Can a HOA Allocate Payment for Dues to Unpaid Fines
My question involves a mortgage in the state of: TN
In January I paid my HOA a lump sum to cover dues for the entire year (instead of paying each month) with a check labeled "monthly HOA dues only".
Between March and July the HOA management company levied 4 fines on me with a vague explanation like insufficient landscaping, and they secretly paid those fines on my behalf by subtracting from what I paid for HOA dues, without my knowledge, giving me the impression the fines were waived. Now they are fining me for being late on my monthly dues. When I responded that I had already paid the year's dues in advance, the management company said their policy is to put whatever money is on a homeowners account towards any past due balances like fines.
My question: Can the HOA legally re-appropriate money clearly specified to be used only for dues, to pay other expenses they throw at me? I prefer to dispute their bogus fines separately, but according to their records those fines have already been paid, as if I had acknowleging wrongdoing in paying the fines (which are actually still in dispute)
Re: Can HOA Reappropriate Money Intended for Monthly Dues
Are you talking about something you wrote in the memo box?
Re: Can HOA Reappropriate Money Intended for Monthly Dues
Quote:
Quoting
Mr. Knowitall
Are you talking about something you wrote in the memo box?
?????
You lost me...
Re: Can HOA Reappropriate Money Intended for Monthly Dues
Quote:
Quoting
frewer
?????
You lost me...
I believe Mr. K wants to know if you wrote "monthly HOA dues only". on the memo line/box of the check.
Re: Can HOA Reappropriate Money Intended for Monthly Dues
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Quoting
budwad
I believe Mr. K wants to know if you wrote "monthly HOA dues only". on the memo line/box of the check.
Oh ok, yes I wrote in the memo box "for monthly dues only"
Re: Can HOA Reappropriate Money Intended for Monthly Dues
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Quoting
frewer
Oh ok, yes I wrote in the memo box "for monthly dues only"
I worked for an association management company (albeit in Florida) and typically (and in FL statutorily) items are paid in an order similar to this: 1) legal fees, 2) interest, 3) fines and other fees (late fees, etc.), 4) special assessments, 5) regular assessments (dues). Whatever you write on the memo line of the cheque doesn't control how the disbursements from the payment will be made.
Re: Can HOA Reappropriate Money Intended for Monthly Dues
Thanks for the reply... but I have to challenge the legality of your management company's policy of what order things are paid for, specifically would that policy hold up in court.
If it went to court, wouldn't a judge invalidate that policy?
The reasoning is this: I give money using the memo line to specific what the money is to be used for if they cash it, which is only to go towards monthly dues. If the management company doesnt agree to that, then they have the right to say "we cant abide by your wishes" and send me the money back, and allow me to make monthly payments instead.
What this mgmt company did was apply my money it to fines, thereby penalizing me for attepting to pay dues in advance, by denying me the privilege of being notified that each fine was not removed (as they led me to believe). So instead of disputing one fine, I now have 4 fines to dispute, some which are too late to dispute since if you pay them then it's like an acknowledgement of guilt and acceptance of the fine.
It's like paying the city money property taxes in advance whereas the city instead decides to use the money to prepay all speeding tickets I might get before the property taxes are due.
Or it's like sending a check to my internet company for internet, and finding out they decided to apply the payment to a cable tv promo that I didnt want or sign up for. Generally the person paying has the right to decide where their money is put towards, right?
So management companies can have all the crazy policies they want, but would that type of policy be upheld in court?
Re: Can HOA Reappropriate Money Intended for Monthly Dues
Let's just clarify.
You wrote in the memo box, Monthly dues ONLY? Or you wrote, Monthly dues?
Re: Can HOA Reappropriate Money Intended for Monthly Dues
I'm pretty sure it said monthly dues ONLY. Is there a difference?
Previous cases like this...how does the judge rule on them? Any precedents for this situation?
Re: Can HOA Reappropriate Money Intended for Monthly Dues
The memo section is where you write notes for your own benefit. It's not a space where you can jot whatever you want and somehow bind the recipient of the check to your unilateral conditions. The recipient of the check must be aware of any conditions in order for them to be binding.
Quote:
Quoting Blair v Brownson, E2004-00817-COA-R3-CV (Tenn. Ct. App., Feb. 22, 2005), emphasis added
The defendants contend that the notation made by Mr. Brownson
in the memo section of his earnest money check, in which he wrote the sale was "contingent on getting financial [sic]," was a term of the oral agreement. We find that it was not... [The plaintiff] testified that when he made the notation on the check and handed it to [the defendant], he asked, "Is this okay?" However,
there is nothing in the record indicating that he directed her attention to the notation or attempted to discuss it with her. In rendering its judgment from the bench, the trial court found as follows:
that notation on the check — First of all, it isn't very clear as to what exactly it means. So that's a problem there. The evidence that I've heard, I would find that that was not discussed and agreed by the parties. So there was no discussion and agreement about that, or, at least, no agreement, and very little, if any, discussion at all.
We find that the evidence does not preponderate against the trial court's finding that this so-called contingency was
not a term of the oral contract.