What can actually be done with a rogue Condo HOA in Texas?

I and a small group want our board to reform. Our board doesn't want to reform. The problems are 1) Secret meetings 2) No financial audits 3) Structural work being done without permits. Per Texas Property Statutes 81 and 81 open meetings and financial audits are required. Our city requires structural permits. Aside from these legal issues, our management company is incompetent and nasty, and maintenance isn't being done to our satisfaction. People who complain suffer petty retaliation. We sent a letter explaining and demanding our reforms, the management company responded with a ridiculous statement that the board "follows the law", and the response doesn't address anything.

So now we are looking at what actions we take. According to our bylaws, 40% of members can demand a special meeting. And other than the privilege of calling a meeting, and some guidance about notifying members, the bylaws don't say what happens at the meeting. So we could call a meeting, and then the board could start the meeting and immediately adjourn the meeting and send everyone home. I can see the special meeting idea resulting in nothing. Another thing that could happen is we talk and then nothing happens.

Our bylaws also say a vote of 2/3 of members can vote to remove a director. Our bylaws say that the remaining directors fill any vacancies. Texas Business Organizations code says our bylaws determine how vacancies are filled. So even if we could somehow host a vote to remove that has legal teeth, if we remove less than all of the directors, the surviving directors can simply re-instate the ones we just removed! And if we remove ALL of them - our bylaws and Texas Business Organizations 22 doesn't say what happens if ALL directors are removed.

Another idea we have is asking our neighbors to join us in a lawsuit- but that sucks for a lot of reasons. Fundraisers are no fun. Lawsuits are expensive and drag on forever. Plus the board can run an assessment to charge us for whatever law firm they want to hire to fight us in court.

Another idea is to try to rally people to either sign proxies or show up at annual meeting and vote for new directors. But the next meeting is next January.

I'm concerned we could rally people to either remove directors, or call a special meeting and then not get the desired result, for the reasons I said above. I'm also concerned we can wait for the next election and they make it really hard to get enough proxies signed and we are stuck with bad directors again.

HELP! WHAT CAN WE DO THAT WILL ACTUALLY FORCE OR INFLUENCE OR CHANGE THE BOARD TO REFORM ITSELF? PLEASE SHARE STORIES AND HELPFUL TIPS.

TimB4 thanks for your reply. To be clear, I don't want to do anything. What I want is a board that at least follows state laws and does it's job.

So you gave us two options:

TimB4: gather support, collect proxies and vote them out at next meeting (January)

TimB4: get a legal opinion

What other options are there? I'm especially interested in options that can make a difference NOW and don't require us to blow thousands of dollars on attorneys.

Realistically, the options are limited.

Take the time to fully understand the applicable laws and respond to the MC letters citing sections that show that the Board is not. If the Manager requires a license and you have proof of violating statutes make a complaint against the license.

Perhaps the issue is time constraints. Volunteering to write an Association newsletter to keep the membership informed or serving on a committee may allow you make changes from within.

Live with it (as it is an option) and put your energy into something else.

Sell and move (again, not a great option - but it is an option).

As I posted, fixing these things often require someone to take the lead in changing things by working within the constraints of the governing documents and applicable laws. Often, the changes take a long time to achieve.

In my previous association, when I saw issues I informed the membership by publishing my own newsletter. I always thanked the people on the Board for committing their time and energy. I always cited the sections of the governing document or applicable laws when the Board wasn't following them. I also volunteered for various tasks and committees within the association. Sometimes my offer was accepted and sometimes it was not. The whole process took time, energy and money. It also took three years before things changed. So, changing things can be done but it does take commitment, time energy and money along with the understanding that the change won't happen overnight.

MrTexasS1,

Your next step is to threaten suit with a letter like the following:

Dear Board of Directors,

Thank you for your emailed response saying the association's directors "follow established procedures."

We disagree that the board has opened meetings to owners and that the board has done an audit (or at least, despite records requests, the board has not provided proof that an audit has been done).

We are stuck asking that you open board meetings and have audits performed as required by state statutes, or else we will be forced to pursue a court order for the board to do so. Given this, is it still your intention to keep board meetings closed to owners and refuse to provide proof that audits were done? Please let us know your response within ten days. Also once again, please consult a HOA attorney before responding.

Thank you,

names
addresses etc.

MrTex, I said threaten a lawsuit. The association board is required to report this threat to the HOA insurer. The HOA insurer may very well get involved at this point. Which means its attorney will get involved. Which means there is a decent chance things will shape up.

If push comes to shove and you want to go to court, I think you could do so pro se (meaning without a lawyer).

If permits are an issue, you can actually check on that yourself. Go to the permitting office, explain what you know and see:
a) Was a permit required
b) Was a permit obtained

If the answer to a is yes and b no, make a complaint to the permitting office and they will enforce.

Everything Tim and ElleN said reflects your options and there isn't a lot past that. In fact, it may take a combination of these suggestions before the community turns things around. It does seem like a lot (it is) and will take a considerable amount of time (it will), and you and your group may deal with rumors, smear campaigns, threats - everything that can happens when people start pushing for change. ThIs is how change can come to HOAs, so if you're looking for something quick and simple, forget it.

Now you'll need to decide how far you want to go. Hopefully you get more neighbors to join and demand answers, and you may not need all of them. You'll also find a lot of people don't care, which is discouraging, but the problems are still there and if someone doesn't try to do something, then what?

There are stories on this website about people who fought for change and are still fighting - read some of those conversations and see what can be adapted to your community. Bring your questions to thus conversation so you get updated information and suggestions. Most of all, believe in yourself - you might not be the one who finishes the fight, but that's ok, as long as you get the change. Good luck in whatever you decide to do.

PS - be sure to talk to your group about these approaches and set priorities on what you want to tackle first. You might not have money for an attorney (yet), but all of you can take small parts of tge community and walk around, introducing your group and what you'd like to do. Educating homeowners is a big first step and you may find other options no one's considered