Texas Debt Collecting Attorneys

Started by SueC4 • 38 replies • 1345 views

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SueC4
Posts: 49

Posted:

Can a Texas HOA (filing IRS 528 Texas Property Code 81 or 82), hire a debt collecting attorney without an agreement or contract? I ask for one and the attorney said he didn't have to have a contract and then the attorney quit twice but never collected the debt. It's been two years and the fees are still on my account. If I ask any questions of the HOA, more legal fees are added to my account, they say because they don't understand what I am saying???. So I cannot talk to the board without legal fees being added. There is no communication with the board without costs! They have refuse payment of the assessment twice because I didn't do what the attorney said. I said the attorney isn't backing up his settlement offer in writing which requires a contract that outlines all the fees and purpose of the attorney hired by the HOA. Looks like they are using an attorney out of spite. The debt collecting attorney works for the developer's law firm.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sue,

You should have received a written letter about the debt from the attorney. If you keep all communications in writing to the attorney, the attorney will provide written responses back.

Acting as a collection agent, the attorney must comply with the Fair Debt Collection Practices Act (FDCPA). If you believe that this isn't happening, make a complaint to the FTC (federal trade commission) and, if applicable, the State Bar of Texas.

Typically, once an Association turns delinquent accounts over to the attorney for collection efforts, all payments and communications are done through the attorney.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Our HOA attorney's practice has a debt collections department who handles our past dues collections and credit bureau reporting is one of their tools.

Look for a law practice that has such.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By JohnC46 on 03/12/2018 2:44 PM
Our HOA attorney's practice has a debt collections department who handles our past dues collections and credit bureau reporting is one of their tools.

Look for a law practice that has such.

From the sound of it, Sue is on the receiving end of a collection effort, I don't think she's asking about finding an attorney who can also handle collections for her association.

SueC4
Posts: 49

Posted:

The FTC states that an agreement or contract must be signed by the HOA and so does the Texas Property Code. The HOA and Debt Collecting Attorney say they don't. They are clearly going against code. So I have to spend more money to fight them?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By SueC4 on 03/12/2018 3:28 PM

So I have to spend more money to fight them?

No.

You have to spend money to pay the delinquent amount plus charges.

You can still file a complaint with the FTC and if the FTC determines that a violation of the act exists, they will take action. If the FTC takes action, that would certainly be a basis for filing a complaint with the State Bar.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Note: If you write a letter to the Attorney and ask how much to settle the account, they should respond in writing the amount. I'd send it by email if you want a quick turn around.

If you can pay that amount, do so and you will be done dealing with the attorney.
If you can not pay that amount, offer a payment plan - keeping in mind legal fees and late charges may continue until the amount is paid in full.

Bottom line, you are stuck dealing through the attorney (vs. dealing with the HOA directly).

SueC4
Posts: 49

Posted:

Quote:

Posted By TimB4 on 03/12/2018 4:41 PM
Note: If you write a letter to the Attorney and ask how much to settle the account, they should respond in writing the amount. I'd send it by email if you want a quick turn around.

If you can pay that amount, do so and you will be done dealing with the attorney.
If you can not pay that amount, offer a payment plan - keeping in mind legal fees and late charges may continue until the amount is paid in full.

Bottom line, you are stuck dealing through the attorney (vs. dealing with the HOA directly).

But the attorney is not under contract. He is not backing up his work for the HOA with an agreement. He is just giving friendly advice.

BillH10 (Texas)
Posts: 1,217

Posted:

Sue, Texas POA laws have their own unique attributes, as do those in many other states. The advice you receive from others on this forum will be sound but may not address the specific issue(s) you have with your association.

It will enable those of us who are perhaps more familiar with the relevant sections of the Texas Property Code to offer advice if you could provide a brief synopsis of your situation. For example:

Delinquent balance is on your account dating to January 2017 due to non-payment of assessments because why, what was the issue in the first place?. The Association followed its published collection practice or guidelines when payment was not received, matter was referred to association attorney in July 2017. First letter from attorney received, etc. etc. Past due late payment charges, interest, and attorney charges have been added to my account. Something like the foregoing will be most helpful as will be a description of what it is you wish to accomplish by questioning whether or not the association and attorney are following proper association, Texas, and FTC rules.

In my mind, and as someone suggested previously: if you owe the money, pay it as it will stop the bleeding. Was the amount in dispute a proper and lawful assessment? Are you disputing it or something else and withholding payment as leverage.

