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PenyW (Pennsylvania)
Posts: 43
Posted:
We have a Homeowner in our Association who has always been a bit of a problem. They have bee late every year with annual dues (to the point of having to get attorneys involved) and put a gazebo on their property without getting prior Board approval as stated in our CC&Rs. This year they've gone to new heights (or depths). They haven't paid their 2009 annual dues, and are now being sued for those dues, late fees, and legal fees - and they've put a shed on their property without getting prior approval from the Board. To be honest, they couldn't get approval for the shed if they wanted to because they are not in good standing regarding their dues. I'm at the end of my wits with these people. Is there any positive, constructive way to handle this type of Homeowner? If they had paid their annual assessment in March, when it was due, they would have been out $200. Now they owe over $2000. I'd appreciate any input I can get. Thanks.
MicheleD (Kentucky)
Posts: 4,491
Posted:
At this point, I don't know why it's not the HOA attorney communicating with this homeowner and informing him of pending litigation.

Most of the people in my development who purposefully violate the covenants and then claim, when notified of the violation, that their builder told them that they didn't have to pay attention to deed restrictions because they can't be enforced. That HOAs are nothing more than paper tigers.

So when HOAs simply send out letter after letter and take no further action, heck, I wouldn't comply either. What's the penalty? Having to throw away annoying letters from time to time?

And don't muddy the collection issue with the violation issues.

If the shed is in violation, he should receive a notice requesting its removal within XX number of days.

If the shed is not removed within that XX number of days, regardless of whether he's paid or not, the attorney sends the letter informing him of the complaint to be filed to compel compliance.

SusanW1 (Michigan)
Posts: 5,202
Posted:
We have these "chronic" people, too. (not a condo siutation)

We find that a large red notice posted on the door is a great motivator to get some money, although it does announce a water turn off date.

Are they foreign? (just a thought)

Perhasp a one on one with the president and another board member is in order. With SO many violations, it seems they just aren't getting it. You need to figure out what and why they think they can so this repeatedly.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Peny,

IMO, what you describe is the typical "deadbeat" who usually is also a chronic CCR violator. If the assessments are to be paid annually, the 2009 assessments are now around 10 mos past due and definitely should have been turned over to an attorney for collection. Seems to me the board isn't following an adopted collection policy -- do they even have one?

Regarding the CCR violations, I'm wondering why approval of the shed would hedge on the fact that they are delinquent. One has nothing to do with the other. Even if a member fails to get prior approval for an improvement, it doesn't matter as long as the item would have been approved anyhow. If not, that's a horse of a different color. Perhaps the board should adopt a rule stating a particular amount shall be assessed if prior approval is not asked for. My assn can impose a fine of $1,000 at the discretion of the BOD.
KirkW1 (Texas)
Posts: 1,665
Posted:
I think Mary is very wrong about this person. I don't think they are "deadbeats." I think they are of the mind that they don't want to be pushed around by the HOA. They are offended that the HOA is in their business and they are waging a war on the HOA.

There is no constructive way to deal with them. In regards to the shed, you need to follow your rules to get a lawsuit underway. (You do have rules right?) As a note, in many areas you can not hold up approval of modifications because of their status with dues. Judges hold that one has nothing to do with the other. Your attorney can tell you if this would hold true in your area or not.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By SusanW1 on 10/17/2009 7:13 AM

Are they foreign? (just a thought)

I have to admit, I don't know how to reply to this!

I am teetering on whether this is offensive or just an "oppsy."

MaryA1 (Arizona)
Posts: 7,043
Posted:
Kirk,

Well, I don't think either of us really know whether they are deadbeats or people who don't like to be pushed around by the HOA. Either way, they should be fined for not obtaining prior approval for CCR variances and also for their delinquencies. I don't agree there is no constructive way to deal with them. Their account should be turned over to an attorney for collection. Can't get more constructive than that!

With regard to the shed, why would you think a lawsuit is in order? The OP stated it would have been disapproved because they are delinquent; which certainly would never hold up in court. I can't imagine that is a requirement of the gov docs! The OP didn't say the gazebo wasn't allowed, only that the member didn't recieve prior approval.

Deadbeats or just people who don't like HOAs; either way they probably don't belong living in an HOA. However, they do, so they must learn to either follow the rules or pay the consequences.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Mary, I believe this HOA is already dealing with the delinquencies constructively.

PenyW: They haven't paid their 2009 annual dues, and are now being sued for those dues, late fees, and legal fees -

Our covenants give us the ability to require that any unapproved construction be removed.

Whether the shed would have been approved or not is moot.

On the other hand, we would actually fine the violation first, requesting that an approval for the project be sought (in accordance with our ARC form), and, if the request is not filed, the shed comes down.

Once we get the form, if there is any part that needs to be corrected or is not within our specifications, we can request the owner make the correction to bring the project in line with specifications, or it will be removed.

