HOA President Not Paying Fees and Other Owners Paying Half

Question:

Hi, it came to my attention that the President of the board in our condominium association does not pay HOA fees, and the members only pay 1/2. Is that legal? Whom do we, the owners, need to contact in regards to a potential audit of the financials or filing a lawsuit against the Board of Directors? Please give us a direction which way we should proceed to approach the above matter.
Thank you,

– Jill

 

Answer:

Hi Jill,

According to The Kentucky Condominium Act Section 381.9191(2), all common expenses shall be assessed against all units according to the allocations in the declaration. This may mean that the president is not exempt if they own a unit.

In this case, you may opt to remove the problem board member. Section 381.9169(7) states that the unit owners, by a two-thirds (2/3) vote of all persons present and entitled to vote at any meeting of the unit owners at which a quorum is present, may remove any member of the executive board with or without cause, other than a member appointed by the declarant. You may opt to remove the problem board member according to this provision and the procedure outlined in the governing documents. The HOA may also have the right to collect delinquent assessments from the board member in question.

It may also be wise to have an external auditor review the HOA’s financial records. Moreover, it may be a good idea to hire an attorney for further guidance. You can find one through our online directory: https://www.hoamanagement.com/

 

As for the other members paying half the fees, kindly review the governing documents to see how assessments are allocated. Some HOAs allocate assessments based on unit size and access to limited common elements, with larger units and those that have limited common elements paying larger HOA fees. If the allocation should be equally divided among all units or if these unit owners truly are paying less than what they are required, you may raise this concern with the HOA board.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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