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r/HOA
1
Posted by3 months ago
Platinum

bought a condo for 150,000. hoa fees went from 225 to 475 in the last 30 days.

They have been getting a quote for a seawall repair. Its understandable but I was not aware of the new quote or the rate on which they were going to charge, more the double? And for 3 years! Is there any way around this? I can't afford alone for sure. I pulled the trigger based on the fact the hoa fees were at a reasonable but high rate.

I feel like I was bait and switched. How can I get around this? Is there any experiences out here with a similar situation?

35 comments
57% Upvoted
level 1

When you were purchasing you had the option of reaching out and asking the board if they had any upcoming special assessments or increases to dues. This is why you need a good realtor when you buy. It’s a learning experience for sure. I’m sorry you’re dealing with this.

14
level 2

Also when buying you have the right to ask to see financials especially the reserve fund for expenses like these

6
level 1
· 3 mo. ago
🏘 HOA Board Member

You can get around it by selling your place. If not, you have to pay it.

8
level 2
Op · 3 mo. ago

How do you sell it 🤔 knowing its that much my god

-2
level 1

It’s possible that the assessments were in the process of being raised when you were in the buying/escrow process. I doubt there’s much recourse, but read your governing documents.

When you buy into an HOA, you enter a legal contract that you have obligations to. Paying for maintenance and operation of the common areas are two of those obligations.

The seller may or may not have known about the assessment increase. If they did, then it should have been disclosed in the HOA material you received in your escrow packet

3
level 2
· 3 mo. ago
💼 CAM

In many states they have to alert the byer to a potential SA.

5
level 1
· 3 mo. ago
💼 CAM

There is a possibility that the HOA knew of the possible increase and depending on your state, they may have been required to tell you.

Start by looking into this. Talk to the title or escrow company. You may even want to hire an attorney.

2
level 2
Op · 3 mo. ago

I did talk to them but they don't have my hoa rolled into the payment. Maybe this is the reason why? They said the association is their own private company and I am trying to look through all of my documents to see if I didn't catch this. In reality the board probably set it up to where they knew I was coming and decided that the owners could swallow such a steep charge with me here.

1
level 1

What did the reserve study say before you bought the home?

Are you in FL, and the HOA is required fund the reserves and increase the dues because of the surfside condo collapse that killed 100 people?

2
level 2
· 3 mo. ago
🏢 COA Board Member

They’re in Michigan.

Unsure about other states, but here in MA the hoa has to create a 6D form that both releases the seller of any financial obligations (debts paid, etc) and also disclose any upcoming possible assessment charges as well as provide a copy of its budget, meeting minutes, etc for full transparency. I’d imagine if the OP looks through all their paperwork for their condo, then there’s probably something in there. Assessments fees aren’t bad, especially during these times when everything costs an arm and a leg. Sucks but necessary and just bad timing buying the place especially if the buyer doesn’t read through all the documents which many folks tend not to do and get themselves in trouble.

2
level 1

That's the problem with HOAs, especially those for condo/townhomes. Fee increases + potential special assessments is always there. It especially affects condos/townhomes because those HOAs are responsible for building repair/insurance and repair of structures and/or common areas.

The only thing you can do is check the HOA governing documents. They should outline when dues can be raised and by how much. Also look out for language that says how much the board can raise the fees without a vote by the association. For example, it may say something like the most monthly dues can be raised without a HOA vote is 15%, but any increase above that has to be approved by vote by the homeowners.

It's possible that the person you bought the condo from was already aware of the upcoming increase but listed it with the current rate (I'm not sure the legality of that, but some people do that).

My HOA lets us know well in advance (60+days) on upcoming dues increases.

1
level 2
· 3 mo. ago
🏘 HOA Board Member

It especially affects condos/townhomes because those HOAs are responsible for building repair/insurance and repair of structures and/or common areas.

The thing is that single family homeowners pay many of the same costs. They just don't budget as well and are shocked when ten years down the road they have to come up with a massive amount of money for a new roof.

A SFH owner who budgets as carefully for long-term expenses as a high rise HOA does will find that he's sending a solid amount of cash to his personal "reserve fund" too.

1
level 1

In many states, Sellers are required to disclose to Buyers of pending assessment increases. Lawyer up.

1
level 2

If this person can't afford $3,000 a year in additional assessments, they can't afford to own a condo or hire a lawyer.

4
level 1

I remember when I was buying my place in 2010, I looked at a few condos, the rule of thumb the realtor advised me, was look for how much did the HOA have in reserve, if it was low then look out for a big assessment in the future and newer buildings have lower fees.

1
level 1

It’s called a special assessment as it’s only for three year. Nothing bait and switch at all - happens all the time in HOAs when the budget income is less than expenses.

1
level 1

It’s not bait and switch.

HOA fees go over regularly. It sucks that you bought just before an increase, especially if you can’t afford it. But it happens and it’s not personal.

And just so you know, if they are really behind on money, you could get a special assessment at anytime for tens of thousands of dollars.

0
level 2
· 3 mo. ago
🏘 HOA Board Member

if they are really behind on money, you could get a special assessment at anytime for tens of thousands of dollars.

Or more. It happens. One of the reasons behind the Champlain Towers collapse was that the HOA had to come up with over $15 million to do repairs and nobody wanted to do it.

3
level 2
· 3 mo. ago
🏘 HOA Board Member

And with costs going up everywhere, dues will rise. Most HOAs are underfunded. You should always ask for the budget and a reserve study from within 5 years to see just how good or bad your community has it

2
level 1

Some states have restrictions on HOA due increase.

0

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