Poorly Run HOA (Memphis) (HOA fees, condos, lawyer)

[WH_Bonney]

Hello,

I'm new to this forum and joined specifically to get some advice from other members.

My HOA is charging $145/condo/month in Memphis, TN. That's supposed to cover the maintenance and upkeep of the pool, guest house, basketball and tennis courts, housing structures, as well as green areas. In my opinion that monthly fee (paid by every member of the ~300 condo community) is outrageously high, because having lived in similar properties with similar upkeep, I used to pay $50/month.

Upon examining the financial statements of the HOA (which are mailed annualy to all residents), I found several expense lines which look suspicious and which are the source of at least 50% of all HOA expenses. The HOA would not return my calls, or respond to my written inquiry about the nature/source of these "expenses".

I need some advice on my rights under TN state and federal law:
1) Can my HOA deny me any sort of explanation of the year-end financials?
2) If I feel that residents are being charged above and beyond what it actually costs the HOA to maintain the property, can I request an audit, or a county/state review of the HOA fees?
3) Is there anything equivalent to "predatory lending" which would allow me to go after my HOA should it turn out that they're overcharging tenants by a significant margin -- i.e. that they're really for profit?
4) Lastly, given that the builder chose this HOA management company, how can I go about choosing a different management company?

Any input is greatly appreciated. Thank you.

[alleycat]

You probably really need to talk to an attorney. Even if we were knowledgeable on the law, those homeowners agreements are so long and complicated that no one can say what's what without reading them.

[WH_Bonney]

Good point. Still, $145/mo is kind of outrageous for a condo community in Memphis, right? Anyone else paying condo HOA fees in the area?

[alleycat]

I'm not that familiar with HOA fees. $145 a months sounds a bit high, but not outrageously so considering there's a pool and other amenities. $100 might sound more reasonable to me for a community that size.

[Pearlbob]

$145 is not expensive at all. I guess it depends where you live, but many downtown condos have monthly dues of $300+.

[hiknapster]

My mom pays a $200 condo fee in Mass. It is about one hour from Boston and doesn't include a pool or any kind of amenities. Just condos facing a parking lot.

[Pearlbob]

I would probably contact your neighbors and see if anyone else notices something fishy before heading to a lawyer or taking legal action. No point in getting into a mess if you don't have any evidence or at least a bunch of people backing you up. And if you live in the neighborhood...how would you choose a different HOA? it's just one association for the neighborhood, right? Are you paying condo dues or just a member of a HOA...sometimes the HOA is optional.

[WH_Bonney]

Thanks for the replies. This is not a high-end condo community (quite the opposite actually), it's not downtown, and there's no snow to shovel and clear out in the winter. I will check the neighboring communities to find out their HOA fees.

The HOA is administered by an independent company and the monthly fees are mandatory. If it turns out that the HOA's of other condo communities in the area are charging a lot less, I just don't know what's the quickest (and least painful) way to get these guys replaced. Anyone have any experience wtih kicking out/replacing their HOA management company?

[Pearlbob]

I don't know the answer to that.

However, as long as the company isn't stealing money, skimming funds, or using the money without reporting it, they can charge whatever they want. If you agreed to pay it, y ou have to pay it. Even if every other HOA in the area charges a lot less. :-/

[umograd83]

Have you been to a meeting of the Board of Directors? As an owner, you are entitled to attend meetings. Why don't you breach the subject of changing management companies at one of these meetings. By the way, I pay $208 per month for our condo fee.