Are you in a condominium or an HOA? If a condominium, which section of the property code are you under? Section 81 (condominiums established prior to January 1, 1994 under the Texas Condominium Act or Section 82, for associations created on or after January 1, 1994 under the Texas Uniform Condominium Act. However, condominiums created under Section 81 may have opted to be subject to Section 82 in certain circumstances.

SueC4
Posts: 49

Posted:

Thanks Bill- A Reality Company manages a master association with sub associations , all of which have no federal tax id numbers or state tax id numbers. They don't exist.

BillH10 (Texas)
Posts: 1,217

Posted:

Thanks Sue but I don't understand what the tax ID numbers have to do with your situation. Is the master and are the sub-associations still under developer control?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By SueC4 on 03/13/2018 8:21 AM

But the attorney is not under contract. He is not backing up his work for the HOA with an agreement. He is just giving friendly advice.

Sue,

I'm on my Board and I have, with Boards approval, turned collection issues over to the Attorney.
The closest thing the Association has to a contract with the attorney is my email:

[Name of attorney],

I hope this email finds you well. The [name of member] have again fallen far enough into delinquency that the Board is sending the file to you for collection action.

If you receive anything in writing from the attorney or are being told by the Association to talk to the attorney on this matter, the attorney is acting as the collection agent for the Association. You will likely never see any contract between the Association and the attorney (attorney client privilege).

Again, my suggestion is:

Write the Attorney, copied to the board, requesting a breakdown of charges (assessments, late charges, interest, legal fees) and the total amount needed to settle the matter.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Are you saying you don't believe the attorney has a right to collect the dues because there is no contract with you and the HOA to pay them? Have a feeling that is what your hinting around to. It's not that the HOA attorney they hired to collect the debt doesn't have a contract. It's that there is no written/signed contract between you and the HOA to pay dues. Is that what your looking for when you refer to a contract?

Former HOA President

SueC4
Posts: 49

Posted:

Yes Melissa - all attorneys must write what they agree to dispute. This attorney quite twice.. refused my payment twice...just asking WTF?

SueC4
Posts: 49

Posted:

Yes Melissa - all attorneys must write what they agree to dispute. This attorney quit twice.. refused my payment twice...just asking WTF? There is only so much railroading I'm going to take.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Where are you getting that ALL attorney's are to have this in a contract? Just curious. The HOA is only allowed to collect past uncollected dues, legal/collection fees, and possibly interest. Late fees and/or interest can sometimes be negotiated if one is willing to pay the past dues. Otherwise, those can be attached in the collections.

Your CC&R's of your HOA (Publicly available at the courthouse) should have what the HOA can collect. Ours even has the interest rate we can charge. Which is like the prime rate plus 5%. Which usually varies every day and state.

I don't know why the attorney did not collect or what the HOA has contracted for them to do. That sounds like something need to ask the HOA about.

Former HOA President

SueC4
Posts: 49

Posted:

The Texas Property Code requires an agreement or contract with a debt collecting attorney.

SueC4
Posts: 49

Posted:

..and when I ask the HOA..I get billed $200.00 more in attorneys fees. With no explanation or account sent to me. I have to ask what my balance is and now its around 4800.00 to place a lien.

NigelB (Texas)
Posts: 254

Posted:

HOA's in Texas are governed by the Texas Property Code. They are required to have a published debt collection policy. There is no requirement that the HOA have a contract with a debt collector in order to collect a debt.

When an account becomes delinquent, the HOA has the right to assess interest against the debt, prior to sending a debt to an attorney for further collection the HOA (or its management company) may pull a credit report, run a property report to determine the legal owner of the property, and file a lien. All of these charges may be charged to the delinquent account. There are also generally monthly charges by the management company to maintain the account. A delinquency can quickly double in very little time with interest, legal fees, and other authorized charges.

The HOA is required under Texas law to offer the delinquent owner a payment plan in order to settle the debt, payments go first to delinquent assessments, then current assessment, then other assessed fees.

You should have received letters from the attorney specifying what the delinquency was and what is necessary to settle the amount. Any failure to comply with chapter 209 of the Texas Residential Property Owners Protection Act could invalidate any added charges to the account other than the delinquent assessment(s).

