Legal Question in Real Estate Law in Missouri

Spending HOA dues

What I am trying to research is what our assessment dues can be used for. In the by-laws of the subdivision, it states that they are used for maintenance of the common ground, ect. The residents are not getting any voice since the subdivision is relatively new and the builder acts as the trustee. If the funds are to used for maintenance, that shouldn't mean they are to be used for seeding or sodding the common ground. Those areas should be established by the builder and then our funds used for upkeep. They did not invoice the residents last year for the assessment and now are trying to get money for two years to pay for the work I believe they should have to do on their own. The by-laws also state that the homeowners will be invoiced during the year or prior to the year the assessment is due. Which makes me think that they can't collect for last year if they did not invoice. There currently is not any common ground established to maintain and they did not provide a list of revenues and expenses for where any of the funds have been going. Is this something all the homeowners can band together on and fight or not? Thanks


Asked on 2/06/03, 2:07 pm

1 Answer from Attorneys

Anthony Smith LawSmith

Re: Spending HOA dues

Yes- You can band together and fight it. What you describe is as old as the Boston Tea Party, (taxation without representation) You should fight to have the resident's rights, and builder's duties, clarified, even though the costs and legal fees to do so will probably outweigh any financial gain or savings you will reap in the short term.

As to whether the concept of "Maintenance" not including seed or sod, I beleive that will require deeper research. There are many variables that color the determinations as to whether the residents are only to pay to maintain common property that the builder has already improved. Is Common ground defined in the documents? If so, I predict that it describes that portion of the subdivision set aside as common ground in the plat, without further description such as soode, etc. In that case, Maintenance could mean to keep with the common area to a standard as to appearance and safety, that fits with the surrounding properties. If the houses on one end of a subdivision are built after the houses on another, then the common area in the second side will probably get "improved" at about the time that side is being developed, i.e. homes being built on vacant land. So, Maintenance could mean to keep the common area in step aesthetically with the surrounding area. That might include seed and sod.

Based upon the limited information provided, you should get together with your neighbors, pool your resources,and hire an attorney in your area to examine the documents and the remaining facts, so as to give you a more definite answer. This is especially true as to the timing of the invoicing.

Good Luck,

Tony Smith

Read more
Answered on 2/06/03, 4:47 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Missouri