Marion board moves to support anti-HOA fee legislation

JASPER, Tenn. – The Marion County Commission has joined a growing movement to change state law regarding homeowners’ association fees in private subdivisions.

County Mayor David Jackson said Loudon County Mayor Buddy Bradshaw contacted him recently about the issue.

Loudon officials passed a resolution asking state legislators to change the regulations on how homeowners’ fees are collected in private subdivisions, and they are seeking support from other counties across Tennessee.

“If a property goes through a tax sale and ends up in the county’s name, the county is responsible for those homeowners’ association fees,” Jackson said.

He said Loudon officials believe those fees may add up to between $500,000 and $1 million in that county alone.

“They’re asking for state legislators to change that law,” Jackson said.

Marion County Attorney Billy Gouger said the matter is based on a court case in Loudon over a private subdivision known as Tellico Village.

The court there ruled that if a county acquired a piece of property because of delinquent taxes, it is liable for the development’s maintenance fees just like a private landowner would be.

“That, of course, is a concern to many counties, including our county,” Gouger said. “We do have several developments in our county that assess homeowners’ association fees.”

He said at least one property in Marion requires HOA fees and is in a delinquent tax lawsuit.

“The impact of this would be that if this law is not changed and the county ends up [acquiring] that lot in the tax sale, the county could be responsible for paying those homeowners’ association dues, just like the other private landowners,” Gouger said.

Since counties are “involuntary purchasers” in delinquent tax cases, he said, it seems unfair that they should be responsible for paying those fees, too.

Commissioner Tommy Thompson agreed and said the county should “get on board” with a resolution of its own as soon as possible.

The board voted unanimously to have Gouger draw up a resolution for its members to consider at its next regular meeting on March 30.

Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.