HOA horrors?

[Jazz1]

We dont have any HOA’s in my city…i guess the condo‘s would be the closest thing as they do have rules regarding how property is used, and dress codes,,,sort of like golf courses in other parts of the country.
When i read about HOA’s i think Mr Lahey.( the park supervisor) John Dunsworth character from Trailer Park Boy

 

[legenddc]

My parents have lived in the same neighborhood with an HOA for the past 37 years without any issue. It's a fairly large community of over 2,500 houses.

My wife and I have lived in our townhouse for 13 years now with an HOA for our neighborhood and an HOA for our whole town. I've had 0 issues. There are restrictions on certain things. When we decided to replace our siding our option was fix/redo the stucco or go with Hardie board. Might there be better options? Sure. But I was okay with not having to do research on all the various types. Our neighborhood is around 50 houses and is pretty relaxed. My wife was on the HOA board for 2 years and president one of those years.

 

[Rc_Guy]

We dont have any HOA’s in my city…i guess the condo‘s would be the closest thing as they do have rules regarding how property is used, and dress codes,,,sort of like golf courses in other parts of the country.
When i read about HOA’s i think Mr Lahey.( the park supervisor) John Dunsworth character from Trailer Park Boy

Dress codes?

 

[nadogail]

I own a few single family rentals' three of them are in HOA's; I have no quarrel with any of them, there is a small amount of give and take, but I have found it all to be acceptable.

I am the Vice President of one, a 5 unit condominium association.

 

[MovingAlong]

Am I just narrow minded about HOAs or are the horrors real?

Can't be both?

HOA's are what they are. You can read the T&Cs up front and if they prohibit something you like doing - don't buy there. Every HOA has different rules, but most are designed to keep out a certain element... turns out that, often, I am that element. Knowing that up front saves us both a lot of aggravation.

But did live in one for a few years and had a great time. They were not nearly as strict as I wished they'd have been. One funny rule - you were supplied the paint codes for the exterior colors the builder used and you could only repaint the exact same color. Great! No more arguing with the missus over 118 different shades of beige.

 

[Firebrick43]

Just get out the fiddle and see if a band of Demons join in

I would be paddling like hell to avoid it, I don’t want no demons to join in as well

 

[NakeDiesel]

I would be paddling like hell to avoid it, I don’t want no demons to join in as well

ah see you went the squeal like a pig route...

 

[PugetDude]

I would be paddling like hell to avoid it, I don’t want no demons to join in as well

You got a purty mouth...

 

[rust in the eye]

NFW will I live in or own property with a HOA.
None of my stories could top the ones we've all heard so I won't elaborate other than to say I'd wager that most of us here; tinkerers, builders, collectors and perhaps some non-conformists are good fits for a community governed by a H.O.A.

 

[Firebrick43]

You got a purty mouth...

 

[bwringer]

...I knew there were CC&R, but they're presented to you at the title office along with another 100 pages that you're expected to sign in 1/2 an hour.

See, that's a big problem right there. Your realtor, and others, did you dirty if you had no idea what the HOA regs and finances were before you even made an offer, let alone ***-deep in closing.

But this sort of thing is far too common.

 

[ThunderRolls]

Buy enough land you can't see your neighbors, and can shoot your guns.

 

[dcg9381]

See, that's a big problem right there. Your realtor, and others, did you dirty if you had no idea what the HOA regs and finances were before you even made an offer, let alone ***-deep in closing.

I'm responsible in the end. I'm a little smarter about this stuff now than I was buying my first home.

I've never seen an HOA disclose finances as part of a home purchase, but I totally agree that you need to know if the HOA is solvent and has reserves, especially in a condo situation.

 

[andyvh1959]

So depending on the HOA: no leaving the shop OH door up on game day with the Packers on the big screen TV and no buddies hanging around watching the game/drinking beer? no inviting 10 members of my BMW motorcycle club over to my shop for a tech day on our bikes (ten or more bikes parked on the driveway) or inviting the club over for a fall cookout? Friends of a local vintage car club stop by and just talk on the driveway?

That's the kind of stuff I'd enjoy, nothing rowdy, always respectful, and yet some Karen in the HOA would write me up for who knows how many "grievances". Even if it means only calling the HOA board director before or afterwards, just don't want to deal with that kinda ****.

 

[kaymccampbell]

Banjo music in the distance doesn't make anything pucker?

Not if you're the one playing the banjo.

 

[The Bean]

NEVER! Not even if my hair turns blue!

 

[Skellyii]

I'm responsible in the end. I'm a little smarter about this stuff now than I was buying my first home.

