Powers of the HOA board in regards to fees.

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RalphF

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This is in Travis County Texas for single family home residential neighborhood with approx 600 lots.

I am a member of an HOA and on the board. The central question I have is in regards to if the HOA documents such as the CCR's, Bylaws, Articles of Incorporation have to either explicity permit or do they have to explicitly remove ability of the board or HOA to add fine or fees that are not stated in the documentation.

The current central issue is the previous HOA board made a board resolution to add a $100 administrative charge to the amount charged to the homeowner for a forced mow (lawn maintenance done by the HOA due to owner failure to maintain the lawn). This $100 administrative charge that the previous board added is not a cost that the Association incurs and just goes into the general fund.

The CCR's state "Declarant, the Association, and the ACC will have the right at any resonable time to enter upon any Lot to replace, maintain, and cultivate shrubs, trees, grass, or other plantings as deemed necessary; and to paint, repair, or otherwise maintain any improvements in need thereof, and to charge the cost therof to the Lot Owner."

I have read the rest of the CCR's and the bylaws multiple times and the only other time they talk about fees and penalties is when talking about late payment of the association dues.

My thought is that since the CCR's and Bylaws do not state that the board has the power to add fees, penalties or other charges against the home owners the only cost the board can pass on to the home owner is actual costs that are incurred due to the forced mow and in order to add a fee such as this it would require an amendment to the bylaws or CCR's to explicitly give that power to the board or state what the fee is. This amendment would be approved by the general membership as per the CCR's/Bylaws.

Other board members are of the opinion that the board has the power to add any charge/fee they see fit since the CCR's/Bylaws don't say something to the effect of "No other fee or charge will be made against the homeowner that isn't specifically stated in these documents.." or something like that.

My problem with the thought of the documents having to say NO is that it gives the board more power then they should... If so by board resolution they could add a $500 fee for parking 5 cars in the driveway or something like that... Not something that has actually been discussed but it opens the potential.

I am not a lawyer or even studied law much at all but would appreciate it if someone could help me out on this.
 
Another issue with this is I would like to get legal advice, but the other members of the board don't want to (I think they are afraid I am right) thus I can't use the HOA funds/lawyer to research this and I don't want to pay out of pocket for legal advice if I am way off base.

Thanks,
Ralph
 
You are absolutely correct. A covenants of a home owner's association limit the quiet enjoyment of an individual's use of their own property. Normally, all rights to a property are vested in the property owner, but with a HOA they agree to a set of covenants that they will abide by PRIOR to them purchasing the property. So their property rights are abridged by what the covenants say.

As such, powers of the HOA are limited and must be granted by the HOMEOWNERS not UNLIMITED having to be restricted by the homeowners. Does that make sense? Your example is well put. Only on the extremes does it become obvious that the homeowner's association is overstepping it's authority. What if you decided one day to make your subdivision a "golf cart only" subdivision. The bylaws and CCR's don't say that you can't restrict homeowner's from driving cars in the subdivision so can you do it? Of course not! That is silly.

The HOA is restricted to the powers granted to it by the people in the subdivision. We have the same problem in the federal government. Powers don't originate with the government they originate with the people. Government only has the powers that the people GRANT to it. Don't get me started about the government and the Enumerated Powers Doctrine of the Constitution.

In any case, your fellow board members are wrong. They can get away with it on the margin because the issue isn't big enough to get someone to sue you. But as they grab more and more power they expose the association to contingent liabilities of lawsuits by the members. Now you can mostlikely, charge a little more than actual costs for a forced mow because there are administrative costs from inspecting, to procuring the company, to paying, to billing the home owner. So a 10-20% add on would fit the "reasonable man" theory for actual costs.

Did that help?
 
thanks for the input. Do you know of any documentation or court cases or anything that I can use to show the this("powers of the HOA are limited and must be granted by the HOMEOWNERS not UNLIMITED having to be restricted by the homeowners.")? Although I agree with you it helps to have something in black and white with the people I am dealing with. They prefer to shrug off everything and just know everything because of their experience.

One such thing is the CCR's state the ACC will be composed of 3 members.... Well previous boards put 5 people on the ACC and currently there is no record (meeting minutes) of who is on the ACC and last few members were chosen by the ACC themselves (supposed to be appointed and removed by the board per the CCR's) I have confronted the rest of the board about this and either they don't care or the other response I have gotten is... Well the developer who wrote the CCR's is an idiot and didn't know what he was doing. I keep telling them it doesn't matter... The CCR's state 3 people that means 3 people and they should be documented in the minutes that the board appointed them to such position. In the end ... besides me getting enough membership to sign to do something which is hard to do because not enough care there really isn't much I can do. This is all really frustrating ..
 
I don't know if there has ever been a case to point to and I don't have the resources to research case law in your state. This is just a simple point. Homeowners BOUGHT the rights to do with their land as they please. Those rights are abridged by the CCR recorded against the subdivision plat. I would bet that there is some sort of limited powers clause in the CCR preamble but there doesn't have to be.

The home owner is the owner of the land. You can only have power over them by grant and the homeowner only grants you the powers that are specified in the covenants. It can't get much more black and white than that. Their argument contravenes common sense as you have pointed out. Can you pass a bylaw stating home owners can not own dogs? Can you pass a regulation stating that they can't have cars? Of course not. Why? Because by the very nature of a HOA your powers are limited to those that are GRANTED to it by the Homeowners. That's just simple law. If they want it confirmed ask the HOA attorney.

As to your other complaint about too many ACC members. Object at the board and let it go at that. The HOA will eventually be sued and suffer for their overreaching.
 
HOA's are getting completely out of control IMO. Seems they have way too much power to change things at their discretion because they may or may not like it...
 
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