Appeal High HOA to board based on data

Appeal High HOA to board based on data

Rental Property Investor · NJ / NYC · Member since 2019 · 5 posts · 3 votes

I currently have a large 1300 sq ft+ 1 / 1 condo that has a very high HOA in general but after analyzing the data it's also high for the building. There are approximately 80 units in the building, and I pulled my data (HOA and sq footage) from MLS listings in the past few years and the unit's ownership percentage of common expenses from the master deed. I was able to obtain data on 10 comparable units over 1000 sq ft.

My HOA fee: $979
My HOA fee per 1% of common expenses / ownership: $421.22
Average HOA per 1% common expenses / ownership: $344.02
Lowest HOA per 1% in sample: $216.83
2 out of the 9 other units were in line with my fees.

If my fee was based on the average of these units it would be $799, a significant monthly savings. Based on the 3 lowest units, it would be $504.

I'm currently trying to flip the property and people love everything about the unit other than the HOA fee. It's been prohibitive and I believe based on the there are legitimate grounds to appeal my fee. I was told by the property manager we can write a letter to the Association that will be given to counsel. How do you suggest I appeal the monthly HOA fee for my unit? Should my first approach be with a letter written by me or by a real estate attorney? Does anyone have advice or experience dealing with this issue?

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  • Attorney · Chicagoland · Member since 2019 · 103 posts · 90 votes
    6y

    Have the real estate attorney write the letter.  I don't just say this because I am one, I say it because the bylaws for these HoAs are often hundreds of pages long and use 18th century language to set out the rights and responsibilities of the homeowners and the board.  I'm currently involved in some HoA litigation about improper reserve funds, and I can tell you that this area of law is very muddy and attracts stubborn people.  If you spent $2,000 on an attorney, you would make that money back in 1-2 years and it would almost certainly be tax deductible for this investment property.

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