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HOA’S
Jim
At the council meeting the other night you accepted responsibility for charging the HOA’S with the commercial rates for their water, did you base your decision on a resolution passed by the city council or by a legal opinion by the City Attorney? Do our HOA’S required to have a commercial business license? Are HOA’s considered non-profit organizations? Will home owner’s in HOA’S pay commercial rates for their water? As always, Bob Vukanovich Mr. Holiday/Vukanovich;
The Finance Department is responsible for overseeing the Arizona American Water Billing contract. The Council will receive an update of the current HOA Billing issue at the November 8th meeting. I am not sure if your specific questions will be addressed at the meeting so responses are provided below:
- Do our HOA’S required to have a commercial business license?
- Yes, if they are not classified as a non-profit organization that has obtained a 501(c)3 status.
- In addition, if the HOA hires a property management company, the property management company would be required to obtain a business license.
- Are HOA’s considered non-profit organizations?
- Only, if they file their corporate papers as a non-profit and they have been approved by the IRS as a non-profit organization. The city does not make that determination.
- Will home owner’s in HOA’S pay commercial rates for their water?
- No, individual home owner’s will continue to be classified under the resident rate.
- No, individual home owner’s will continue to be classified under the resident rate.
If you have additional questions please feel free to contact me at 623-222-1821
Robert A. Nilles
Finance Director
City of Surprise, AZ
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