Breaking state law

Started by CamilleH1 • 17 replies • 1775 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

CamilleH1 (South Carolina)
Posts: 2

Posted:

I have recently discovered the PM responsible for fines and revocation of amenities is not only not following the process outlined in our HOA's CCR, but also breaking state laws. We are still governed by the builder and have no board to help us. It seems this man has been making all the decisions and rules. I am hoping for some advice on how to handle this matter. We have consulted with an attorney, he has made many attempts to contact both the PM company and the attorney that represents them. No one will return his calls or emails. Any help is really appreciated.

MattG2 (Kansas)
Posts: 16

Posted:

If you feel state laws are being broken, contact the State Attorney General.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Camille,

You are between the proverbial rock and a hard place. When neither the developer nor the property manager will communicate with your lawyer, you are left with just two choices:
1. Do nothing
2. Seek injunctive or monetary relief, as advised by your attorney

Over the years I have worked for a couple of people who called themselves developers. They honestly believed that they were exempt from all laws because they were creating jobs and/or adding to the tax bases. They get away with a lot because few people will stand up to them.

One thing I have learned from this forum is that buying a home in an HOA that is still under the control of the developer is risky because developers have a reputation for mismanaging their HOA's.

Could you tell us what your developer is doing to cause you concern?

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By CamilleH1 on 07/19/2012 12:38 PM
I have recently discovered the PM responsible for fines and revocation of amenities is not only not following the process outlined in our HOA's CCR, but also breaking state laws. We are still governed by the builder and have no board to help us. It seems this man has been making all the decisions and rules. I am hoping for some advice on how to handle this matter. We have consulted with an attorney, he has made many attempts to contact both the PM company and the attorney that represents them. No one will return his calls or emails. Any help is really appreciated.

Camille,

What state laws do you think are being broken? Keep in mind, also, that most violations of laws relating to homeowners associations are not criminal violations. One has to bring civil action in court to seek remedy.

Also, if you are still under developer control, pretty much all bets are off. The developer, who is essentially the board, can delegate whatever responsibility and authority he chooses to whomever he chooses. Still, he is supposed to follow what is in the CCRs. You would have to seek civil action in court to force him to comply. You could try contacting the attorney general, but the AG may choose not to be involved.

If you have consulted an attorney and no one is returning his calls, he appears to me to be rather powerless since he is being ignored. Perhaps you need another attorney.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Camille

In SC there are no rules/regulations about HOA's. They can pretty well do what the CC&R's, Bylaws says as long they (the developer, homeowners BOD) do not break any SC laws.

There is the South Carolina Horizontal Property Act (SCHPA) but it covers high rise condos only, not HOA's.

Also as said. If the declarant (developer/owner) is still in control, you can pretty well bet they can mainly do as they wish especially in SC.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Camille

If they were breaking laws, why did your attorney not recommend you call the authorities?

Please name a law(s) they broke.

Thanks

CamilleH1 (South Carolina)
Posts: 2

Posted:

State law sets a maximum of $100 fine per day, also says the homeowner has the right to a hearing before any penalties can be issued. The PM issued a $500 fine and revocation of all ammemities with no hearing or warning. The CCR's and state law state the hearing must be within 30 days ect. The CCR also states privileges can be suspended for no more than 60 days a year. The builder is very large. I don't think they have any idea this is being handled so poorly.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Cammile

As you are the one making the accusations, I would ask you to quote/list the specific SC law(s) they are breaking.

Thanks.

TimB4 (Tennessee)
Posts: 21,059

Posted:

If you have the proof and if your management companies or property managers are required to be licensed, you could lodge a complaint against them with the State licensing agency.

Please note that a possible consequence of this is that your property may start to come under a microscope for any infraction, no matter how small.

KevinK7 (Florida)
Posts: 1,343

Posted:

Quote:

Posted By MattG2 on 07/19/2012 12:54 PM
If you feel state laws are being broken, contact the State Attorney General.

Good luck with that! I contacted my AG when I had an issue and he directed me to the Department of Business and Professional Regulation. They had their authority to regulate HOAs stripped by the legislature.

MattG2 (Kansas)
Posts: 16

Posted:

Ok so results may vary by state. But generally speaking, enforcing the state's laws is the duty of the state AG. They may not always act on first report but will typically after multiple complaints are filed against a business.

DawnL6 (South Carolina)
Posts: 226

Posted:

Our association goes by horizontal property,and we are not high rise.

WarrenR4 (Colorado)
Posts: 13

Posted:

Does the CCR state the hearing must be set within 30 days or it must occur within 30 days? I bet it says it must be set, meaning that technically they could set it way out in the future as long as they put a date to the hearing within 30 days.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

If your builder controlled not much you can do. The builder really doesn't care because the MC is just a hired contractor handling the HOA business. They are just another hired contractor hired to do the management. So they are probably hands off and let the MC handle everything. Most likely they would not listen to any complaints. The best can do is look for another MC once you become owner owned.

Unless your state has like an absudman or other resource to complain about an MC, then if what they do is illegal you can sue the MC directly NOT the HOA. The MC is it's own company.

Former HOA President

LetA (Nevada)
Posts: 2,679

Posted:

What laws are they breaking? Can You please be a little more specific.

As to the Declarant He who has all the gold makes all the rules.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

This is an 11 year old posting.

DawnL6 (South Carolina)
Posts: 226

Posted:

current posting.

DawnL6 (South Carolina)
Posts: 226

Posted:

current posting.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here