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LauraH12 (Texas)
Posts: 3
Posted:
I moved in to an HOA in Texas in The fall of 2018. Some of our roads are owned by our county but not all. Those that are owned by the HOA are dirt roads. The lots we bought had been approved for paving,or as the manager called it, hot topping. At one of the spring 2019 board meeting the general manager-a paid employee of the HOA, ask the board to remove the prior approved roads because the county “might” take them in. This was an effort to save HOA monies she explained. I might add that she’s worked as the GM for well over 20 years. It also came to light that she had hired her daughter to also work in the office -at $48,000 and her grandson to head our maintenance. All told, based on the P&L’s through Jan 2020, we will pay this family $146,000 for our physical 2019-2020 budget year which ends March 31, 2020.
I began asking questions about our HOA finances and was shut down by our GM and secretary/treasurer and told if I wanted any answers outside the Balance Sheet and P&L to file an Open Records Request.
I did this and got a letter from the attorney paid by our HOA. The date was set for August 15, 2019. The day prior to the execution of the ORR our BOD approved the purchase of a $700 steal gun safe to keep all financial records in. Of course financial records are what I wanted to review. AR/AP, bank statements, etc.
The morning I got to our office to review review records, all I was allowed to see was CC&R’s, plays, maps, and By-Laws. No financial records were permitted to be reviewed. According to our office managers daughter, our (the HOA attorney my dues pay) said no financials could be reviewed.
I might add that our HOA has never had an audit. I pushed for a forensic audit but that was “to expensive” so a standard audit for the first time in our HOA existence was done. Of course a regular audit does not use the set rules designed to find fraud.
Our own By-Laws state any copies made during an ORR is $.10 per page. No mention of any labor yet when I went to retrieve the copies of board meeting minutes, they added $347 in labor beyond the per page cost.
Another member has now made an ORR via certified mail but was told by our GM that it would be $89.50 and still no financials will be allowed to be reviewed.
The Orr I executed was video taped in full by my husband.
One other thing, in the fall of 2018 it was discovered that two board members were not land owners in our community. One of the gentleman had been on the board only for a year. He was summarily dismissed. However, the other gentleman had been on the board over ten years...now for twelve years. The GM and our board sold him a lot owned by the HOA for $100. The appraisal does strict valued it at $2500. There was never a membership vote to sell him the land allowing him to stay on as a board member. This is discussed in the video during the ORR. Our secretary/treasurer explains that his house was repossessed (a little over sharing by her) and they needed to find him land. Actually he had NEVER owned land, the woman (actually two different women at different times) had owned property but the last woman had gone through foreclosure. The office and our board seem to think this is all just fine AND legal.
I have all supporting documents and videos. I’ve filed a complaint with our law enforcement but that went no where. She’s been in the county for years. But I might add she, nor her daughter or grandson live in our community.
I’ve filed a complaint with the Texas attorney general and have sent a packet to theTexas Rangers for our district. I’ve contacted our local paper and the reporter even attended a couple of board meetings but daily’s this story appeals her but is low on the totem pole.
Any other ideas? Thoughts? My thoughts, now six months in to this and the GM and board continue to refuse Orr is He who has nothing to hide, hides nothing.
I’m be last thing. The GM says if I don’t pay the labor billed on my statement, she will not allow my six votes to be counted. I’m attaching a copy of our Bylaw regarding copies.

HELP!!!!!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
What are you actually looking for? Seems just looking for something to look for something. Can't a duck just quack anymore? Like to know the overall purpose and end result your looking for then run for the board to get it.

Former HOA President
LauraH12 (Texas)
Posts: 3
Posted:
It started because I couldn’t understand how we were spending less that $25k on roads that we owned....and I’m talking dirt, pothole filled roads that our HOA own yet have $100k to pay this family group which has now ballooned up to $147k. The bowing up and refusal to honor an ORR just caused me to take pause and ask WHY?!?! And what are you hiding,
I will continue to say the quickest way to prove nothing nefarious is going on for the last 25+ years is to honor the ORR. Back to the early 1990’s our S/T signs and the GM notarized. Long time with no checks or balances to get comfortable. Doesn’t it raise any questions to you?
BenA2 (Texas)
Posts: 1,273
Posted:
In Texas you, as an owner are entitled to almost all HOA records, including financials. The only thing you are not entitled to is personal information about other owners. Your manager and board should already know this.

There is no need to explain why you want the records. It is YOUR money and you have every right to know how it is spent and should be commended for being diligent.

https://blog.cstx.gov/2012/03/12/hoas-are-subject-to-open-records-requests/#:~:text=
LauraH12 (Texas)
Posts: 3
Posted:
As boldly told to me by our GM, her daughter and the board's Secretary Treasurer:

IT WILL TAKE A JUDGE'S COURT ORDER BEFORE WE OPEN ANY FINANCIAL RECORDS TO A MEMBER! Seems they don't understand or know how to redact or that is the claim.

