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The problem is they have DONE NOTHING for the last seven years. The "current BOD" doesn't have meetings and have never been seen. When we have our annual HOA meeting the "current BOD" doesn't show up. The HOA has been ran and ruled by the management company up until this point and the management company is doing a poor job. The management company is in downtown Phoenix and the community is in Goodyear, they never know anything that is going on in the community due to never being out here. Our Reserve Fund is way over funded (supposed to be $200k and we have $500k in reserves) so my assessment money is sitting in the bank making money for someone else and they are only getting .15% on it. The "green belts" are always brown year round because they don't water in the summer or overseed in the winter. There is NO enforcement of CC&R violations because they are never here due to the distance from the community.
At our annual meeting the management company's answer to every question is "that is up to the board" yet we've never seen a board member nor does the current BOD have meetings. She says she "emails them when she needs something".
Well that really sucks! I can see why the natives are restless to coin a phrase. I think you may have a way though I'm not an attorney. I do know that how an HOA (corporation) is supposed to function is spelled out in the law and in the CC&R's so as a resident I believe you've got the right to challenge what they're doing or not doing as the case may be.
Minutes have to be kept, votes of the board,budgets etc have to be of record and membership meetings with a quorum present have to happen if I'm not mistaken. I also don't believe they can have completely closed meetings (as in no residents in attendance) there are rules about that.
Again, you might want to rally a few neighbors and find an attorney who will do a free consultation and then consider going after the HOA if that's what the attorney suggests.
It's really too bad but it looks as though y'all are going to have to take control by force of law if possible.
The problem is they have DONE NOTHING for the last seven years. The "current BOD" doesn't have meetings and have never been seen. When we have our annual HOA meeting the "current BOD" doesn't show up. The HOA has been ran and ruled by the management company up until this point and the management company is doing a poor job. The management company is in downtown Phoenix and the community is in Goodyear, they never know anything that is going on in the community due to never being out here. Our Reserve Fund is way over funded (supposed to be $200k and we have $500k in reserves) so my assessment money is sitting in the bank making money for someone else and they are only getting .15% on it. The "green belts" are always brown year round because they don't water in the summer or overseed in the winter. There is NO enforcement of CC&R violations because they are never here due to the distance from the community.
At our annual meeting the management company's answer to every question is "that is up to the board" yet we've never seen a board member nor does the current BOD have meetings. She says she "emails them when she needs something".
Management companies are often the epitome of the "unfaithful agent". Notice that you do not have any communications from the principal (i.e., the developer), only the self-proclaimed agent.
With respect to bank accounts, you might investigate the management company and the bank a little further. Some management company organizations have their own bank or are closely affiliated with an industry bank (i.e., "banks" that only handle HOA management companies). By over-pushing the assessments, such HOA management organizations make money off of you in multiple ways.
1) Demanding more assessments tends to create more financial hardships and therefore more money from late fees, handling fees, collection fees, payment plan fees, etc. for the benefit of the management company.
2) The reserve money is not buried in a coffee can - that management company is out there promoting loans from its affiliated bank. They'll get a cut of the loan plus their affiliate will make money off of the interest, origination, and other fees - all by loaning out the money your organization is depositing with the affiliated bank.
3) Find out what name the account is actually in. Some of the management companies deposit the monies into accounts held in their name.
4) There is a tying arrangement between the HOA management company and the bank. If the HOA board has a dispute with the management company, the board might have problems firing the management company or getting its funds back so long as it banks with that bank.
5) The HOA board can borrow money using your house as the security to do so. You have no vote and no ability to prevent it. Significant reserves allows whoever is in control of the board to borrow more money and to put the HOA corporation further into debt - with your house as security for payment of that debt.
Management companies are often the epitome of the "unfaithful agent". Notice that you do not have any communications from the principal (i.e., the developer), only the self-proclaimed agent.
With respect to bank accounts, you might investigate the management company and the bank a little further. Some management company organizations have their own bank or are closely affiliated with an industry bank (i.e., "banks" that only handle HOA management companies). By over-pushing the assessments, such HOA management organizations make money off of you in multiple ways.
1) Demanding more assessments tends to create more financial hardships and therefore more money from late fees, handling fees, collection fees, payment plan fees, etc. for the benefit of the management company.
2) The reserve money is not buried in a coffee can - that management company is out there promoting loans from its affiliated bank. They'll get a cut of the loan plus their affiliate will make money off of the interest, origination, and other fees - all by loaning out the money your organization is depositing with the affiliated bank.
3) Find out what name the account is actually in. Some of the management companies deposit the monies into accounts held in their name.
4) There is a tying arrangement between the HOA management company and the bank. If the HOA board has a dispute with the management company, the board might have problems firing the management company or getting its funds back so long as it banks with that bank.
