What happens if I refuse to pay my HOA? (Edmond: middle-class, foreclosure)

[Maximus39]

I've got a rental property in a small housing addition in OKC where the homeowners are responsible for all lawn maintenance and the only "common area" is a very small park with a handful of playground eqpt. And that's pretty much it. Beyond the tiny park I can see no evidence of any services my HOA provides. Oh, and they pay the electric bill for about 30 small streetlights in the neighborhood (these are the miniature kind - about 12-15ft tall, not the full size streetlights you normally see around town).

My HOA is demanding $150/year from every home for their services, which means they're raking in at least $75-$100k per year from this edition. I know damn well it's only costing them a tiny fraction of that amount to pay the electric bill for 30 small streetlights and maintain a tiny park with a couple of swing sets. There's very little lawn and landscaping work they do.

Apparently I'm in the wrong business! It seems HOA's can charge you whatever the hell they want, give you nothing for it, and still expect to be paid because you have no alternative.

So my question is what happens if I simply refuse to pay my HOA dues? What can they do to me? I certainly wouldn't miss their "services" that much I'm sure of...

[debzkidz]

They can sue you and I believe they can place a lien on your property. They also have expenses such as the management company that handles all the billing etc. they also have the legal expenses involved in handling those of you who don't pay, or violate other covenants. Be happy that's all you pay. Ours are waaaaayyyy more than that.

Also most are required by their by-laws to keep a certain amount of money in reserve as well.

What would happen if everyone in your neighborhood decided not to pay?

[Goodpasture]

Originally Posted by Maximus39

So my question is what happens if I simply refuse to pay my HOA dues? What can they do to me?

Foreclose

[debzkidz]

Just retread the OP. If they are getting $150 per year from each home and you calculate theyre making $75,000-100,000 a year, that's hardly a small subdivision. That's between 500 and 666 homes.

[#1soonerfan]

At 150/year seems pretty reasonable to me. My condo fees are much higher than that.

As much as I don't care for some HOA's I have no problem with them conceptually. On the newer fringes of OKC it is very obvious on which neighborhoods have them and which do not, which will help you out with property values should you decide to sell. When you bought your home, were you not aware that the neighborhood had an HOA? I imaged you signed a contract saying you would honor your obligation.

Should you stop paying they can sue you, put a lien on your home, and should the amount owed become too high, start foreclosure proceedings on you. Seems like a lot of trouble over $150 a year or $12.50 a month. If you have concerns about how your money is being spent, request a copy of the annual budget or go to a meeting a voice your concerns. But don't just stop paying.

If you disagreed with some things the City of OKC did with your property taxes, would you just stop paying them?

[debzkidz]

Raise the rent $20 a month and come out ahead.

[Maximus39]

Originally Posted by debzkidz

They can sue you and I believe they can place a lien on your property. They also have expenses such as the management company that handles all the billing etc. they also have the legal expenses involved in handling those of you who don't pay, or violate other covenants. Be happy that's all you pay. Ours are waaaaayyyy more than that.
Also most are required by their by-laws to keep a certain amount of money in reserve as well.
What would happen if everyone in your neighborhood decided not to pay?

I understand and agree with the concept of an HOA, but most HOA's actually, you know... do stuff. Beyond paying the electric bill for our (rather sparsely placed) streetlights, and some extremely minimal lawn maintenance in a couple of small common areas, they don't do jack sh*t. The streets (and streetlights) are maintained & repaired by City of OKC. Every home takes care of their own yards, etc. If my HOA actually provided some kind of services I wouldn't be so pissed off right now.

Originally Posted by #1soonerfan

At 150/year seems pretty reasonable to me. My condo fees are much higher than that...On the newer fringes of OKC it is very obvious on which neighborhoods have them and which do not...

But you're comparing to condos, where the HOA takes care of all the lawn maintenance, landscaping, and things like pools, etc. That's a big deal obviously. By the looks of my neighborhood you'd never know we had an HOA. Lawn care, landscaping, and general appearance of people's yards varies dramatically from one home to the next. It's like any other lower middle-class neighborhood; you've got all kinds of people living there. The HOA certainly isn't doing anything to help neighborhood resale values.

When you bought your home, were you not aware that the neighborhood had an HOA?

Actually no, I didn't find out until I was signing the closing papers. By then there was no practical way for me to back out of the deal.

If you have concerns about how your money is being spent, request a copy of the annual budget or go to a meeting a voice your concerns.

Now there's some good advice - and yes I plan to do just that. Do neighborhoods ever get fed up and collectively fire their HOA? Can you "shop around" for another HOA provider?

[westernkansas]

I personally don't understand why anyone would want to live in a HOA. It would be like saying to the government " hey I don't mind at all that every aspect of my life is controlled by an agency"

[Amazonchix]

Many years ago I sat on an HOA board and for those who don't pay you get a lien slapped on your house and you will owe for everything you didn't pay and then some.

I lived in a neighborhood with just over 400 houses and I can assure you we didn't go around blowing the budget. We truly were invested in keeping the neighborhood looking nice and helping our neighborhood maintain it's value. I agree that everyone should pay their HOA dues. You agreed to pay your HOA due once you bought that home. You have the right to disagree and move to a much older neighborhood or area that doesn't require HOA dues.

I no longer live in a neighborhood with an HOA, but there are many good reasons for an HOA. I can't recall the year this was initiated, but it's now a requirement for all new neighborhoods (OKC, Edmond) to have HOAs to help regulate and maintain the general rules and regulations.

[westernkansas]

Originally Posted by Amazonchix

. I can't recall the year this was initiated, but it's now a requirement for all new neighborhoods (OKC, Edmond) to have HOAs to help regulate and maintain the general rules and regulations.

is the city commissioner that introduced this still serving OKC or did he/she get ran out of town?