View Single Post
  #42   Report Post  
Posted to alt.home.repair
SQLit
 
Posts: n/a
Default How to stop an HOA from blowing a quarter million bucks


"Larry Bud" wrote in message
oups.com...

Larry Bud wrote:
Larry Bud wrote:
Got a letter today from the VP of the Management for our site condos
today. Almost every year we have to patch about 1/2 mile or so of

road
from pot holes. The roads are not heavily travelled, and only used by
our sub, and while the pot holes were a nuisance, the road is only 15
mph.

The letter states that the board had conferred with several asphalt
contrators who have concluded that the road was "originally installed
an an incorrect pitch with much of the base comprised of grey wet
clay". The board had decided to tear out a good portion of the road,
and the estimated cost was $225,000. Our dues are to go up from
$75/month to almost $300 from jan to apr, then back down to $80 after
that.


Just a follow up to this as I get more info:

We have started a petition to 1) oppose the increase, 2) call a
special meeting (we actually need a certain % of signatures to do this
and 3) remove the president of the board.


Update on this, and advice needed:

Enough people complained for them to only raise dues from $75 to $130.
We still, however, want to call a special meeting.

We have gathered enough sigs to call a special meeting, but the board
and management company has refused. They claim that the petition was
not binding. In addition, one of the board members have told the
others on the board (there are 4 total, there is 1 opening that they
have failed to fill) that he signed the petition. They claim that he's
in conflict of interest (he IS a co-owner), and they've scared him
enough to back down on wanting his name on the peition. He's afraid of
a lawsuit.

What do we do next short of hiring a lawyer (or getting the hell out of
here) when it's clearly spelled out in the by-laws what is required for
a special meeting?

There is election in April, so maybe we just should wait until then and
try to run and get on the board, assuming elections they hold are fair
(I wouldn't put it past them that they aren't).


What do the state statutes say?

I live in Arizona, I was on an HOA board for 6 months. Arizona law says that
the HOA board can raise the dues in any calendar year 20 % with out home
owner participation. The board decided to ignore run away costs even when
there were proposals to cut and control the costs. Cost $5k a month to mow
the lawn and dress the landscaping. And the water bill was $6k a month
through the summer months. The management company employed by my ex
residence spends a lot of money training the board member on how to become
brain washed into their thinking. They see nothing wrong with a 20% forever
increase in dues. It keeps the property values up, which it does.

Find out what the statutes are follow them. Look at the last two years
financial statements. Look for something like a "legal fund". If there is
over $100,000.00 in that line item you better find an attorney, cause they
are ready to fight. Where I lived there was less than $20k in the legal
fund. Not so interested in fighting. Importunely your likely to find the
board is mere puppets for the management company. Where I lived 20% of the
220 homes were having trouble paying the dues. 7% were more than $500 in the
rear, that is more than a year. I protested the 20% and was told by the pres
and the others that the costs would force out the people who could not pay
and get ones that could. Unfortunely the tables turned on them, the people
like me that sold the new owners made them rentals.
Rentals were less than 6% when I bought in, more than 12% a year later.

God bless, cross the "i's" and dot the "t's". Perfect is acceptable, you
have a very bumpy road ahead. Make no mistake the management company will
fight you with your own money.