Your best action is to request a complete accounting of the unsettled debt, and attempt to negotiate the payoff by agreeing to enter into a payment plan. You might find that the HOA will be willing to waive some of the added charges, but there's no requirement that they do so. In fact, many of those added charges are for legal fees which have been paid to the management company or the attorney in the attempt to collect the delinquent assessment(s).

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By SueC4 on 03/14/2018 3:27 PM
The Texas Property Code requires an agreement or contract with a debt collecting attorney.

What section of the property code is that, because I cannot find it.Sec. 209.0064. THIRD PARTY COLLECTIONS

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Well then I would stop asking if they charged me. The reason they are charging you is that they most likely feel they need to contact an attorney to answer your questions. Lawyers do not work for free. So they have to pass along that expense onto you or they have to pass the cost to ALL members. Can you guess what the other members will say if they wonder why part of their dues going to pay legal bills to answer your questions?

Now I am NOT in agreement with this practice your HOA is choosing. It's NOT what I would choose to do in my HOA. However, playing Devil's advocate here, what they are doing is actually legal and correct. It is considered "Damages" to the HOA for incurring these legal costs. Plus they most likely have a lawyer (legal firm) whom is not above scrutiny in their practice.

Remember your NOT dealing with professionals in a HOA. Your dealing with neighbors. Some HOA's you may have knowledgeable and experienced on your board. Others you may have a group of individuals so paranoid about legal action that they believe EVERYTHING must go through a lawyer. Of course in your case, that lawyer is probably telling them that they can pass their "consulting" fee onto you. (Beware of any lawyer that states "I will do anything you tell me to do...They will but not by educating you in other options).

My best guess is your HOA is operating by the "Consult the lawyer" in anything that smell legal and pass it along to the inquirer. Which my best advice is to just pay the balance ASAP. Your not dealing with the most intelligent of people. Those are the most dangerous to your wallet and in court. You can always pay it and consult your own lawyer on the matter. That is because once you pay that amount, then it is "damages" you incurred.

Remember suing your HOA is suing yourself and your neighbors. So I would strongly advise you that if your lawyer does say you have a lawsuit, be prepared that you should be keeping up with your dues. It will paint you in a better light. Your HOA may have to pass a special assessment to pay for the legal cost of their legal consultation.

Former HOA President

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By SueC4 on 03/14/2018 3:27 PM
The Texas Property Code requires an agreement or contract with a debt collecting attorney.

An agreement is not necessarily a contract, it can simply be an agreement. In other words "here's a debt, please collect it for us". I really think the main consideration should be (1) Are there unpaid assessments
(2) Are you willing to pay them
(3) If you cannot pay the balance outright, are you willing to enter into a payment plan as required under the property code

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By MelissaP1 on 03/14/2018 4:03 PM
Well then I would stop asking if they charged me. The reason they are charging you is that they most likely feel they need to contact an attorney to answer your questions. Lawyers do not work for free. So they have to pass along that expense onto you or they have to pass the cost to ALL members. Can you guess what the other members will say if they wonder why part of their dues going to pay legal bills to answer your questions?

Now I am NOT in agreement with this practice your HOA is choosing. It's NOT what I would choose to do in my HOA. However, playing Devil's advocate here, what they are doing is actually legal and correct. It is considered "Damages" to the HOA for incurring these legal costs. Plus they most likely have a lawyer (legal firm) whom is not above scrutiny in their practice.

Remember your NOT dealing with professionals in a HOA. Your dealing with neighbors. Some HOA's you may have knowledgeable and experienced on your board. Others you may have a group of individuals so paranoid about legal action that they believe EVERYTHING must go through a lawyer. Of course in your case, that lawyer is probably telling them that they can pass their "consulting" fee onto you. (Beware of any lawyer that states "I will do anything you tell me to do...They will but not by educating you in other options).

My best guess is your HOA is operating by the "Consult the lawyer" in anything that smell legal and pass it along to the inquirer. Which my best advice is to just pay the balance ASAP. Your not dealing with the most intelligent of people. Those are the most dangerous to your wallet and in court. You can always pay it and consult your own lawyer on the matter. That is because once you pay that amount, then it is "damages" you incurred.

Remember suing your HOA is suing yourself and your neighbors. So I would strongly advise you that if your lawyer does say you have a lawsuit, be prepared that you should be keeping up with your dues. It will paint you in a better light. Your HOA may have to pass a special assessment to pay for the legal cost of their legal consultation.

The way things generally work in Texas is that the management company hired by the HOA begins initial collection attempts.

