Homeowner's Association Gone Too Far?
I bought a house in a new development 15 years ago. As a prerequisite to the town allowing the houses to be built, it was mandated that a H.A. be formed, for the purpose of taking control over some open space of wooded area. It was also mandated that the homeowners form an association and purchase liability insurance for the open space.
Through the years, I have seen signs of abuse of the HA's powers. Years ago, they wanted people to mow the "city property" portion of an undeveloped lot. Then there was talk about getting everyone's mailbox to be the same. Now I find with my annual bill, that I'm asked to contribute for a park bench and picnic table to be located at the circle end of the cul-de-sac.
My attorney thinks that my only obligation is to pay a pro-rata share of the insurance for the open space, as that was the original purpose of the association. They claim that "election to purchase a bench and picnic table will not change dues". I say bull! What if the insurance goes up next year? By purchasing tables and benches, there will be that much less money.
Thoughts? Now I know why the next house I buy will NOT have an association.
Also, aren't homeowners associations required to file 1120-H
returns with the IRS? I'fd love to take a look at the finances.