Small Claim against Homeowners Association

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localinfopost

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O.K. this will not be usual case but I will try to make it simple.

We are foreigners from Lithuania. As a young couple we moved to NW Indiana 5 years ago and purchased Town House as first time home buyers. Homeowners Association fee was $60 and then it was raised to $75. We were thinking that fee is being collected and placed in to special savings but that was not the case. Developer was stealing and pocketing money. For all the money he collected he hired two private people to cut grass and never ever performed any preventive maintenance on any of the buildings.

Our first issue was when we noticed adjoining property owner demolishing wild trees in the back yard with his private tractor (around 15 acres). He was also owner of now closed water park. He had no permits and in few days all trees were gone... leaving our property and back yard looking like Iraq battle field. It stayed that way since 2006. not much was done to stop him since he also was sitting Town Council member. Developer did not wanted to deal with an issue and dumped our Homeowners Association to homeowners. I was able to review and noticed that all the money collected were gone and after years of collecting Homeowners Association had less than $15K in the account. I was legally elected by the homeowners to serve as a President and really wanted to change our community and make better place to live. I was threatened and people were sabotaged and I was left without an option and resigned the same month I was elected. The reason for my removal was my disagreement to allow outside management company to handle our Homeowners Association and I wanted to retrieve stolen money.
Management company took over and without delay I and my family were made instant targets of harassment and retaliation for my previous opinion that was not in favor to sign contract with this management company. As I predicted they raised fee almost instantly to $100 without any votes or explanations to the homeowners.
Besides all kind of minor things I was forced to sell my van, place my corvette in storage, my Lexus was damaged twice and property maintenance requests were always ignored. They never cleaned our snow making last year extremely hard because of my wife's pregnancy and scheduled doctor visits. I paid two times deductible to State Farm for the Lexus vehicle damage $250 plus another incident $250.. my rate went up because of two claims (never ever had claim before). Then I had to purchase grass mower and power washer and do all the yard work myself. This year they already showed up to remove snow 4 times but we were left out again. I documented, video taped and noted few years of repeated incidents to the point that we are tired of it. With the current economy it is not in our best interest to move.

I wrote management company number of angry letters and received no response. I finally stopped payments to them for our homeowners association fee. I have not paid for 7 months $700 plus $70 late fee ($10 per month). December 30 2009 they filed a lien against my property for $920 I guess $770 plus $150 for the filing.

Funny thing we have no legal board... we have no willing members... management company dictates everything and few homeowners that were assigned to serve most likely do not know what fiduciary duty is are incompetent to be serving on board. In the middle of December board management compny distributed letters asking $140.00 per month for the fee. They use scare tacticks and steal money. They legitimize their actions by subcontracting work to their own people that work for them.

Besides small claim anyone has any better advice ?
 
Besides small claim anyone has any better advice ?
Corruption... very difficult to deal with. Small claims is probably a good first bet but I question if you'll get a fair one. Going to a higher court is more costly but you may get a more fair shake there (I am sure their attorneys will try to litigate you to financial death.) Perhaps the state attorney general is another and you can detail the level of the fraud with the homeowner's association hiring its own people, collecting and not providing the services - conflict of interest. Your documentation (hopefully copies) would be good to share. Why did you resign and then mention being ousted - not sure I understand.

Best of luck with this.
 
We are foreigners from Lithuania. As a young couple we moved to NW Indiana 5 years ago and purchased Town House as first time home buyers. Homeowners Association fee was $60 and then it was raised to $75. We were thinking that fee is being collected and placed in to special savings but that was not the case. Developer was stealing and pocketing money. For all the money he collected he hired two private people to cut grass and never ever performed any preventive maintenance on any of the buildings.

Homeowner Associations are not-for-profit organizations. Except for a "reserve fund", which is limited in amount by law, most dues are spent entirely for the maintenance and obligations of the community. Other than cutting the grass as you could see, there may have been other expenses that you were not aware of such as insurance, administrative expenses, electricity for signage or streetlights, etc..

Developer did not wanted to deal with an issue and dumped our Homeowners Association to homeowners.

It is normal, after the completion of sales by a developer, for the Homeowners' Association to be turned over to the homeowners.