I've never seen an HOA disclose finances as part of a home purchase, but I totally agree that you need to know if the HOA is solvent and has reserves, especially in a condo situation.

This might be a slightly different scenario, but I was looking to purchase a garage condo recently, and the listing agent provided me with all the financial info for the complex.

Maybe because the complex is user owned and operated vs being managed by a third party.

 

[reader2580]

It is nearly impossible to buy a new house in my area without an HOA or covenants. Even most houses built since 2000 have an HOA or covenants.

 

[Rc_Guy]

It is nearly impossible to buy a new house in my area without an HOA or covenants. Even most houses built since 2000 have an HOA or covenants.

Glad I live north of you.

 

[NakeDiesel]

Buy enough land you can't see your neighbors, and can shoot your guns.

I live on 120 acres, closest neighbor is 1/4 mile away and next is over half a mile away. I can still see their houses though as we all live on top of hills, but I do have a 100 yard shooting range in my back yard

 

[dcg9381]

Maybe because the complex is user owned and operated vs being managed by a third party.

I think perhaps it's a much more important deal with a condo, especially in light of what's been going on in FL. It can drastically impact the value of what you're buying.

But either way, glad they're providing it. I wouldn't touch a condo unless I could see the financials of the association.

I see condos managed by 3rd parties all the time... It really shouldn't matter 3rd party or no management company. Owners have the rights to financials and can provide them to prospective buyers.

 

[LOW1]

Yes, and ask to see actual bank statements rather than do it yourself spreadsheets.

And pay special attention to big ticket items like roofs, roads, retaining walls etc and whether there is a reserve in place to pay for replacing them. If not, it’s going to be special assessment time.

 

[R2Dean2]

My wife and I just built a house in a community that has an HOA. We moved in about 18 months ago and the HOA is still governed by the home builder. The builder likely won't be done for another 2 to 3 years based on their progess (we were #40 of 150 homes). So far things have been reasonably quiet in our community - our dues basically pay for snow plowing and landscaping in the common areas. Fingers are crossed that we don't have any horror stories in the future! We like our neighbors.

 

[Hobby_Man22]

My wife and I were discussing our next/final home, planning about five years out. I said one thing I will not consider is any home in a HOA. I read too many reports of power hungry HOA boards maintaining their fifedoms to make everyone conform, or pay. Or worse, suffer a lien placed on your property. My wife said HOAs provide lawn care, snow removal, etc. I said I'd happily hire that out to providers of my choice. Also, being a garage buff has me concerned of all sorts of restrictions on how I use my property aside from city codes and regulations. Am I just narrow minded about HOAs or are the horrors real?

Hoa's only pay for lawn care and snow removal on a condo

 

[PugetDude]

Hoa's only pay for lawn care and snow removal on a condo

Not always. Every HOA has specific responsibilities and restrictions.

 

[jar944]

Hoa's only pay for lawn care and snow removal on a condo

Hoa's usually only pay for lawn care and snow removal on common property.

 

[dcg9381]

Hoa's only pay for lawn care and snow removal on a condo

And community structures, like roofs / common property / insurance (big deal). Condos are different as there is some shared structure.
Free standing condos can be different.

 

[DrinkMan]

So depending on the HOA: no leaving the shop OH door up on game day with the Packers on the big screen TV and no buddies hanging around watching the game/drinking beer? no inviting 10 members of my BMW motorcycle club over to my shop for a tech day on our bikes (ten or more bikes parked on the driveway) or inviting the club over for a fall cookout? Friends of a local vintage car club stop by and just talk on the driveway?

That's the kind of stuff I'd enjoy, nothing rowdy, always respectful, and yet some Karen in the HOA would write me up for who knows how many "grievances". Even if it means only calling the HOA board director before or afterwards, just don't want to deal with that kinda ****.

"Depending on the HOA" is the key phrase. None of those activities would be an issue at either of our houses with HOA. We have had tech days at our primary home with both of our driveways filled with cars. We frequently have our garage doors open all day long while working on cars. If we were hosting a football game watching party, our neighbors would probably be there.





At our coastal home with the books of rules, the only issue is parking. I'd ask my neighbors if I could use the turnaround section of their driveways for our guests to park. They have asked us and I've gladly allowed it as long as they don't block my entrance/egress. Parking on the street for extended periods of time is not allowed. Per architectural rules in that community, all garages are side entrance and ours is not visible from the street so no one would care if the door was open all day with a bunch of cars parked all over our driveway (and neighbors as well). But I really don't consider that house a place that we would live full time - there are just too many rules and expectations of the neighborhood and we are the poor people in there.

