NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1508 topics, 14381 posts — Last Post 04/17/14, 08:09PM

BiggerPockets Exclusive PRO Area

117 topics, 838 posts — Last Post 04/16/14, 09:08PM

New Member Introductions

10871 topics, 85472 posts — Last Post 04/18/14, 12:04AM

Real Estate Success Stories

394 topics, 6121 posts — Last Post 04/17/14, 10:03PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5924 topics, 46699 posts — Last Post 04/17/14, 11:53PM

Renters

643 topics, 5816 posts — Last Post 04/17/14, 04:11PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

655 topics, 6261 posts — Last Post 04/18/14, 12:41AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3666 topics, 29393 posts — Last Post 04/18/14, 12:03AM

Real Estate Guru, Book & Course Reviews and Discussions

1132 topics, 11545 posts — Last Post 04/18/14, 12:42AM

Ask About A Real Estate Company

740 topics, 7312 posts — Last Post 04/17/14, 09:46PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5591 topics, 43679 posts — Last Post 04/17/14, 10:01PM

Rehabbing and House Flipping

3328 topics, 30941 posts — Last Post 04/18/14, 12:40AM

Real Estate Development & New Home Construction

552 topics, 4679 posts — Last Post 04/17/14, 10:10PM

Innovative Strategies

703 topics, 6023 posts — Last Post 04/17/14, 09:46PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

864 topics, 6667 posts — Last Post 04/17/14, 06:13PM

Rent to Own a.k.a. Lease Purchase, Lease Options

691 topics, 4869 posts — Last Post 04/17/14, 10:20PM

1031 Exchanges

143 topics, 1052 posts — Last Post 04/16/14, 05:39PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11285 posts — Last Post 04/17/14, 06:41PM

HUD, VA, and Tax Sales

414 topics, 3088 posts — Last Post 04/17/14, 07:35AM

REOs

1214 topics, 10570 posts — Last Post 04/17/14, 02:28PM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7193 topics, 70638 posts — Last Post 04/17/14, 11:22PM

Mobile Homes & Mobile Home Park Investing

638 topics, 5138 posts — Last Post 04/17/14, 11:01PM

Investor Basics

Starting Out

7689 topics, 60359 posts — Last Post 04/17/14, 11:32PM

Investor Psychology

430 topics, 6092 posts — Last Post 04/14/14, 06:53PM

General Real Estate Investing

4711 topics, 37163 posts — Last Post 04/17/14, 05:53PM

Real Estate Investor Marketing

1730 topics, 14091 posts — Last Post 04/17/14, 06:21PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1409 topics, 8983 posts — Last Post 04/17/14, 06:13PM

Multi-Family and Apartment Investing

1106 topics, 9194 posts — Last Post 04/17/14, 11:27PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4884 posts — Last Post 04/17/14, 02:08PM

Business Basics

Goals, Business Plans & Entities

830 topics, 7549 posts — Last Post 04/17/14, 10:19PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2783 topics, 19994 posts — Last Post 04/17/14, 04:52PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2730 posts — Last Post 04/17/14, 04:56PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2830 topics, 19679 posts — Last Post 04/18/14, 12:10AM

Creative Real Estate Financing

1207 topics, 8762 posts — Last Post 04/17/14, 03:35PM

Crowdfunding Real Estate

35 topics, 455 posts — Last Post 04/14/14, 02:14PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1206 topics, 7957 posts — Last Post 04/17/14, 09:20PM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1919 posts — Last Post 04/17/14, 01:58PM

Contractors

268 topics, 1681 posts — Last Post 04/17/14, 10:53PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1984 topics, 11584 posts — Last Post 04/17/14, 08:36PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 427 posts — Last Post 04/17/14, 03:22PM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15004 topics, 53907 posts — Last Post 04/17/14, 09:32PM

Real Estate Events and Happenings

163 topics, 2483 posts — Last Post 04/18/14, 12:38AM

Off-Topic

Off Topic

Off-Topic

2902 topics, 32399 posts — Last Post 04/16/14, 03:07PM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

How to get rid of a HOA?

10 posts by 7 users

Signup


I live in a townhome condo complex in hawaii. Been an owner there since 1989. I've been on the board of owners twice. The current board and agent suck. Just got notice that they are getting a 1.5 million loan to replace siding. 10 year loan, my assessment would be $300 on top of an already hight $400 HOA fee! For 10 years!

I know it probably differs by state, but is there a way to fire the board and get rid of the managing agent. Maybe if I get a petition going? Emergency owners meeting to vote on removing the board and agent?

I hate condos!

TC



Real Estate Investor · Charlotte, North Carolina


sorry to hear tom, that sucks....have no experience with hoa, but maybe at minimum, you could get them to reach out for more bids, to see if they can at least lower the loan amount and thus your assessment??