He had no permits and in few days all trees were gone... leaving our property and back yard looking like Iraq battle field.

If you knew your neighbor had no permit for the work, you should have contracted the local code enforcement. You cannot depend on a Homeowners' Association to uphold all laws and covenants. Though by obligation the HOA (Homeowners Association) should have done something about this, they did not in this instance. The HOA as you are now aware is made up of homeowners such as yourself. Not everyone is as willing and knowledgeable to do a good job.

Some homeowners want a management company and others don't. Usually those who do not wish to obey the bylaws and covenants are those who do not want a management company. You need to attend the meetings and learn what is being done. You need to review the annual budget and request to review the financial documents. You have the legal right to view all the financial documents of the Association. There can be legal consequences against the Association if they refuse to disclose these documents to you. They may legally charge you for copies, if you want copies.

You should NEVER stop paying your annual dues. The dues automatically become a lien against the property. They will never go away till paid. If unpaid, when you sell your townhouse the amount due will be deducted from your sales proceeds. One way or another, they will be paid either by you or the new owner. (This lien is against the property, not YOU).

Your biggest concern should be the Reserve Account. Without a proper reserve, all homeowners could be faced with a large special assessment if a roof needs to be replaced or any other major commonly owned asset. A properly maintained reserve would forecast this future expense and save for it now by adding a portion to the annual expenditures as part of the budget.

The difference between your initial $65 per month and the now $140 per month is probably due to the cost of the management company. This could be a good thing. A professionally run management company will handle the communities' affairs better than a group of homeowners. Just remember that the management company is guided by the Board of Directors who are comprised of homeowners.

They legitimize their actions by subcontracting work to their own people that work for them.

This is perhaps saving the homeowners money and the management company can more easily guarantee the work of their own employees versus using other companies. The crux of this is to ensure the management company is a good one.

If you haven't already, get and read a copy of your Homeowners' Bylaws and Covenants. This will explain what owners can and cannot do. If you view a violation, bring it to the attention of both the management company and the Board of Directors. Do it in writing.

It is notorious for a small group of homeowners to take power and use that power for their own advantage. This can backfire on them if an owner such as yourself exercise your legal rights. If a major violation of your bylaws or covenants is being ignored, then ask why at the next annual meeting. Your question and their answer would then become part of the meeting's minutes which must be kept.
 
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Update

So after all we decided to file a case in small claims court....

And now we are being counter sued and case is transferred to preliminary docket.

Management company dumped their case to insurance company who hired attorneys and management companies attorney got hired by so called Homeowners Association.

They are playing games and slapping us with filings but we will fallow time guidelines and the law and will proceed with our case for now Pro Se and once we find legal representation we will hire good competent attorney.

So far in NW Indiana I could only find medical malpractice or wrongful death attorneys... and one promising consultation turned in to treats where attorney admitted knowing management company and its employees since they manage his property.

Although we are experiencing bumpy road ahead.

We are becoming disappointed to see that law is one sided and it only applies when it is convenient to corporations ...

My 30 day extension to file is up by the end of this week and I am preparing my filings that I most likely will do ProSe this thursday.

To many of you it is hard to understand ... to many it seams unrealistic and unbelievable.

Sure company will try to cover up their wrongdoings and theft of money by providing team of attorneys and spread sheets but i will provide cler evidence and pictures.

Hope I am competent enough to fallow legal procedures.
 
The lesson here is to never buy property that involves an HOA.

They are property terrorists.

They have all the rights, you have none.

Why would you want to pretend you're a homeowner, when they treat you like a renter?

Never buy property if an HOA is involved.

I regret your troubles.

Sell the property as soon as you can.

Those property terrorists are as ruthless as the Taliban!


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Management company dumped their case to insurance company who hired attorneys and management companies attorney got hired by so called Homeowners Association.
The Association most likely carries insurance that protects the Board of Directors from liability of civil suit.

So after all we decided to file a case in small claims court....
What are you specifically suing for? Have you requested to view the financial documents of the Association? Are you contesting the expenditures and proper use of the homeowner's dues? Are you contesting the non-enforcement of covenants?

