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The President of our HOA's husband is a contractor, and a $500,000 special assessment was approved by the homeowners. Of course we are only 14 units, and 5 are family related ( related to the President of the Board).
The President husband won the bid ( and was the only contractor recommended by the board). Our HOA asked us to pay $10,000 a month for three months. We do not have the funds, and asked the Board to work with us. Their responds was a lien, and now we received a lawyers bill of $5,000 because they are proceeding with foreclosing.
How can I start a petition in New York? HOA's cannot impose financial burdens on homeowners. Is there any hope?
Status:
"Let this year be over..."
(set 21 days ago)
Location: Where my bills arrive
19,219 posts, read 17,088,442 times
Reputation: 15538
It seems that the awarded contract is a direct conflict of interest and may not be enforceable. You should seek legal advice from a lawyer experienced HOA's/Real Estate law, they could best advise you of your options with this.
The President of our HOA's husband is a contractor, and a $500,000 special assessment was approved by the homeowners. Of course we are only 14 units, and 5 are family related ( related to the President of the Board).
The President husband won the bid ( and was the only contractor recommended by the board). Our HOA asked us to pay $10,000 a month for three months. We do not have the funds, and asked the Board to work with us. Their responds was a lien, and now we received a lawyers bill of $5,000 because they are proceeding with foreclosing.
How can I start a petition in New York? HOA's cannot impose financial burdens on homeowners. Is there any hope?
If you are talking about condominiums - it is usually expressly governed by statute.
If you are talking about townhomes or standalone homes, you are usually dealing with HOA rather than condominium corporation.
The law is state-specific - but generally speaking, involuntary membership organizations can and do impose financial burdens on homeowners. One loud trade group for HOA attorneys and HOA management companies, Community Associations Institute (CAI), has been lobbying legislatures around the country for laws to authorize boards to be able to borrow money without the consent of the homeowners. Indeed, CAI has adopted a public policy that there should be no caps on assessments or assessment increases. Why? Because the greater the financial burden the more homeowners that won't be able to meet such a burden and the more money this industry makes from junk fees off of people that can't afford the increased burden.
A big part of the HOA industry is debt-collection and involves all the worst you expect from bottom feeder debt collectors. They will do whatever they can to create financial hardships because the HOA management company and HOA attorney profit from financial hardship. You can expect the attorney and others to run up expenses and entangle them with assessments in order to threaten you with foreclosure. This allows them to use the threat of foreclosure to extort junk fees for the benefit of the HOA attorney and HOA management company. There is nothing good about an HOA nor perpetual liens that can never be paid off. What you might be able to do is sell to try to recover whatever equity you can. Your story suggests that you might simultaneously defend against the foreclosure on the basis of self-dealing and breach of fiduciary duty of the board members, i.e., the monetary demands are not for the benefit of the homeowners but rather relatives of the board members.
We have contracted a lawyer. I am sure this will get ugly. The Board has already sent us a bill for the lawyer to start the foreclosure . The work to be done is the replacement of a beam, but the Board President also wants to extend the deck, change the doors, add high hats, and some other cosmetic changes. Her husband will be doing the work, and they want all of the money upfront, even if no permits have been obtained, and the work is nit scheduled to start till May, and will be finished in seven months.
The Board told us in September the $30,000 was due end in three installments from January to March.
I'm hoping our lawyer can buy us some time to pay, otherwise the other homeowners will have to pay the difference. Between the original assessment , and the now added fees and fines of $9500, each homeowner will have to come up with $3000. How did we miss the signs before we purchased this place.?
What are they adding all these things too? The hoa community center?
When you say the board sent the bill for the lawyer to start the foreclosure, do you mean it was sent only to you or to all homeowners? This should be a special assessment if they don't have legal fees built into their annual budget.
Why are legal fees not built into the annual budget?
Do they have majority approval of homeowners for this project?
Is there nothing in the HOA docs about getting 3 estimates?
Status:
"Let this year be over..."
(set 21 days ago)
Location: Where my bills arrive
19,219 posts, read 17,088,442 times
Reputation: 15538
Any contractor expecting payment in full up front should be avoided at all costs. Repairs are one thing but did the residents vote to make upgrade/improvements to the facility? Good luck with your battle...
Any contractor expecting payment in full up front should be avoided at all costs. Repairs are one thing but did the residents vote to make upgrade/improvements to the facility? Good luck with your battle...
Makes one wonder if the OP and the other non-related members of the HOA went to the meeting(s) where those special assessments were approved.....if so, why would such assessments be approved, as well as the project without specific details being known...
Status:
"Let this year be over..."
(set 21 days ago)
Location: Where my bills arrive
19,219 posts, read 17,088,442 times
Reputation: 15538
Quote:
Originally Posted by Travelassie
Makes one wonder if the OP and the other non-related members of the HOA went to the meeting(s) where those special assessments were approved.....if so, why would such assessments be approved, as well as the project without specific details being known...
The op state there are 14 units, 5 of which related (family) where is the majority vote that approved these upgrades to the community? I also don't understand where the op states "The Board has already sent us a bill for the lawyer to start the foreclosure ", did I miss something???
I see a conflict of interest with the contractor being the spouse of the HOA president, I could accept it more if there had been proposals submitted by several contractors but the OP states there wasn't. Looking at a $30K assessment per unit x 14 units that a total of $420K and i'll bet it grows to half a million.
OP keep us updated because something does not seem right, glad you have secured an attorney to represent you...
No matter how it comes out I would move. It's bad enough people could lose a house over taxes but a HOA? That's a risk not worth taking. Buy a house in a non-HOA area.
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