Requiring competitive bids on services.

After 3 yrs. our neighbourhood finally reached the point where an election for 1 of 3 HOA Board positions was held. I was elected, and have been trying to address all the issues which have been built-up over the past few years.

Unfortunately, the developer is still very much in control here, and although the residents are paying close to $1,000 in HOA dues, many people don't feel that they are getting their money's worth, and as the sole representative for the homeowner's, I get ALL the input!

Problem is...I am NOT being provided a clear accounting of where the HOA monies are going.....sure I have the contracts, but it just lists what is paid monthly for the various services without giving ANY itemized breakdown, and with an annual budget at $400,000, I'm just a bit curious! Considering that any of us can go to the grocery store, and get am itemized breakdown, including a 59¢ can of green beans, that's not much to ask..

The landscaping budget alone is $100,000/yr.

The budget for the pool varies from $650/mo(January) to $8,200(July). Obviously, there is more usage out of the pool in the summer, so higher costs, but I don't know WHAT we're paying for.

Also....most importantly, I asked about competitive bids for all the various services, and was told THERE ARE NONE...the developer is "happy with the costs/services" we have now!

We are in Texas, and it appears as if competitive bidding is NOT required by the Texas State Government Code for "professional services" such as HOA Attorneys or accountants, but it seems incredible that there wouldn't be ANYTHING we could to to require competitive bids for services such as landscape maintenance, pool maintenence, etc.

The reason why I, or any other residents would question the budgetary items, is because most of the "Services" we're paying for do NOT appear to be well-maintained, and in some cases, the contracts are nebulous and/or simply unnecessary.

I have my personal attorney, who has been able to give some helpful advice, but I cannot involve them in HOA matters. There in nothing in our "Articles of Declaration" which address the issue of the bidding of the process.

As there seems to be some sort of budgetary oversight at every level of government, it seems that people ought to have an accounting of how their money is spent.

The situation with our MUD District(Municipal Utility District) is even worse...NONE of those people on the Board live in the neighbourhood, no one seemed to know of any open board position until AFTER the election, and the Board members aren't responding to inquiries by phone/e-mail

I know laws on this topic vary from state to state, so if there is anybody in Texas in particular has some insight, I appreciate the input!

I don't know at this point....none of that info. has been revealed to me.

We had our elections on Aug. 29th, and the management company JUST got me the contracts the other day(Nov. 6)

Also....the property mgr. set up the board meeting without notifying me in advance. She sent out the contracts with a top sheet which was half-hidden by the large paper clip that stated there was a meeting this past Friday....and I received no other notification(e-mail, phone call) that there even WAS something scheduled, even though I'd been trying to do so since the election was held.

The meeting was rescheduled for this Monday, and although it's an HOA Board meeting, it occured to me that the people from the property management company would be in attendance, and THEY are not board members......either it's a closed meeting, or it's open to the public.

Yes. I realize that all this is covered under laws in SOME states...that's why I am looking for feedback that is specific to Texas.

I did an online search of the records database, and can't find anything that specifically addresses the issues mentioned in my posting(s), so I was hoping that SOMEONE who is in Texas has encountered this before, and was curious as to what their legal experiences were.

Does anybody know what the specific laws remedies are for Texas?

KennethC1:

Unfortunately your community is in the period prior to TURNOVER to residents. You have, at this time, minimal say in who the contractors are and at what cost; this is the time when the developer initiates the decisions. If he is even asking for input, that is more than the norm, however, it is the developer who has sole power.

But, fear not! your day will come! and, as soon as community conditions are fulfilled (sale of % of units as stated in bylaws), the developer will transition to the residents and the residents will elect an Exec.Board/Committees, etc. This process is all stated in your own bylaws.

In the meantime, as a previous poster stated, you need to refer to your state documents on "Associations or Condos", whichever you fall under. You can review this at Community Assoc.Network site (yellow to left of this site)-- key in your state, etc.

Since you are on the Board as a 'token' resident member, it will be in your best interest to learn all you can, be willing to assist wherever needed, and
keep your eyes/ears open. It will go a long way for when your community is under resident control and will result in your neighbors having trust in your knowledge and experience.

You may not have much to much input into the operational aspect of the HOA until turnover. Keep all of the inadequacies in the forefront when it comes to transition time. When it comes time for the turnover you will need to rectify the problem areas with the developer. Start planning now.

Even though the developer does not require bids this is something you can institute after the turnover with an Internal Control document.

Unless you have very few common elements and a lot of land, I would be very concerned with 1/4 of the budget going to landscaping.

I asked a vendor about travel time. He said he never heard of such a thing.