You don't mention what the "common repairs" are? Is it for a roof or replacing a light fixture?
Yes, normal small repairs, plowing, landscaping, painting, should be common area expenses and if there is any type of Reserve Account, that should be used for repairs and/or replacement of larger items. If it is a huge expense like roofing a special assessments to owners sometimes becomes necessary. You need to give more info on the repair area.
Check your state statutes governing condos, I'm sure they are readily available on the internet. In FL, the state statutes can help condo owners "fill in the blanks" so to speak on areas that may not be spelled out in their individual condo docs. Under FL statutes, proceedings may begin on owners 90 days in arrears on fees. On the charge backs, that's a question for your board.
In Florida, it is called a special assessment which the Board can issue and usually has to when the amount for repairs exceeds the amount in the Reserve account. This was probably told to you via the request they sent you for the money. You just want to whine about it. And yes, the Board's fiduciary responsibility is to attempt to collect all fees owed. Lien and Foreclosure is their only last resort weapon here. If they don't get the monies owed, you and the rest of the paying members will have to pay the difference.
Hey, Marjon, lighten up with the "snarky".
I believe that what you may be referring to is a billing by the condo to cover the cost for common area repairs that were billed to all owners, but not paid by owners who are in default. If this is the case, and absent an adequate reserve fund, the association has no option but to bill remaining owners. However, if the association subsequently recovers the unpaid condo fee, from the owners in default, the owners who paid the supplemental (default) amount should expect a prorated credit or repayment.
thank you for the feedback..marjon-chill with the 'tude!!
These repairs are not roof replacements, sidewalk replacements, etc. They are replacing light fixtures, filters, etc., which are the things that specifically get paid with our common charges. They are charging these expenses back to the unit owner, so if the unit owner pays the charge back, they are in essence paying a higher common charge than they are supposed to. If they don't pay the charge backs, then the board starts foreclosure proceedings so it goes around in circles.
The way it is supposed to work in our state and in our condo: the board disburses funds for common area repairs out of the pool of funds collected from the condo fees. If necessary, they can call for a special assessment which requires a special vote of the unit owners. There is no end around mechanism where the board can bill the condo owners separately. You are going to have to review your master deed and by laws to see if this billing is allowed. In my condo, it would not be legal and the board would not be allowed to put liens or foreclose.
Be sure to attend the next budget meeting and find out if the board plans to cover these type of expenses with normal operating income or the reserve. If they don't find out why. Many association are under reserved and don't discover the bitter truth until it is too late. The expenses you describe should come out of normal operating income if you are properly funded.
If the initial inquiry was from Patti - who then listed light fixtures, filters, etc., as items being charged back - then the "charge back" is for unit owner items which the owner's responsibility.
Many condos and some HOAs offer person maintenance assistance as a "charge back" service. The advantage to the individual owner is that it is not necessary to hire and pay a more expensive fee for a service call by a private company.
Otherwise - before anybody can provide an educated answer, more information is required.
i am the pres. and we can account for every penny spent we try to avoid special assements but when we took over we were left in a finicial ruin. get involved with the leadership of your association and find out what happened we are trying to fix things that were neglected however we must keep a decent reserve in case of a major problem if anyone asks me i,ll show them what they need to see its not easy i live onsite and pay dues as do the other officers i used to think my regular fee took care of everthing increases in utilites and weather snow ect, can sometimes exceed the amount bugeted you dont know the ins and outs untill you have the bills and complaints tossed at you. we hide nothing because we have nothing to hide yet some residents think the monthly fee will be enough we try to get the residents involved in small issues light bulbs sweeping ect. a lot of time goes in to management and we do it for free 4 of us the other 26 rely on us if you getting picked on talk to board member maybe an explanation can ease the pain
There is more than likely a state law that requires a vote from all homeowners with a certain majority that must agree in order for there to be any special assessment above a nominal amount like $200. Back charging sounds very odd. There must be state laws RE liens and foreclosure rights. You'll need to at least read your condo docs - covenants and your state's law codes regarding condo associations. It might very well be in your best interest to speak to an attorney - try to find one who does not represent associations.