Sunday, December 30, 2012

Retroactive collection of 'unassessed condominium fees'

Letter to Management company

Mr. Markell:

I have carefully reviewed your letter of December 20, 2012 and the enclosed tables. I note that the budget calls for the cited 3.43% increase in condominium fees over last year. I also note that the letter states that "the increase will go into effect beginning in February and last through October." The statement is incorrect and, thus, misleading to the Owners.

Based on the Assessment Breakout Schedule, the 3.43% increase will be collected over the last 8 months of FY13 (Feb. to Sept.) but the actual increase went into effect beginning October 2012. In truth, the HOA is making retroactive collections over the final 8 months of the FY. (Does the HOA have the authority or power to charge and collect fees retroactively?)

For example, if a 3.43% increase became effective on February 1, Type a unit owners would pay $352 per month, not $355. The extra fee is to retroactively collect the increase from October 2012 to January 2013.

I realize that this may be a small dollar point in the scheme of things, but accounting accuracy is required when fiduciaries are handling other people's $1,030,292.
On behalf of my fellow owners, I would appreciate a prompt correction to the letter of December 20, 2012, as to the commencement date of the increase. Further, I would appreciate the Board looking into whether or not it may retroactively collect previously unassessed condominium fees.

Thank you.
Steven Levine

Owner: 1729B South Hayes St.

2631 S. Grant Street
Arlington, VA 22202

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