A recent article by KHON2 news reported a controversial aspect of HOA life that homeowners were never told or explained when they bought their HOA controlled home.
“Residents upset over extra homeowners fee to cover hundreds who defaulted on dues. So how is this allowed to happen and is it legal to make the others pay?”
Those members who have paid their assessments are outraged and argue that it ain’t fair. It’s not a question of fairness, but of the adhesion CC&Rs contract and legal structure of their HOA corporation. In short, the HOA is like a small, private business whose income comes from its mandatory members, and when assessments fall short it has the right, under contract, to assess the shortfall to make up the difference. All buried within the governing documents, but never explained to the membership.
And the members are all deemed to have given their agreement to the CC&Rs with full knowledge and nothing kept from them. “Say it ain’t so, Joe.”
YES, it’s called joint and severable liability where each member is responsible for other member shortfalls. But, CAI, that alleged national educational expert organization, does not tell the world that this is the legal structure of an HOA. Shame on them!
And the other lunacy argued by CAI: foreclose on them. That’s like getting blood from a turnip. Ludicrous!