It is thanks to membership dues that communities can remain strong. It is a fact that the expenses and burdens associated with a building—whether they are benefits or obligations—must be the responsibility of the members of the association.
However, no one explains to them why or how that quota should be set. Below, you’ll not only understand the basics, but we’ll also help you with the legal procedures.
Homeowners' Association Dues
What does "ownership stake" mean?
When we talk about the share of participation, we are referring to the percentage of expenses and charges for which a member of a homeowners' association is responsible.
In other words, everything from building maintenance and repair costs to new improvements to the building must be covered by those owners. To this end, Article 5 of the LPH stipulates that:
“…the title deed establishing condominium ownership shall specify the ownership share corresponding to each apartment or unit with respect to the entire building…”
In other words, each unit will have its own share of the total cost of the property.
How is the fee determined?
There are certain procedures that must be followed to determine the ownership share. In addition to those already explained in Article 5, it can also be determined through:
The developer-seller: before beginning to sell the apartments.
Community members: by unanimous agreement.
By arbitration or court order: if none of the above options have been approved.
It should be noted that, in order to carry out any of the procedures for determining the percentage, the following criteria must be taken into account:
1. The amount of usable floor space relative to the total area of the structure.
2. The total area of the outdoor and indoor spaces
3. The situation inside the building
4. The use to which the apartments or premises are put
In any case, the procedure for determining the percentage must be established objectively, not arbitrarily.
What is this fee for?
Participation quotas have many uses. However, there are four points that highlight their importance:
1. It gives owners the right to express their opinions regarding the building
2. Determine the amount and allocation of the expenses and charges incurred by the property.
3. Determine the extent of the owners' participation and decision-making rights regarding future improvements or modifications to the building.
4. Determine which leaders should attend meetings regarding future agreements concerning the building.
It should be noted that, although leaders will be chosen to represent the community, Article 9 of the LPH states that:
“These are the responsibilities of each property owner…
e) To contribute, in accordance with the share of participation established in the title or as otherwise specified, to the general expenses necessary for the proper maintenance of the property, its services, encumbrances, and liabilities that cannot be individually identified…”
Can the fee be changed or modified?
No, although in some cases—including those that involve the property owners' rights It could happen. However, for that to happen, the following factors must be taken into account:
All participants must agree to the change
All participants will have to face a court order requiring the correction of the established fees.
The law supports the plaintiffs. However, if it is determined that there is no need to change the percentage of the owners' share, it will not be modified.
Can a new participation agreement be adopted without taking the quota into account?
The fee is not waived; however, the residents may agree on a single payment amount. For this to happen, though, all homeowners must agree.
