Hi, I am hoping someone might be able to help me with knowing the legal aspect on whether or not a HOA is able to fundraise in order to help subsidise funds for a large project?
Just some background I belong to what I am told is a fairly large HOA we have just over 1300 homes in our community. It is a gated community for the most part (people run the gates all the time so its really in name only). Another benefit is that our community has 4 wells so we are able to provide water to all of the homes/lots. Currently we have our HOA fee, we also have an annual assessement that is for the water as well as every 6 months we recieve a water bill for the usage we used during that time.
My husband and I purchased this house not knowing that the water system currently in this community does not meet state standards and they are in need of having to replace pipes and other things. This project is looking to be well over $200,000 and they want to replace the roads while they are replacing the pipes because the roads are bad and were not orginally created for high traffic as what we have now. All this makes sense however they are wanting to increase our HOA fees and/or create special assessments in order to pay for all of this work. Again I do understand the money needs to come from some where, however my question is can the community/HOA use fundraising as a way to help pay for this project and possibly complete the project in a more timely manner then a projected 20 year assessment increase which was proposed?
Where could I find information on something like this in order to show the BOD which seems to resist any type of help except to increase members dues and assessments.
Any information is great.
P.S. I chose this section because the HOA is a non-profit organization and I believe it is incorporated as 501(c)3.