Service Twelve, Inc. P.O. Box 183 Ocean Shores, WA http://www.servicetwelveinc.org/ The following are questions members have asked about Service Twelve s yearly fee: Why are Service Twelve property owners required to pay a yearly HOA fee? 1. The yearly fee is NOT a voluntary club membership fee. It is a Home Owners Association (HOA) fee. 2. Service Twelve is not in any way related to, nor are we associated with, Ocean Shore s Community Club. Service Twelve is a separate entity, a group of lot owners,- -a property development, not a recreation club. 3. Service Twelve lots were originally developed in Ocean Shores to set aside an area for people to use tents, travel trailers, etc. without a permit to limit time or other restrictions. 4. Lots in the rest of the city of Ocean Shores, as opposed to those in Service Twelve, have to abide by city restrictions, meaning that in the rest of the City you cannot have a camper on your lot more than 90 days per year, and you cannot live in them or in smaller park-models or cabins. What do the yearly HOA fees pay for? 1. Service Twelve Inc. pays taxes and insurance on the green belts, common areas, and clubhouse. (This includes the city LID charges.) 2. It pays for the restrooms and clubhouse, including regular cleaning and maintenance. (Much of the maintenance is done for free by neighborhood volunteers.) 3. Utilities for clubhouse; i.e. water, sewer, power, garbage. 4. Cleaning supplies. 5. Office and postage expenses. 6. Legal fees. 7. Liability insurance for the Board Members. 8. Secretary of State Dues. What authority does the Service Twelve Board have to collect the yearly HOA fees? 1. Service Twelve Inc. s Articles of Incorporation, 8/11/66, authorizes the Board under ARTICLE II, Section 3. To fix, establish, levy and collect annually such charges and/or assessments as may be necessary, in the judgment of the Board of Trustees, and in Section 4. To enforce liens, charges. 1
2. At the 2002 Annual Members Meeting, the membership voted to raise the yearly dues to $50 per year. 3. At the June 9, 2007, Annual Member Meeting, a vote was taken about whether or not to end the Service Twelve Incorporation and merge with the City of Ocean Shores. This Annual Meeting was the largest attended meeting ever, and the membership voted by a wide margin(only 4 voted against it) to maintain our status as it has been since 1966. In other words, we are authorized by the membership at large. What would happen if Service Twelve, Inc. was dissolved? 1. If Service Twelve was dissolved, it would merge with the City of Ocean Shores, and city zoning restrictions would apply. Our zoning could be changed. i * 2. Currently, camping is allowed year-round on the Service Twelve lots, and you can live in your camper. If the zoning changed, you would only be allowed to camp on your lot for no more than 90 days per year, and you would be required to purchase camping permits. Your camper/trailer/rv could not be left parked on your lot for more than the designated 90 days. 3. If rezoned, all residences, including mobile homes, would have to be a minimum of 650 Square feet. Smaller park-model mobile homes and cabins, 5 th wheels, trailers, and motor-homes could not be used as residences. 4. The green belts would be assigned to the individual adjoining lot owners, who would then be responsible to pay their own insurance and taxes on them. However, you still could not use the greenbelts because they would remain as utility right-of-ways. To deed the apportioned green belt sections to individual lot owners would require a land survey and cost $9,000 or more, based on a bid done in 2005. This would be in addition to legal fees required to dissolve the corporation. 5. The clubhouse and public restrooms would be closed down. 6. Service Twelve lots are half-lots; their only value is as camping lots. If you were competing to sell against full-sized city lots, your property values would be considerably lowered. (The above explains why the membership, by an overwhelming majority, voted in 2007 to keep the Service Twelve, Inc. designation). If I do not use the restrooms, why should I pay to maintain them? 1. For Service Twelve to have camping lots, we need a public restroom. 2
