Log in

View Full Version : How to Self manage an HOA in Texas


TEXPAT101
Apr 7, 2012, 04:36 PM
How does one go about the processing of a current HOA with a management company that is not performing to a self managed HOA?

AK lawyer
Apr 7, 2012, 05:44 PM
Huh? Would you please re-phrase the question?

A homeowner's association has hired a management company to perform the duties of the HOA? And it's failing to do it's tasks and you want to take over?

TEXPAT101
Apr 8, 2012, 07:35 AM
The HOA Management company has failed to perform the work with the exception of paying the bills and taxes. They charge too much for non-compliance. After 12 years of no improvements and people still not paying it is time for a change. I read where some HOAs would be self managed but would have perhaps a paid manager operate the day to day activities.
Reasons to remove Real Manage:
1. Having to pay $1,600 a month in collection fees but not all are paying.
2. Exhorberant high amount of management, adminsitrative and professional fees.
3. Not enforcing the HOA rules or checking on the areas.
4. Real Manage recommend contacting the City Compliance department. The City tells the complaintent to contact their HOA Management Company.
5. Maintenance of the swimming pool/house is deteriated and pool in the best terms called "nasty".

1. Is this feasible to have a self managed HOA here in Texas? Would a directly employed manager for the HOA be the best route?
a. I realize the question is why not get a different HOA Management Company? We did and they (Alliance) were considered worse than Real Manage.
2. What insurance must a Self Managed HOA have?
3. Should it incorporate as a non-profit organization?
4. What type of lawyer/firm should be hired on retainer? Probably just need minimal contact after setting up so nothing expensive.
5. Any specific type of accounting firm to review the transactions and ensure we meet the legal obligations of the city and state?
6. Is there a business plan for a self managed HOA available as a guideline?
7. After readig about the embezzlement for HOA Managers/management companies is there a method to prevent this?
8. What would be the recommended software for a Self Managed HOA with a web site?
9. Some people are just not paying the dues no matter what. Is there something that can be done besides trying to foreclose on a house?
10. Can wages/income be garnished for residents/owners not paying the dues?
11. How can the banks who hold foreclosed homes be held responsible for the maintenance and dues of a home?


Or just chunk the idea and disssolve the HOA; let the area look like no one owns a paint brush, lawnmower and consider junk cars in the lawn as their "on-going DIY project?

excon
Apr 8, 2012, 07:43 AM
Hello Tex:

We're not a court, and the reasons you want to dissolve and/or take over your HOA don't matter to us. From a legal perspective, they don't matter to you, either.. What matters is what your by-laws say about the HOA - how members are elected, how they're impeached, how meetings are conducted, and how it can be dissolved, etc... You DO have by-laws, don't you?

If you've TRIED stuff with your present HOA, and they act like a gestapo, I understand.. They ALL wind up that way. You may very well need to hire a lawyer to protect your rights.

excon

TEXPAT101
Apr 8, 2012, 07:59 AM
I was just looking for some answers in setting up a self managed HOA.
Without help the place will opt out for the latter idea:

Or just chunk the idea and disssolve the HOA; let the area look like no one owns a paint brush, lawnmower and consider junk cars in the lawn as their "on-going DIY project?

excon
Apr 8, 2012, 08:07 AM
Hello again, Tex:

Couple things.. All HOA's are basically self managed, and you couldn't even set up a new one unless the old one is dissolved...

Buy WHY dissolve it? It's already set up. It just needs new bosses. If you're talking about your management company, that's a different issue.. Once you take over the HOA, you can FIRE the management company..

excon

TEXPAT101
Apr 8, 2012, 08:41 AM
The Management Company needs to be fired. We are a small HOA (517) homes and it is difficult to get a Management Company that does under a thousand. Paying $100,00 a year to a Real Manage for not performing the work with the by-laws is not in the best interest of the HOA. Self Management is the most productive and financial way to go.
Board members can not agree on the writing of a post card much less the HOA issues.
If I get these questions answered I can see about presenting the idea of self management. On that presentation I would also recommend removing the Board Members and reducing it to three members. All decisions (That are legal) would be posted on a web site and expenditures. I guess I will go to SCORE and consult with them.

excon
Apr 8, 2012, 08:49 AM
Hello again, Tex:

Maybe, just maybe, I'm finally getting what you want... My answers are dependent on how much information you provide, and I've pretty much been throwing out hooks and seeing if you bite. So far, it's not produced much.

Do I understand you correctly, NOW, that you're FINE with your HOA, but it's the MANAGEMENT company that you want to fire and "self manage" your complex??

If so, then you need to gain control of board of directors of the HOA, who are the people who HIRE the management company. The board members don't have to AGREE. They have to VOTE, and, depending on how you have it set up, the majority rules..

If that's happening, and you CAN'T get control of the HOA by democratic means, then you need to SELL and get the hell out of Dodge.

excon