In the case of our HOA, the assessment is due at the end of January.
February a 209 letter (complying with Texas law) is sent to the homeowner advising of the debt and that a payment plan is available.
March a credit check is done, and the homeowner is advised of the delinquency and added charges to settle the debt
April a title search is done, homeowner gets letter advising of delinquency and the added charges
May homeowner is sent letter advising if there is no response a lien will be filed
June lien is filed, homeowner gets letter showing total amount owed and is advised that debt will be turned over for collection
July file is forwarded to association attorney and the letter process begins again.
In all of these months interest, legal fees, cost of title search, credit check, lien filing, monthly admin fee of $20 accrues to the account. This is because all of these fees are directly charged to and paid by the association.

There is no consulting fee - the fees charged by the attorney in collecting the debt are legally applied to the unpaid balance of the account. Texas law is very explicit in what an HOA may do in furtherance of collecting unpaid assessments, and courts are reluctant to foreclose unless all the hoops have been jumped through.

In this case the real questions should be, why did it get to this point, as Texas law is very clear that by the first month of default the debtor must be offered a payment plan. We try to be accommodating to folks that fall behind and will waive interest. But in the case of those charges that we have already paid to the management company of the attorney, we have a fiduciary responsibility to ensure that the assessments paid by our members and disbursed in collections attempts are recovered from the debtor.

If the debt is legal then the best practice is to enter into a payment plan as provided for under Texas law

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By SueC4 on 03/14/2018 3:27 PM
The Texas Property Code requires an agreement or contract with a debt collecting attorney.

Please identify the statute (by number)

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Thank you NigelB for that explanation. I am thinking this has gotten this far because my gut says SueC doesn't believe the HOA exists. If the HOA does not exist, then they don't have a right to collect. This is what I am thinking is the root of all of this. Could be wrong.

Former HOA President

BillH10 (Texas)
Posts: 1,217

Posted:

Everyone

While the information contained in Nigel's posts is correct it may not apply to Sue's issue. In Texas, HOA's are governed by Section 209 of the Texas Property Code, Condominiums are governed by Sections 81 or 82 of the Property Code, depending on when the Association was formed.

In her original post, Sue indicates ". . . (filing IRS 528 Texas Property Code 81 or 82) . . . ." which indicates her ownership is in a condominium association. The debt collection practices cited by Nigel generally do not apply to condominium associations unless they have been specifically adopted under the association debt collection policy. The debt collection processes apply to HOA's which fall under Section 209 regardless of language contained in the governing documents.

I asked Sue for confirmation she is in a condominium association a few days ago, along with other information which I believed would be helpful to those attempting to assist her. She has not yet responded.

SueC4
Posts: 49

Posted:

Quote:

Posted By BillH10 on 03/15/2018 7:37 AM
Everyone

While the information contained in Nigel's posts is correct it may not apply to Sue's issue. In Texas, HOA's are governed by Section 209 of the Texas Property Code, Condominiums are governed by Sections 81 or 82 of the Property Code, depending on when the Association was formed.

In her original post, Sue indicates ". . . (filing IRS 528 Texas Property Code 81 or 82) . . . ." which indicates her ownership is in a condominium association. The debt collection practices cited by Nigel generally do not apply to condominium associations unless they have been specifically adopted under the association debt collection policy. The debt collection processes apply to HOA's which fall under Section 209 regardless of language contained in the governing documents.

I asked Sue for confirmation she is in a condominium association a few days ago, along with other information which I believed would be helpful to those attempting to assist her. She has not yet responded.

Sorry about that Bill. I had no idea we were a condo association. The covenants do not say Condo in the title. The City of Austin has a zoning code for single family land condominiums and more than likely that is what the developers (1, leasehold owner that subleased and or sold tracts to 10 other owners, according to court house documents) did in 1991. I have a title policy that states fee simple for property that was purchased to build a house. Under code 81 you can also be a Residential Real Estate Management company if title owners hold more than 50% of the property. Leasehold declarants are holding 80% currently. These are expensive single family homes on an acre of land. The fact that a ground lease is running that has never been acknowledge by the board is frustrating. I disputed the lien because the HOA was not in compliance with retention pond codes and the city states anyone with knowledge of the violations would be fined. I reported the issue. We have two dams that are leaking due to hydrostatic movement because the drains were never cleaned. They are not repaired as of yet. The City is working with the HOA to get them back in code. It was a drastic way to enforce code but it got the boards attention after years of the HOA letting the State Charter lapse. The HOA has been trying to dissolve for years with no explanation to anyone. The problem is, the property I bought can be fee simple and it can be a fee simple unit. Which one is it?.. the covenants are so convoluted lawyers want $50,000 to decipher it. Attorneys, Bankers, Real Estate professionals all say the same thing.."well you can sell your house..right?" I did not buy a lease, I consider what they did theft. There is so much wrong with the development it's ridiculous.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sue

Withholding payments for any reason is a slippery slope and one you deserve to slide down if you did.

