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r/HOA
10
Posted by1 month ago

My HOA is not upholding the rules and agreements.

I have lived in my community for about five years now and my HOA has been raising fees by holding improper meetings that are an in clear violation of the rules. The fees being raised is not the main issue but as a community we have noticed that we have been receiving less and less. For example last month the cost of paying the HOA was raised another 25 dollars and accompanying that our landscaping company was fired. They have shut down the pools and rec center claiming that they do not have enough money to maintain these part of the community open.

Along with this I have taken a look at a poorly prepared balancing and net income sheet but they refuse to provide me with the cash flow sheet. Every time I ask for it I either get yelled at or just hung up on. The community has been in poor health and declining even further since the HOA is not taking care of it. Things like the grass dying because they refuse to turn on the sprinklers. Is there anything I can use to gain leverage in the meetings? And on another note taking a look at the balancing sheet we are missing about $68,000 their excuse is that people are not paying there dues.

Edit: Im new to all this but from further information that I’ve gathered the outstanding dues ($68,000) are from people that couldn’t afford to pay during the recession. That is what the HOA told me. As of now with the 180 homes in our property everyone is up to date on their dues and some people like myself are ahead. Our board has no organization meaning no president, vp etc. I’m getting information as I but special assessments were made to cover the outstanding fees from the last tenants because the Liens placed on the property defaulted because of the 08 recession.

27 comments
92% Upvoted
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level 1

The treasurer should provide an accounts receivable report. That will outline how many units have back dues, and how much. A full balance sheet should show how the money that is received is being spent.

6
level 1

Sounds like you know a lot about financials. And it sounds like the HOA you’re part of really needs help.

Would you be willing to join the board and help straighten this out?

5
level 2
Op · 1 mo. ago

Yes I would be Im actually trying To get more people on to go to meetings. Any advice ?

3
level 1
· 1 mo. ago
🏘 HOA Board Member

I assume that by "balancing sheet" you really mean the balance sheet, which is a report of how much is in which account at a given date. A balance sheet is never "missing" money by definition, it simply reports how much is classified into which accounts.

It sounds like what you're trying to say is that there is a net operating loss of $68,000 because of uncollected dues. That would show up on the income statement, not the balance sheet. If that is the case your Treasurer needs to a) crack down on the deadbeats, and b) create a realistic budget for next year that takes this into account.

3
level 2
Op · 1 mo. ago

I appreciate the clarity I’m new to this and trying to get a handle on the situation we are in

1
level 1

You should be entitled to inspect books snd records per state law. It’s an actionable offense if they fail to produce, usually small claims court, should you need to do so. Heads up-failing to provide upon request is a sign something is very wrong as whoever handles books knows they are supposed to show them upon request.

3
level 1
· 1 mo. ago
HOA/COA resident

I am inclined to believe that your HOA is in fact underfunded due to people not paying their dues, and that they can no longer afford the landscaper and other services due to being underfunded. An HOA is a corporation, they can't spend money they don't have and collecting on delinquent homeowners is itself difficult and expensive. If people don't show up to hold proper meetings, sometimes the choices are to do things improperly for a while and keep things running, or go bankrupt and into receivership, in which case you will end up paying much more while getting even less (and nobody can escape by selling their homes).

5
level 2
· 1 mo. ago · edited 1 mo. ago

I am inclined to believe that your HOA is in fact underfunded due to people not paying their dues, and that they can no longer afford the landscaper and other services due to being underfunded. An HOA is a corporation, they can't spend money they don't have and collecting on delinquent homeowners is itself difficult and expensive. If people don't show up to hold proper meetings, sometimes the choices are to do things improperly for a while and keep things running, or go bankrupt and into receivership, in which case you will end up paying much more while getting even less (and nobody can escape by selling their I am inclined to believe that your HOA is in fact underfunded due to people not paying their dues, and that they can no longer afford the landscaper and other services due to being underfunded. An HOA is a corporation, they can't spend money they don't have and collecting on delinquent homeowners is itself difficult and expensive. If people don't show up to hold proper meetings, sometimes the choices are to do things improperly for a while and keep things running, or go bankrupt and into receivership, in which case you will end up paying much more while getting even less (and nobody can escape by selling their homes).

Yes. 100% this.

To the OP: as an HOA member you should be able to access more detailed financial info but owners may need to formally request it in writing. Check your governing docs and the laws in your state for the rules around this.

What you described does seem typical for an HOA that’s underfunded. If some owners aren’t paying then the rest of you have to pay more. The dues are the only money the HOA has. And if the increased dues still don’t cover the shortfall then there’s no choice but to cut expenses. Things like landscaping contracts and pool services are generally the first to go. The insurance, reserve fund and critical repairs take priority (such as a roof replacement in a condo building or water/sewer lines for a neighborhood of SFHs).

5
level 2
Op · 1 mo. ago

Taking a closer look at the balancing sheet the $68,000 missing is from people who did not pay during the last recession. From 2010 onwards every new tenant has being and there isn’t any outstanding dues left

2
level 1

Do you have access to the budget and month statements? You can do a comparison to see if owners are not paying.

2
level 2
Op · 1 mo. ago

I do. From what I gathered the $68,000 missing is from people who never paid the fees and moved out. The HOA claims this accumulated over the years and they never had the funds to pursue them.

2
level 1

A lot of this has me wondering if we are part of the same HOA.

2
level 2
Op · 1 mo. ago

Lol we might be

1
level 1

I would pay a lawyer to draft a demand letter for the information.

2
level 1
Comment deleted by user · 1 mo. ago
level 2
Op · 1 mo. ago

I get yelled at or hung up on depending on the person who answers at one point I got the manager and he told me he would send it over and never did. Our HOA allows us to get ahead of our monthly fees so some people are three months ahead. All the others are on time. The lien explanation is what the HOA told me. They said “the houses lost value so they couldn’t collect so they transferred the balance over the people and they haven’t paid.

2

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Created Jan 9, 2013