[bsmoker]

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Hello –

I am looking for some advice regarding my HOA in Pennsylvania. I am not on the board, but do request to see the numbers every month. After 2021 and into 2022 I noticed a budget surplus of around $6500. Basically they budged $!2500 in operating expense, but only spent $6000. The other budgeted amount went into reserves.

In our Bylaws it has a paragraph about a budget surplus and how it must be even distributed or credited to the homeowners for the next annual assessment for monthly payments. It also says this in our declarations, and there is a PA Code about it as well.

I emailed our property management company and board who were less than thrilled that I caught this and admitted to there being a surplus, but they are not going to credit any money back. The new budget does not show any form of extra reserve money budgeted or operating expense, they even said there will probably be a budget surplus this year as well… my reply was “well then you need to make a more accurate budget”.

Emotions aside, they wont talk to me and said I owe them an apology. I don’t know what to do or how to peruse this. There are statements and paragraphs in our legally bound documents that state was must be done yet they are ignoring them. Very frustrating.

[arnie920]

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Does your budget not include reserve contributions?

[ginnie34]

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Unfortunately that’s how these hoas work. There’s no real consequence when boards don’t follow the bylaws. Members like you and me really have no other option but to sue.

[bsmoker]

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yes, we budgeted for $12420 to go into reserves, which it did. I have the 2021 budget and the year end financials. We have very specific verbiage in our bylaws about surplus’s and how they need to be credited back. I pointed this out, now I am the bad guy

[arnie920]

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Well then, as ginnie34 pointed out, you might have no other choice but to take legal action (or scare them that you’re going to) if your board isn’t listening to you. It’s sad but there’s nothing else we can do if our boards don’t follow the bylaws except to sue.

[bsmoker]

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Thank you all for the responses. I have typed up a letter with all the documents, financials, budgets, and bylaws. I mailed it to the management company and requested a written response within 15 days.

This is why I hate HOA’s. The bylaws state I have to pay by the 5th of the month or they would tack on fees… Its ironic how they pick and choose which bylaw they want to enforce.

PS – I found a funny Defund the HOA yard sign i bought. Cant wait to trigger them HAHAHAH

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