Bad management company

Started by YvetteC • 2 replies • 4436 views

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YvetteC (Texas)
Posts: 2

Posted:

I'm very new to the hoa matters in my subdivision. I live in Texas and my subdivision has about 300 homes. The president has tried on his own unfortunately to make decisions in the best interest for the rest of the community. His lack of communication skills seems to be his not being able to speak English fluently. People in the meeting were livid that they had not been talked with only the Spanish speaking homeowners.
I believe that he has no prior hoa experience and has been asking for help and advice from the representative from the management company.

We are about $90,000 in the hole from purchasing land to build a pool, with no reserve. The developer did not want to cut a deal on the 2 lots purchased. Our community ended up paying $45,000 per lot when it was only worth $16,000. From my point of view the rep. from the management company has been giving a lot of bad advice to the president and then washing his hands of all the issues that are brought up at the meetings.
I've tried to communicate with another hoa that had recently stopped using this same management company but they have not responded.

I know this is pretty lengthy but does anyone have any suggestions as to what can be done. The contract for this management company is up in 6 years.

LisaS (Illinois)
Posts: 341

Posted:

A lot of damage can be caused in 6 years, so getting involved and educated now is a very good idea. Your property value and equity are at stake.

I am assuming that your association voted to buy the land- I am not familiar with Texas law, but I find it hard to believe that your President had the authority to spend $90k without a vote. If he did this in violation of your Declaration etc. there would be recourse on the part of the association (especially if you have insurance)

The best way to get a handle on what is going on is to attend the meetings and ask questions. There must be more than one Board members (?) and at least one other I would assume speaks fluent English (?). If the management company is doing anything that can be construed as mismanagement or giving bad advice (they should not be giving legal advice as they are probably not attorneys!), there is probably a clause in the contract with them that allows you to seek new management. Just another option.

Good luck
Lisa

YvetteC (Texas)
Posts: 2

Posted:

Thank you for the response Lisa. I am trying to get involved now. I didn't know it was this out of control. It seems that many homeowners in our community are oblivious to all the matters at hand. With about 300 homes, there are only about 6 people attending the hoa meetings.
Thanks again.

Yvette

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