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StaceyJ
Posts: 2
Posted:
I have provided detailed background, and therefore this has become lengthy but hopefully information has been provided so I can get your help.

I have lived in my home since the beginning of March this year. The neighborhood was built about 10 years ago and has not been turned over to the owners yet. There are 62 houses, which were all rentals to begin with, but the HOA was established after completion of the houses in January 1996. As far as I can tell about 30 houses have been sold. I was not given any information about the HOA after I moved in and the CC&Rs and By-Laws were given to me two days before signing my loan documents. I did not realize what a mess I was getting into by purchasing in this neighborhood. While reviewing my purchase agreement, I discovered the portion of the form regarding contact information for the HOA was not completed. I actually only found out who to contact by talking to a maintenance person who was completing the repairs on my home after move in.

I made two phone calls to request information in March and in April. I was told there was no board, no architectural committee and that it might be 8 to 24 months before turnover took place. I was not sure what position the person who gave me this had so I sent a two page letter in May and finally sent a certified letter to the agent and also to the office of the administrative company that handles the HOA in early August. I asked for contact information regarding vehicle parking issues, trash and basic enforcement, the last two year's budget, breakdown of fees, director's names, names of current owners and the estimated date of turned over. I received a response in early September from the President of the association. The budget called a "report of expenses", was what I thought vague and an invoice attached appeared to be requiring me to pay dues for 2006 even though I had been told by my sales agent that the fees had been paid by the seller and I wouldn't have to pay for 2006. The title company did not have the annual fee on the settlement statement at all. I was given contact people for the issues I addressed and told that they did not have the names of the owners and the turnover "can be done at any time".

After reading the statutes in Oregon regarding "private" neighborhoods and Homeowner's Associations, the CC&Rs, By-Laws and information provided on your website, I decided that perhaps I hadn't asked for the financial information I really wanted and should ask for other items such as insurance coverage. I wrote a second letter in early September, requesting specific information and included the exact language from the law, CC&Rs and By-laws so that it would be known exactly what I was requesting. This time I requested "financial statements that consists of a balance sheet and an income and expense statement" for the last two years. Oregon law indicates that the financial statement as described be distributed to each owner annually. I asked for evidence of insurance coverage, the financial institution name in which the annual assessments and other funds are held, documents showing "non-profit" status, a requirement by Oregon law for homeowner’s associations, minutes of the last two annual meetings and the tax return preparer’s name, and again the estimated date of turnover.

I received a second response from the secretary of the HOA two days ago. I was told in-depth financial information is for the board, not homeowners, and the report of expenses was all that I would be provided. Same for the insurance and tax return data. I also received the "minutes" for the last two annual meetings. Both were half page long, vague and as if made up to satisfy my request. I have belonged to boards before and never have I seen minutes like these. The minutes indicate the turnover was addressed at the January 2006 meeting stating 2007 turnover was hopeful during the annual meeting next January. So why couldn't the president tell me this in the first letter?

I was told that the title company made an error and that I should have paid pro-rated fees and the statement was only to show me the amount. I am to be billed for 2007 and to pay by January. There was a cover letter attached to the statement and it did not state it was for reference only and that the title company erred. A friend of mine also lives here and she received the same statement showing payment due.

I have been given different answers to the same question and provided no or almost no information to other questions. Additionally, I was told that any further questions and/or concerns should be held for the next annual meeting.

Here are my questions. How much of the information I have requested should be provided to me or other homeowners when requested or only at the annual meeting? Does it sound like this administrative body is hiding financial data or not keeping records separately for this HOA? Is $25 a month budgeted for insurance enough to cover a policy that should be in place? What should I do next?
BrianB (California)
Posts: 2,820
Posted:
as an owner, you have a right to examine the books, period. You may have to go somewhere (ie, they do not have to be copied and sent to you), but you should GO and examine them. You have a right to see ALL records of the HOA, except payroll records for employees, disciplinary actions of employees, and litigation/legal communications.

Your next steps: ask to see the documents, and don't let up. You are an owner. Read your CC&R's, and know them better than the board. they can help you. Read the by-laws too, that tells the board what they can and cannot do. Finally, find out when the meetings are held, and attend. the best thing you can do to help turn an HOA around is get interested. 90% of the problems i have seen could be solved if the owners would just be interested enough to pay attention, ask questions, get involved, and be watchful.
JosephW (Michigan)
Posts: 882
Posted:
If you think 30 or the 62 lots have been sold, then I would suggest that you notify the developer about this section of OR law:

94.604 Transitional advisory committee. (1) As provided in this section, the declarant or the owners of a planned community that contains at least 20 lots in either the initial development or with the annexation of additional property shall form a transitional advisory committee to provide for the transition from administrative responsibility by the declarant of the planned community under ORS 94.600 to administrative responsibility by the association. The declarant shall call a meeting of owners for the purpose of selecting a transitional advisory committee not later than the 60th day after the date the declarant conveys 50 percent or more of the lots then existing in the planned community to owners other than a successor declarant.

(2) The transitional advisory committee shall consist of three or more members. The owners, other than the declarant, shall select two or more members. The declarant may select no more than one member. The committee shall have reasonable access to all information and documents which the declarant is required to turn over to the association under ORS 94.616.

(3) An owner may call a meeting of owners to select the transitional advisory committee if the declarant fails to do so under subsection (1) of this section.

(4) Notwithstanding subsection (1) of this section, if the owners do not select members for the transitional advisory committee under subsection (2) of this section, the declarant shall have no further obligation to form the committee.

(5) The requirement for a transitional advisory committee shall not apply once the turnover meeting called under ORS 94.609 has been held. [1981 c.782 §64; 1999 c.677 §9; 2003 c.569 §9]

Ask when the tranistional advisory committee is going to be established and then try to be one of the owners selected by the other owners, to be on it. The state law also lists all of the documents that are to be turned over at transition, but this section above says the the advisory committee shall have reasonable access to these records.

Might move things along a little faster.

Joe

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StaceyJ
Posts: 2
Posted:
Brian and Joseph, Thank you for the information. I have read the CC&Rs and By-Laws and much of the Oregon Statute regarding my situation. I actually cut and pasted some information in the last four page letter I sent to the administrative body. What I didn't include in my last posting was that I believe there are two major LLCs, and possible a few others that own the houses that have not been sold. I have accessed the real estate transactions and the same names appear on most of the sales. Some of the individuals listed as directors of those companies are also the directors of the HOA. The last letter I received did indicate turn-over of the HOA beginning in January but did not give details. Nothing adds up, and the more information provided to me, the more questions I have. I contacted an attorney prior to my last inquiry. I explained everything that had happened at that point and I believe if I (we) file a civil suit, it can only push these people to do what they should have been doing anyway. Am I right?
CynthiaD (Nevada)
Posts: 20
Posted:
Stacey: Maybe you should contact your state real estate division or whoever enforces that statute. Do you have a commission for common interest communitites to assist you? I personally would re-read declarant's rights in your documents and pay close attention to arbitration and or other legal proceedings mentioned in your documents (who pays what in in what event). Sound like a mess that need not have happened to you.

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