Attorney Fees for a POA

Started by JoeB18 • 5 replies • 970 views

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JoeB18 (Georgia)
Posts: 31

Posted:

Hello:
I am trying to understand why a POA would have attorney fees as a line item in the financials. It is my understanding that the Dues fund the monthly activities of the neighborhood and not the activities of the Developer. I thought the attorney fees would be for collection activities for past due people but the attorney said he is not actively doing collection activities.

Any insight you can provide would be greatly appreciated.

DouglasM6 (Arizona)
Posts: 724

Posted:

Ask your BOD. It may simply be a reserve for attorney's fees OR a monthly retainer.

DouglasK1 (Florida)
Posts: 2,045

Posted:

Really there are any number of reasons they might have needed that are association related that they might have needed to talk to the attorney.

Escaped former treasurer and director of a self managed association.

JoeB18 (Georgia)
Posts: 31

Posted:

With the Developer managing the POA with no neighborhood involvement I guess my concern is that some of his expenses might be leaking into our expenses. The water is a little muddy with the way everything is set up.

DouglasM6 (Arizona)
Posts: 724

Posted:

I see. And agree. I didn't catch the developer was still in control.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Many HOA's will have that line item as needed for potential needs. The real question ... is there money paid out from that line item ... if so how much and for what reason? If it is zero then there is no worry and just there for future potential need such as sending letters for non payment of assessments, etc.

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