Bad (illegal?) HOA property managment company in GA

[nukengr]

I live in a new 63-house subdivision in Buford GA. Our HOA was controlled by the builder until 75% of the homes sold per the covenant. After that it is supposed to automatically transfer to the homeowners for elections, budget, etc. I was roughly the 48th home so this should have happened on or about April of 2003. We as a community went through the usual lack of response from the builder from October 2003 until Feb 04 when a property management company showed up saying they had been hired by the HOA and we were grossly over budget. Nobody from the builder ever sent us any sort of notice that this company had taken over. We only know (through the property management company) that they were hired in December of 2003 after the builders internal property manager disappeared, with the money from several communities.

My question is, did the builder (officially the declarant up until 75% of the homes were sold) have authority to hire this management company after 75% of the homes were sold? We've tried to get a answer from them and they wont answer our calls. The property management company wont respond to us or the complaints they've now received from the better business bureau. The only contact we've received was a letter today that stated that we were $6000 in the hole.

Second, they sent a rough list of where the money went, legal fees, misc maintenance, etc but have not allowed the homeowners to see a complete breakdown of where each $ went. Do we have a right to demand this from them in writing or is it something that I have to physically go to their office to get?

Thank you all for any assistance you can give.

 

[NYClex]

It sounds pretty fishy but one would have to know the details. I suggest you get together with the other homeowners and invest in a consultation with an attorney to look very closely into all the documents you have.

 

[Cvillecpm]

Yes - you need an attorney to write to Mgmt Company outlining the paperwork that needs to be reviewed and provide a timeline for it to be produced.

Yes, the builder can hire a Mgmt Co while they are in control of the asso and this is what usually happens. I suggest you get elected to the BoD at the first chance and if no annual HOA meeting has been scheduled in accordance with your governing documents, this needs to be done ASAP.