Is extra administrative fee for non-resident co-owners legitimate?

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Is extra administrative fee for non-resident co-owners legitimate?

Our HOA (PUD) instituted an administrative fee for non-resident co-owners. The fee is $50 a month, which is 20% more than the regular HOA fee. They claimed they spent significant amount time, effort and money spent on administrative issues with non-resident co-owners. However, we don’t see administrative effort they’ve done in the past other than sending us the bills for regular HOA dues.

Asked on October 6, 2010 under Real Estate Law, Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

As long as the homeowner's association followed the rules in instituting the fee then there may be nothing that you can do about it.  In "following the rules" I mean that I am assuming that under the rules of the association and the community in which you live they can not just tack on a charge without first following procedures that are laid out in the homeowner's association rules.  The fee seems to be targeted to one particular group and form what you have written here, seems to be unsupported by the claim of additional time and effort.  You do have a right to question the fee and ask for back up documentation to substantiate same.  I would seek out other non-residents who have also been charged the fee and write your letter requesting documentation together.  There is strength in numbers.  Good luck.


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