BillH10 (Texas)
Posts: 1,217

Posted:

Sue

As John suggests, did you withhold payment of an assessment because the association was not in compliance with code or statute or something?

You mention you withheld payment of a lien. What were the circumstances of the lien?

I just read Chapter 81 and found no reference to a Residential Real Estate Management Company, can you help with a citation?

Your situation seems very convoluted. I'm still not clear on what it is you are seeking to accomplish but, frankly, I would hire the best property law attorney in Austin.

SueC4
Posts: 49

Posted:

First under Deceptive trade practices act you cannot continue/order/or do business with if you know the vendor is in violation and expect to sue after disaster hits. The assessment is the only way to protest. I listed 37 violations the board had committed and gave it to them. Their response was "we don't have to do anything"..?

Second. Texas 14th District Court of Appeals: Nov 2017. GOMO Vs. Chang. Even though a HOA has a deeded right they do not have capacity to sue if their documents are not in order.

Third. I got a loan for the property 2 years before the house was built. I can't find the Deed of Trust loan documents or the bank lien on the property at the Court House. There is no record on the financial side of the transaction.

The most recent HOA financial statements now reflect the HOA pays property taxes, the HOA never did before and the tracts had no value until now. We have no common area.

They file IRS form 1120-H Residential Real Estate Management Company, not Texas property code, IRS code 598.

And of course there are multiple other legal issues the HOA is involved in that I can't go in here.

Also, every past due account for the past 23 years has had no late fees put on their account. The HOA never hired a lawyer. Just placed a lien and let one guy ride 16 years without paying.

The board waived their assessments for two years and the board members never repaid the amount when it was discovered. I think they are further behind than me. No lien has been placed on their home.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Let me clarify a few things... If your board did indeed waive their dues for their "service" then that can't be part of a lien. Hence why they did not have lien placed. Those dues were "waived" for that 2 year period. Now if they stop paying after that, then that money can be liened. This is why we never ever waive dues for any reason.

The person with a lien for that many years... You can keep a lien on a property for many years. It only lifts once you sell the house and pay it off. The person will owe ALL 16 years of non-payment of dues if they ever decide to sell their home. They most likely can't afford to sell it now.

Some HOA's do not want or believe in foreclosure. Due to that it's a "Stop the bleeding" situation for them. NOT a profit making one. So they are better off leaving a lien on the property. 2 things are guaranteed in this world... Death and Taxes. When ya die, that debt is going to be passed on in probate. There goes someone's inheritance...

SueC quite frankly you need to pay the money you owe now and stop the madness. The mess you are in is of your own making. Protesting or proving a point in a HOA leaves you with less money or with no house... Do you really want to keep going down that road when there is a higher one you could be on?

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By SueC4 on 03/15/2018 12:50 PM

The board waived their assessments for two years and the board members never repaid the amount when it was discovered. I think they are further behind than me. No lien has been placed on their home.

That would count as income.
Contact the IRS - I bet an audit letter will get things moving.

you would need copies of minutes showing the vote to waive.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SueC4 on 03/15/2018 12:50 PM
First under Deceptive trade practices act you cannot continue/order/or do business with if you know the vendor is in violation and expect to sue after disaster hits. The assessment is the only way to protest. I listed 37 violations the board had committed and gave it to them. Their response was "we don't have to do anything"..?

Second. Texas 14th District Court of Appeals: Nov 2017. GOMO Vs. Chang. Even though a HOA has a deeded right they do not have capacity to sue if their documents are not in order.

Third. I got a loan for the property 2 years before the house was built. I can't find the Deed of Trust loan documents or the bank lien on the property at the Court House. There is no record on the financial side of the transaction.

The most recent HOA financial statements now reflect the HOA pays property taxes, the HOA never did before and the tracts had no value until now. We have no common area.

