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JoeB7 (Maryland)
Posts: 4
Posted:
Hello, I live in an association in Washington County Maryland. I feel our board acts improperly on a number of issues. The biggest is book keeping. I requested to view and copy all the records for the past 5 years. I made this request two months ago. They responded by saying they were making photo copies for me. But I still have not received them.

What are my rights? Why is the board not letting me see the orginal documents?

JeanneK3 (Maryland)
Posts: 562
Posted:
Copies of all records for 5 years is a lot of paper and according to Maryland Law, they can charge you for the photocopying. You are about to get a huge bill. Better that you go to the management company office and copy documents yourself. For more information on your rights go to www.marylandhomeownersassociation.info
JoeB7 (Maryland)
Posts: 4
Posted:
We do not have a managment company. Its just a group of residents who run our association. Hence the suspicions that the books are not being kept in order.

There is no office, and the assocation insists that I communicate with them by mail!

Should I just go to the presidents house and request the documents?
TracyT (Maryland)
Posts: 228
Posted:
Joe,

The procedure should be defined in you Bylaws. Usually they have to be available for review and copying. At this point maybe you could clarify your request to “review and if necessary, copy” . . . This will probably greatly reduce the # of copying. Yes ask the President if you can go there or invite him to your house or schedule a meeting at a mutual place, a restaurant, the library, or some place near a photocopier.

Here’s a link to the MD Code (law) http://www.michie.com/maryland/lpext.dll?f=templates&fn=main-h.htm&2.0. Follow the Code to Real Property then the Homeowner’s Association Act (Section 11B). I’m not sure if a timeline is specified though. I think that bill was recently defeated.

Also, remember that because "Its just a group of residents who run our association" they really might not know generally accepted accounting pratices so go easy on them :-)

Good luck.
Tracy
SusanW1 (Michigan)
Posts: 5,202
Posted:
You and all other members should have gotten an end of the year Annual Report, which states all revenue and expenditures. This is about the only paperwork you can request, free of charge. If you want all those line items torn apart and see every expenditure, that will take time to gather.

You might want to remind your Board that you are a corporation, and must run like one. (ARE you a corporation or an association?)
MaryN (Virginia)
Posts: 125
Posted:
In VA the property owners have the legal right to see the financial records. After 5 years of certified letters, etc. 2 property owners went to review the books. The books were loose pieces of paper..some numbers on a ledger paper..nothing up to date..and the check book. The BOD members were asked if copies could be made(the meeting of these property owners was a bank conference room)and the BOD said "absolutely NO" and so it goes..most of the info that was found...in the check book.
MaryN
SusanW1 (Michigan)
Posts: 5,202
Posted:
Mary - did your board provide the members with an annual financial report?

This is a standard part of the annual Membership meeting. The Board makes reports to the members on all activities and gives the financial picture.

I can't imagine how members would not DEMAND to know where the HOA stands, financially at that meeting!

GloriaL (Georgia)
Posts: 195
Posted:
Our Annual Meetings barely make quorum. The Treasurer has an annual financial report available for every HomeOwner to be distributed at the Annual Meeting. Those who attend, pick up a copy. Those who don't attend, don't get a copy...unless they request one and no one ever has.
Are the Annual Financial reports usually mailed to everyone? Our HOA has never done that.
MaryN (Virginia)
Posts: 125
Posted:
Susan,
No budget, the only financial report a few numbers that don't add up..and the Treasurer stating..all of the papers are in my kitchen and I haven't had time to organize them..I'll get to them soon..last year when the President(who resigned after 1 month)asked for an accounting he was given a piece of paper torn out of a note pad with some figures written down that did not balance. This has been a nightmare! Apathy is the word for our small group of property owners. The BOD is power hungry and sticks together. We are now in a the legal process of seeking injunctive relief for the books and other issues. The books are going to be requested as part of the discovery process. So far the expense has surpassed any budget that our HOA has ever had. And the Treasurer has been on the BOD with her "friends" for almost 5 years. Go figure! Going into the legal process was absolutely the last resort.
MaryN
JoeB7 (Maryland)
Posts: 4
Posted:
Wow,

Yes our BOD is just as bad.

1. They complained about my shed saying it was too close to the road. Well it was well within the right of way in the covenants. It was legal by Washington County rules of no closer than 5 feet to any property line.
2. They complained about cutting trees when I built my house. Well the covenants say I can cut trees for house, driveway, septic and views. The county had this plan on file when I got my permit.
3. Then I thought I would be a nice guy and let them dump some rubble from a road project on my property. They promised to cover it up with fill dirt and repair my driveway. Nope, turns out that was all lies. But they did offer to help me get some fill dirt and said I could take what they had dumped across the road. Well that property owner came and chewed me out for taking his dirt!

All this happens while my neighbors across the road violate open burning bans, have several non-registered junk cars in their front yard.

They always try to force "volunteering" on road/culvert projects that are not only dangerous but requiring experienced people aka contractors to do. We ended up not having safe reliable access to our community for over a month while they dilly dallied on the project. They told us two weeks that turned into six.

They didn't even salt or plow the roads when we had ice storms this winter. I had to stay home a couple of days.

Then they complain about how they are volunteers on the board and they cannot wait around for contractors etc etc yada yada. But when you suggest they get a management company oh heaven forbid we spend money on that, forget the security of having CPA's review your books once a year and forget having someone else handle collecting dues etc. No leave it up to the "Marlboro" woman to personally approve expenditures.

