New HOA needs help, does not know where to look

MichaelR10 (Texas)
Posts: 9

Posted:

I am the new president of an HOA that just took over this winter, January to be exact.

We met, had elections and did everything we were supposed to.

We are very very small, 10 home total in a middle class neighbor hood.

We have very troublesome tenant (more on this later) who refuses to abide by the CCRs and went so far to have the officers of the HOA given tresspass notice.

The homeowner of file with the county lives 3 hours away, the tenant claims to be homeowner but as state is not registered by the county as the owner, someone else is.

We are too low income to afford a lawyer on our own and are looking for services who can help especially legal services.

We are located in College STation Texas and we have reached out to many services we were aware of with no luck.

We are desperate and need any help we can get.

thanks

MichaelR10 (Texas)
Posts: 9

Posted:

I realized this might be stated wrong.

We are looking for someone to point in the direction who can offer services to us. Especially pro bono or reduced fee.

We know and accept that you cannot give us legal advice, but we do need to know where to go and look for help.

thanks

WillR2 (Colorado)
Posts: 29

Posted:

I don't know other than contacting Texas A&M School of Law's pro-bono program. Law students there are required to do pro-bon work.

https://law.tamu.edu/CurrentStudents/ExperientialPrograms/EqualJusticeProgram.aspx

MichaelR10 (Texas)
Posts: 9

Posted:

Thank you,

we will start there. We didn't even know that existed.

WillR2 (Colorado)
Posts: 29

Posted:

If that doesn't work, contact the American Bar Association which sets standards for pro-bono work by lawyers. They might also have contacts.

http://www.americanbar.org/groups/legal_education/resources/pro_bono.html

Texas Bar pro-bono: http://www.texasbar.com/Content/NavigationMenu/LawyersGivingBack/LegalAccessDivision/default.htm

MichaelR10 (Texas)
Posts: 9

Posted:

We have been visiting the web sites and finding what we expected.

Everything to qualify is based around being a low income individual or being a minority owned business, non-profits are excluded it seems in all the links above.

We are contacting them anyway to see what we can find.

Any and all suggestions are appreciated.

thanks

NpS (Pennsylvania)
Posts: 4,216

Posted:

Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

Sikubali jukumu. Read all posts at your own risk.

JeffT2 (Iowa)
Posts: 880

Posted:

What is the tenant doing that is against the CCRs?

What have you done to resolve the situation?

Do your documents allow you to fine the owner?

What do you want a lawyer to do?

MichaelR10 (Texas)
Posts: 9

Posted:

Our tenant has violated multiple sections including

excessive parking violations - including blocking access to the road
unapproved modifications to the property
Threats to board members
trespassing
damage to property including external properties to the HOA, we got a complaint from our neighbor HOA

we have given warnings and are in the process of fining. we sent them notices of violations with time periods to remedy.

in the meantime they hired a lawyer who sent trespass notices and had a police officer write up the board.

We are too small to afford a lawyer and no cash reserves at at all.

MichaelR10 (Texas)
Posts: 9

Posted:

Quote:

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By MichaelR10 on 05/31/2015 9:48 AM

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

Who owns your roads? Do you have any outside lights or signs that the association owns? What about trash pickup? Do you pay someone to maintain the strip of grass? Do you pay dues? How much?

Sikubali jukumu. Read all posts at your own risk.

MichaelR10 (Texas)
Posts: 9

Posted:

Quote:

Posted By NpS on 05/31/2015 10:59 AM

Posted By MichaelR10 on 05/31/2015 9:48 AM

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

Who owns your roads? Do you have any outside lights or signs that the association owns? What about trash pickup? Do you pay someone to maintain the strip of grass? Do you pay dues? How much?

HOA owns up to 2 feet into the road, the city has an easement and owns the road itself sitting on easement. We have no signs nor lights. There is not enough room for any and we were organized in an area too small for any. Trash is city run for the entire city. Its a mandatory utilities. We pay someone to maintain the grass. We collect dues yes, we are currently voting to reduce dues since several of our members are retired and on fixed incomes.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By MichaelR10 on 05/31/2015 11:37 AM

Posted By NpS on 05/31/2015 10:59 AM

Posted By MichaelR10 on 05/31/2015 9:48 AM

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

Who owns your roads? Do you have any outside lights or signs that the association owns? What about trash pickup? Do you pay someone to maintain the strip of grass? Do you pay dues? How much?

HOA owns up to 2 feet into the road, the city has an easement and owns the road itself sitting on easement. We have no signs nor lights. There is not enough room for any and we were organized in an area too small for any. Trash is city run for the entire city. Its a mandatory utilities. We pay someone to maintain the grass. We collect dues yes, we are currently voting to reduce dues since several of our members are retired and on fixed incomes.

Just to be clear - If the roads need to be re-paved some time in the future, will that expense be a city expense or an HOA expense?

Sikubali jukumu. Read all posts at your own risk.

MichaelR10 (Texas)
Posts: 9

Posted:

we were told we would have to share the cost with the city and the HOA on the other side of the road

NpS (Pennsylvania)
Posts: 4,216

Posted:

Ok. So there is some future costs that you need to prepare for beyond mowing a strip of grass. First recommendation is to read your documents - Understand what the HOA is obligated to provide - as well as what fees can be charged. If these things are not spelled out in your Declaration and Bylaws, you may find them in your state HOA/COA statute.

As far as tenant/owner is concerned, record owner is the person you have to communicate with in writing, but resident could be still be an owner if there is a lease/purchase agreement. Without seeing that agreement, you don't know what the relationship is - and they can refuse to provide it to you.

On the other hand, your docs (Declaration and Bylaws) should have provisions that require any resident (owner, tenant, whatever) to abide by the rules of your association. So once again, familiarize yourself with your docs.

Another resource for you is CAI. Some people don't like them because of their political perspectives. But they do have some very informative materials that could help you. There's probably a local chapter near you.

Sikubali jukumu. Read all posts at your own risk.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Michael,

Owning a home is risky because of the unexpected expenses that crop up from time to time. While home ownership is the American Dream, it is not for everyone. There are times when an outlay of cash is unavoidable. Those who cannot muster up the necessary funds when needed are not good candidates for owning a home.

You described your development as being in a middle-class neighborhood yet you make your fellow homeowners sound as if they are marginally able to afford their homes. In fact, this thread began because nine of you either will not pay or cannot afford to pay to defend your homes from the tenth owner and his tenant from hell.

May I suggest that instead of trying to find free legal aid from the Texas Department of Caped Superheroes, that you find a real estate agent and put your home on the market. Even if you are not in the same financial boat as those of your neighbors who plead poverty, you are doomed if you stay. Your neighbors are poison. That includes not only the absentee landlord but also those others who will not lift a finger to defend their own homes - and yours - from the menace of the tenant.

So far, your proposed solutions to the problems do not sound very workable. You need the services of an attorney that you cannot afford and you admit having no reserves yet you also mention reducing assessments because some owners are on fixed incomes. That is not a realistic solution. People who cannot afford their homes and the expenses of maintaining them should move on to something they can afford.

BTW, your absentee owner sounds like a bully. Normally I do not care for bullies but when one guy kicks butt and his victims, all grown adults, just stand around doing nothing, I find myself rooting for the bully. I have little sympathy for those who willingly play the role of victim.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By NpS on 05/31/2015 12:07 PM
As far as tenant/owner is concerned, record owner is the person you have to communicate with in writing, but resident could be still be an owner if there is a lease/purchase agreement. Without seeing that agreement, you don't know what the relationship is - and they can refuse to provide it to you.

It really does not matter to the association whether or not there is some sort of lease-purchase agreement. Until something is recorded evidencing a transfer of the interest in the property, the association has no obligation to deal with the tenant. The property owner of record is the member and the tenant is not a member. Even if the property owner or his tenant does disclose the existence and/or terms of the agreement, the association has no obligation to deal with the tenant until something is recorded showing that the tenant has an interest in the property.

My opinion of most lease-purchase contracts is that they are a sham. It is just a way for the property owner to avoid maintenance by palming it off to his tenant/buyer.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By MichaelR10 on 05/31/2015 11:37 AM

Posted By NpS on 05/31/2015 10:59 AM

Posted By MichaelR10 on 05/31/2015 9:48 AM

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

Who owns your roads? Do you have any outside lights or signs that the association owns? What about trash pickup? Do you pay someone to maintain the strip of grass? Do you pay dues? How much?

HOA owns up to 2 feet into the road, the city has an easement and owns the road itself sitting on easement. We have no signs nor lights. There is not enough room for any and we were organized in an area too small for any. Trash is city run for the entire city. Its a mandatory utilities. We pay someone to maintain the grass. We collect dues yes, we are currently voting to reduce dues since several of our members are retired and on fixed incomes.

Just to be clear, dues should be set based on operating expenses and anticipated future requirements (in the form of reserves). Just as your local supermarket doesn't charge you based on what they think you can afford, they charge based on the cost of goods plus the cost of selling them to you.

If an analysis of your finances shows dues are higher than they need to be, then set them appropriately based on that, not because some owners would like to pay less. Based on the fact that you have no budget for legal and possibly no reserves for future requirements, my guess is that they are not too high at this point.

Escaped former treasurer and director of a self managed association.

JeanI (Louisiana)
Posts: 112

Posted:

You may want to contact CAI (Community Associations Institute) They may be able to help you or at least put you in touch with other HOA's in Texas. JMI

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By MichaelR10 on 05/31/2015 11:37 AM

Posted By NpS on 05/31/2015 10:59 AM

Posted By MichaelR10 on 05/31/2015 9:48 AM

Posted By NpS on 05/31/2015 8:37 AM
Instead of focusing on your problem tenant, why not tell us a bit about what your association does for your community.

The recommendations here have probably exhausted the free legal services that might be available. Perhaps some non=legal advice could help.

We have only just set up. our developer just handed over the reigns to us. right now we have hosted several association get together and cook outs in our private cul-de-sac. We have several more planned.

we meet regularly and are in discussions to improve/beautify our tiny 200 sqft common area strip of grass.

Who owns your roads? Do you have any outside lights or signs that the association owns? What about trash pickup? Do you pay someone to maintain the strip of grass? Do you pay dues? How much?

HOA owns up to 2 feet into the road, the city has an easement and owns the road itself sitting on easement. We have no signs nor lights. There is not enough room for any and we were organized in an area too small for any. Trash is city run for the entire city. Its a mandatory utilities. We pay someone to maintain the grass. We collect dues yes, we are currently voting to reduce dues since several of our members are retired and on fixed incomes.

Michale

You are crying poor mouth yet are considering lowering dues. I am suggesting you do not have your priorities in order.

MichaelR10 (Texas)
Posts: 9

Posted:

I voted to increase dues. I am out voted by the remainder of the members who want it lowered. I have a friend who is a lawyer in another state giving me free advice for now, but cannot act in the state of Texas, as well does not know the laws here well enough.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By MichaelR10 on 06/01/2015 2:52 PM
I voted to increase dues. I am out voted by the remainder of the members who want it lowered. I have a friend who is a lawyer in another state giving me free advice for now, but cannot act in the state of Texas, as well does not know the laws here well enough.

Michael

Typically owners do not get to vote on a dues increase. Generally the BOD presents a budget and the dues structure (increased or not) for the next year. The members can vote to disapprove the budget (usually requires a Quorum, in your case 6 of the 10 and all voting to disapprove). If they do then last years dues and budget stay in place. If they fail to do so then the new budget and dues go into effect.

Me thinks your association might be making its own rules.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By MichaelR10 on 05/31/2015 11:37 AM
We collect dues yes, we are currently voting to reduce dues since several of our members are retired and on fixed incomes.

Forgive me for being blunt. However, that is simply a bad decision.

Assessments (dues) should be based on expenses, period.

You create a budget based on current expenses with known or expected increases. Add up the expenses and divide by the number of lots/units (or percentage of units for some condominiums) and that is the amount the assessments need to be.

Failure to set assessments to meet expenses will most likely result in deferred maintenance or underfunded reserves. Both of those, over time, may affect property values (as buyers may shy away causing sellers to lower the asking price).

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By JohnC46 on 06/01/2015 3:15 PM

Typically owners do not get to vote on a dues increase. Generally the BOD presents a budget and the dues structure (increased or not) for the next year. The members can vote to disapprove the budget (usually requires a Quorum, in your case 6 of the 10 and all voting to disapprove).

Isn't that effectively voting on an increase in assessments?

Additionally, some governing documents require membership approval to increase assessments over a set amount or percentage.

KerryL1 (California)
Posts: 14,550

Posted:

Not only is Tim's reasoning correct, another problem with underfunded reserves and the deferred maintenance that goes with it is the danger of a special assessment to fix something that suddenly gives out.

That's the main reason why neither lenders or buyers want to see underfunded reserves.

What do your documents and TX law say about assessments. Does the Board have complete authority to decide (if raised under a certain %) as in CA? Or do H/Os also have a voice as in SC?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sorry for repeating what Douglas said on setting assessments. I missed his posting on the topic.

Douglas is 100% correct.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 06/01/2015 4:17 PM

Posted By JohnC46 on 06/01/2015 3:15 PM

Typically owners do not get to vote on a dues increase. Generally the BOD presents a budget and the dues structure (increased or not) for the next year. The members can vote to disapprove the budget (usually requires a Quorum, in your case 6 of the 10 and all voting to disapprove).

Isn't that effectively voting on an increase in assessments?

Additionally, some governing documents require membership approval to increase assessments over a set amount or percentage.

Tim

Effectively and actually can be two different things. In our case, the members would have to call a Special Meeting to "disapprove" (10% to call the meeting, 50% attending/proxy for a quorum) the BOD submitted budget and annual assessment. Can they do it? Yes. In actuality could they mount such "a movement" (50%), I doubt it unless it was an out of sight increase. Of course to some, any increase is an out of sight increase......LOL

In our case, any Special (additional) Assessment must be voted on but the Annual Assessment (dues) is as above.

I was suggesting to Michael that maybe his association is not following their Covenants/Bylaws.

CyrstalB (Maryland)
Posts: 457

Posted:

Screw the roads for now, you need money for future attorney fees if you have a bad tenant. And I would greatly be surprised if you could find a lawyer who would do any sort of pro bono work for an HOA.

I get why some feel they should lower the assessments when discussing affordability, but if that is seriously where you all are, you should consider disbanding your HOA all together.

Also, just to be sure, how is it documented that two HOA's share the cost of road repairs etc with the county? I am curious as to how the county can pull that off!

JonD1
Posts: 2,350

Posted:

Sadly this is an all to common mindset among folks today. You buy into a property which you really can't afford, you have issues that should be expected and need funds to deal with them, you then seek salvation from some entity such as the tooth fairy, and in the next breath you state your plans to lower your own common charges when you lack sufficient funds already. Does this sound like it makes sense to you really?

You have a problem tenant and owner, who doesn't? That's part of HOA living. You lack the funds to address the problem so you decide it best to now LOWER the amount collected because some folks are on fixed incomes.

Sounds like real poor planning to me. In an association where the owners took over just 6 months ago.

Learn how to create an actual budget to cover your operating costs. Divide those costs between the owners and collect that amount. And give up the fantasy there exists some group out there that will fund YOUR obligations because you have decided to use your money elsewhere.

With home ownership comes responsibility.

PitA
Posts: 311

Posted:

ps.

as a corporate director your Fiduciary Duty is to the corporation and its' maintenance and operation

that WILL cost money and require PROPER funding for ANTICIPATED expenses

Just read the Covenants and Bylaws and simply do your job.

the job YOU volunteered to do

or

move on down the road