Re: HOA acting as distributor
From: Sharon Villines (sharonsharonvillines.com)
Date: Sat, 18 Dec 2004 11:34:19 -0800 (PST)

On Dec 18, 2004, at 2:00 PM, <normangauss [at] charter.net> wrote:

Rob:

The way you described it, each club makes its own rules, decides how to
spend money it has coming in, but arranges to have the billing and
collection of funds performed by the HOA.

    Is anyone aware of a situation where a contract is made between an
outside vendor and the HOA on behalf of the buyers club?

In the first instance, I think you can make a case for using your group accounting and billing structure for the convenience of members. Our treasurer would draw the line at getting involved in a lot of transactions that would not involve everyone. And the IRS might look a little wary of homeowners who are deducting for home office charges if they include association fees that include payments for wine or truffles.

In the second instance, the whole association would have to agree to assume this responsibility and be sure it is within the laws of your state and city for your specific legal structure. Our bylaws would prevent the board from making such a commitment without the consensus of members, and our lawyer I think would say this is shaky -- you are not operating within what condo law intends to regulate.

We just negotiated a contract for the biannual maintenance of HVAC units in each household for which we will each pay $165 a year as added to our condo fees. Doing it this way (one check, all units serviced twice a year at the same time) allowed us to get a significant discount on maintenance individually and also for the commonhouse units. But this includes everyone, and HVAC maintenance is directly related to homeownership. One would have a hard time making that case about a wine club.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org


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