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I currently have inside information for a Homeowners Association and wanted some feedback. The Homeowners Association consists of five board members, and I believe that there are illegal activities taking place. Large majorities of Homeowners Association are currently suffering from the recession our economy is facing and from all the foreclosures; many homeowners are not paying their associations dues; this is the case for the H.O.A. in question, yet they have still found a way for all the board members to receive a $1,500.00 Christmas Bonus and to have a annual Christmas dinner that was over $600.00 all expenses covered by the homeowners associations dues; I failed to mention that this was not approved in the 2009 budget. Also, a large majority of their vendors are personal friends of one of the board members. There is also one board member that signs his own pay checks. Now these board members are compensated for their duties as if they are hourly employees. There are more illegal things that are going on, but I just wanted to begin with these questionable activities.
HOAs' are basically 'little mafia' style govts. You can report them, but don't be surprised when you start getting endless violations which lead to loss of your home. This is the risk people take when they turn over their civil rights to people who feel they are better than you.
As a homeowner you have the right to see the books. Don't be afraid to do so. I would also contact the associations attorney with your allegations. I'm pretty sure that by law board members are not allowed to be paid or receive bonuses, and can only be reimbursed for their direct expenses--such as mileage to attend an educational program or meet the the association attorney. Once you've seen these expenses, start knocking on doors and teling your neighbors. In all honesty, once you involve the HOA attorney, the problem should resolve itself.
We just had a very heated election where I lived and voted out the megalomaniac who had been President of the board. It can be done, you just have to actually be an involved homeowner.
Most governing documents ( CC&R's, or Covenants, Conditions and Restrictions and Articles of Incorporation) stipulate that board members serve without compensation.
What do your governing documents say as it relates to director compensation?
When does your HOA have its annual meeting? Do you minimally attend this meeting and ask questions?
I will have to review our governing documents once again. Honestly, I feel as if none of the homeowners want to be involved, no one ever shows up for the meetings.
I will have to review our governing documents once again. Honestly, I feel as if none of the homeowners want to be involved, no one ever shows up for the meetings.
You have the choice to be involved as you want to be, or not. Homeowner apathy often results in ignorance, misunderstandings and resentments.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,304,764 times
Reputation: 6471
Quote:
Originally Posted by lola713
I will have to review our governing documents once again. Honestly, I feel as if none of the homeowners want to be involved, no one ever shows up for the meetings.
Which, I would suspect, is why they gave themselves some cash.
HOAs' are basically 'little mafia' style govts. You can report them, but don't be surprised when you start getting endless violations which lead to loss of your home. This is the risk people take when they turn over their civil rights to people who feel they are better than you.
Outside of the quoted post I think everyone offered good suggestions.
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