Cohousing-L Mailing List: Re: HOA fees determined by or in part by income?

[PAMELA LEITCH (info]

I suspect that in most states sliding scale assessments are not legal unless 
the CC&Rs state that is how they are to be calculated.  If you have a system 
where you are potentially excluding owners who are not members of the 
“cohousing group” from attending events in or on common elements, you could be 
creating a legal problem for your HOA. Same goes for the pledged funds if you 
deposit them into any account that uses the HOA’s tax id #.  All owners should 
be paying their share of things like the electric bill, washing machines and 
common furniture.  Or maybe I misunderstood how your system is working.

If I were in a community doing this, I would want a legal opinion that this 
pledging system is not legally a problem.

Pam Leitch, JD, CMCA
HOA Coaching, LLC
hoacoaching.com <http://hoacoaching.com/>

> On Aug 26, 2024, at 4:56 PM, Elizabeth Magill <pastorlizm [at] gmail.com> 
> wrote:
> 
> We planned to have sliding scale HOA dues but determined that it is not
> legal to do that in Massachusetts.
> 
> So we have removed from HOA dues all the things that might be considered
> "optional" for an HOA, but are cohousing activities. The obvious is special
> events like labor day and memorial day bouncy house rentals. But also
> washing machines, hot tub, new furniture for the great room. A big hunk of
> our electric bill.
> 
> Remaining in HOA is reserves, insurance, water, septic, and snow plowing.
> 
> So we have HOA dues and Cohousing pledges.
> 
> We approve the HOA dues each year with little discussion, there simply
> isn't much that can be removed from that budget.
> 
> Then our cohousing dues we calculate the average needed from each
> household, which most years is in the $89 to $95 range I believe. Then
> everyone pledges what they can afford. To remain a member of the cohousing
> group a household must pledge at least 5% of the average. (We do nothing to
> determine what a household can afford, they decide that for themselves.)
> If we don't hit the total on the first pass, we announce how much we are
> off, and people, so far at least, raise their bids to match the need.
> We have something in our process that would allow us to remove expenses,
> but we have not done that yet that I can remember.
> 
> I like the system.
> 
> (Note that our HOA dues are horribly high. I'm in the middle-sized home
> here and pay over $800 per month. Then I pledge cohousing dues on top of
> that.)
> 
> -Liz
> Mosaic Commons Cohousing, Berlin, MA
> www.elizabethmaemagill.com
> 508-450-0431
> 
> 
> On Mon, Aug 26, 2024 at 9:54 AM Chris Hansen <itschrishansen [at] gmail.com>
> wrote:
> 
>> Hi everyone
>> We are wondering whether any cohousing community has a process
>> of determining their level of HOA fees on the basis of personal
>> income/wealth?
>> If so, how did you do that?
>> If you've tried and it hasn't come into being, I'd love to know what:
>> - happened,
>> - was the intent
>> - were the obstacles
>> - was the outcome?
>> Thanks!
>> 
>> --
>> Chris Hansen (sher/her)
>> 32 East Village Drive
>> Burlington
>> Vermont 05401
>> USA
>> 
>> Ph 603 3988730
>> _________________________________________________________________
>> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
>> http://L.cohousing.org/info
>> 
>> 
>> 
>> 
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://L.cohousing.org/info
> 
> 
>