HOA management company charging residents for certified mailings: "Do not do this" said Colorado lawmaker
Some residents of an income-controlled HOA in Denver are bristling over the fact their HOA management company has been charging them $35 to send them certified letters notifying them of potential fines for HOA rule violations. The management company, RowCal, has also been charging residents $75 for certified letters notifying them they are behind on payments.
"One weed and they charged me $35 just to send me the letter!" fumed Jacinta Lobato, who has owned her Moline Street townhome for three years. "It's absolutely ridiculous. Nobody should have to pay $35 to receive a letter," said Lobato.
When she fell behind on her HOA payments, RowCal sent her a certified letter notifying her of the delinquency and charged her account $75 for the mailing.
Not far away, neighbor Macarena Salazar was also charged $35 for a certified letter letting her know she might be fined if she didn't trim the bushes in front of her house, "That's kind of an expensive letter."
In a community of lower and middle-income families, where the monthly HOA fee is $105, a $35 or $75 charge to get a letter is putting a serious dent in some bank accounts.
"It's $35- I can fill my gas tank with that," said Salazar.
Last year, the Colorado legislature passed the HOA Accountability and Transparency Act which was an attempt to improve communications between HOAs, their management companies and residents. It was signed into law in June 2022 and required HOAs and their management companies to notify residents of various issues via certified mail and other means. The law did not specify who should pay for those certified letters, but Rep. Naquetta Ricks (D- Arapahoe County), a primary sponsor of the bill, said the assumption was that mailing costs would be picked up by HOAs and their management companies using dues already paid by residents.
"The HOA dues they pay on a monthly basis should cover those letters," said Ricks.
She said the law was not intended to be weaponized against residents and further hike their expenses.
"That's not the intent of the bill," said Ricks. "This should not be happening."
CBS News Colorado tried via email twice to get ahold of RowCal, but they did not respond to the inquiries. In communications with residents, they said the certified letter charges were an "admin fee to mail out the violations by certified mail. This is a RowCal charge, and this money goes to reimburse RowCal for the staff, the third-party mailing service we pay to mail out these letters."
The HOA was already paying RowCal $550. a month for its services according to HOA documents.
When RowCal did not respond to the CBS News Colorado queries, the news station sent RowCal a certified letter to their Minnesota office. The cost of that certified letter was $5.01- far less than the $35 and $75. they have been charging for sending certified mail.
"They should not be inflating the cost of the letters," said Ricks."Do not do this- it is exploitative of the homeowner."
Marni Schear, another resident of the Moline Street Townhomes, said, "To me they are double dipping, charging the HOA then charging the residents. It was just literally kicking someone when they are down, it's low-hanging fruit to make money."
Schear said after residents pushed back on the certified mailing fees, RowCal resigned as the HOA's management company and a new management company is coming in that pledges not to charge residents for certified letters.
"I don't think any of us thought this was justified, not one of us", said Lobato.
Schear said residents have learned to question their HOA and its management company, ask questions and be involved.
"I've learned a community can be strong and come together and push back," said Schear.