Neither of our HOA homes is in a Cookie-Cutter neighborhood. All custom homes by different builders. The worst that has happened to us is a letter about our weeds in the front island at our coastal home where we were told to pull them within 10 days or else they would have the neighborhood landscaper do it and send us the bill (we had been gone for 3 months dealing with our cabin's tornado damage, and I sent them a response explaining and there was not push back and I confess that the weeds were bad). It looks like I'm not going to get a letter about putting out the garbage can too early and leaving it out an extra day like I expected. Since our house is on the road going to the golf club Clubhouse, I guess we are expected to put a nice front out there for the golfers and guests at the Clubhouse.

 

[LeonardY]

In California, HOAs are governed by civil codes known as the Davis Sterling act. I am not aware if other states follow this.

https://www.davis-stirling.com/HOME/Statutes/Davis-Stirling-Act-Civil-Codes

I live in a large COA 2000+ single family homes. I can't remember but there were around 8 different builders. Common areas include 3 pools, Tennis courts and basketball court. We have a club house with BBQs for rent. Our dues started at $36 in 1996 and are now $46. With the exception of a few of townhouse and condos (Separate HOA governed by the COA) all are city streets and sidewalks.

I served on the board for a couple of years. Yes, there were some issues. Most stem from misunderstanding of the CC&Rs. The others were what I will call people that were just looking for a fight. I could go into detail but there's no point. Most of the issues would have been solved with a little better communication on both sides.

I served as a police officer in my younger days. I answered calls to many same issues posted here in regular neighborhoods. HOAs are not exclusive to neighborhood problems. There are plenty of Mrs. Kravitz's out there.

If you like HOAs for what they provide then you not likely to have a problem.
If you're on the fence about HOAs, then you're still not likely to have a problem.
If you hate HOAs, then you're likely to have a problem.

Go into any home buying situation with your eyes wide open. Read the CC&Rs. A good realtor will have a copy or can get one that you can read prior to an offer.

 

[kaymccampbell]

My wife and I just built a house in a community that has an HOA. We moved in about 18 months ago and the HOA is still governed by the home builder. The builder likely won't be done for another 2 to 3 years based on their progess (we were #40 of 150 homes). So far things have been reasonably quiet in our community - our dues basically pay for snow plowing and landscaping in the common areas. Fingers are crossed that we don't have any horror stories in the future! We like our neighbors.

Then be ready to move within a year of the subdivision's completion, or get on the board as soon as the developer relinquishes control. It's your only defense.

 

[M.Brane]

I have lived in a condo, and a house with HOAs. Never again. My girl was on the board of the HOA for her condo before she sold it, and couldn't wait to be rid of the headaches.

When we bought this place that was criteria #1: NO HOAs! This isn't an antiseptic gated community, but it is a clean, quiet neighborhood.

 

[driftpin]

Here's a case locally, where the HOA members stole $$$$. The Hammocks is one of the largest HOA's in the State of FL.

FOR IMMEDIATE RELEASE: Hammocks Controller/Accountant Charged in HOA Thefts

(Miami – November 8, 2024) - State Attorney Katherine Fernandez Rundle announces the arrest of 63-year-old Jesus Cue who acted as the Controller/Accountant for the Hammocks Homeowners Association (HOA) board, as a part of the ongoing investigation of the alleged thefts which devastated the...

miamisao.com

(Miami – November 8, 2024) – State Attorney Katherine Fernandez Rundle announces the arrest of 63-year-old Jesus Cue who acted as the Controller/Accountant for the Hammocks Homeowners Association (HOA) board, as a part of the ongoing investigation of the alleged thefts which devastated the finances of the Hammocks residential community.

Cue is being charged with:​

• 1 count Unlawful Compensation 1st Degree Felony
• 1 count Racketeering 1st Degree Felony
• 1 count Money Laundering 1st Degree Felony
• 1 count Grand Theft $20,000-$100,000 1st Degree Felony
• 1 count Organized Scheme to Defraud Fraud over $50,000 1st Degree Felony
• 3 counts Fraudulent Use of Personal Identification Information 1st Degree Felony​

Jesus Cue advertises his 30 years of expertise as a highly experienced business consultant and financial strategist holding an undergraduate degree in accounting from Florida International University and a master’s degree in Tax from St. Thomas University. Cue and his company, Worldwide Business Solution Corporation served as a business and accounting consultant to the Hammocks HOA board between October 31,2018 and November 4, 2022.

During this 47-month period, Cue received $644,000.00 in vendor payments, an average of $161,000.00 a year. Cue testified in a Bankruptcy Court proceeding occurring during this same period of time, that the Hammocks HOA had no reserve funds and needed to take a $375,000 short-term loan in order to maintain normal operating functions.

