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LisaT15 (Michigan)
Posts: 1
Posted:
It's been over 60 days since the completion of our Site Condo private street replacement paid through our HOA Special Assessment.
The total project totaled (per the Board's summary email), 586,572.00.
A Road Project Reserve Special Assessment had been established many years ago which had accumulated to approx. 168k.
The project was to start on July 6th, and the payment terms with the Company awarded the contact were 25% down & 75% at completion. The Road Reserve fund was enough to pay the initial 25%.

At the annual HOA Meeting this past June 2023, a vote was finally taken and majority voted to proceed. It was also determined and voted on that each Co-owner would pay an additional 12k towards the projected cost by July 1st.
To alleviate any hardship, a monthly installment plan @ 4,000 p/ month (July, August, Sept) was added as an option. It was further suggested that for those who were to opt for the Installment option,
they would be required to pay the additional 75.00 Special Assessment added to July's quarterly payment, but not to those who opted to pay the 12,0000 by July 10th.
Throughout the HOA meeting in June, many ideas and suggestions were made and also implemented; this evolved as the time passed, and at the end of the meeting, a Board member said,
"ok, sounds like we have an amendment to the road project, so lets take a vote". Nothing more specific was said as to what the amendment was, just that there was one.
Also worth noting, the original Road Reserve Special Assessment document (from 2012) stated the terms that the extra 75.00 p/qtr. would stop at the time of project implementation.
My first issue is, isn't it illegal to charge Co-owners unequal amounts, regardless of a majority vote to do otherwise, when the Master Deed language states this:

- Article V Section 2 Percentage of Value
"The percentage of value assigned to each Unit (except for Unit 13) is equal .... and pay an equal share
of the expenses of maintaining the General Common Elements.... Including assessments..."

I've objected to this charge in writing to the board, pointing out the obvious, as well as reminding them that we are a Non-profit entity not to mention there was also no value to money loss or hardship.
Each time I've asked how this is unequal added charge is justified, I've received a different reason. When I point out the lack of legal standing, they just flat out chose to ignore me and don't respond.
Another question I asked before the project started was, who is responsible for if personal property gets damaged. The only response I received was from a Co-owner who stated the Home owner is responsible.
I asked the Board to confirm if this is true, but they have refused to answer.

So many other things wrong with this project implementation, but trying to keep it short.
I've asked for a signed contract & terms with the company we hired, and the Board has only provided the initial bid summary & engineering report. (which also came with great reluctance from the Board).
Now that the project has completed, the board sent a summary email with costs, along with a refund check in the amount of 313.00 p/person, which per their math, is actually wrong.
Their math is actually off by 2,160.00 less and should be a refund of 373.00 p/person. I can't make this sh*t up!!!!
It's absolutely ridiculous. Furthermore, there were at minimum 5 Co-owners, who I'm aware of, that opted for the Installment option and the monies from that, 375.00 at minimum, is completely unaccounted for.
It's not even included in their numbers.
The Board stated in their email that they would provide a copy of a detailed cost breakdown at the next annual HOA meeting, which isn't till May 2024.
Also worth noting, the overage from the bid was over 62,000 and another 5,225 in irrigation repairs.
I believe the irrigation repairs are covering the damage caused by the contractor, which I do not agree I should be included and divided up equally for all to pay.

I sent another email, pointing out the discrepancies and asking if the irrigation overage is covering the cost of personal property that was damaged by the contractor.
I also stated that I was not willing to wait till next May to see the details for the 62K overage and I pointed out that I am legally entitled to the documentation
that I'm requesting and my email was my official written notice.
The board has refused to address what I've asked, or requested, and instead has only restated I have to wait till our next HOA meeting for details.
Every email I've sent I've kept it civil, constructive and factual. I've refrained from using sarcasm, and/or expressing personal feelings.
I believe I'm dealing a of couple board members who are arrogant, power hungry and ultimately think they don't have to be accountable to any of the Co-owners.
They have resorted to sending me indigent responses or complete silence in attempt to shut me down.
At this point, I believe my only choice is to pursue them through the courts, which can be costly.
If the Board members are found to be guilty, can they be held personally liable?
I hate the idea that they can use the HOA funds for their legal fees. But I do also know that they are being compensated by means of reduced HOA dues.
They are only paying half the annual amount so I believe they can be held personally liable.
I live in Michigan, and Michigan does not have a HOA Law, and instead the Condominium Act and the Michigan Non Profit Act cover HOA legal issues.
Can they legally refuse to provide me with the documentation and make me wait till the next HOA meeting in May?
Can anyone enlighten me with whether or not they can be held personally liable?
Can I sue them in small claims court? I don't know what to do next.