I could care less about employees addresses, SS#, etc. Or even about the other members financial information although our secretary treasurer likes to put lots of personal information out on Facebook groups. And she overshared about the board member (that wasn't eligible to be on the board for the prior ten years) having the house he lived in, but never owned, repossessed. Thus the need to SLIDE him a piece of HOA owned property.

If lawyers get involved and force this issue, the only winners are the lawyers. There has got to be a way for me as a member to force the opening of the finances now locked in a $700 gun safe.
BarbaraT1 (Texas)
Posts: 821
Posted:
Well this is crazy. The intensity with which they are guarding these records is bizarre and strongly implies they have something to hide. It's completely inappropriate to have multiple members of the same family working for the association - bad optics at the very least. This, and the board members who shouldn't be board members screams "embezzlement" to me.

I know you want to avoid lawyers, but violations of the property code are handled through the courts. There is no state agency providing oversight to HOAs. And you've already tried going to the media.

I'd suggest getting your neighbors together and voting in a new board but I assume this lot would ignore election protocol too.

I think your only option is to get an attorney. Try to get your neighbors involved to share the cost. It's their money too.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LauraH12 on 03/09/2020 6:14 PM
All told, based on the P&L’s through Jan 2020, we will pay this family $146,000 for our physical 2019-2020 budget year which ends March 31, 2020.
LauraH12, have you or have you not reviewed the P&Ls that you want to see?
Quote:
Posted By LauraH12 on 03/09/2020 6:14 PM
I began asking questions about our HOA finances and was shut down by our GM and secretary/treasurer and told if I wanted any answers outside the Balance Sheet and P&L to file an Open Records Request. I did this and got a letter from the attorney paid by our HOA. The date was set for August 15, 2019. The day prior to the execution of the ORR our BOD approved the purchase of a $700 steal gun safe to keep all financial records in. Of course financial records are what I wanted to review. AR/AP, bank statements, etc. The morning I got to our office to review review records, all I was allowed to see was CC&R’s, plays, maps, and By-Laws. No financial records were permitted to be reviewed. According to our office managers daughter, our (the HOA attorney my dues pay) said no financials could be reviewed.
.
.
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Our own By-Laws state any copies made during an ORR is $.10 per page. No mention of any labor yet when I went to retrieve the copies of board meeting minutes, they added $347 in labor beyond the per page cost.
Another member has now made an ORR via certified mail but was told by our GM that it would be $89.50 and still no financials will be allowed to be reviewed.
.
.
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I’m attaching a copy of our Bylaw regarding copies.
Would you please consider sending your Bylaws to me at [email protected]? Also has the board adopted and recorded a specific policy for "records production and copying policy that prescribes the costs the association will charge for the compilation, production, and reproduction of information requested under" Texas statutes section 209.005(i)? Is the latter policy recorded with the county, as required by 209.005(i)? I want to review what these say about charges for copying records. Meanwhile I am studying Texas statutes section 209.005 on this subject. LauraH12, if you are being denied the P&Ls and balance sheets, then I advise sending the following letter to the HOA board, registered mail, return receipt requested:

Dear HOA Board of Directors,

The HOA refused to allow me to inspect the P&L statements and Balance sheets on _____ and ______. Pursuant to the Texas Residential Property Owners Protection Act section 209.005, I again request the monthly balance sheets and monthly profit and loss statements for the period _____ to _______. Please provide me with a date and time when I may inspect these documents. I do not require copies at this time.

Thank you,

[name]
[address]
[phone number]
[email addie]

BenA2 (Texas)
Posts: 1,273
Posted:
Quote:
Posted By LauraH12 on 03/10/2020 9:01 AM
As boldly told to me by our GM, her daughter and the board's Secretary Treasurer:

IT WILL TAKE A JUDGE'S COURT ORDER BEFORE WE OPEN ANY FINANCIAL RECORDS TO A MEMBER! Seems they don't understand or know how to redact or that is the claim.

I could care less about employees addresses, SS#, etc. Or even about the other members financial information although our secretary treasurer likes to put lots of personal information out on Facebook groups. And she overshared about the board member (that wasn't eligible to be on the board for the prior ten years) having the house he lived in, but never owned, repossessed. Thus the need to SLIDE him a piece of HOA owned property.

If lawyers get involved and force this issue, the only winners are the lawyers. There has got to be a way for me as a member to force the opening of the finances now locked in a $700 gun safe.

Apparently your GM thinks it is difficult to get a court order. If they are breaking the law, I would think a judge would be quick to sign the order. Maybe it would be worth speaking to an attorney to figure out your next step. If you have other owners with the same concerns, maybe they would be willing to share the cost.

Another option is contacting your precinct Justice of the Peace. I'm not sure, but I think that would be the first court to hear your case if you went that route. JOPs are elected and often have open-door policies when it comes to speaking to constituents.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
If this is as the OP has noted, she needs to get an attorney to write the usual " per xxx, if you don't do this, we will do this ..." letter - then wait, then get others to contribute then get attorney rolling.

I don't know enough about Texas law to discuss if it is even possible for the HOA to be sued without counsel.

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