Get 2 months of free community web site hosting from Community123.com!
Wednesday, May 23, 2018
Get 2 months of free community web site hosting from Community123.com!


SBCA: Free education for HOAs and condos on satellite placement issues.
(National Trade Organization)
Helping HOAs, condos and property managers with satellite placement issues since 1986.
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Misuse of HOA funds
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
AmandaB4


Posts:0


02/07/2018 12:14 PM  
Good afternoon,

I was inquiring what I could do to report the misuse of HOA funds. We recently received a disconnection notice from our electric provider stating the streets were going to be turned off for non-payment from our HOA. I know for a fact (I used to work at the credit union the HOA account was at) that the funds are being used for personal use. I have not divulged this information, but only inquired for the bank statements/financials of the account only to be told they don't have to provide any of this. I don't know which direction to go with this or just let it play itself out. The bad part is people are being bullied into paying HOA dues because they are being threatened with liens against their home when we are getting notices for disconnection of lights.

Any advice/input/information would be appreciated.

Thank you!
TimB4
(Virginia)

Posts:15724


02/07/2018 2:43 PM  
Sounds like you need to gather support from within the membership and demand an audit. This may require recalling or simply replacing the existing board with one that will do an audit.

The fact that you worked at the financial institution your Association uses and you chose to look at that account I would not bring up. You may have broken laws or company rules by doing so and there can be consequences to those actions.


MelissaP1
(Alabama)

Posts:7295


02/07/2018 3:42 PM  
Have a few issues with this situation/statements. I do not believe anyone is being "bullied" for liens in the context as presented. You can't lien unless one is not paying dues/special assessments as required. If someone isn't paying their fair share, then how is it "bullying" to contact them to pay?

You having inside information doesn't give you exact knowledge of the nature of the spending. I am sure if you saw our accounts you would see money going out to individuals. Many of which were board or committee members. That does not mean misuse or personal use of funds. In our case we had to agree to reimburse with a receipt for monies one spent purchasing HOA material. We had a clubhouse and the clubhouse committee head was responsible for purchasing paper towels, toilet paper, and cleaning supplies. One may look at this as "personal use" if not in context as their responsibility.

So for me stating that you saw checks going to individuals does not necessarily mean misuse of funds. It would mean I would want to take a look at the meeting notes for approvals for the reimbursement. Much of this would be covered in meetings as well.

The lights being turned off for unpaid bill could be that the HOA can't afford them. Especially if they are asking for special assessments and "threatening liens". That's a clear indication that the HOA isn't being funded by it's members properly NOT that they are spending irresponsibly.

Show me a bit more proof of misuse of funds. Otherwise, it can also be the HOA is broke as a joke and doing it's best to collect funds from members.

Former HOA President
TimB4
(Virginia)

Posts:15724


02/07/2018 4:28 PM  
Amanda chose to leave the forum (post count at zero).

MelissaP1
(Alabama)

Posts:7295


02/07/2018 5:04 PM  
When you don't get the answer you want to hear, typically leave the forum. My red flags were up. Do you feel comfortable that someone who worked at your HOA's financial institution is having a moral issue if they should reveal financial information to others? Especially if you do not know if they ever attended a meeting? Context means a LOT.

Former HOA President
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Misuse of HOA funds



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement