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DavidF22 (New York)
Posts: 91
Posted:
I know that New York is notoriously lax in governing HOA operations compared to other states. However, I am wondering if any NY HOA members have had any positive experiences in complaining to the Attorney General over HOA conduct.

Specifically, I know that our HOA is not complying with certain elements of the state's Not-For-Profit Corporation law that governs us and supersedes our community bylaws. If I complain to the AG, am I going to be blown off, and told to hire an attorney to fight it out in court, or will the agency actually investigate and take action if violations are found?
TimB4 (Tennessee)
Posts: 21,059
Posted:
David,

Personally, I suspect you will be "blown off."

The reason would likely be because the AG is more concerned with criminal laws vs. civil laws. Most corporate statutes are civil laws. Civil laws are handled between the parties involved or through the courts.

If your State has an ombudsman, that may be an avenue to look into.
AugustinD
Posts: 5,144
Posted:
In my state (which is not New York), at my former HOA, a Member tried complaining to the state attorney general. The state attorney general said they do not involve themselves in HOA disputes. Like Tim said, HOA disputes are typically a civil matter. A HOA's governing documents or the state's statutes on HOAs or condos typically indicate that "relief" from HOA abuses may be sought through judicial remedy.

New York has some amazing law for condos, due to their prevalence in the NYC area. Where I am, I think HOA and condo members would have a lot more power were New York law applicable here.
DavidF22 (New York)
Posts: 91
Posted:
Thanks for the feedback. When you talk about "amazing law," you may mean New York City condos and coops. I'm not sure we really have any power here in the suburbs unless we have the money to launch a lawsuit. From everything I hear and read, our HOA can violate just about any aspect of the NY law governing it without penalty, unless it is sued by homeowners. So, for example, our HOA has no conflict-of-interest policy whatsoever, which is an absolute must under NY law. But I'm assuming that if I go to the AG to complain, that agency will just tell us to go sue the HOA. So you basically only have justice if you can afford it.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By DavidF22 on 12/19/2017 7:48 AM
So you basically only have justice if you can afford it.


-- If your Board is running legitimate elections, then I think any competent HOA attorney will tell you that getting a like-minded group together and winning a majority of the Board seats is the least expensive and usually the quickest way to correct a Board that is not acting lawfully.

-- If your Board is using an attorney and has insurance for the HOA, then a letter of demand can often get results and can cost you nothing but an hour or so to draft and send it (certified mail).

-- It is true that at times HOA owners only have justice if they can afford it. Perhaps it is hell for those of us who have the income to qualify for a mortgage, or the savings to buy outright, a decent home or condo; who can afford to live away from crime-ridden neighborhoods without HOAs; who have the education to ask intelligent questions like yours and the education to find solutions without taking up guns. I think most judges would say, "Look at my docket. Look at these many criminal cases I am dealing with to keep your community safe. And you want to clog up my courtroom because you do not like how your HOA board does not handle parking or sets pool hours you do not like or does Minutes that you think are inaccurate? The system says you will get your day in the court. But given my overall job responsibilities, don't think I am elated to hear your case."
SheliaH (Indiana)
Posts: 6,964
Posted:
Here's a link to a document from the NY AG on handling problems with your HOA

https://ag.ny.gov/sites/default/files/pdfs/bureaus/real_estate_finance/HOA%20problems.pdf

This is a start, but I agree with AugustineD that the best way to handle this would be to rally together your neighbors, go to the meetings and demand the board straighten up and fly right - or recall them and put in people who will behave in a more transparent manner (and you may need to be one of the homeowners who step up). Remember, the homeowners, not the Board, hold the power - it's up to you and your neighbors as to whether you start using it or continue to sit at home fuming or watching TV, hoping the problems will resolve themselves.

By the way, Augustine, your comment on how some judges might look at HOA issues really nailed it!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
KerryL1 (California)
Posts: 14,550
Posted:
Sorry you're having troubles at your HOA, DavidF.

But to write that "the HOA" is doing thing wrong or illegally isn't quit right. It's you HOA's board of directors. You and all other owners ARE the HOA.

Augustine is right: " If your Board is running legitimate elections, then I think any competent HOA attorney will tell you that getting a like-minded group together and winning a majority of the Board seats is the least expensive and usually the quickest way to correct a Board that is not acting lawfully."

Sheila echoes him. You don't even need to pay an attorney for an hour IF several owners can band together, make sure they understand how to proceed correctly, and throw the bums out at the next election. Several of us on this site have done exactly that!

Sheila mentions attending board meetings with others and putting the pries sure on the Board. That's good too, but I don't think NY rehires that HOA boards hold open meetings, right? Does yours?

AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SheliaH on 12/19/2017 8:30 AM
Here's a link to a document from the NY AG on handling problems with your HOA
https://ag.ny.gov/sites/default/files/pdfs/bureaus/real_estate_finance/HOA%20problems.pdf


The above document is fantastic. It cites the exact HOA and corporation laws HOA members can use get some cooperation from their boards. Good job, Shelia.
DavidF22 (New York)
Posts: 91
Posted:
I appreciate all the well-meaning comments. They would be very helpful if we had a normal situation. But we don’t. We have documented incidents of self-dealing on the Board, as well as conflicts of interest involving directors and vendors, rigged elections, no-bid contracts, proof that at least one longtime vendor has been offering free services to directors, written documentation that a past Board approved a homeowner’s appropriation of extra community paid water for his personal use (this character now essentially “runs” the Board) and a host of other problems. The monthly newsletters we get are loaded with lies or omit key information.

Surprisingly, these and many other shenanigans have had little impact beyond the third of the community who is seriously concerned and want the current regime out. The rest are either uninvolved or supporting this regime. We know not why they give their support, but we can take a guess. Last year, a new Board came in, started to uncover this dirt and relayed it to the community. We caught the landscaper padding snow removal bills and when we recovered $4,000, we were blasted by some for mistreating the landscaper. We hired a second roofer to perform repairs and our repair costs suddenly dropped by two-thirds. Some people were upset that we weren’t being nice to the original roofer, who had been overcharging us. When we announced we were going to replace the longtime painter with someone far better and cheaper, we got an impassioned letter from former Board members and the current regime’s supporters asking us to keep the old guy. After we hired the new painter and started to go through the community to identify touch-ups, one of the signers insisted on meeting with the new vendor privately. We refused. For all of our honest and transparent work, including the saving of $40,000 over nine months, last year’s new Board was narrowly voted out after members of the current regime had circulated a letter full of lies to the community attacking us. During the election, our secretary identified a number of homeowner proxies with the same handwriting.

We would welcome any advice on how to deal with this situation and try to understand the motivation of the supporters of this current awful Board. I fear it will take a psychiatrist rather than an HOA expert. We are almost thinking we need to create our own “opposition party” within the community and put out our own newsletter with the truth.

Also, thanks for the link to the NY AG document. I’m very familiar with it, especially the ending, “Good luck!” The only words missing are: “You’re on your own.”

RichardP13 (California)
Posts: 3,868
Posted:
Been there, done that. Had the same thing happen, almost word for word and letter for letter where I once lived. Quite frankly, people really don't care. Hate to bring politics into this, but people will not care about the integrity of candidates, as all you have to look at is 2016.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By DavidF22 on 12/19/2017 10:22 AM
I appreciate all the well-meaning comments. They would be very helpful if we had a normal situation. But we don’t.


In my experience with three HOAs and after years of reading on the subject, I think the abuses you describe are pretty common. Also, I think apathy is the rule. So many beat their heads against the wall with volunteer board members without adequate skills or motivation to achieve the same. For many, including myself, I think it is best to move to the countryside either far away from HOAs or with a HOA with a tiny budget per capita and as few covenants as possible. Keep one's head down and remember that, unless one is willing to step up to do all the work, it might be easiest to accept the mediocrity and not complain.
KerryL1 (California)
Posts: 14,550
Posted:
I, DavidF, don't agree with Augie & Richard's complete pessimism, though it's true that often a majority in an HOA can be uninterested.

In our HOA, a group of us did get together, studied, our docs, mounted a mail campaign for 3 of us and became a minority on the Board. A year later, we good guys were the majority on the Board. There was nothing, to use your word, "normal" about our previous board and their abuses. It did take knowledge and hard work.

I'm curious how you're using the word "we." almost sounds like you & some others actually did make some headway. But then you were voted out? Does your Board turn over every year?

What size is your Board. Your HOA? Do you have an honest property mgr.?
DavidF22 (New York)
Posts: 91
Posted:
Quote:
Posted By KerryL1 on 12/19/2017 11:44 AM
I, DavidF, don't agree with Augie & Richard's complete pessimism, though it's true that often a majority in an HOA can be uninterested.

In our HOA, a group of us did get together, studied, our docs, mounted a mail campaign for 3 of us and became a minority on the Board. A year later, we good guys were the majority on the Board. There was nothing, to use your word, "normal" about our previous board and their abuses. It did take knowledge and hard work.

I'm curious how you're using the word "we." almost sounds like you & some others actually did make some headway. But then you were voted out? Does your Board turn over every year?

What size is your Board. Your HOA? Do you have an honest property mgr.?

Yes, all five Board members run every year in our community of less than five dozen homes. I was among the majority who tried to run the place with more honesty, transparency and efficiency. Along the way, we lifted up a lot of rocks and uncovered a whole bunch of nasty stuff that was probably upsetting to some longtime residents and former board members in the community because of their current or past involvement. One such character was behind the letter of lies sent to the entire community before last year's election, and he and his buddies worked to get us off the Board by coercing residents to hand over their blank proxies or voting for his own slate. We also had one spy on the Board, who did no work but fed information from our Board meetings back to the slate. He later joined them in running against us.

We don't have a real property manager or management company in the traditional sense. The Board handles the big jobs itself -- I know not why -- so the management company has been more of a facilitator, handling the money and directives from the Board to perform minor tasks. The management company also places the concerns of its preferred stable of contractors far above the concerns of our commmunity.

When we tried to get the management company to do a real property management job as defined in the contract, they resisted and later supported the opposition slate. The landscaper, who was caught by us padding the snow removal bills, even wrote a letter supporting the opposition slate. In short, all of those who stood to profit -- through no-bid contracts or personal favors or special privileges not given to other homeowners -- are now in power. Thanks to this new, corrupt slate, the community is now divided with little hope of change until some of the cancers in the community are somehow removed.

It reminds me of those movies where a tyrant takes over a town in the Old West and the citizens are helpless until someone like the Lone Ranger shows up. Our problem is that half of the homeowners would chase the Lone Ranger out of town and continue to back the tyrant.

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