Witnesses were interviewed during the investigation, who were full-time office employees of the HOA board and who worked closely with former HOA president Marglli Gallego, the rest of the HOA Board and HOA office staff. They provided information leading to the discovery that several board members had relatives who owned fictional companies whose alleged purpose was to funnel monies from the HOA to friends and relatives under the guise of vendor payments. Three of these companies, Albri Consulting, LLC, Aya Service and Repair Corp., and Kaissen Technology, LLC., had Cue’s company, Worldwide Business Solution Corp., as their registered agent and received almost $500,000 in vender payments from the HOA.

According to witness Dante Chauca, the husband of former HOA board member Monica Ghilardi who has pled guilty in case number F22-20912B, that Gallego allegedly directed Cue to provide a hidden salary to Ghilardi by creating an alleged fictional vender (Albri Consulting). Dante Chauca stated that Cue did not have his permission to create Albri Consulting, LLC which listed Chauca as “Manager” in the official State of Florida filings. Chauca later confronted Cue about the creation of Albri Consulting, LLC because Chauca was worried about his personal tax liability and Cue told him directly “not to worry about it.”
“No homeowner should have to worry about how their HOA is handling the association’s funds,” said State Attorney Katherine Fernandez Rundle. “Our investigation of the thefts at the Hammocks HOA have shed a bright light on a crime that may be occurring throughout our state. Those who feel that an HOA’s funds are there for the taking have made a grievous error. Today’s arrest should make it blatantly clear.”

[end]
​

https://www.realtor.com/realestateandhomes-search/The-Hammocks_FL

The homeowners are scrambling to exit the development. Currently there are 259 homes up for sale. (Repeating this) The Hammocks is one of the largest developments in FL. Most of the SFR's [single family residences] sell for $500K+.

Anyone looking to invest in a development needs to do their due-diligence. That includes checking for the number of foreclosures, lawsuits pending or settled, number of violations written, number of citations from the HOA, reserves for replacement, number of homes in-arrears on HOA fees, special assessments levied, $ collected, [$ due and not paid, and what addresses they are], and other such things which could mean you're on the hook for much-more than you expected. If they can't or won't divulge these, that should tell you that you need to look elsewhere to avoid having to pay for $$$$ assessments to fix things which should have already been addressed, but weren't.

​

 

[PelicanPines]

My wife is on the board of a local cemetery... So far... No complaints from any residents.

 

[PugetDude]

Here's a case locally, where the HOA members stole $$$$. The Hammocks is one of the largest HOA's in the State of FL.

FOR IMMEDIATE RELEASE: Hammocks Controller/Accountant Charged in HOA Thefts

(Miami – November 8, 2024) - State Attorney Katherine Fernandez Rundle announces the arrest of 63-year-old Jesus Cue who acted as the Controller/Accountant for the Hammocks Homeowners Association (HOA) board, as a part of the ongoing investigation of the alleged thefts which devastated the...

miamisao.com

(Miami – November 8, 2024) – State Attorney Katherine Fernandez Rundle announces the arrest of 63-year-old Jesus Cue who acted as the Controller/Accountant for the Hammocks Homeowners Association (HOA) board, as a part of the ongoing investigation of the alleged thefts which devastated the finances of the Hammocks residential community.

Cue is being charged with:​

• 1 count Unlawful Compensation 1st Degree Felony​

• 1 count Racketeering 1st Degree Felony​

• 1 count Money Laundering 1st Degree Felony​

• 1 count Grand Theft $20,000-$100,000 1st Degree Felony​

• 1 count Organized Scheme to Defraud Fraud over $50,000 1st Degree Felony​

• 3 counts Fraudulent Use of Personal Identification Information 1st Degree Felony​

Jesus Cue advertises his 30 years of expertise as a highly experienced business consultant and financial strategist holding an undergraduate degree in accounting from Florida International University and a master’s degree in Tax from St. Thomas University. Cue and his company, Worldwide Business Solution Corporation served as a business and accounting consultant to the Hammocks HOA board between October 31,2018 and November 4, 2022.

During this 47-month period, Cue received $644,000.00 in vendor payments, an average of $161,000.00 a year. Cue testified in a Bankruptcy Court proceeding occurring during this same period of time, that the Hammocks HOA had no reserve funds and needed to take a $375,000 short-term loan in order to maintain normal operating functions.

