What can the HOA board do if the management company is not applying special assessment payoffs against the loan which has already cost us thousands of dollars in interest? we are a small association and have a construction loan of nearly 1/2 million and nearly $200k has come in and still not properly accounted for nor applied after my expressing concerns for an entire year. they are claiming personnel turnover in accounting, but this is costing us 5.29% interest! Do we have any legal rights against the management company regarding the extra interest we’ve been charged because they have not deposited the payments to the loan principal?
If possible, you might consider taking back the authority to manage the association’s funds so that your HOA board can manage the loan payments. You may also want to replace your management company if the situation worsens. Beyond that, it is best to seek help from a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.