HOA Management Company Fraud and Mismanagement in Georgia

Question:

I have some questions concerning our current HOA board and the HOA management company that was hired to run the community. Recently homeowners started to get large fines such as 300 dollars per violation but many of us dont receive letters or emails about each violation. Many homeowners are not aware that online portal exists. When we checked online these violations also went to third notices then fines. Unspecific violations such as “cut your grass”. I have received notification like that but when looking at the portal no picture of the home was taken for us to see what exactly they wanted. My grass is cut every few weeks and I have a weed company all year round. Little things that this HOA managment company finds are ridiculous such as putting the recycle container in a proper location when putting out for pickup which is right in front of my house (which is put out once every two weeks then we take in after stuff are picked up). If we dont take in the trash can right after trash is picked up for that day thats a violation (300 dollars). I dont have as many fines and recently my husband contacted them about a fine they put as “landscaping” and he has told them he would report them to channel 2. They emailed back and told my husband to trim the bush and submit on the portal they will considering removing the fine. Within a week the 300 dollars fine was removed but they left another charge of 300 dollars for some fine that we were not aware (landscaping) fron July. My neighbor was fined over 600 dollars for landscaping reason. Other neighbors got fine for similar reasons. Some of them are like “paint your front window” or “grass too long” or “pull weed”. Each homeowner pays 300 dollars a year but there are no anemities here. We dont have a pool or a small little hangout place for homeowners. Recently within the last few months we have had 3 robberies/burglaries im this neighborhood. No letter or notificatioms were sent out. They had done nothing to let us know. If it wasnt for the word of mouth we would not have known. For the last five years I have lived here we never had fines but recently fines started popping up. I had spoken with some owners and they said a couple people get letters notices but many us never got notices. I reveived a letter from them maybe onceback in 2018 about voting for board members then yearly bill to pay for yearly fee. We have roughly 130 homes in this neighborhood. Many of us have tried emailing them asking about the charges many emails were not answered. One homeowner said since 2019 and he has a charge of close to 1000 dollars. Other have over 1000 dollars fine. The highest I have heard is 3700. This company has a one star review on yelp and on bbb some of these complaints are horrible and with same similar complaints like me and my neighbors. Some of my neighbors and I have gotten together to learn about this HOA management company and we had requested to talk to the HOA board members but the person in charge of the mangement company emailed back and said the Board would not talk to us. We asked about upcoming Board meeting but was told notices are being sent out about a zoom meeting. The past five years I never received a notice about twice a year board meeting. There was nothing on the portal about things that are happening in our neighborhood. One of our residents emailed back and requested an person meeting and so did I but we have yet to hear back from this manager. Recently I checked to see that this HOA management company did not post financial statements as far as as March 2020. Meeting minutes were missing they only posted 2019 meeting. Some of us sent a request to have them post the financial statements but the manager just emailed back she took a pic from her computer with the monthly names saved on her computer and just told the other homeowner that we dont have access to that. I want to have an in person meeting we have over over 30 residents that are not happy with the HOA board. These are the ones we were able to sign on for our small group chat online. We have a large population of people that do not speak English or not well verse in computers. I would like to know how to approach this problem. If this HOA management company keeps stating that the HOA board refused to talk to us or they are not transparent when the next meeting will be or about voting this year what can I do? I thought of getting a lawyer to help me and my neighbors to find a way to talk to the Board and have a legitimate voting process. I am afraid this HOA mangement company may be mishandling our funds bc they dont provide statements and receipts . I also hears that HOA board members are getting special treatment and also they unfairly deny another homeowners request to upgrade her front porche. She is from another country and doesnt speak English well. She is very upset. Also I want to know the process to recall HOa Board members, how to remove them for unprofessionalism and negligence, and report the HOA Management company for possible fraud or non transparency, negligence, and un professionalism. Thanks.

– Mia

 

Answer:

Hi Mia,

According to Ga. Code § 44-3-231(d), “In addition to any other duties and responsibilities as this article or the instrument may impose, the association shall keep:

(1) Detailed minutes of all meetings of the members of the association and of the board of directors;
(2) Detailed and accurate financial records, including itemized records of all receipts and expenditures; and
(3) Any books and records as may be required by law or be necessary to reflect accurately the affairs and activities of the association.”

Georgia law specifies that “comprehensive reports of the affairs, finances, and budget projections of the association shall be made to the lot owners” at the annual meeting.

You should also refer to your HOA’s governing documents for guidance on fines and notices of fines. Many associations’ CC&Rs require the HOA to provide sufficient notice to lot owners who have violated the rules and must pay a fine. This notice must be delivered in a manner consistent with the CC&Rs (by mail, email, etc.).

Your HOA board has a fiduciary duty to follow the association’s governing documents. If you feel that your board has violated its fiduciary duty, consider removing them from their position. Your HOA’s bylaws should be able to tell you how you can remove board members. If not, you can refer to Ga. Code § 14-3-808.

As for your HOA management company, if you feel that they have committed fraud, it is best to report them to local authorities for investigation. Beyond that, you may need to consult a lawyer for advice.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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