Hoa unable to use HOA Funds

Started by JimmyT1 • 2 replies • 467 views

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JimmyT1 (Alabama)
Posts: 2

Posted:

I am the Past President of a small HOA. The HOA WAS transferred to an elected board when the developer completed his word in phase one of the development. After three years as President, elections done each year, I transferred all responsibility to The then Vice President, due to selling my home and moving to another state. As I stated , elections were held each year, nominations for each office and voted on by those that even voted. All Banking and signature requirements I held as President were removed by the Bank who held all funds and banking in the name of the HOA. I had my name removed from all duties in writing to the board and the bank. After three years of resigning my office, the Vice-President that took over my Position as President passed away. His wife call me and says that the HOA has been unable to access funds of the HOA as I am still listed as President. My question if I have been gone for three years who has been signing checks and making deposits of the HOA. The Bank says there is no way the HOA can access funds while I am Listed as President. I am unable to travel due to health issues and the Bank states I have to personally appear and remove my name from the banking account. Any suggestons

AugustinD
Posts: 5,144

Posted:

Jimmy, in the order below, try the following.

1.
Banks do not like there being no name on an account. They can be famously, albeit often necessarily, intransigent on issues like this. I bet the problem is that no one at your former HOA has tried to get her or his name added to the account. Call the bank and ask how a name can be added. Typically the bank wants a notarized copy of Minutes saying Jane Doe or John Smith or whoever was elected President of such-and-such HOA. Pass this information onto the HOA.

2.
Try sending the bank a "letter of instruction" stating the following:
------
Dear Sir or Madam,

Please remove my name from banking account #________. I am happy to provide you with copies of whatever personal ID of mine you need. I am unable to appear in person due to health issues and living out of state. If you have any questions, please call me at ____ or email me at ____.

Thank you,

--------

Notarize this letter. Send it return receipt requested.

3.
After 30 days and if the bank has failed to respond in a meaningful way, then report the bank to the Better Business Bureau at bbb.org. The latter web site will get you to the correct state (the state where the bank is located). Have your complaint state something like the following:
---------
This bank refuses to remove my name from a homeowners' association bank account. The bank staff insist I must appear in person to do so. But I live in another state and am too ill to travel. I have offered to provide copies of my personal ID. I have sent a certified and notarized letter to the bank. This has been to no avail.

This has cost me many hours of labor. My health is poor enough. I am disgusted with this bank. I will not remove this complaint until the bank contacts me personally and tells me what I can send by U. S. mail to have my name removed from the account.
---------

I have found in two instances that banks are highly responsive to BBB complaints.

CathyA3 (Ohio)
Posts: 6,299

Posted:

It sounds like your former HOA was self managed - is that the case, or did you have a property manager?

Are you still in touch with any of your former neighbors? Can the former board president's widow put you in touch with current board members?

I'd be tempted to call the bank that holds the HOA funds and ask what they'd recommend since they're the ones who are making people jump through hoops. Maybe you could give someone limited power of attorney to act as your agent in this matter only. Would this satisfy them? Not sure how much you can limit POA, that's a question for a lawyer.

(The bank holding a chuck of my association's reserves is equally prickly about changes to signature cards and account ownership. I had to go in person to make any changes, and everything always took two hours. So this doesn't sound too unusual.)

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