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  1. #1

    Default Newly Reformed Homeowners Association

    Here in Olympia, Washington, I own multiple rental properties. Two of my houses are in a neighborhood where the Homeowners Association fell apart and was not active from 1998 until 2006. Recently, in 2007 the newly reformed board sent letters to all property owners stating everyone owed dues for the period of 2007 back to 1998. The dues are only $30, which isn't the problem.

    Can the board legally invoice for unpaid dues that were never previously invoiced during the period when no board existed?

  2. #2

    Default Re: Newly Reformed Homeowners Association

    Your governing documents most likely state that homeowners are subject to paying the HOA fees. It wouldn't state specifically that they would be due only if billed for them. It would be a function of the HOA to arrange for a collection and management procedure, but in the absence of being billed, the obligation to pay dues, and what the dues pay for (maintenance, utility payment, insurance) wouldn't be extinguished. I would wonder how the bills got paid in the interim when no dues were collected - bills which would have been paid with the HOA dues??
    However, there may be a statute of limitations on collection of a supposed debt, when there hasn't been a previous demand for the dues debt. This should be a matter to be brought up in an HOA meeting. Don't forget that the HOA represents all homeoowners and acts on behalf of their common good. If there isn't a great need for the money to be collected (after all, they'd gotten along without it for 8 years), then perhaps some agreement among all homeowners, through a vote, can be achieved. Maybe a flat assessment, and thereafter monthly collection of the $30.
    It is very important to review your governing documents to be sure the HOA Board is not making ultra vires decisions - i.e., outside the scope of their authority, and for all homeowners to get together and make their wishes known and for accountability of the Board as to the finances.

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