guest blog by Deborah Goonan
An owner in Parkview HOA in Brownsville, TX was recently interviewed by KRGV television. He explains that several years ago their HOA “fizzled out” but then a new management company suddenly appeared on the scene, looking to collect assessments. But the HOA has a $46,000 deficit, and many owners are not paying their dues or paying attention to the HOA, despite collection letters tacking on a $250 attorney fee for delinquent account owners.
So what’s the story here? That’s a bit of a mystery. A quick Google search turns up minimal information on Parkview Homeowners Association LLC – address, phone number, and management agent. Attorney Bill Davis was consulted by KGRV, and, according to him, the first step is to locate the original HOA governing documents, and determine whether the HOA currently attempting to collect assessments is the Original HOA vs. a newly formed corporation masquerading as the once-defunct HOA. Got that?
The story leaves out many details, and calls to mind several questions. Was there a vote of owners to revive this inactive HOA? How long was it inactive? Were assessments being collected before the new management company started sending invoices? How many homes are involved, and what are the dues?
There are specific legal processes for dissolution, as well as reviving inactive HOAs, depending on state law. Looks like the homeowner, Mr. Jack Jew, will have to consult an attorney, and get together with his neighbors to see if they can rid themselves of the HOA that he claims most owners do NOT want.
Ironically, as demonstrated in Florida, a group of Bulk Buyers (investors) can quickly gain control of a Board, and then vote to dissolve the Association. But ordinary owners of one measly home apiece have to play detective and jump through numerous legal hoops just to get rid of the HOA albatross, if possible.
Does that seem fair to you?
(link to story in Brownsville, TX)
Common sense tells you, there should be an established legal process to handle this issue, but, we are dealing with law, HOAs, and real estate, so kiss common sense bye-bye. Still, if HOA one goes belly up, but doesn’t declare bankruptcy, and there is a period of years that pass, with no one directing HOA members to do anything specific in the interim, it SHOULD be the case that, any new rental property company who takes over HOA two, has to obtain any previous fees from the previous organization, not the members who are secondary to the existence of said original HOA rental property overlord. The HOA members did not create or initiate HOA one’s business model, they are enslaved to it.