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MarionH (Illinois)
Posts: 1
Posted:
I am a volunteer for our HOA (62 Townhome units) and I write the newsletter for the Association. Our Board is made up of only 3 members: President, Treasurer and Secretary. They contract with the lawn maintenance people and any other contractors who do work around the complex. We also have a Management Company who sends out the assessment bills every month. Other than sending out bills and retaining counsel, and charging very high fees for homeowners who need paperwork when they refinance, take home equity loans, etc.
1. One of my questions is the amount the Mgmt. Company charges for paperwork regarding refinancing and other. I don't recall seeing any of this either in any of the by-laws. A homeowner is charged $30.00 for paperwork if they give the Management Company more than 2 weeks notice, the charge is $60.00 if notice is given anytime under the 2 weeks, and the charge goes up to $110.00 if the homeowner doesn't know about these charges and has not notified the Mgmt. Company or paid anything towards paperwork the bank needed.

What recourse do owners have when this policy and the charges have not been relayed to the owners prior to their transaction?

2. I had asked to see the Insurance document for this complex and was told by the Management Company there was no need for me to see it. But I'm sure there is something in the bylaws stating homeowners are allowed to view these documents. Again, what can be done in this type of situation?

3. The Board makes all decisions regarding projects to be done at this complex. The owners only find out about these items when we're notified to move our cars so the driveways can be blacktopped. The Board has just one (1) Membership meeting a year - to elect a member to the board when a current members' term has expired. Other than that, nobody seems to know what's going on. Also this is a split complex and all of the Board Members live on the older side so they do things over there and the people living on the newer side never know about it until it's over and done with. Can someone please advise if this is something the Association can do something about?

Sorry I took up a lot of space but have so many questions about how things are done here.
RogerB (Colorado)
Posts: 5,067
Posted:
Marion, here are answers and thoughts on your questions:

1) The only recourse of the owners is to ask their Board to change the Management Agreement whenever they can.

2) As a member of the Association you should have the right to see almost all association documents including Insurance. Call the managing agent and demand an appointment time to view the desired documents. If they refuse then advise them you plan to contact your Board of Directors and request they consider terminating the Management Agreement for cause. That will probably change their attitude. If it doesn't then follow through on your threat.

3) Since you put out the newsletter why not coordinate with the Board and include Board activities in the newsletter?

JosephW (Michigan)
Posts: 882
Posted:
Marion, let me add a late thought about the fees charged for resale documents. I've seen them as high as $250. There are two parts to the fee and they explain the reason for the cost (and also for the wide variances between what company's charge) The first part of the cost has to do with the basic administration. Checking to see that the seller is current in dues, if there are any outstanding debts or violations, etc,. then putting that down on paper and transmitting or sending it. This in itself doesn't cost a lot, but there is some time in preparing and checking, and since the this is a cost created by the actions of an individual owner (not an association expense, at least in most states), the management company recoups its cost from the seller, who probably tries to pass it along to the buyer.

The hidden part of this cost is the liability exposure the management company faces if something in that document is wrong. Those companies that understand this exposure, generally charge more, because they've increased their errors and omissions insurance , or have created additional checks in their system to reduce potential errors.

This still may not explain all of the fee (some of it is undoubtedly "what the market will bear"), but I want to make sure everyone understands that there is more than just some paperwork involved, especially if it is to be done right.

Joe

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hoatalk (California)
Posts: 599
Posted:
Another method is to offer digital versions of documents on a secure website for members to view whenever they like (for free). Community123.com, the builder of HOATalk.com, offers this feature on their websites. You can fax them any document you like for posting on your site. You can learn more about their website services by clicking the ad on the right of the forum page or by visiting www.community123.com.

Thanks,
HOATalk

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CarolynK (Alabama)
Posts: 15
Posted:
Marion
good luck with viewing documents of the hoa
i live in alabama and we have not yet got to view
our documents. we even went so far has to hire a lawyer
and the board refused to let us see them. they just said they had given us all the information that we
needed. so i have sent a certified letter to the pres. stating that article nine of our by laws
state that all books,records and sales are to be
available of inspecting at anytime during regualar
business hours. just got conformation today that the pres. got the letter. i am waiting to get the call that it will do me and the other members no good to come to view the documents. our hoa is in such a mess .
our lawyer told us we could take them to court but it cost between 50,000 to 100,000 dollars to get this settled. now of it makes since you have bylaws that state what you can and can't do.
we all have to live by them, but not the board members.
they are old farts that have nothing else going on in their life so they make it hard on all of us.
good luck
carolyn

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