Witnesses were interviewed during the investigation, who were full-time office employees of the HOA board and who worked closely with former HOA president Marglli Gallego, the rest of the HOA Board and HOA office staff. They provided information leading to the discovery that several board members had relatives who owned fictional companies whose alleged purpose was to funnel monies from the HOA to friends and relatives under the guise of vendor payments. Three of these companies, Albri Consulting, LLC, Aya Service and Repair Corp., and Kaissen Technology, LLC., had Cue’s company, Worldwide Business Solution Corp., as their registered agent and received almost $500,000 in vender payments from the HOA.

According to witness Dante Chauca, the husband of former HOA board member Monica Ghilardi who has pled guilty in case number F22-20912B, that Gallego allegedly directed Cue to provide a hidden salary to Ghilardi by creating an alleged fictional vender (Albri Consulting). Dante Chauca stated that Cue did not have his permission to create Albri Consulting, LLC which listed Chauca as “Manager” in the official State of Florida filings. Chauca later confronted Cue about the creation of Albri Consulting, LLC because Chauca was worried about his personal tax liability and Cue told him directly “not to worry about it.”
“No homeowner should have to worry about how their HOA is handling the association’s funds,” said State Attorney Katherine Fernandez Rundle. “Our investigation of the thefts at the Hammocks HOA have shed a bright light on a crime that may be occurring throughout our state. Those who feel that an HOA’s funds are there for the taking have made a grievous error. Today’s arrest should make it blatantly clear.”

[end]
​

https://www.realtor.com/realestateandhomes-search/The-Hammocks_FL

The homeowners are scrambling to exit the development. Currently there are 259 homes up for sale. (Repeating this) The Hammocks is one of the largest developments in FL. Most of the SFR's [single family residences] sell for $500K+.

Anyone looking to invest in a development needs to do their due-diligence. That includes checking for the number of foreclosures, lawsuits pending or settled, number of violations written, number of citations from the HOA, reserves for replacement, number of homes in-arrears on HOA fees, special assessments levied, $ collected, [$ due and not paid, and what addresses they are], and other such things which could mean you're on the hook for much-more than you expected. If they can't or won't divulge these, that should tell you that you need to look elsewhere to avoid having to pay for $$$$ assessments to fix things which should have already been addressed, but weren't.

​

That's why we have an independent CPA firm audit our finances every year, and provide financial statements at every HOA meeting.
The Hammocks situation sounds like an investment opportunity for someone with the assets to go in and snap up a bunch of homes at fire-sale prices.
I bought a foreclosed home in a bankrupt country club community in 2008, made almost 50% profit when I sold it a few years later after the community was out of bankruptcy. Kept it just long enough to take advantage of the capital gains tax exemption for a primary residence.

 

[mike93lx]

That's why we have an independent CPA firm audit our finances every year, and provide financial statements at every HOA meeting.

Make sure you change that firm periodically... 5ish years is a good interval for a new auditor.

I am not saying that annual audits are completely worthless, but they are often not worth a lot. If you change, you at least have a new set of eyes and make it harder for anyone to collude with the accountant

 

[PugetDude]

Make sure you change that firm periodically... 5ish years is a good interval for a new auditor.

I am not saying that annual audits are completely worthless, but they are often not worth a lot. If you change, you at least have a new set of eyes and make it harder for anyone to collude with the accountant

We have a resident that owns a big CPA firm in MN, he also gives the financials a cursory review. And, our outside management company is the only one authorized to write checks, but all expenditures have to be approved by the HOA Board. Little chance of any financial shenanigans.

 

[mike93lx]

We have a resident that owns a big CPA firm in MN, he also gives the financials a cursory review. And, our outside management company is the only one authorized to write checks, but all expenditures have to be approved by the HOA Board. Little chance of any financial shenanigans.

If you care enough to audit, it's worth doing it right. And that means at least changing the auditor.

Besides that it can often save some money

 

[CJM8515]

think of it like this:

if you post here your more than likely to be an issue in most HOA neighborhoods. your handy, maybe you have a business and that may include a work vehicle or pick up truck. you likely have a garage you use to work in and not just to store stuff, you may have more cars that garage space and or dont have room in the garage to park the car. you might work in the garage with the door open, or want to paint your front door whatever color, sure you do your landscaping or pay for it but maybe you get some weed and dont jump on it immediately, maybe you want a shed or a pool, perhaps you have a boat or a camper.

90% of these HOA communities would not work for you if your like the above. god help you if you paint the front door a non approved color, you have a boat or rv parked outside or leave your trash can out before the specified time of pick up and dont take it in asap. lets be real, unless your in the minority where the HOA somehow hasnt been corrupt and run by old biddies who measure the height of your grass-an HOA isnt for you.

 

[PugetDude]

Lots of misinformation in this thread.

 

[logical]

Lots of misinformation in this thread.

Just this thread ???