Update on our HOA

A while back I posted about our HOA in Maryland. We have 126 townhouses in our little community, no pool, nothing. Just some grassy common areas. It got out without the Board telling the members we were in debt up to $15,000. A petition was sent calling for a meeting. To make a long story short, we didn't have a quorum to vote for a special assesstment of 120. to each homeowner. So another meeting was called. The memebers present convinced the Board to hold the meeting at the nearby school, since where they were meeting was too small. We asked that they send out a letter about the meeting and explaining what the special assessment was for.

A week later, the letter came with a simple 'Meeting at H....Elem. on date and time) that was it. So we typed up a notice and put it on the mailboxes (the Board took down our marquees)
and 52 people showed up. Some had no idea what the SE meant. Some were full of questions of how we got to this place. Only two board members were present and the property manager. The President was rude. Always is. Scolds people and shuts them down. She insisted along with the property manager that the reason for the debt was due to the removal of bulk trash and snow removal.

A vote was taken and it passed. My wife and I now regret it. I spent over a week researching state to local documents concerning our HOA.
I found out.

We are not in good standing with the state of Maryland for failing to file something in 2017. Haven't found out what yet.
Our HOA is owed over 18,000 in dues. Some homeowners haven't paid in several years. We were told at the meeting we were doing well with dues. A lie.
After reviewing the April budget (asked for the year and they wouldn't send it) and looking into the billing, the bulk trash and snow removal are not the issue. A lack of dues is!
None of the members at the meeting were told this.

Also the President insisted we did not have our annual June meeting and elections because she wanted to take care of the SP. I commented that was a poor reason and so she and the others are on the Board months after what they are suppose to be...a violation of the CRR. No one seemed to be bothered by this...or they just did not know what to say or how to handle it. So they next meeting, with elections is in September. Get this, the President, she wants to discuss bulk trash and replacing streetlights!

We've been alerting our neighbors to the truth of what is really going on. In the past, dues were mostly paid, but those that weren't were taken to small claims court. The property manager said 'We can't make them pay,' and someone challenged her and was shut down. She and the president insisted that small claims court does not work that the judge will go in favor of the homeowner not the community. So they go through a lawyer, stacking up thousands of dollars they think they will recoup if the homeowner pays up. But with a lien they don't have to pay until they sell.

We are going to suggest that the Board abide by the covenants that if a H is delinquent then they lose their use of the common areas, which include the parking spaces they were allotted. This might shake things up and be a motivator.

So my question is, how does your HOA go about collecting dues from delinquent homeowners?

We consider (and normally file) a lien if an owner becomes more than 90 days delinquent in assessments. We send a few reminders and notices along the way but it gets turned over to our attorney after 90 days.

If you would, please.... what's SE and SP?

This was likely the annual report. The annual report is simply filling out a form of basic questions and submitting the filing fee. This can be remedied if done quickly enough. If too much time passes, then you have to re-incorporate.


30 days late - written notice
60 days late - written notice
90 days late - written notice sent via certified mail
120 days late - written notice and notice that the issue is on the agenda for the board to consider turning the issue over to the attorney for collections.

Typically, the issue is turned over to the attorney and legal action is taken. The lien is recorded and, if need be, the home is foreclosed on.

You might regret starting some of this, but you really had no choice. This is your home and if you're going to live in a homeowner association community, you have every right to expect that services are provided and the board is working in the interests of all homeowners. It may take a while to get this fixed and you can't do it alone, nor should you. Do what you can to light a fire under your neighbors - sometimes that's all it takes for them to wake up and stay woke. If no one else says it, I congratulate and commend you on getting involved!

Part of your problem is that you seem to have a dingdong for a president and property manager. In many associations the board is elected by the homeowners and the board then selects officers from among themselves - if that's the case in your association, why are the other board members letting this lady run amock? Start putting pressure on them - if they can't or refuse to put this president in check or appoint someone else, you and your neighbors will have to consider recalling the whole bunch and put in people who will do the job properly (yes, you may have to volunteer to be one of them). Check your documents to see how recalls are done or how to call a special homeowners meeting to discuss the matter.

Once you sack the president (and perhaps the entire board), you might want to do the same with the property manager (when you say things like "we can't make them pay" without even suggesting an attorney be consulted to see what CAN be done, you really shouldn't be managing anyone's property).

As you see from the other responses, collections begin with a policy that's applied consistently and fairly.
All homeowners should know what it is, so if you don't have a policy, develop one, send it to the homeowners, telling everyone enforcement begins NOW. Every two years or so, review the policy to see what's effective and what may need to be strengthened or dropped.

The homeowners should be told the reason bulk trash pickup and streetlight replacement is an issue is because some of them aren't paying their fair share. These services aren't free and they are a small part of what the association provides - if they don't want to pay, they need to move elsewhere because it's unfair for others to pay while they sit and do nothing - and still get services.

Check your documents, see what they say regarding delinquencies - the board may already have the power to suspend amenities until the account is made current. In addition to losing access to the clubhouse, pool, etc., they may also suspending voting rights. Generally, this means they won't be able to serve on the board or vote in board elections, but it doesn't apply to homeowner approval of amendments made to the CCRs or Bylaws. The delinquents may not care about elections, but that may not be true about losing a parking space.

PS: suspending the parking spaces can be dicey, especially if someone has a handicapped sticker, so discuss this with your attorney first.

As far as legal actions go, my community did a little of everything - some people were sued in small claims court, some negotiated payment plans, some declared bankruptcy (which is another long conversation) and we attached liens, then enforced them. There are advantages and disadvantages to everything depending on the situation, so talk with the association attorney to come up with a basic strategy. Start with the nastygram and work your way up to foreclosure by association.

Foreclosures should ALWAYS be the last resort and you need to understand that most of the time the association loses out because the mortgage company's interests usually supersede the association's and you won't get paid until they get paid. In the end, you might not get anything, except the satisfaction of the homeowner moving out (the new owner generally wont' be responsible for the previous debt). Again, sit down with the association attorney to educate yourself on the pros and cons of everything, so you'll have a general idea of how to proceed and it will vary by homeowner.

And sometimes that's all it takes for those who like the status quo to brand you a troublemaker.