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  1. #1
    Join Date
    Mar 2009
    Posts
    2

    Default Burden of Proof for Payment of HOA Fees

    My question involves real estate located in the State of: Michigan

    The original builder of my subdivision has bailed and details of what has actually become of them are sketchy. Anyway the residents never took control of the HOA because we didn't reach the 50% occupancy required in the by-laws. Making the situation worse is the fact that we have a self contained water treatment stem to service only our subdivision. The subdivision is now in receivership and besides increasing fees by 50% they have told us we must each present proof that we have paid all water and HOA fees since we moved in!

    I could probably get the necessary information but going over three years and several checking accounts(some of which probably aren't active anymore) worth of information is a pretty daunting task. The HOA was not affected at all besides a change in who runs it, does the burden to prove i made these payments lie with the homeowners?

    Also while the builder was in limbo we paid fees for work which was never done and had to hire our own contractors out of pocket to get our snow plowed should we be entitled to some refund of previously paid fees?

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Burden of Proof for Payment of HOA Fees

    Well, you are not alone. I bought a new house here in Texas and the builder "Centex Homes" only finished 110 of the 1300 total homes and bailed out.

    The issue with you though is quite differient as the unbuilt lots where I live where sold to a private land investment company and they are paying dues on every lot they own.

    As far as your situation, the HOA needs to lien the lots that are in "transition". Each lot should have to pay its dues. The HOA can lien the lots and either force a foreclosure sale or collect all the back dues from the future owner.

    The HOA can not spread the shortage of money not being paid by the undeveloped lots to the other owners. From your post this sounds like what they are trying to do.

    It sounds like the HOA is being run by an outside management company. They may have taken over and do not have proof as to who did and did not pay.

    If I was in your situation I would provide proof that I paid so you can be one of the ones to be removed from the "list". I know it is alot of work, but it is worth it. You do not want a lien against your house.

  3. #3
    Join Date
    Mar 2009
    Posts
    2

    Default Re: Burden of Proof for Payment of HOA Fees

    Quote Quoting OhMy
    View Post
    Well, you are not alone. I bought a new house here in Texas and the builder "Centex Homes" only finished 110 of the 1300 total homes and bailed out.

    The issue with you though is quite differient as the unbuilt lots where I live where sold to a private land investment company and they are paying dues on every lot they own.

    As far as your situation, the HOA needs to lien the lots that are in "transition". Each lot should have to pay its dues. The HOA can lien the lots and either force a foreclosure sale or collect all the back dues from the future owner.

    The HOA can not spread the shortage of money not being paid by the undeveloped lots to the other owners. From your post this sounds like what they are trying to do.

    It sounds like the HOA is being run by an outside management company. They may have taken over and do not have proof as to who did and did not pay.

    If I was in your situation I would provide proof that I paid so you can be one of the ones to be removed from the "list". I know it is alot of work, but it is worth it. You do not want a lien against your house.
    thanks for your reply, it is a very confusing situation but yes they are requiring the current residents (22) to pay the fees of a full subdivision (154). As i mentioned before we have a community water system which we pay for monthly as well. The company acting as receiver says the bank has no responsibility to pay fees on empty lots. They claim they are doing us a favor because a $50,000 bond to cover the water system in an event like this is "missing" and they are paying the shortfall, otherwise our monthly dues would be over $800.

    As for putting liens on the houses, I don't think they would do that as the company running the HOA represents the bank as receiver also. So they can't foreclose on themselves and it wouldn't be in their best interest to put a lien on a house they want to sell.

    As for them putting a lien on my house for non-payment they would have to get in line there are several liens on it already

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