[kate_anders]

Up

0

Down

::

We recently moved into an HOA and were under the impression that all we had to pay for were monthly dues and the occasional special assessment here and there. But today we received a bill from the HOA for “capital contribution” amounting to $1500. This definitely caught us by surprise since there was no such contribution in our closing statement or estoppel. Can the HOA really charge us this fee?

[earlh0808]

Up

0

Down

::

Just based on personal experience with HOA’s, I think that they can do that but I agree that it’s definitely infuriating. $1500 is not a small amount.

[naldofive7]

Up

0

Down

::

Hi Kate. How long ago did you move in? Reggie

[kate_anders]

Up

0

Down

::

Hi Reggie, we moved in about four months ago.

[naldofive7]

Up

0

Down

::

Hi Kate. A lot can happen in four months. Maybe your BOD recently passed a resolution on that? Have you been attending the meetings and keeping updated?

[kate_anders]

Up

0

Down

::

I haven’t been going but my husband has and he says this was put in place about a year ago. Apparently, our attorney just “forgot” to indicate this on the estoppel. What’s unfair about this is that only new homeowners are required to pay the $1500. Old homeowners don’t have to pay it since the decision was made after they had already bought their homes.

[naldofive7]

Up

1

Down

::

In that case, I think you do have to pay the capital contribution. It is not uncommon for BODs to pass such resolutions. And it is true that certain laws and bylaws prevent BODs from enforcing these resolutions retroactively.

Sorry about your situation but that’s just the reality of living in an HOA-run neighborhood.

[shemco]

Up

0

Down

::

As far as I know, the Capital Contribution doesn’t need to be revealed at closing. Your agent or attorney should have definitely given you all the documents, but buying into an HOA requires due diligence on your part as well. If that resolution was passed a year ago, it should be in the association’s governing documents (which you should have read) that were given to you.

[410unit40]

Up

1

Down

::

I believe this contribution represents a new owner “buy-in” to the HOA’s reserve account to equalize the contributions made by older owners over the years. It is a rather large amount for this purpose; I believe $500 or so is more common. Ask for a payment plan that you can afford.

[kate_anders]

Up

0

Down

::

A payment plan would be more manageable. I’ll definitely ask for it. Thanks for your advice!

[Author]

Posts