Homeowners' Association Membership Fee?

I am the Secretary of an HOA . Our By-Laws provide that the assoc. take care of exterior maint., insurance, and general upkeep. Each member owns his own home, but we spend assoc. funds on the fences, roofs, parking space painting and a global insurance policy. When a member sells, the buyer is able to take advantage of previous improvements. It was brought up in the last meeting that the assoc. implement a $750.00 one-time membership fee from the newbuyer 2 help offset the assoc. expense on improvements that the buyer is immediately benefiting from. I know how many votes I need to ammend--that process in not in question. I want to know how to phrase the amendment or resolution that is going to provide for this membership fee. I am not going to hold an official meeting, but I am going to solicite each members signature on a written instrument with a "yea" or "nay" next to their name. Help me with some suggested language. Our budget is tight, so there is no legal fund for advice.

I am part of a HOA as well. Very simular setup. I would caution the implementation of any fee to move in. This will make the property value to drop to make up for the "membership fee" as well as it will cause the property to not be as desirable to others. Also, the fees need to be for all or nothing. Since these are for common area use, the fees should not single out any one particular person unless it's a fine against the person as stated in the bylaws. Also, the work done should reflect need, and if there is need, this should be budgeted or a special assessment should be taken from everyone.

[1] Have an emergency meeting and pass a special assessment to hire an attorney because
[2] This cannot be done in your By-Laws and
[3] it is fundamentally unfair, a new buyer is actually purchasing all the investments made by the previous owners so you have already received the monies due you for these improvements and in some states
[4] officers and board members are personally responsible for certain acts without limit to their liability so if you are worng and lose you can lose everything you own (minus what the Bankruptcy Court saves).

Boy you would be skating on thin ice.

First of all, you don't have the option of not holding an official meeting. The HOA is a not-for-profit organization and its actions are regulated by State law.

As such, Board meetings:

- must be public
- must be announced to the membership
- must be recorded in the form of minutes to be made publicly available.

Second of all, what you are suggesting is a change to the Master Document/Bylaws/Regulations of your association which entails a fee increase. Such meetings:

- typically (varies state to state) have more stringent meeting announcement rules.

- further its very likely that such ammendment requires a certain percenteage of the membership. I recognize you state that you know how many votes you need to ammend. Is that per the bylaws, or per the law.

I can tell you that in Florida for instance, a lot of HOA documents allowed for changes that the law has disallowed protecting the rights of the homeowners.

My advice is:

If you want to proceed with change please consult with a local HOA lawyer. Being sued by a disgruntled homeowner which feels singled out will far outweigh the legal fees you would pay upfront in making the right decision.

Further, once you get the legal advice make darn sure you communicate to all homeowners the proposal, and invite them to a meeting with plenty of time to insure there is no backlash once the vote is taken.

Best regards. I realize HOA positions are voluntary and a lot of work. www.SunsetLakesOwner.com