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Rogue HOA Board

Started by RichardM29 • 7 replies • 207 views

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RichardM29 (Virginia)
Posts: 5
Posted:
A family relation in Maryland lives in a small HOA with a rogue board. For perhaps 30 years, the management of this small (25 unit) HOA has granted one member a half assessment on a lot he owns. That person lives in a home on an adjoining lot; the half assessed lot is undeveloped. No action has ever been taken by the board to make this arrangement legal.

The CC&Rs (dating from 1999 and never modified) plainly state all assessments are uniform, and are levied against lots (no distinction between developed and undeveloped lots).

The owner in question has also fenced off the lot, with the fence attached to his house. This spans common area and denies common area access and use to the other 24 lot owners.

My relation estimates over the course of time that this differential assessment has been in effect, the other homeowners have been forced to pay more than $40,000 in regular and special assessments to make up for the reduced assessment.

Over the years, the same people end up serving in management. Currently the President is also the owner of the two lots, and shuts down any discussion of bringing the assessment into compliance with the CC&Rs. He's even floated the idea of modifying the CC&Rs retroactively (back 26 years!) to make his grift legal.

What can my relative do? Is a lawsuit the only remedy? He is not a wealthy guy.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By RichardM29 on 10/15/2025 5:39 PM

My relation estimates over the course of time that this differential assessment has been in effect, the other homeowners have been forced to pay more than $40,000 in regular and special assessments to make up for the reduced assessment.
In my experience, a court would disagree that the other owners were "forced" to do any such thing. The owners in fact had many chances to enforce the CC&Rs, by voting in a new board, taking the issue to court, and so on.

Keep in mind that the statute of limitations in Virginia for enforcing contracts such as the CC&Rs is five years. At most, I expect all the HOA could potentially collect is on the order of $7000. Even that much is not guaranteed.

Your relative's best option is almost assuredly to change the makeup of the board at the next election, enforcing the bylaws and state law as they pertain to elections.
RichardM29 (Virginia)
Posts: 5
Posted:
Thanks. I guess he and I don't understand how there is no cure for unlawful conduct other than voting for a different approach. Its like saying a government elected official would be free to grift without consequence, the grifting to be "punished" only through a lost election.

DeanJ
Posts: 1,786
Posted:
Has anyone in writing ever objected to this reduction? Maybe it’s time an attorney representing a owner did.

RichardM29 (Virginia)
Posts: 5
Posted:
Yes, my relative has sent many written objections, raised the issue at annual and special meetings, etc. The problem is this HOA is primarily populated by seniors who have little understanding of the law, the founding documents, or even how their assessments make up for the shortage created by the differential assessment. Think of a book club run by people who just want to get along, regardless of what is imposed by law.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By RichardM29 on 10/16/2025 2:38 AM
Thanks. I guess he and I don't understand how there is no cure for unlawful conduct other than voting for a different approach.
The most important point I am making is that the law says contracts are enforceable only up to the past five years. Nationwide such statutes of limitations are common. There is good reason for these limits.

Other legal questions can and will arise. E.g. the board did nothing to stop what you allege is a gross violation of the covenants. This means the Board effectively rubber-stamped it. If it has been going on long enough, courts may see this as a de facto amendment to the contract that the covenants are.

Your relative can hire an attorney, at great expense and see what she says. Or your relative can study up, prepare carefully, and see if the cost of the attorney consultation is worth it.

This forum can give you a start as to what to think about here, based on experience. This has value, in general and in my experience.
TerriS6 (California)
Posts: 3,284
Posted:
Take note of your state's statute of limitations to enforce restrictions.

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