We've yet to have to actually make good on our litigation threat, because each times this has happened (and it has been very few, maybe 2 or 3 times in 12 years), the homeowner ultimately complies and pays the fine, submits the form, and fixes the out-of-specification state.

SusanW1 (Michigan)
Posts: 5,202
Posted:
I didn't need to offend - I was looking for a reason that a homeowner would repeatedly do things in violation. Sometimes things get lost in translation.
Perhaps they didn't understand the HOA bylaws or CCRs.

MicheleD (Kentucky)
Posts: 4,491
Posted:
I dunno, Susan, in all the posts I've ever read on here, I've never seen anyone ask that before.

There was no indication from the original post that there was any confusion on communications.

It just seemed like a very weird thing to ask out of the blue.

MichaelK11 (Texas)
Posts: 432
Posted:
Quote:
Posted By SusanW1 on 10/17/2009 7:13 AM
Are they foreign? (just a thought)
We have many Asian families in our HOA. Some are first-generation and do not communicate well in English. A few other families from other parts of the world are first-generation with language barriers. They tend not to get involved in the HOA. (For that matter, so do most families without language barriers.)

One such family built a ramshackle shed in back. It took our BoD six months to effectively communicate that (1) this was not allowed, (2) the HOA had such authority and the shed must be removed, or penalties would ensue, and (3) what kind of shed could be constructed, which would look nice and be consistent with the neighborhood aesthetics.

But the homeowner described in this thread sounds like a different situation. Brings to mind someone who declares that income tax is unconstitutional and they can ignore the IRS. I think enough information was posted to show it probably isn't someone who actually believes the HOA is voluntary or without authority, but I don't think we ever know all the real-world details.
PenyW (Pennsylvania)
Posts: 43
Posted:
Thanks for all of the insight. The Homeowner's account has been turned over to our HOA for collection (that happened in June) and litigation is ongoing. The shed issue is just one more volley from these people. There is no communication issue here - just a total disregard for the Association.

Realting to why the shed approval would be related to the dues problem - it has been the policy of the HOA Board that architectural requests are not approved for members who are delinquent with dues, fines, or other monies owed to the Association. Sometimes it gets a delinquent Homeowner to pay before any legal action is required. Obviously in this case it's not motivating the Homeowner.

I believe that this issue will need to be handled by our attorney. Perhaps the offending party will get tired of dealing with legal fees, court appearances, etc and decide it would be in their best interest to just move to a community without an HOA.
PenyW (Pennsylvania)
Posts: 43
Posted:
Sorry, first line of my post should have read, "turned over to our HOA attorney...".
MaryA1 (Arizona)
Posts: 7,043
Posted:
Peny,

Your BOD cannot just make up rules as they see fit. Unless your gov docs state ACC requests cannot be honored if a member is delinquent in assessments, the board cannot just make up this rule. Unless the BOD has adopted a rule to fine a member who fails to obtain prior approval for ACC modifications, for get about the shed unless it would not have been approved because of legal ACC rules; i.e., shed type, siding color, set back requirements, type of roof, etc.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Mary, I agree... and disagree...with your post.

It's true that the board can't just make up the rule about not approving delinquent members unless the governing documents give them that sort of wide berth.

But if the shed is not approved, regardless of how it's not approved, then it must come down.

If the documents say that all projects must receive approval prior to construction, then the existing shed is in violation and must come down, whether it would have "passed" or not.

If the homeowners want to now file a request for approval, then the HOA should require a penalty for filing after construction.

But it would seem to me that the HOA would also not HAVE to accept the the request for approval.

I guess it just depends on how much hardball the HOA wants to play.

Do they want compliance or do they want to "get back" at the homeowner?

Our HOA would go for compliance. But we would also assess a penalty that MUST be paid before approval is given, or the shed comes down. Just so the homeowner knows that the HOA will enforce its documents.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Michele,

The shed is a "slippery slope" and the board must be very careful in how they proceed. I understand what you are saying and agree the h/o should have to go through the approval process. But, if they don't and the HOA informs them that it must come down, the HOA could be in for a lawsuit that they just may lose. There was a case with the AZ OAH awhile back that the HOA lost for that very reason. The HOA cannot deny an ACC modification simply because the member failed to obtain prior approval. So if the HOA is going to deny the request (mainly because of lack of prior approval) it might behoove them to find another reason. This might sound underhanded; but might be the only way to deal with a member who doesn't want to abide by the rules.

I also agree with the penalty for not obtaining prior approval. My motto has always been; when in doubt either ask or just send in a request.

A funny story. . .

My ex-daughter-in-law just bought a home in an HOA. My 11-year old grandson said to me, "We have an HOA". I asked if he knew what that meant. And he said, "Yeah, it means you have to keep your yard looking nice!" Nothing like educating the young!

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