5) The HOA board can borrow money using your house as the security to do so. You have no vote and no ability to prevent it. Significant reserves allows whoever is in control of the board to borrow more money and to put the HOA corporation further into debt - with your house as security for payment of that debt.
Further research at ..... http://www.azcentral.com/news/articl...fee-hikes.html would indicate the US average is 21% while the number in all of Arizona is 46%. Keep in mind these are not in Phoenix, but surrounding areas, and Tucson has a much higher rate of HOA's.
Checking several more sites it seems the answer to LBTR's number is around 23% in the Phoenix "METRO" area, and no more than 38% depending on what you consider the metro area.
Last edited by Steve Pickering; 03-27-2013 at 12:10 PM..
Further research at ..... http://www.azcentral.com/news/articl...fee-hikes.html would indicate the US average is 21% while the number in all of Arizona is 46%. Keep in mind these are not in Phoenix, but surrounding areas, and Tucson has a much higher rate of HOA's.
Checking several more sites it seems the answer to LBTR's number is around 23% in the Phoenix "METRO" area, and no more than 38% depending on what you consider the metro area.
My number wasn't a factual number, it was a sarcastic guess to his question of "who buys in a HOA", however, I was guessing it would be higher than the 23% you state.
I can't think of a neighborhood around my home that isn't in an HOA and assumed it was similar across the valley. The article you cited says there are 9,000 HOA managed communities. I don't know how you're doing the math but you can't divide the 1 million HOA members (the article states) by the population as many of that population live in the same household or places that are not "buyers" and don't fall into HOA's (like apartments). The census says there were only 2,344,215 households in 2011 in Arizona. Minus the households that do not fall into HOA's like renters in apartments, etc., minus the population outside the Phoenix metro, now minus the population that live in the same household, and the percentage would be much higher than what you state.
We all appreciate you trying your hand at mathematics though.
My number wasn't a factual number, it was a sarcastic guess to his question of "who buys in a HOA", however, I was guessing it would be higher than the 23% you state.
I can't think of a neighborhood around my home that isn't in an HOA and assumed it was similar across the valley. The article you cited says there are 9,000 HOA managed communities.
The problem is that you have equated numerosity with popularity. Numerosity does not equate to popularity for cockroaches, epidemics, or HOA-burdened property. Your local government has been mandating HOAs for some time.
In regards to the observation that "5) The HOA board can borrow money using your house as the security to do so. You have no vote and no ability to prevent it. Significant reserves allows whoever is in control of the board to borrow more money and to put the HOA corporation further into debt - with your house as security for payment of that debt", Burning Madolf asks:
Quote:
Originally Posted by Burning Madolf
Where is this info from? #5 especially.
Check state law, the restrictive covenants burdening your property, and the bylaws of the HOA corporation. You will likely find that this has been expressly provided for in the bylaws if your house is in a "newer" subdivision. The HOA corporation wasn't put there for your benefit. The HOA corporation is a liability and control shifting mechanism for the benefit of the developer and local government. The HOA corporation has been given the power to borrow money. Your house is security for whatever debts the HOA corporation has.
Oh and for OP: next time one of the pro-HOAers suggests "getting on the board" or "voting" for something, remember that in most states there is no right to vote in an HOA corporation. Voting "privileges" can be and routinely are denied by the board. In fact, it is not unheard of for boards and management companies to accuse owners of "violations" just before an election in order to declare such owners to be ineligible to vote for "lack of good standing". Management companies prefer to keep the mindset of the board that hired them....and the management companies also tend to be in charge of counting the votes. "Majority rule" is NOT a democracy. HOA corporations represent deprivation of freedom of choice and an imposition of tyranny of the minority - the group of board members that control the board. Such folks do not ever represent the homeowners but rather only the interest of those controlling the HOA corporation. There's a reason some of those folks have been "serving" for a decade or more... Just remember that if HOAs were really such a good thing then membership would not be involuntary.
Captain Bill: Is that normal to get a whole vote on an undeveloped residential lot when the investment company is only paying 25% of assessments on each lot? Thanks for your informed input!
It can be worse. In my sub-division, the CC&Rs stated the undeveloped lots got 3 votes, not just one. This was a weasel way for the developer/investors to keep control much longer than they really should have. HOAs are pure scum.
It can be worse. In my sub-division, the CC&Rs stated the undeveloped lots got 3 votes, not just one. This was a weasel way for the developer/investors to keep control much longer than they really should have. HOAs are pure scum.
If you sincerely believe that, there's no valid reason you should be living in that subdivision or supporting the HOA with your hard earned dollars. One does have choices.
And if you are stuck there now and don't like the HOA - get involved and change things. Get on a committee. Run for a Board seat. Don't just complain about it. Do something to fix whatever you and your neighbors perceive as the HOA problems.
I'll get off my soapbox now.
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