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DWayneD (Texas)
Posts: 11
Posted:
We have a developer that owns our management company. We have very little say in what should be done with our assessment monies. In fact our developer uses our assessment monies as if they are his. He uses management employees to work on his building projects, cut grass on undeveloped lots, install sprinkler systems and we are paying these employees from our assessments.

He is not paying overtime to hourly paid office employees, paying some employees additional money through commissions or contracting them to perform functions that should be part of there normal work. He in effect is stealing from residents and cheating the government because he is not collecting or paying Social Security, WC, etc.,

I am frustrated because our homeowners association has no funds, no way of getting them and it seems that WE THE OWNERS, MUST HIRE ATTORNEYS TO IMPLEMENT STATE LAW THAT IS DESIGNED TO PROTECT US FROM CROOKS LIKE HIM.

WHAT DO WE DO?????
RogerB (Colorado)
Posts: 5,067
Posted:
DWayneD, many developers are now creating long term contracts with management companies in which they have, in my opinion, a conflict of interest at the very least and in your example FRAUD.

It is too late to say BUYER BEWARE! Obviously it would have been wise not to buy into such a situation. Now it can be very difficult to change. Start with your Declaration, which has been written by the Developer to protect the Developer, while complying with state laws. See if it allows the mean to getting more control.

Form a group to talk to the Developer on your requests. He is vulnerable because he does not want negative publicity nor does he want to be audited by the IRS.

Good luck,
Roger

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