Should we get an attorney?

My husband and I went to our first HOA meeting and along with other home owners we found several errors adding up to $20,000. Most of the cost came from tree services. Our HOA fee is $53 a month and our homes lead directly to an Elementary School and a park which are all operated by the county so we have very few trees that should be serviced and have not seen any tree services. The bulk of our fees should go to lawn services and trash. We were also shocked that after twenty years of collecting fees that there was only $45,000. in reserves when the HOA takes in $15,264. annually. Lastly we were concerned that the budgets have always been more than what the HOA takes in annually. After this some of the home owners requested that there be an independent audit and the request was denied. At this point we are thinking of getting an attorney taking the HOA and management company to court to get an independent audit. Any suggestions? Thanks

Wow! Thank you so much for the information. I didn't know where to turn. I do live in Montgomery County so I will file a complaint. I can't find anything in the HOA handbook but I will look again. Thank so much.

Here's another angle for you to consider:

The Maryland Legislature has adopted laws requiring disclosures to purchasers that a lot is located within a homeowners association for which fees must be paid; sets forth warranties; rules regarding meetings of the association; family day care activities and other aspects of homeowners associations. The Maryland Homeowners Association Act is codified and can be found in the Annotated Code of Maryland as part of the Real Property Article, Title 11B. The Act is refined by amendments from year to year. Here's the URL: http://www.dsd.state.md.us/comar/Annot_Code_Idx/RealPropIndex.htm#Title%2011B

You'll have to page through the different sections with the Previous and Next links. You can Google the Act and find prettier copies (pdf, even!).

According to section 112, there are only specific reasons for which a Board may withold disclosure of the Financial books. Below, I've enclosed the text from section I referred to. I liked the suggestion for you to contact the Maryland Office of Consumer Affairs, but you might consider consulting with a Real Estate attorney, who might be willing to tell you up front if your case has merit or not. Referring back to Title 11B, section 112, you'll probably need a lawyer's opinion as to what constitutes "disclosure". In my opinion (not a lawyer!), subsection 112(a)(1) seems pretty straightfoward that you ad a member of the association, have a right to see the books. However, reasons & specific disclosure exclusions are in subsection 112(a)(2). Not sure if an audit would be construed as being a "public inspection." You probably should have a Real Estate Attorney tell you that!

Hope this helps:

§ 11B-112. Books and records of homeowners association; disclosures to be deposited into depository.

(a) Books and records - Examination; public inspection.-

(1) Subject to the provisions of paragraph (2) of this subsection, all books and records kept by or on behalf of the homeowners association shall be made available for examination and copying by a lot owner, a lot owner's mortgagee, and their respective duly authorized agents or attorneys, during normal business hours, and after reasonable notice.

(2) Books and records kept by or on behalf of a homeowners association may be withheld from public inspection to the extent that they concern:

(i) Personnel records;

(ii) An individual's medical records;

(iii) An individual's financial records;

(iv) Records relating to business transactions that are currently in negotiation;

(v) The written advice of legal counsel; or

(vi) Minutes of a closed meeting of the governing body of the homeowners association.

(b) Same - Charge for review or copying.- The homeowners association may impose a reasonable charge upon a person desiring to review or copy the books and records