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HOA Problems

4,267 Views | 19 Replies | Last: 7 mo ago by Kikkoman
Gator92
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Own a SF rental and the HOA has passed a resolution to charge landlords a "leasing administration" fee. They are requiring landlords to provide all "leasing-related documents". Signed occupancy affidavit, copies of lease agreement, etc. Fee is to cover the costs of "processing, keeping accurate and up to date records, and otherwise administering the leasing of Units within the Association".

The fee is nominal, but my bigger concern is that they are wanting to bless every lease at their discretion.

Other than banding together w/ other landlords and voting the board out, what can be done to stop this?
Red Pear Luke (BCS)
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Gator92 said:

Own a SF rental and the HOA has passed a resolution to charge landlords a "leasing administration" fee. They are requiring landlords to provide all "leasing-related documents". Signed occupancy affidavit, copies of lease agreement, etc. Fee is to cover the costs of "processing, keeping accurate and up to date records, and otherwise administering the leasing of Units within the Association".

The fee is nominal, but my bigger concern is that they are wanting to bless every lease at their discretion.

Other than banding together w/ other landlords and voting the board out, what can be done to stop this?


Biggest thing is questioning can this retroactively be enforced? Meaning can you skate through given you were already leasing before they made this resolution?

Second would be pushing back from a privacy perspective - especially so as it pertains to the contract between YOU and the tenant. That is a private agreement and should not be eligible for the HOA to review/accept.

Third, there is no way they can attempt to bless their lease at their discretion because that is a quick way to a fair housing violation lawsuit.

I'm not a lawyer and this isn't legal advice but I'd be pushing back against this. Does your neighborhood have a lot of rentals or are you one of the few?
JobSecurity
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Does this have anything to do with the squatting stuff that's been going around? By forcing landlords to submit the lease they then have a source of truth to check back against? Just a thought. No reason to force a fee on you
SteveBott
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HOA's will slap a fee on anything
Gator92
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They are obviously trying to crack down on rentals. So I'm guessing there are many...

I have done some research. It seems a POA, which seems to be the legal term per TPC, can only request name, mailing address, phone and email from a lease.

Quote:

Sec. 209.016. REGULATION OF RESIDENTIAL LEASES OR RENTAL AGREEMENTS.

(a) Repealed by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.

(b) A property owners' association may not adopt or enforce a provision in a dedicatory instrument that:

(1) requires a lease or rental applicant or a tenant to be submitted to and approved for tenancy by the property owners' association; or

(2) requires the following information to be submitted to a property owners' association regarding a lease or rental applicant or current tenant:

(A) a consumer or credit report; or

(B) a lease or rental application submitted by the applicant, tenant, or that person's agent to the property owner or property owner's agent when applying for tenancy.

(c) Repealed by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.

(d) Nothing in this section shall be construed to prohibit the adoption or enforcement of a provision in a dedicatory instrument establishing a restriction relating to occupancy or leasing.

(e) A property owners' association may request the following information to be submitted to the association regarding a lease or rental applicant:

(1) contact information, including the name, mailing address, phone number, and e-mail address of each person who will reside at a property in the subdivision under a lease; and

(2) the commencement date and term of the lease.

Added by Acts 2015, 84th Leg., R.S., Ch. 1077 (H.B. 2489), Sec. 1, eff. June 19, 2015.

Amended by:

Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 20, eff. September 1, 2021.

Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.
It would seem that the resolution flies in the face of Texas Property Code.

Here is the "resolution"...

Quote:

WHEREAS, the Board of Directors believes it to be in the best interest of the Association and its membersto collect and retain certain leasing-related documents, including but not limited to a signed occupancy affidavit,copies of lease agreements, Owner Occupant lnformation Forms, and Governing Document Acknowledgement Forms to be used in the administration of the leasing of Units within the Association;

WHEREAS, the Board of Directors believes it to be in the best interest of the Association and its membersto collect a leasing administration fee to cover the costs incurred by the Association in processing, keepingaccurate and up to date records, and otherwise administering the leasing of Units within the Association;

NOW, THEREFORE, LET lT BE RESOLVED that the Association or Managing Agent shall assess the Ownerof a Unit who has been granted approved leasing status an annual leasing administration fee of one hundred and twenty five/L00 Dollars (5fZS.OO; (the "Leasing Administration Fee"). The Leasing Administration Fee shall be due and payable on the date on which approved leasing status was granted and on each subsequent anniversary date thereof, for as long as such approved leasing status remains in effect. The Leasing Administration Fee may be reviewed and increased, from time to time, in the Board's sole discretion.

