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Another HOA / HOA management company problem

2,280 Views | 18 Replies | Last: 5 mo ago by Absolute
Absolute
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AG
Have a townhome property that has an HOA / HOA management company. Was my Dad's place before he passed and we kept it since rents were up and prices slightly down at the time and we had to put a bunch of money into it after his death. Have lots of historical knowledge since my Dad lived there for 35+ years.

Historically the water bill was covered by the HOA dues. Around the time he passed they got it approved to bill each unit individually by installing submeters. Reasonable idea. Took them over a year to implement that change, but it started Jan 1 of this year. Payment is made to the HOA management company in a separate payment from the dues.

This management company regularly misplaces or "does not receive" checks in the mail. More than any other services I pay combined.

When I received the March water bill it showed that Feb had not been paid. I had sent a check through my bank's bill pay service. As I had at least three occurrences like this last year, I assumed they they did not get the check and changed my payment method to the newly activated Zelle payment option. I paid the outstanding Feb bill and the March bill in separate payments through Zelle. I contacted my bank to cancel the check. No big deal. As, unlike the dues checks they "did not get" the previous year, they were not charging penalties yet on the water bill payments.

Bank reaches out a week or so later and informs me that the check was deposited by the HOA Management company and sends me a copy of the check. Okay, still not that big of a deal. Accounting error. Sent the HOA Management company an email with the cleared check copy from the bank and requested that they verify and apply to my water bill account.

Crickets......(Which is normal customer service for this company.)

Follow up. They respond they will look into it.

April bill comes and nothing has changed other than it shows the two Zelle payments. Email again. Crickets again.....Email again with stronger wording.... They respond they will look into it.

Repeat the above again in May.

And June......Send a more strongly worded email asking why this is so hard. They have the copy of the check. It has a deposit date. How hard is it to verify they did deposit it and actually apply it to my account? They respond with an email saying see the attached. The attached is the statement for my account that I had just received in the mail before paying the bill which shows all the payments except the missing check in question.

Get pissed and decide that I will file a complaint with TREC. They regulate property managers, right. Learned something in my search do this after neither the company nor the Principal show up on TREC. Apparently, much like HOAs, HOA management companies don't have to actually be Property Managers and are, as far as I can tell, completely unregulated and there are no channels for recourse. Despite the very large sums of money they are handling.

That was last week. So I sent an email to the company owner and the email for the HOA board again explaining the problem and asking for resolution. With the loose and totally ineffective threat of pursuing it further if needed. No response yet, and I really do not expect one. I truly believe they have no intention to look into it and to resolve the problem and maybe knowingly stole the money.

We are talking about a check for $114.61. It isn't that big of a deal moneywise. But it is a big deal that they are completely ignoring their mistake, refuse to communicate about it, and are effectively stealing money. I just don't get it.

I am not a "sue people" person. I cannot begin to imagine how it would be worth it to sue over $144.61. But I am NOT okay with them stealing money and not doing their job.

Seems insane that HOA and apparently HOA management companies have so much fiduciary power and no oversight.

What should I do? Any Texags attorneys around that hate HOA's as much as I do, that want to send a strongly worded letter and take anything we can get from them?

Oh and in the same manner as their fiduciary competence, they also do not answer the phone or return calls. Honestly not sure what they do.
dallasiteinsa02
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If it was me, I would probably send my next check short the $114 with a copy of the canceled check that is not reflected on the account. Maybe when someone gets it and has your account up they will fix it.
Absolute
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AG
Thought of that and it is what my wife suggested.

My concern is that they are absolutely draconian and quick to slap on late fees regardless of what the reason is. If I cannot get them to respond when it is their fault, how much luck am I likely to have if they start piling on late fees and still refuse to acknowledge the check?

Given how easily HOAs can place liens and foreclose (and with my historical knowledge of this community I know they have done so) it seems risky to go that direction.
dallasiteinsa02
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They would be stupid to do anything in this situation with regards to liens and/or foreclosure. It opens up pandora's box for them legally.

If you want to cause panic, make a formal request for a copy of the agreement between the management company and the hoa. Make them think you are prepared to push for a cancellation of their contract.
Absolute
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AG
Well nothing in my experience with them suggests competency or intelligence. Seems pretty stupid to blatantly not properly apply funds, not respond to calls and emails, etc. They have been the HOA Management company for 30+ years. Do not believe that any of this is new behavior for them.

Just don't know how to pursue it that doesn't take more time than it is worth.

What does requesting that contract do for me?
csnole
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Show up in person during the next board meeting and ask them why this hasn't been handled. You could also email all homeowners warning them of accounting errors and non communication - see if anyone else has the same issues.
one MEEN Ag
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AG
Youve probably uncovered that the management company is skimming money from the water bills.

Middle man is mismanaging this on purpose. They were getting away with it easier when it was just one big bill, not they're changing tactics because its a thousand little bills.

Only way to get this sorted at this rate is if a group of homeowners sue.

malenurse
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AG
There is one other possibility. Since 1983 I have lived in three different homes with three different HOA's. My wife was diligent in always attending meetings in all three locations. She in on the HOA board in our current home.