The only thing this board understands is when I have my attorney send them letters. Several other neighbors have sued them and they settled out of court.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Joe, I'm sorry you think your board is so awful. Stories of out-of-control boards really get my goat.

One thing jumped out at me, though:

" 1. They complained about my shed saying it was too close to the road. Well it was well within the right of way in the covenants. It was legal by Washington County rules of no closer than 5 feet to any property line."

It wouldn't matter one hoot if the placement were legal by county rules or if it were well within the "right of way" in the covenants, whatever that means.

In our HOA, we have specific placement criteria for outbuildings (including sheds), and they are narrower than the county set-back regulations.

A shed can be no further than 10 feet from the rear of the main home and cannot be visible from someone standing in the middle of the street directly in front of the home.

Do your covenants require the board to monitor and bring action action people who violate open burning laws? Ours doesn't. Nor are we responsible for monitoring and enforcing unregistered vehicles.

However, I'm certain that we could contact the county officials (if the details are provided to us) and report the issues just as easily as someone who lives across the street from them can.

I'm just saying, it's easy when one has had their wrists smacked to see all sorts of flaws and feel that the board can do nothing right, when, in fact, it really *is* a volunteer group of fellow homeowners trying to do the best that they can and sometimes homeowners get stubborn and dig in against a board because they figure, "I'm good by county rules," or "It's my home, dam**it, I'll do what I want."

Perhaps you are right that they need to get a management company. And perhaps you are correct that homeowners "sued" them and "settled out of court." But perhaps also they have "sued" or started suits against homeowners and the homeowners corrected the violations without having to proceed further.

Perhaps there are several "sides" to this particular story.

JoeB7 (Maryland)
Posts: 4
Posted:
Michele,

Yes you are right, always two sides.

1. The covenants state no unregistered vehicles period.
2. The open burning was in reference to people burning trash. Where brush, limbs are fine as far as I'm concerned, however we joined this Fire Wise community program.
3. The board was sued because they harassed people without merit, did not provide speed bumps even though it was voted on and approved in meetings and awarding no bid contracts.
4. There are no rules about sheds in our covenants only houses with fixed foundations. In fact the set backs for buildings in our covenants are less than what the county requires. I should have clarified that, the shed is fine by county standards and no rules exist in the covenants regarding outbuildings/sheds.
5. During closing, my Realtor and title company repeatably tried to contact the association regarding HOA dues etc. No word from them at ALL. No Liens were registered on the property so the title company went froward. About two months in they contact me to pay a $400 special assessment for road work that had been done a year prior to me buying. This is was another reason they were sued by other property owners because they had a no-bid deal with the contractor and the president got his driveway paved. In the end the special assessment was waived and the money came out of the reserve because it was never voted on.
6. The community waives dues of some residents because they've provided some service such as access to equipment etc, in particular last winter they waived the dues of one gentleman because he was supposed to plow and spread salt. Well he didn't, so how do we collect his dues now? I don't even think they had a contract, I asked to see it, but they haven't provided that to me. I also asked to see liability insurance, nope none there either so I guess if his skid loader hits my car while plowing or damages my property my insurance has to pay for it?

I'm not complaining because I got my hand slapped, not by the least. I came into the community knowing they were poorly run and I offered my help, I didn't say you guys are doing a poor job, I said hey I just came from another association, this is how they did it, maybe there is something to learn. But when I suggested common sense approaches I got lazy answers back. I suggested they take an HOA class at the community college, nope they didn't do that. I even had my attorney research costs for a management company. I didn't just complain I provided suggestions and solutions only to be shot down without explanation.

I gave up, and just decided to pay my dues and keep quiet. Let them do what they want. But then the nit picking started without reason. Board members harassing my contractors when they were tying to work. That got my ire up. I just want to come home and enjoy my land and home. I'm not interested in volunteering on half baked poorly planed projects. If the BOD cannot find the time to do things right, then hire a management company who can. I'll gladly pay the the increased costs to have things done right and to hold someone accountable!

If it costs $Xxxx more to do get something accomplished then make a budget and present it to the community to vote on and access the additional costs. I've got no problem paying assessments if it is properly bid out to multiple contractors (sealed bids). All our community does now is show a ledge of expenses. They don't budget anything.

MicheleD (Kentucky)
Posts: 4,491
Posted:
That's an awful lot of suggestions and offers of help you've got listed there.

I'm sure the board could benefit from having an involved and knowledgeable homeowner like yourself helping first-hand with leadership and direction.

That might be something for you and some of the more frustrated homeowners to consider. After all, if they are that horrible, I'm sure it wouldn't be a problem at all coming up with replacement board members for the next election.

Best of luck to you. It's a fulfilling job if done well and done right.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Joe,

I must ask, what specifically is wrong with a h/o treasurer handling the finances of the assn.? Do you know for a fact this person is not qualified? Or do you just think a mgmt co would do a better job? BTW, you don't know what the qualifications of their hired bookkeepers are. I'm a past treasurer of a self-managed HOA. Although I do have a background in accounting (at a CPA firm, no less) I believe there are many, many qualified "lowly" homeowners who could handle the job, especially for a small HOA. Perhaps I missed it, but I don't recall you mentioning anything specific that the treasurer was or wasn't doing that was wrong. BTW, what are your plans for the 5 years worth of financial records?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Good point Mary. Standard Annual Meeting Financial Reports should give him any info he would need. Anything other than that is an audit review.

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