined by the percentage of ownership of the common elements, should the same basis or percentage be used if a special assessment is required to accmodate the costs of special legal services vs a flat fee[same fee] to all of the unit oweners.
Posted @ Tuesday, June 21, 2011 9:46 PM by bob gross
Comments sghould, for ease of understanding, be limited to reference ton state laws in that state where the condo or HOA is locarted. The laws between the states are different and what applies in Florioda does not necessarily pertain in New York.
Posted @ Wednesday, June 22, 2011 9:24 AM by Scott Adler
I own a 2 bed, 2-1/2 bath condo and live alone. Why should a 4 member family in an identical unit pay the same amount for dues as I do? I am NOT a Socialist!!!!
Posted @ Tuesday, August 02, 2011 11:25 AM by Ted Roberts
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