There are two constants in the universe. Gravity, and , imcompetent HOA management companies. I swear, I have never met more incompetent, lazy, unintelligent, fat asses than those who work for HOA management companies.

The last thing I want to do is hurt you. But, it's still on the list.
Diggity
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AG
go check out your local post office or DMV
dallasiteinsa02
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I was the President of a small hoa of townhomes. We had 7 units. A hail storm destroyed all the roofs. I worked to get a bunch of bids and called everyone together to review. It was a tile roof system and the total bill was over $100,000 across the 7 units. Because of the setup, each unit had their own insurance so it was quite complicated. We were about to sign the contract when the management company said that they would handle it per our contract with them and they would be paid 30% on top of the cost to repair.

I then called for a vote and we cancelled their contract right then and there. They were pissed. I explained that I understand the 30% for minor sprinkler repairs or little things but we are talking $30,000 plus. That isn't happening.
Absolute
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AG
one MEEN Ag said:

Youve probably uncovered that the management company is skimming money from the water bills.

Middle man is mismanaging this on purpose. They were getting away with it easier when it was just one big bill, not they're changing tactics because its a thousand little bills.

Only way to get this sorted at this rate is if a group of homeowners sue.





This occurred to me. Seems risky since it is traceable if the check is cashed. But I suppose if there is not practical recourse to force them to respond and they can just stonewall. Maybe it is.

Was also thinking there was something scamming with the lost checks and all their late fees.
one MEEN Ag
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AG
Criminals don't have to be smart. A family friend caught a bank manager stealing money…from a bank. Someone just needed some quick cash and they were going to return it but never could scrape together the money to legally replace it.
dc509
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Absolute said:

one MEEN Ag said:

Youve probably uncovered that the management company is skimming money from the water bills.

Middle man is mismanaging this on purpose. They were getting away with it easier when it was just one big bill, not they're changing tactics because its a thousand little bills.

Only way to get this sorted at this rate is if a group of homeowners sue.





This occurred to me. Seems risky since it is traceable if the check is cashed. But I suppose if there is not practical recourse to force them to respond and they can just stonewall. Maybe it is.

Was also thinking there was something scamming with the lost checks and all their late fees.
Call the police. I don't know who you should speak to, but start by calling 911 and reporting them for theft (or whatever). I have no idea if this would go anywhere, but I have always wanted to see someone try it with these POS organizations.
normaleagle05
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AG
Filing a lawsuit doesn't have to be the first step with a lawyer. A demand letter from a lawyer will go to the management rather than to the peon that is failing to properly process the payments. That'll get the attention of a higher authority that doesn't want to get sued and should take corrective action to prevent it.

Also, the peon may be stealing out of the billing and management has no idea.
Jabin
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Situations like this are what Small Claims or JP court were created to handle. You absolutely don't need a lawyer, and the fees to file the suit and have it served are nominal.
combat wombat™
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AG
dc509 said:

Absolute said:

one MEEN Ag said:

Youve probably uncovered that the management company is skimming money from the water bills.

Middle man is mismanaging this on purpose. They were getting away with it easier when it was just one big bill, not they're changing tactics because its a thousand little bills.

Only way to get this sorted at this rate is if a group of homeowners sue.





This occurred to me. Seems risky since it is traceable if the check is cashed. But I suppose if there is not practical recourse to force them to respond and they can just stonewall. Maybe it is.

Was also thinking there was something scamming with the lost checks and all their late fees.
Call the police. I don't know who you should speak to, but start by calling 911 and reporting them for theft (or whatever). I have no idea if this would go anywhere, but I have always wanted to see someone try it with these POS organizations.


Mkay
Absolute
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Jabin said:

Situations like this are what Small Claims or JP court were created to handle. You absolutely don't need a lawyer, and the fees to file the suit and have it served are nominal.
Guess this is what I will have to do.
dc509
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AG
combat wombat said:

dc509 said:

Absolute said:

one MEEN Ag said:

Youve probably uncovered that the management company is skimming money from the water bills.

Middle man is mismanaging this on purpose. They were getting away with it easier when it was just one big bill, not they're changing tactics because its a thousand little bills.

Only way to get this sorted at this rate is if a group of homeowners sue.





This occurred to me. Seems risky since it is traceable if the check is cashed. But I suppose if there is not practical recourse to force them to respond and they can just stonewall. Maybe it is.

Was also thinking there was something scamming with the lost checks and all their late fees.
Call the police. I don't know who you should speak to, but start by calling 911 and reporting them for theft (or whatever). I have no idea if this would go anywhere, but I have always wanted to see someone try it with these POS organizations.


Mkay


Sometimes you have to get creative.
Absolute
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AG
So I called and left a message that I was calling the police.

This morning I got a call back!!!! Same lady that has been answering (sort of) my emails. She proceeded to tell me that the payment was posted. I explained things again and she immediately said "oh, I understand. February was the month we made the big accounting change and a lot of things got missed. I will fix it." And apologized a bunch for all the hassle."

WTF!!! I just said thank you and goodbye.

*Actually I just left my name and number and asked for the owner to call me. Don't think I even said this is my last attempt before going to small claims court.*

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