Bryan A., A Helping Hand Property Solutions, LLC
E-Mail: [email protected]
Telephone: 704-215-4687



The problem is that not all of the siding needs replacing. Mostly that facing windward (NE). But for aesthetic reasons they want to change it all. The original (1979) siding is no longer available. There is siding that is close, but differeent. But they want to replace ALL siding. I don't see the sense in replacing siding that is still perfectly good. The main function of siding is to protect the inner structure.

One of the directors wants all new siding because it will "increase the value" of the units. That's debatable since it will be very hard to sell their townhome after such a high assessment.

Most owners won't be able to afford it.

TC



SFR Investor · Orange County, California


Gee, Tom, that totally bites. I've been a little disappointed with our HOA down in San Diego at times, but they never tried to pull something like this.

Read your HOA's bylaws and see what remedies are possible. Perhaps you can recall the board members or get an injunction from the court to stop the project. You should Google "fighting your HOA" or "suing your HOA". You'll get about 4 quadrillion hits because HOA's are so freekin' popular.

Best of luck. Please let us know how it turns out. Aloha.



Real Estate Investor · Peabody, Massachusetts


There should be something in the by-laws (If you dont have these check with your local registry of deeds) and sometimes by-laws are part of the declaration of trust document. How many units are there total? If you can get a majority of owners or trustees to disagree with the $1.5M loan decision you should be able to fight it. Another option would call a local Real Estate attorney that does a lot of work with condo associations. They should be able to chat with you for a minute about the situation and whether or not you would need their help further to seek a remedy. I dont think you would as long as a majority of the other unit owners feel the same way as you!




There are 62 units. I plan to walk around and talk to neighbors. I already talked to a few. I think the HOA did mention that there would be a meeting and "vote" on the issue. So time to campaign I guess.

I'd really like to move back to the mainland and buy a house, but my wife is resistant.

Thanks for the advice guys!

TC



Real Estate Investor · Springfield, Missouri


The by-laws of the corporation will have a paragraph, Removal of Officers and Directors, or similar heading. If not, removal is by statute. Generally, it will take more than 50% of members or a higher % of directors, could be unanimous consent.

It also takes time, as you need to give notice of a special meeting for the removal of the officer, stating the time and place of the metting and purpose.

There can be some tactics involved, say you need to remove two or more, trying to can all of them at one meeting might be tough. Your will most likely need to vote on one member at a time and if it's the board voting, the others may have the right to vote. Officers considered for removal may not vote on the issue. So, when you begin, you might pick the worst one first and stay quiet about the other, the take them on later, so it could take time to pick them off one at a time. This can be done without an attorney, but considering the size and scope of the problem, probably best to hire one.

The other way as mentioned above will be to sue, having more than 50%.

Another tactic would be to notify the bank making the loan and inform them that this project is under protest and that action against the corporation is being taken....they won't make any loan until the matter is settled.

Was the bid for the siding accomplished according to the by-laws, were bids taken? Do you know of any relationship between any of the officers and the company doing the work? DId they take the lowest bid?

Work out comps on your building and value the units with the new expense, you might show MV being lower. You might ask an appraiser for a letter of opinion as to the impact to market value with the improvement.


Financexaminer@real estate investor dot com


Real Estate Investor · North Carolina


Thanks for all the input.

I manage a resort vacation condo unit on the coast where you might see the occupants three or four times a year for special holidays. Picture them all as having considerable disposable income.

Three years ago one of them wanted to install new pro-level surfaces on the perfectly-fine tennis courts. Done. Two years ago someone wanted an entirely new clubhouse built for one of the pools since the other two pools already had clulbhouses. And not a year goes by that the HOA votes to rip out large swaths of existing landscaping to replace it with something 'fuller' and 'prettier'. Did I mention new paint? The new paint flows like water around there.

All in the name of 'it will increase existing values'.

Don't get me wrong, the HOA members are all really nice people. But they sure do live in a different world than me.

Good luck with your efforts, TC, and please keep us posted on any progress.




It is the managing agent that I want to get rid of, not necessarily the board members. Only the board can change agents.

Another problem is the lack of interest on the part of the owners. Only owners have shown up at annual meetings two straight years. Many ***** but won't get involved. And by getting involved all I talking about is getting off the couch, driving a mile down the road to a meeting. The culture here is to be complacent and not rock the boat.

We'll see if I can ruffle some feathers.

Thanks guys.

TC



Real Estate Investor · Audubon, Pennsylvania


Originally posted by Tom Cullen:
It is the managing agent that I want to get rid of, not necessarily the board members. Only the board can change agents.

...

The executive board are the ones who have chosen the managing agent, and they probably also have to approve any expenditures proposed by the agent.

So, that takes you back to what Bill was saying, that the executive board will have to be changed ...


Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...




Sign up