As I predicted they raised fee almost instantly to $100 without any votes or explanations to the homeowners.
No vote is required. The additional cost of the management company is a legimate expense for maintaining the community. The Board was elected by the homeowners to establish the budget and to maintain the community.

In my opinion, a homeowner's association is not bad, it is the Board of Directors that makes it bad. Unfortunately, most homeowners do not want to be involved with the non-paid duties of participating on the Board of Directors. Though, these same homeowners want to derive the benefits of the homeowner association covenants. What happens is a small group of homeowners (usually retired and with nothing better to do) take over the Board. With no interest from other homeowners, they are able to then do as they please. They will use the Association's funds to benefit their desires. They will spend Associaition funds to fight personal neighborhood grudges and thus increasing legal expenditures.

I predict that you will ultimately lose your civil case and all related legal costs will be placed as a lien against your home. It is not uncommon for a HOA to seek foreclosure to recover. The law is on their side. Fiduciary duty would require the Management company and the Board of Directors to do whatever is necessary to recoup the Associations funds that were used to fight you in court.

My personal advise, not as a lawyer, but as a homeowner who has lived within a HOA for 25 years and been on the Board as treasurer and president:

Discontinue your lawsuit. Pay all your late dues. Then either participate on the Board in your best interest, or sell your property as Army Judge suggested to you. If you wish to stay, your only hope is to overthrow the group that has a stronghold on the present Board of Directors.

Sure company will try to cover up their wrongdoings and theft of money by providing team of attorneys and spread sheets but i will provide cler evidence and pictures.
I doubt seriously that "theft" is involved. You may think in your own mind that funds are being used inappropriately, but that is NOT theft. Think of the HOA as a mini government. If you don't like how the HOA is being run, then you need to re-elect a Board that will govern to your liking. That is NOT as easy as it sounds, since the majority of people want no involvement.

Good luck.
 
lawsuit against HOA

I need profession advise on my current lawsuit against HOA. I have filed a suit with $ compensation against HOA regarding invalid vehicle tow (with handicap decal). I included a property management company as a defendant.
In court I found out that I have to file a claim against both: HOA itself and the Property Management that represents the HOA. Unfortunately, HOA has no physical address, since it is NOT an entity. What do I do? Do I just indicate them in the Plaintiff's Claim as another defendant (without an address?!)
Or is my residential address IS the address of my HOA?!
Please help!
I have to re-file the claim.
Sincerely,
TT
 
A homeowner's Association is indeed an entity. It is a corporation. File the claim using the registered agent as the address. You can find the registered agent by searching the Division of Corporations website for your state. In Florida it is sunbiz.org. Search for your HOA and then look for "registered agent". Make sure that a copy goes to the President of the association.
 
In Virginia, small claims court was the wrong court for my lawsuit as ProSe agains a HOA. The judge dismissed my case without prejudice and educated me filing in the Circuit Court where my case is in discovery and I am being represented by an attorney. He who represents himself is a fool! I have a really great case that will set precedence if a judge rules in my favor.

Hopefully, the judge is NOT the president of a HOA then I will have to go to the Appellant Court. My hope is to get to the Virginia Supreme Court so my kids can Google our last name.

HOAs are corporations! Two-thirds of the membership of a HOA can dissolve the corporation. A corporation is NOT a country club and once I educate all of you homeowners that common areas are nothing more than land use created by a developer who is a corporation who turned over the maintenance of common areas to another corporation called a HOA versus turning it back over to the county who approved the development and zoned it RESIDENTIAL. Amazing how y'all think that a HOA can stop me from painting my house PINK with PINK flamingos in the front yard. By the time a house wife who is a BOARD member could figure out what to do, I will be dead and buried. BOARD members are running a corporation and sueing them for a breach of fudiciary duty is how I will win my Circuit Court case in the Commonwealth of Virginia.
 
You can sue the tow truck company in small claims court for stealing your vehicle. By law, the executive branch of government, i.e. fireman who needs you towed to gain access to a fire hydrant or state trooper to clean up an accident scene, MUST authorize the tow otherwise the tow truck driver is a thief. I used this premise in a small claims court case and the tow truck company was reprimanded and I got back my towing fee, overnight charge, and court costs! It happened on 2/14/2005 and I call it the "Valentine's Day Tow Truck Company Massacure".
 
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