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My condo community funds, I suspect, are being mismanaged. What can be done? (I live in Oregon)
I own a condo in Oregon. Our community funds are managed by our HOA and a property management group. We have recently been told that due to the many delinquencies and "unexpected expenses" over the past year, we now have no reserve funds. The property management group has threatened that if we can't cover the community costs, we will be "taken over by a state appointed receiver". I am trying to find information as to whether this is true and, if so, perhaps it would be an improvement. Any thoughts? We have also been hit with a special assessment (of course). My suspicion is that our funds
asked by Greta Blalock 2 months ago
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bgpappa says
As a member of the community, you have the right to inspect the records of the HOA for a valid purpose. To see if there is any mismanagement is a valid purpose. In California, the attorney general could also be contacted to investigate, I don't know about Oregon.
pendell2 says
As longtime condo owners, we must say that your association's predicament is by no means unique, though it appears to be a little more dire than most.
The association is require to provide periodic financial statements. Get the most recent ones, and this will give you an idea where the money is actually going. The odds are that the board really is telling the truth about delinquencies. But they are not powerless to do anything about them.
The laws in our state make it pretty easy for the association to slap leins and even forclosure proceedings on owners that aren't paying their assessments. It is surprising how quickly deadbeat owners get religion and pay their condo fee upon recieving notice of legal proceedings.
Usually the problem is that the association is slow to demand payment from the deadbeats. While no one wants to get tough on their neighbors, paying the condo fee really isn't optional.
Not paying the management company really is bad state of affairs. Your best protection is an active and competent board. Install one yourself if you don't have one.
An appointed reciever really is a last option.
No one is going to care about your community like you and your neighbors. It sounds like it's time to get involved. You really can make a difference if you come to board meetings seeking information and offering solutions.
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