how to investigate a secretive HOA? (condo assocation)? (appointed, attorney)

[seashell55]

ATL Owner and ATL Persons: As a member of the committee that is working to produce transparency from the Board in our condo, I have become familiar with the quagmire that passes for condo law in the US.

In GA (and most other states), condos are governed by the Georgia Condo Act and by the Georgia Non-Profit Code. It is the Non-Profit Code that gives you the right to inspect the records of your association. Specifically,

TITLE 14. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS
CHAPTER 3. NONPROFIT CORPORATIONS
ARTICLE 16. RECORDS AND REPORTS
PART 1. RECORDS
§ 14-3-1602. Members' right to copy and inspect records

states in part:

(b) A member is entitled to inspect and copy, at a reasonable time and location specified by the corporation, any of the records of the corporation described in subsection (a) of this Code section if the member gives the corporation written notice or a written demand at least five business days before the date on which the member wishes to inspect and copy.

(c) A member is entitled to inspect and copy, at a reasonable time and reasonable location specified by the corporation, any of the following records of the corporation if the member meets the requirements of subsection (d) of this Code section and gives the corporation written notice at least five business days before the date on which the member wishes to inspect and copy:

(1) Excerpts from minutes of any meeting of the board of directors, records of any action of a committee of the board of directors while acting in place of the board of directors on behalf of the corporation, minutes of any meeting of the members, and records of action taken by the members or the board of directors without a meeting, to the extent not subject to inspection under subsection (a) of this Code section;

(2) Accounting records of the corporation; and

(3) Subject to Code Section 14-3-1605, the membership list.

There is more, but that is a good start. Also, note that the link given by somebody above was for the GA Property Owners Act (POA), which is much more restrictive (if possible) than the GA Condo Act (GCA). You need to find out which one you fall under before reading the wrong one. Unless you were just recently incorporated, or just recently (and mistakenly) voted to come under the POA, you are more than likely under the GCA.

The links to all three of these ACTS require navigation skills, but you'll figure them out. This is the link to get started with free access to the GA Code from LexisNexis.

LexisNexis

Let me know if you have more questions. Shoot, next time I'll just write out your requests and you all can fill in the name blanks!

[atl_owner]

Thanks seashell55 but I already made the document request. This is how I was able to uncover the kickback our management company is taking in breach of their contract. I also found where they paid an invoice for another property out of our funds. They have made no apology nor have they indicated they will correct the error.

[seashell55]

Sorry, atl_owner. The comment was intended for the original poster, atl_resident, not you.

Good luck with your situation. From what I have discovered, the trade institutions that have been established around condominium developments and the law that organizes them do not work in favor of the owners.

[bethanyjoy2824]

So let's say the HOA refuses to provide the financials...what do you do?

[Plokivos]

(1) Excerpts from minutes of any meeting of the board of directors, records of any action of a committee of the board of directors while acting in place of the board of directors on behalf of the corporation, minutes of any meeting of the members, and records of action taken by the members or the board of directors without a meeting, to the extent not subject to inspection under subsection (a) of this Code section;

(2) Accounting records of the corporation; and

(3) Subject to Code Section 14-3-1605, the membership list.


I didn't know that. Good stuff.

[seashell55]

Originally Posted by bethanyjoy2824

So let's say the HOA refuses to provide the financials...what do you do?

Copy and print the relevant portion of the Georgia law. Include a cover sheet politely explaining what you would like to see and the date by which you expect to see the financial information, remembering to include the 5 days required notice and the best way to reach you. You might also want to mention that the losers of court cases are generally required to pay the winner's attorney and court costs. Mail/fax/email/hand deliver to every member of the Board of Directors. Wait 5 days.

[rcsteiner]

Originally Posted by bethanyjoy2824

So let's say the HOA refuses to provide the financials...what do you do?

I would be talking to a lawyer.

[Spooky08]

Hello All,
We are in a home in NC, and were denied an above ground pool while a neighbor who has a less private yard than our was granted a variance. We then requested a copy of all variances at our expense, but we were denied. This is a small neighborhood of only 75 houses and it is a young neighborhood so there can't possibly be that many copies to be made. NC HOA law says any lot owner has a right to see documents with reasonable time frame requests and they pay for copy expenses. Our HOA turned us down, so we contacted a HOA attorney. He sent them a letter demanding to see those documents within 30 days. We are waiting to see what will happen, but the attorney said they are in breach of NC law. We decided to go with an attorney because our HOA is apparently not very transparent, and I didn't even get a response to my request, instead I had to bug them about it until I got an e-mail response denying my request. We are not requesting documents just to be a pain, we really want to see with our own eyes via these documents that they are treating all neighbors equitably and not choosing which things to allow or enforce while other homeowner's don't get that special treatment. The board thinks they can push homeowner's around, and the manager at the management company actually told me he can do whatever he wants. He didn't realize I would rather fork over the money to an attoreny than to allow them to get away with running the board in an unethical manner.

[Spooky08]

Get a HOA attorney! I've lived in several neighborhoods where the board gets out-of-control and will railroad you at all costs unless you are willing to spend the money on an attorney. We finally made the decision to get an attorney involved in our situation because the HOA is refusing to give us documents that we are legally entitled to see in our state. I wish I could tell you the outcome, but our attorney just sent the letter. The attorney did say that the HOA is in violation of state law.

[dboxton]

I heard that recently, our association wrote of the HOA Fees of one of the board members, citing the costs of colections would be to high to pursue the debt. I believe the Board Member owed about 1,000. I don't think I need to explain any further to any of you how this has made me feel. What can be done?