HOA/POA's are financial institutions now? (Dallas, Austin: credit, attorneys, house)

[Pixierider]

My POA (Property Owners Association) has implemented an 18% interest on top of late fees on an assessment and also a $20 fee for each "administrative" notice they give after the first notice. They have an invoice which has a line item for a Finance Charge on an overdue balance, and then finance fee on the late fee. I paid the late due, but not the late charges, and they still accrued interest on the late charges after the fact. They even threaten to report it a homeowners credit bureau if they fail to pay. Can they get away with these absurd finance fees and threats? What exactly are they "financing" anyway? Are they allowed to charge finance fees if they are not a finance company? Who regulates these HOA/POA bodies anyway? They also are not allowing homeowners to vote on these changes, but rather presenting them to the homeowners after they meet, without putting these changes to the homeowners and allowing homeowners the proper amount of time to discuss or come together on these changes. I believe they are abusing their positions and I'd like to know who can do an audit or investigate them.

Thanks.

[BigDGeek]

Originally Posted by Pixierider

My POA (Property Owners Association) has implemented an 18% interest on top of late fees on an assessment and also a $20 fee for each "administrative" notice they give after the first notice. They have an invoice which has a line item for a Finance Charge on an overdue balance, and then finance fee on the late fee. I paid the late due, but not the late charges, and they still accrued interest on the late charges after the fact. They even threaten to report it a homeowners credit bureau if they fail to pay. Can they get away with these absurd finance fees and threats? What exactly are they "financing" anyway? Are they allowed to charge finance fees if they are not a finance company? Who regulates these HOA/POA bodies anyway? They also are not allowing homeowners to vote on these changes, but rather presenting them to the homeowners after they meet, without putting these changes to the homeowners and allowing homeowners the proper amount of time to discuss or come together on these changes. I believe they are abusing their positions and I'd like to know who can do an audit or investigate them.

Thanks.

Move somewhere without an HOA. Seriously. Why any rational adult would subject themselves to the whims of an HOA board is beyond me.

[Pixierider]

I'm trying. It's been tough to find a buyer in the price point we are in. And now I find out that the POA gets the proceeds from all resale certificate's that sellers have to have to sell. And what's worse...POA's are Non-profit organizations! So where does all this money go that they get from the homeowners? I know that the President of the POA once said during a meeting "I don't care if someone sues, I'll just spend the money in the treasury to fight it". So, he'd rather spend the money on an attorney (probably a friend of his) than actually work with the community members on resolving issues. I hate this place. I'm dying to move.

[BigDGeek]

Originally Posted by Pixierider

I'm trying. It's been tough to find a buyer in the price point we are in. And now I find out that the POA gets the proceeds from all resale certificate's that sellers have to have to sell. And what's worse...POA's are Non-profit organizations! So where does all this money go that they get from the homeowners? I know that the President of the POA once said during a meeting "I don't care if someone sues, I'll just spend the money in the treasury to fight it". So, he'd rather spend the money on an attorney (probably a friend of his) than actually work with the community members on resolving issues. I hate this place. I'm dying to move.

Wow.




Are you for real?

[UnfairPark]

My HOA is pretty decent. I certainly don't want to live in a subdivision without HOA where neighbor can cover his windows with barb wire and starts raising pigs in his backyard. Living and selling home can be a nightmare without HOA rules. If homes are far apart and lots are in acres then you don't needs HOA but for suburban subdivisions with two dozen homes on your street, it's a necessary evil.

[ChristieP]

Most cities have Code Enforcement departments to prevent that sort of thing.

[TurtleCreek80]

Originally Posted by UnfairPark

My HOA is pretty decent. I certainly don't want to live in a subdivision without HOA where neighbor can cover his windows with barb wire and starts raising pigs in his backyard. Living and selling home can be a nightmare without HOA rules. If homes are far apart and lots are in acres then you don't needs HOA but for suburban subdivisions with two dozen homes on your street, it's a necessary evil.

You really don't need a HOA is there are appropriate city codes which are enforced. Somehow my neighbors in Dallas are all mature and classy enough to not put bars on their windows (plus, my neighborhood is safe which negates the reason for window bars) or raise wild animals. We all maintain our lawns and have common sense not to paint our homes crazy colors without needing a HOA mandated paint chip list.

HOA's are a racket. Just a bunch of bored suburbanites on power trips. Ever wonder why the nicest neighborhoods in Dallas County don't need HOA's to look well-maintained??

[octo]

I haven't lived in an HOA neighborhood since 2006 and wouldn't ever buy a house in such a neighborhood again (federal/state/city government is enough for my taste) but what's so bad about late fees and interest?

Just pay on time. It was your choice to live under the rules, responsibilities, fees (taxes) and protections of a private government.

[MurphyPl1]

Originally Posted by UnfairPark

My HOA is pretty decent. I certainly don't want to live in a subdivision without HOA where neighbor can cover his windows with barb wire and starts raising pigs in his backyard. Living and selling home can be a nightmare without HOA rules. If homes are far apart and lots are in acres then you don't needs HOA but for suburban subdivisions with two dozen homes on your street, it's a necessary evil.

Our biggest problem is the deadbeats who don't pay their assessments like everyone else. They are the reason the board, in a posted open meeting has to go the route of punitive fines and fees. Its not fair to the rest of the property owners who abide by the covenant to pay their share of maintenance costs and then some to cover the deadbeats.

[IC_deLight]

Originally Posted by Pixierider

My POA (Property Owners Association) has implemented an 18% interest on top of late fees on an assessment and also a $20 fee for each "administrative" notice they give after the first notice. They have an invoice which has a line item for a Finance Charge on an overdue balance, and then finance fee on the late fee. I paid the late due, but not the late charges, and they still accrued interest on the late charges after the fact. They even threaten to report it a homeowners credit bureau if they fail to pay. Can they get away with these absurd finance fees and threats? What exactly are they "financing" anyway? Are they allowed to charge finance fees if they are not a finance company? Who regulates these HOA/POA bodies anyway? They also are not allowing homeowners to vote on these changes, but rather presenting them to the homeowners after they meet, without putting these changes to the homeowners and allowing homeowners the proper amount of time to discuss or come together on these changes. I believe they are abusing their positions and I'd like to know who can do an audit or investigate them.

Thanks.

Is there is an HOA management company involved?
If so would you identify which one?

You might want to make a trip to Austin. Problems with HOAs and the HOA vendors (HOA management companies and HOA attorneys) are being looked at again by the legislature.