Can this HOA be saved?

Greetings everyone, apologies in advance that much of this information may be already stated but I have until the upcoming Tuesday to prepare some sort of report and I'm way over my head.

My neighborhood has a (Non mandatory) HOA in Texas that controls @2.3 acres with an aging pool, some recreation facilities and a lot of grass that needs constant mowing.

A group of concerned neighbors have collected the following information:
1) There are three remaining members of last years board.
2) These Board Members have been running the HOA the last two years with no copy of the by-laws or founding paperwork, they can't find it.
3) They have lost both tax-exempt and non profit status.
4) All bills are in the red including some property taxes.

The board is dragging their feet (for what exact reason I can't tell) in voting in new officers. However they are
1) Collecting membership dues
2) Organizing fundraiser BBQ's
3) Holding gritch sessions rather than proper meetings
4) They are obsessed with opening the pool with band aid repairs even though we have expressed concerns.

Honestly I think these people have no idea of what an HOA is but since they have run it two years this way they don't understand why they can't continue.

I agreed to come up with some sort of report on the status of the HOA for next Tuesday.

What danger signs do you all see, questions I should ask or body armor I should rent? (joking) I know I should be reading all sorts of regulations but would love some pithy talking points that might wake them up.

There are several of us that would like run for this years board but are reluctant to take over something so in shambles.

Thanks!

Thank you for your answer, to clarify

we are non mandatory so we only collect memberships that allow members to use the pool and facilities. It is taxes on "that" common property that is behind @$100.00 (So I've been told).

We do not collect any assessments of fees from the residents other than a voluntary "pool" membership.

I think our frustration and what I would like to frame the report around is that the old board needs to cease and desist all financial and contractual obligations until a new board has been elected.

That continued action "as usual" would drag the HOA further into non compliance with local, state and federal HOA and Corporation requirements.

Operating without bylaws or any other legal paperwork should be corrected before taking memberships and fundraisers, especially when they have not been filing 1120-h (which I asked about and just got a blank stare).

Even "I" don't want to pay dues to the the treasurer (whom I've been told is the husband of the Vice President)just to have that money go into some black hole.

OK I admit - I'm just frustrated but I do really have to present some sort of report that addresses regaining tax-exempt and non profit status and what that will take given the present condition of the HOA.

Thanks for letting me vent!

> the old board needs to cease and desist all financial and contractual obligations until a new board has been elected.

You can ASK them and they can decline

You can seek an injunction in court (high cost, time delay, and uncertain)

If recall is possible that is by far the best option

If not you may need to wait until the next election.

Thank you all for your suggestions.

I think we have an idea how to approach the group and what tone to take, they already are aware of our concerns. What I am looking for are posts (like the ones already posted) where I can pull info for a list of:

Did you know this should be done? and this should be done? this should be filed? (doesn't mean I'm going to push it down their throat ;) )

They are obviously aware that when the bills don't get paid things go away

I think Tuesday morning I will take a trip to the courthouse see if I can get any documents that might be filed there.

This is the time for the new board to be elected, however last years board has been asked to have elections (which they have ignored) and it has been strongly suggested they not make plans that the new board might have to overturn.

For some reason they don't want to have elections until they get everything running smoothly, which to them is just operating as they have which potentially means another year of non compliance.

It's not a normal course of events where you bring up something rational and everyone gets it so I am looking for laws and procedures. It will help to get the missing paperwork.

Thanks again

Hi Jill,

We don't have a copy of the bylaws, we don't have a copy of the initial paperwork, we just have three people on the board (2 of them married) who take money, make repairs and fill the pool.

Yes we have good people ready to take over but we are astounded at the lack of "everything" and are just overwhelmed at the possibility of taking over, provided the three actually decide to have elections, and yes, they know we want elections (I made a sign lol) but they also know we might not elect to open the pool and that must be done (in their eyes) so they may delay elections until after they have made more band-aid repairs and sell memberships.

Was that all one sentence? whew, yeah we are still shaking our heads.

http://www.statutes.legis.state.tx.us/SOTWDocs/PR/htm/PR.209.htm

A HOA is ONLY funded by it's members for it's members. The pool repairs/maintenance, bills, and property taxes can only be paid in full if there is enough money there to do it. Sounds like you are ALL getting what your paying for...

Leslie,

You would be an unincorporated Association.

Depending on TX law, the fact that you are unincorporated may or may not be a violation of the law unto itself.