Getting members to pay their Dues (HOA, car insurance, credit card)

[jazzwakeforest]

I recently suggested to my HOA Board that we offer a one time special to our HOA members who pay their year due in full! One fortunate member will win a one year free of dues.

After doing some research the President of the HOA indicated that ound that according to our covenant “All assessments shall be shared equally by the owners of each lot in use.”

Does the board not have an option to offer this one time special? It seem to be a great incentive to get HOA members to pay their dues.

[RaleighBoundGeek]

Well - HOA's come in all sizes and shapes. AFAIK - there's no real standard as to what they can or cannot do - all of that is established by their own documents (i.e. the Covenant and the ensuing Rules and Regulations). In general - those establish all of the behaviors within an HOA.

Bottom line is - you should have the power to figure that out, since you should have your own copy of the documents. Also - I don't think that the fact that everyone should be "charged" the same would be the final rule on allowing for an occasional rebate. What I DO think it means is that you'd have to introduce something which would be an extension of the convenants, which would then need to be voted on at the annual meeting, would have to be reviewed relating to the budget, etc... In other words - something taking some effort to do.

Not saying that it can't be done - I am just not sure that the Board can make this kind of far-reaching decision by themselves.

[DanielChang]

Are contests like that legal?

[ducter]

Stick to the basics of paying or you will open the HOA up to lawsuits of all kinds

[autumngal]

I'd be more concerned why this came about? Are you just trying to be nice, or are homeowners not paying their dues or
are but not in a timely manner?

It really depends on the "HOA rulebook" and an attorney. Your best bet is to have an attorney answer this question. As speculation can abound from such a single question, and nobody here has that rulebook to glance over

[VickiR]

Typically, your coveants will determine who can change what!

Sometimes there are issues that can be changed with a majority vote. Thats in there too!

Vicki

[Dave O]

Originally Posted by jazzwakeforest

according to our covenant “All assessments shall be shared equally by the owners of each lot in use.”

I'm not a lawyer so don't take this as a legal opinion but assessments are generally different than dues.

[DanielChang]

We only pay our HOA once a year and I believe our HOA places liens against properties that don't pay. I suppose if you have to collect monthly, then the contest might be a good idea, although as a bill-payer I can tell you most people would rather pay on a monthly basis than a lump sum. This is why monthly payment car insurance plans are so popular (even if you have to pay the $6 per month extra for the convenience of a payment plan).

[Dave O]

Originally Posted by jinxor

We only pay our HOA once a year and I believe our HOA places liens against properties that don't pay. I suppose if you have to collect monthly, then the contest might be a good idea, although as a bill-payer I can tell you most people would rather pay on a monthly basis than a lump sum. This is why monthly payment car insurance plans are so popular (even if you have to pay the $6 per month extra for the convenience of a payment plan).

If you have the cash you should always take the discount. I save ~$100 every 6 months by taking the discount on my car insurance. That works out to about 16% on my $600 bill. Where else can I "make" a risk-free, tax-free 16%?

[DanielChang]

Originally Posted by Dave O

If you have the cash you should always take the discount. I save ~$100 every 6 months by taking the discount on my car insurance. That works out to about 16% on my $600 bill. Where else can I "make" a risk-free, tax-free 16%?

I pay cash. To me, it's a no brainer. I also don't carry any credit card debt or car note and the only thing I owe on is my house. But I know a lot of people that live paycheck to paycheck, got interest only ARM on their homes, etc. They need the cash.

They can't afford to pay all at once (for the year) even with the incentive that they *MAY* win a year's free HOA dues.