Looking for an attorney who can help with an HOA billing issue

Columbus, Ohio
Legal & Legislation
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Looking for an attorney who can help with an HOA billing issue

Magesh R.
Investor · Bradenton, FL · Member since 2014 · 109 posts · 17 votes

I'm dealing with an HOA billing dispute involving one of my rental properties and could use some guidance or recommendations for an attorney who handles HOA/accounting disputes.

The HOA's account ledger appears to be inaccurate, and a significant number of late fees have been added. They also failed to communicate account issues in a timely manner. When I requested a complete ledger and supporting records, it took them several months to provide them.

As I've reviewed the records, I've been finding discrepancies and am having to reconcile the account line by line. Unfortunately, every question or request for clarification takes weeks—and sometimes months—to receive a response, making it extremely difficult to resolve the issue.

I'm looking for legal assistance from someone experienced with HOA billing disputes, accounting discrepancies, and improper fees. If you've worked with a good attorney in this area or have gone through something similar, I'd really appreciate your recommendations or advice.

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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    1mo

    Not an attorney, but was a PM for condo/HOA associations for over 10 years.

    At this point, you really need an attorney that is well versed in HOA's. First of all, typically for any dispute, your By-laws will spell out your initial steps and timeline, which you are no doubt well past. They should also spell out the amount and timing of "late fees". This does NOT include legal fees, or possible administrative costs for performing the research or providing past records. Either the By-laws, or possibly separate "House Rules" should clearly specify when late fees are applied...based on postmark, actual receipt, etc.

    I'm not sure what, exactly, you are "reconciling", as an Owner's account ledger should show dates, amounts, check number where applicable, and description of the item in a chronological order. You do need to check your own payment records to see when YOUR provider posted payment, and provide copies of that as your proof of payment dates.

    With regard to "improper" fees, your Board is responsible for all actions/in-actions and decisions made. In theory, they follow the law as required BY State laws, and also seek legal advice for any changes to rules and other elements. 

    At some point, you may have been notified of a "Priority of Payment" policy, which determines what amounts are paid first from funds when there is shortfall. Usually that will be paying fines and late fees first, leaving the regular Maintenance Fee payment short, enabling the involvement of the legal process and costs.

    Where are you sending your record requests? Generally I would expect there is a Management Company handling the day-to-day for the Association, or, if large enough, you have an Association employee as a General Manager (not just a Resident Manager). If your Board is actually doing their own accounting etc., that is a worse scenario. Your requests should normally go to the Account or Community Manager from the Management Company handling your specific HOA.

    Have you attended a regular Board Meeting to raise questions/concerns about your specific issues? You are not likely to get an answer there, but they should be able to motivate the Management company. If others are having similar issues, it may be that the Board needs to find a new account manager or company. 

    Check your local Real Estate licensing authority for options to make complaint against the Management Co. If the problem is the Board, your only option is Vote Them Out, or file suit against them individually if they are not meeting their fiduciary duty. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1mo

    How much money are we talking about? You will spend a quick and easy $1000 on an attorney. If it's less than that then my suggestion would be to pay it but when paying send a letter that you are disputing the amount and then reconcile it.

    how often are you billed as well? I am trying to figure out how hard it is to reconcile 

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