Any help would be so greatly appreciated.
Lisa (Co-owner)

TimB4 (Tennessee)
Posts: 21,062
Posted:
Lisa,

Based on what you have posted, it does sound like the board doesn't have or doesn't want to provide what you are asking for.

Legal options are not only expensive but can take time. Not sure if waiting for the annual meeting or legal action would be quicker.

You could have an attorney write a letter on your behalf (sent to the registered agent of the Association).
This may get you the results you are looking for or it may have the board shut down even more, view it as potential litigation and not provide anything except through discovery.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Suing your HOA is suing yourself and your neighbors whether or not you are right/wrong. So slow your roll before jumping to lawsuit. It's best to get a majority of like minded members who also want the same answers. The power in a HOA is in the numbers of people whom share the same issues/questions. Only one is a squeeky wheel. Having many is time to make a decision.

Former HOA President
NA1 (Massachusetts)
Posts: 190
Posted:
I suggest carefully reading and understanding the various association documents and any management or accounting contracts. We have a clause requiring a special meeting if 25% of the owners demand one. It may also help you to understand what other terms might cover the issues you refer to, and whether the board is actually out of line.

The $75 may be a charge to cover accounting. If we were doing a project like this, we would have to pay the accountant to track a special charge from month to month. I don't remember the amount. We would attribute it to whatever the paid accountant recommended, but I think it would likely be project or accounting cost.

It seems unlikely that the board members are personally liable for anything, unless it's a criminal act. If that were not the case, it would be nearly impossible to recruit. It is common for homeowners to threaten to sue. Even the intimation that you might sue, or just a letter from your lawyer, may result in legal expenses to the association.

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By LisaT15 on 10/30/2023 7:28 PM

My first issue is, isn't it illegal to charge Co-owners unequal amounts, regardless of a majority vote to do otherwise, when the Master Deed language states this:

- Article V Section 2 Percentage of Value
"The percentage of value assigned to each Unit (except for Unit 13) is equal .... and pay an equal share
of the expenses of maintaining the General Common Elements.... Including assessments..."
In my opinion, charging owners who choose an installment plan a bit more is likely lawful under the covenants, since those owners are causing the HOA certain additional costs. If you read the covenants carefully, there very likely is a section that speaks a bit to this.

Quote:
Posted By LisaT15 on 10/30/2023 7:28 PM
I've objected to this charge in writing to the board, pointing out the obvious,
No, it is not obvious. Arguably it should be obvious to you that, for one, owners who pay late get a late fee and/or interest added to their account. Does this represent a different assessment rate for these owners, in violation of the covenants? No.
Quote:
Posted By LisaT15 on 10/30/2023 7:28 PM
that I'm requesting and my email was my official written notice.
It may be "official" in your eyes, but in the court's eyes and possibly per statute, lawful notice in cases like this might be only via certified mail, return receipt requested.

Quote:
Posted By LisaT15 on 10/30/2023 7:28 PM
They have resorted to sending me indigent responses
Was this a post-o? Did you mean something else besides "indigent" here?
Quote:
Posted By LisaT15 on 10/30/2023 7:28 PM

At this point, I believe my only choice is to pursue them through the courts, which can be costly.
If the Board members are found to be guilty, can they be held personally liable?
You would bring a civil suit. Only a district attorney can bring a criminal prosecution.

In a civil suit, defendants are found either liable or not liable.

Unfortunately it is common for owners to have to threaten lawsuits, and sometimes file lawsuits, to get records.

Often instead of a lawsuit, replacing a board majority with people who feel as you do is easier.

If you list exactly which association records you want, I can check Michigan's laws to see what they say about the proper steps to take.

Is this a condominium?

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