They file IRS form 1120-H Residential Real Estate Management Company, not Texas property code, IRS code 598.

And of course there are multiple other legal issues the HOA is involved in that I can't go in here.

Also, every past due account for the past 23 years has had no late fees put on their account. The HOA never hired a lawyer. Just placed a lien and let one guy ride 16 years without paying.

The board waived their assessments for two years and the board members never repaid the amount when it was discovered. I think they are further behind than me. No lien has been placed on their home.

So all this aside, you are withholding paying your associations dues. Am I correct?

SueC4
Posts: 49

Posted:

That is correct. When board members waive their own fee they also expose themselves to personal liability. The covenants state no assessments can be waived. They pierce the veil. During that time they stopped turning in the State Franchise report and was dissolved by the State until it was questioned by a new board member and reinstated. That was 10 years ago, they have no repaid a dime so they are exposed for the decisions made during that time and there were quite a few violations.

I failed to mention I tried to pay twice under duress. The Board refused the check and mailed it back and added another $1000.00 in legal fees. I sent a letter outlining all my concerns. The board had no response.

When an HOA is off course, someone has to make them aware of the liability they put on everyone. The "it's my fault" comment is inaccurate. I have a right and refuse to go along any illegal activity from a HOA board.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

So your wanting to be the "Hero" here for the rights of all or the "Zero" who lost it all? You may be ALL the right in the world but you live in a HOA... It's time to pay up then you begin the "fight" the right way. On equal ground.

I don't see how that opened up the board to any liability in their waiving their dues. It's just a stupid thing to do...

Former HOA President

SueC4
Posts: 49

Posted:

You sound like an attorney Melissa. I know attorneys and realtors that troll sites like this to knock down what they don't ever want to acknowledge about the Real Estate business. I'm not organizing people to protest in the streets. I am stating that I cannot go along with the level of illegal activity that I know is going on. They could of accepted my payment under duress and it would have ended there, but they decided to harass me instead.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sue,

Trust me, Melissa is not an attorney. Neither am I.
There are only two that I am aware of and they rarely post.

What you get on this site is layman opinions based on personal experiences, research and our interpretation of the documents involved.
Being a layman opinion, these could be right on, partially right or totally off base.

Of course, legal opinions can also be right on, partially right or completely wrong.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am NOT an attorney. The HOA is NOT Real Estate business. The things you have stated so far have not been of "illegal" terms. The board voting to not pay dues in turn of their service is NOT illegal nor punishable. It's just bad business decision.

Other things you have stated as well don't fall into anything in the "illegal" whelm or against the rules. I just don't think you may have a full grasp of what is right or wrong in a HOA. Which number 1 is NOT paying your dues out of "protest". It's the absolute worse thing you can do. It makes you a member in NOT good standing. Which means you lose ALL power you may even have. Which is the right to vote. You lose your right to vote for rule changes, voting in or out board members, or really to be considered a good member to be listened to.

I am trying to advice you that if your so dead set to protest, your going about it the wrong way. Which is going to do you the most harm. As for the other members, I am sure once they find out your not paying, they won't support you much. Why? Cause they have to be paying more in their dues or be subject to a special assessment to cover your "issues".

Ask yourself this... Do you see any members who believe in supporting a member who doesn't contribute their fair share and does nothing but complain? If so... Is it you?

Former HOA President

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By MelissaP1 on 03/17/2018 12:24 PM
Which number 1 is NOT paying your dues out of "protest". It's the absolute worse thing you can do. It makes you a member in NOT good standing. Which means you lose ALL power you may even have. Which is the right to vote. You lose your right to vote for rule changes, voting in or out board members, or really to be considered a good member to be listened to.

While it is foolhardy to protest actions or inaction's of an HOA by withholding annual assessments, such withholding of assessments cannot deprive an association member in Texas of the right to vote in any matter affecting the HOA. Section 209 of the Texas Residential Property Owners Protection Act specifically prohibits anything in a dedicatory instrument which would disqualify a property owner from voting (Sec. 209.0059 amended 2015.

Failure to pay lawful assessments can result in a lien being filed and ultimately might result in a lawsuit by the HOA to foreclose on the property. In any event, if everyone in the HOA is paying their annual assessments, it seems reasonable to assume that those assessments are legal, the OP is fighting a battle that she will surely lose. Best action is to enter into an agreement with the HOA either directly or through its attorney and begin paying off the amount owed through a payment plan as provided for in the property code.

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