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StephenS6 (Texas)
Posts: 5
Posted:
We as a group are posting here. Texas. Several years ago the manager of our condos embezzeled 1-2 million dollars and a management company was appointed by the court. We voted for a new HOA, as propably 2-3 of the members were in 'on the take'.
The current HOA does not allow members any info- we have monthly scheduled meetings that are changed sometimes less than 24 hours in advance, (people have scheduled work, and now cannot attend the changed date). We are 200 units. The HOA decided upon themselves to make create an assessment of $8,000 minimum to $13,000 based on sq footage. To be paid in 5 years. This is in addition to monthly fee. They have decided on who/what will be done, with no input from owners. When we have meetings, absolutely nothing is done- it is all 'calming the little old ladies' attitude with then absolutely nothing being done. Many questions are not answered because they do not believe we should be allowed to know what/when they are talking about or what they plan to do. The units are approximately 505 rentals now. The grounds and atmosphere of the property has gone downhill drastically. It is now dark, dirty, unsafe with a high crime rate. Getting a quorum is difficult as we do not even know all the owners/phone numbers, and many are out of state or in Mexico. The owners of the rentals just plain don't care- they are only concerned about getting rental fees.
We are not allowed to speak until the end of meetings (it becomes so late the older people go home before they can speak), everything that the HOA says never happens. We are very, very frustrated as a whole. I understand why people won't come to the meetings- nothing ever happens- it is all whatever the HOA wants to do- we have absolutely no say.
Now, we have been watching very closely for the past two years- it seems that the people that are hired to do all jobs- from small to large are related to three of the HOA members (there are five). We are worried that they are getting kickbacks from their relatives who are doing the jobs. (the jobs are done very poorly). Many of us have lived in condos before and have experienced HOA's. NEVER before have we seen HOA members that REFUSe to leave (they have been on the HOA since 2006).
we believe they want to be on the HOA for monetary gain. The web of people on the HOA AND the management co are related- the owner of the management company is married to the lawyer who is supposed to represent us. She says they are now divorced so that 'she isn't related'. They have their cousins do a 1 million dollar project that was done with illegals (the police raided them 3 times here)- just a shady deal all the way around. We cannot afford to hire a lawyer now that they put such a horrible assessment on us! $8,000 for a 593 square foot condo! $13,000 for a 1,000 square foot condo! What do we do- where do we go to try to get these people out? Our investments- the condo's, have gone downhill terribly!
Please- we are in terrible need of guidance.
Thank you.
Stephen
PetunkaM (Florida)
Posts: 1,009
Posted:
Stephen,

When you say, 'we voted for a new HOA' you probably mean the Board of Directors? I understand your frustration, but there is no magic answer. You need to collect some concrete evidence to show the BOD and the management company are not acting in the best interest of the Association. The assessment of $8K-$15K may be perfectly legal if the money is to be used for special purpose. There are few things you can do.

1. You as a group need to study your covenants and the By-laws to learn if the BOD complies with those. If not, make a list of violations you know of.

2. Request all the financials for the last 3 years (let’s say) to determine where the money is really going.

3. Impeach the Board or insist on 'legal elections'.Review the contracts with the management company and the attorney and if possible, fire them. This could get ugly but it is doable if the group has a strong leader and the membership support.

4.Consulting an attorney may be nice but not necessary at this point.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Are you still under court appointed receivership?

If you are, you may also just bring the concerns to the judge.
StephenS6 (Texas)
Posts: 5
Posted:
Thank you both for your answers.
I realize it is difficult for someone else to understand how bad the situation is unless I can explain it better.
I want someone else to write more eloquently regarding the concerns that we have- it will probably bring more light on the situation to you.
Bringing any concerns to the management co does absolutely no good. They do not even return calls. The financial is so difficult- it seems 'repetitive' to us- so we can't even figure out what it says..sigh... to be a CPA....
How do I find out if we are still under the court appointment?
I will gather more info for you.
Thank you
StephenS6 (Texas)
Posts: 5
Posted:
PatunkaM- Is it neccessary to have a quorom to impeach? To make any changes our cc&r's say we need 51%. I am trying to find out if Tx passed a law that says 30% yet or if it is still 'on the table'.
Thank you

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