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It seems like I am paying close to $80 per month but I am not sure if it should be that high. We have about 100 townhouses.
Here are few things that pays but is that all?
1. Cut front lawn
2. Pick up trash
3. Snow removal
There is no swimming pool or tennis court. I think the townhouses across the street has them but they pay close to what we pay. $79/month.
Is our money going to the head of the HOA board? I see voting signs every year.
Where does HOA money go? It started with $45/month 4 years back.
How can we make sure someone is not stealing our money?
You should be entitled to review the financial budget documents. That will show you where the money is going. Couple of items you left out are insurance and building up reserves for future maintenance. Who maintains the exterior structures and streets (roof, paint, repaving, etc)?
snorkey- yes, that is very typical and normal... it probably covers your exterior structure in case your house needs painting or a new roof. It needs to cover the HOA expenses too, which as rjrcm said, you can get the hoa budget for the year which breaks down where the money goes.
And you are getting trash, landscaping, and snow removal- which on your own could end up being higher than you $80/month.
It sounds kind of low. I would make sure reserves are being set for major repairs.
I would also check if the HOA is adequately insured.
Of course I have no idea where you live and the type of townhomes, I am just throwing ideas out there.
They pay for my roof?
I live in Townhouse, not condo.
They haven't done any road work or paving for past 4 years.
This is 4 year old neighborhood.
HOA pays for my insurance? I have paid separately, so maybe I can stop my homd owner's insurance?
Actually, I think I have roof problem too, do you think they will replace for free of charge?
How would one know if the HOA president has agreement with landscape company that they will go with them and over pay certain amount and they pay him back for using them. Same goes for snow and trash company.
Do you have certainty about what is HOA versus your own responsibility? No doubt you acquired documents when you purchased that spell this out.
At a minimum, the HOA is responsible for insurance/maintenance for the common areas, of which you own a percentage.
It also sounds like you might have a "renter" mindset, of "them ( HOA) versus us". You are a vital part of the HOA.
There is a budget. There are annual financial statements which shows where the money goes and how much of a reserve the HOA maintains.
There are minutes to the HOA meetings. You can attend the meetings.
That you think the assessment too high (albeit consistent for the area) is not a reason to believe the HOA Board is out to get you. It is very common for assessments to increase, once the HOA takes over from the developer.
You can speculate from the sidelines or take an active role in the management of your HOA.
It seems like I am paying close to $80 per month but I am not sure if it should be that high. We have about 100 townhouses.
Here are few things that pays but is that all?
1. Cut front lawn
2. Pick up trash
3. Snow removal
There is no swimming pool or tennis court. I think the townhouses across the street has them but they pay close to what we pay. $79/month.
Is our money going to the head of the HOA board? I see voting signs every year.
Where does HOA money go? It started with $45/month 4 years back.
How can we make sure someone is not stealing our money?
I agree that that is pretty low for townhouses. As others have said, they need to build up a cushion for future larger expenses and maintenance. We have some townhouses we manage that are only $50 per month, but that doesn't include trash service, and only snow removal if there is more than 2" on a given day, which doesn't happen often. Less is the tenant/owner's responsibility. It also includes mowing front only.
Most HOA dues also cover maintenance on any common areas, mowing of grass, replacement and trimming of trees, bushes, etc., fence repair and maintenance, repaving of driveways, repair of sidewalks, all that stuff that you never think about who is paying for. And as others mentioned, insurance is a big one.
If the HOA has a large expense needed and doesn't have the funds to cover it, they can also send a bill to all homeowners for enough to cover the expense. In my opinion, its better to have the annual be a little higher and build up a cushion over time, rather than suddenly get a bill for an extra $300 you didn't expect one year.
As for the voting, in many places, HOA positions are volunteer, but I have heard of some people getting paid. You would need to look at your CCR's or possibly at the annual financial statement from your annual meeting to be sure if your board members are getting paid for their services.
snorkey, you sound like a perfect candidate to run for the HOA board. or maybe you can volunteer to "oversee" the landscaping.
Also, if you have questions about veracity of the HOA accounting, you can request to review the books at any time. Of course, you usually have to go to the management office after making an app't, but at least you would be able to check it out.
And you are correct, if it isn't a condo, your insurance and exterior maintenance of your townhouse is generally NOT included in the HOA fees.
They pay for my roof?
I live in Townhouse, not condo.
They haven't done any road work or paving for past 4 years.
This is 4 year old neighborhood.
HOA pays for my insurance? I have paid separately, so maybe I can stop my homd owner's insurance?
Actually, I think I have roof problem too, do you think they will replace for free of charge?
How would one know if the HOA president has agreement with landscape company that they will go with them and over pay certain amount and they pay him back for using them. Same goes for snow and trash company.
The HOA may pay for the roof. If it is a townhouse community, very often the HOA pays for exterior maintenance, including roof, siding and painting.
The HOA doesn't pay YOUR insurance. They have to carry their own insurance in case someone gets hurt on the property. You have to keep paying your Home Owner's insurance.
I agree with middle-aged mom. You do sound like you think the HOA is "them", rather than "us". If you own property in the subdivision, you are a part of the HOA. IF you have a legitimate roof problem, and IF your HOA is supposed to take care of it, then talk to them and get it dealt with, but remember, that is your money too. If they have a big expense, your dues will go up too. There is no such thing as "free of charge".
As for your last paragraph, you sound totally paranoid. That sort of thing is the reason why there are multiple board members. The HOA president isn't even the one paying the bills, that would be the treasurer. They would all have to be in on it. So yes, it is possible, but not very likely. If you really distrust them so very much, call around and get bids for those services yourself, on your own time, and see how the figures compare. If you find someone who is a better deal (and a reputable company!!), take that information to your next HOA meeting. I know my HOA would happily switch to a better deal, and has, on several occasions. And if you still aren't happy, run for one of the positions yourself the next time voting time comes round.
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