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Trial court erred in abrogating homeowner’s obligation to pay fees to HOA

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The Indiana Court of Appeals reversed a trial court’s ruling that changes in a gated residential vacation and retirement community were so radical as to abrogate a homeowner’s obligation to pay yearly fees to the homeowners association.

In 1998, Clarence Ray Meador and his wife bought a lot, which included a double-wide trailer and a 40-foot boat dock, in Country Squire Lakes Community in North Vernon. In 2006, Meador purchased an adjacent lot. The annual dues are $75 per lot and the current assessment is $300 per lot. As the economy fluctuated, investors purchased lots for rental or contract properties and the community shifted from owner-occupied to tenant-occupied. The rental property owners frequently stopped making payments to the HOA. Currently, 60 to 65 percent of these owners are delinquent on their fees and assessments, leaving the HOA with a $3 million to $4 million revenue shortfall.

As a result, dues and assessments are used on essentials such as payments on a $950,000 improvement loan, repairs to a dam, insurance and limited road maintenance, leaving insufficient funds to maintain the recreational amenities. Meador paid his dues and assessments and tried to influence the HOA board of directors in their budgetary decisions but he was ignored, and he has been unsuccessful at getting a financial audit of the HOA.

The trial court abrogated Meador’s obligation to pay dues and assessments, concluding the changes in the community had been so radical that the original purpose of the community and the deed restrictions had been defeated long ago. It also ruled that Meador could still vote at the HOA meetings because his obligation to pay had been abrogated.

In its appeal, the HOA argued the trial court’s decision “conflicts with long-established Indiana contract law.”

The COA agreed with the HOA, finding the lack of recreational facilities is not radical enough to justify the abrogation of a private contractual property covenant and that the HOA bylaws clearly state the financial obligations of homeowners.

Although the COA appreciated the trial court’s attempt to provide relief, the majority stated, “the relief provided is not one afforded under Indiana law, and thus we cannot affirm the judgment. The abrogation of Meador’s obligation to pay dues and assessments is not a remedy for these problems, but there are potential alternatives that Meador and the HOA can investigate.”

 

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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