The Leasing Administration Fee thereof shall constitute and shall be treated for all purposes as a specificassessment pursuant to the Association's Declaration.

Any Unit Owner who is granted approved leasing status or who, as of the Effective Date, has been granted approved leasing status, shall provide to the Association's Managing Agent a copy of the lease agreement associated with their Unit, the leasing permit associated with their Unit, the Owner Occupant lnformation Form, the Governing Document Acknowledgement Form for the tenant(s) living in their Unit, and any additional documents that reasonably may be required by the Association, as permitted by law.

The Managing Agent is directed to distribute this resolution to all Members of the Association,

The Association acknowledges that enforcement of the Leasing Administration Fee shall be based upon Information that the Association collects from Unit Owners as to approved leasing status.
Seems POA's have no authority to require a lease be submitted for approval and can't require copies of lease agreements or any other "leasing related documents".

Also not clear is "approved leasing status". Maybe they can legally charge this fee, but the reason they state for the fee is keeping up to date on records that they can't legally require.

JustPanda
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Keep fighting them and they will probs just pivot and put a blanket ban on all STR inside the HOA. That's what happened to us.
Red Pear Realty
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I know of two different HOA's who bankrupted themselves after trying to enforce unenforceable rules, getting bad advice from attorneys, and getting themselves into federal lawsuits over the whole mess. So I guess it depends on how bad you want to fight it and how dirty you are willing to get doing so?
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KenJohse
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Gator92 is 100% correct. There are limitations as to the info that must be provided.

Something that could happen in the future at yours or other HOAs is to limit the number of homes that can be rentals. We did it and I am happy about that.
TxAG#2011
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Is your HOA not currently checking who is renting places in the neighborhood?

What you described doesn't seem worth getting upset over at all. Most homeowners do not like renters for good reason.
OnlyForNow
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Who voted for that change? That seems like something 51% of the property owners would have to vote for and you had a chance to vote on it.
one MEEN Ag
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Can you share which two? Taking notes for a future game of 'enforceability chicken' I'd like to play.
CapeAggie89
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OnlyForNow said:

Who voted for that change? That seems like something 51% of the property owners would have to vote for and you had a chance to vote on it.
Agree, check the HOA Covenants as those will say what the HOA can and cannot do. Something like this might have to be approved by a specific number of property owners.
dallasiteinsa02
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Most Poas hire a third party to run the day to day. They take
My guess is the board wanted to get control over tenant behavior or short term rentals. A lot of times tenants are problems and the POA gets stonewall by a landlord saying it is out of their control. Getting some language in the lease that makes them both responsible protects the POA.

If it is to control short term rentals, it gets to be a little bit of legal manipulation to stay within the law, but make it very difficult for them to operate as a str. Registering a tenant including a fee gets to be a problem if you have to do it over and over again.

I am not sure if this can be voted in. Usually, there is some language in the original document that allows for the POA to create leasing rules. If that doesn't exist, they may not be able to add it.
SweaterVest
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one MEEN Ag said:

Can you share which two? Taking notes for a future game of 'enforceability chicken' I'd like to play.


One of the two is Garden Oaks Maintenance Organization (GOMO) in Houston. They filed suit against a homeowner and over the course of the lawsuit tho homeowner's attorney discovered that GOMO had not been formed correctly way back in the 1950's or so, and that it didn't, nor had it ever had the authority to collect fees. This obviously led to bankruptcy and to a number of homeowners, including me, being refunded our fees through a BK lawsuit.
Red Pear Realty
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And to think it all started because the board was selectively enforcing their rules based on race. The more you know.
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SweaterVest
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Yeah, quite the spectacle.

Link for those interested in the story.

https://www.theleadernews.com/real_estate/fate-of-gomo-uncertain-as-bankruptcy-case-winds-down/article_1c96c310-7c60-11eb-ad0f-df1024396804.html
Kikkoman
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Hey Gator92, did you ever come up with a solution to this problem? I am in the exact same boat as you and was wondering what I should do. I received the same email/POA message.
SlackerAg
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Wow, GOMO really GOOFed up...
Gator92
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Update:

I consulted a lawyer who specializes in HOA. It seems the "special assessment" or landlord fee must be voted on by all HOA members.

However, he says that providing a copy of lease agreement is debatable.

I'm going to speak w/ him and will update...
Kikkoman
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Thank you for your update! My largest fear is that "may increase the fee, from time to time" line in the document. That makes it seem like they are going to raise it each year, and again, for what? Just a bit frustrating.
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