2. Even if you personally have a bathroom, do you really want other campers using the green belts for a toilet? The public restroom is an important sanitation necessity. 3. At the 2002, 2005, and 2007 Annual Member meetings, the members voted to keep the restrooms. These days, members are voting with their feet. The restrooms are used frequently throughout the year, especially during holidays and in the summer. 4. Members can also use the clubhouse recreation room for private parties or meetings. 5. Keep in mind, the HOA fees are not just for the restrooms. They also cover insurance and taxes on the greenbelts, which you would otherwise have to pay on your own, along with other expenses necessary to maintain Service Twelve. I was not told about the HOA fees when I purchased my lot. 1. Service Twelve Inc. was registered as a non-profit incorporation on August 31, 1966, filed under Chapter 24.04 of the revised code of Washington. The Articles of Incorporation and the By-Laws are filed with the State of Washington. This information isalso listed on the Service 12 website, servicetwelveinc.org, and there is a sign about the dues posted outside on the clubhouse at 128 Galleon Loop. Copies of the Articles of Incorporation and By-Laws will be mailed to you upon request. 2. If you purchase or own a lot in Service Twelve, you are automatically a member of Service Twelve, Inc. and must submit to the By-laws of Incorporation. Service Twelve lots include Lot numbers 18 through 204 in Division 12 in Ocean Shores. Note in Article II of the By-Laws: a. Section 2. Membership shall be inseparably appurtenant to the lots owned or being purchased by the members. b. Section 3. No member may withdraw except upon the transfer of title... 3. The information about Service Twelve s status and dues has been a matter of public record since the development of Service Twelve, Inc. in 1966. It is something a real estate company and title company should find out before closing on a property. In years past, we went out of our way to remind real estate offices and title companies about Service Twelve s status. Due to turn-over in these companies, and the fact that properties are often sold through companies outside of Ocean Shores, or are privately transferred, the information was not always passed onto the purchaser. However, this does not excuse escrow and title companies from doing their due diligence. In March2008, we filed Claims of Equitable Servitude with Grays Harbor County, not to change the regulations, but simply to make the information easier to find in a title search. 4. It is the legal responsibility of the seller of a property, the real estate agent, and/or the Title/Escrow Company to inform the purchaser about HOA and all other fees before transfer of title. It is also their responsibility to make sure 3
past fees are paid in full before the sale is closed. If you are upset about not being informed about fees attached to the property, you need to seek redress from the Real Estate, Title Company, or original owner. It is impossible for the Service Twelve Board to inform a purchaser in advance of a lot sale because they have no way of knowing the property is being sold until after closing. 5. Service Twelve, Inc. does send yearly bills for the HOA fee. All property owners were informed of HOA fees within a year after purchase of the lot. That would have been the time to address the issue with the seller, escrow/title company, and realtor. What if I don t feel like paying the HOA fees? 1. What other condo or housing development allows you to voluntarily choose to pay or not to pay HOA fees? Answer: None. 2. Unless your HOA fees are paid in full and are current, you cannot vote at the member meetings; nor can you use facilities owned by Service Twelve, which includes the restrooms and clubhouse. 3. If HOA fees are more than a year late, the past-due bill can be turned over for collection and a lien placed on the property, including interest and late charges. 4. If lot-owners refused to pay their yearly dues, Service Twelve Inc. would have to be dissolved because we cannot operate without funds. Read the above regarding the consequences of merging with the City and changing our zoning. 5. When you refuse to pay, you are burdening your neighbors with your portion of the Service Twelve expenses. Can you honestly say this is fair? ************************* Service Twelve Board Members are your neighbors who have volunteered to serve for free for the betterment of our community. They do not want to be bill collectors. Board Members are just doing their duty to preserve Service Twelve Inc., which includes being fiscally responsible. *When the question came up in 2007 of whether or not to dissolve Service Twelve Inc. and merge with the City, Service Twelve received a letter from the City Manager stating that if Service Twelve was dissolved camping lots could only be used 90 days per year. The only reason those statutes do not come into play is because of your covenant. Later he changed his mind. There were other letters at the time, pro and con, but all the people who wrote opinions back then are no longer with the City. The point is, there may be a possibility that we could keep our camping provisions if we disband Service Twelve, but for how long until the next election? Once we dissolve Service Twelve Inc., we can never get it back. Other than opinions, we can look to what actually happened when the lots on Dory Court and Rain Street were dropped from Service Twelve in 1973. Their zoning was changed in 1977, and they are currently restricted to the 90-day camping provisions like the rest of Ocean Shores. 4