HOA Management Procedures for filing Small Claims lawsuits

[troydog32]

What is the name of your state (only U.S. law)? OHIO

We own a home in community that the builder is still building in, they have turned over the HOA to a Management Company and started charging HOA dues as of Feb. 2011. We have owned the home since 2003 but currently are selling it on land contract. So we haven't lived in the house since 2009. We were unaware that Rockford had turned over the HOA to a Management company. The company Omni has filed a smalls claims lawsuit against us already for unpayment of 2011 HOA dues. They state they have sent all the statements to the property address by First Class mail and they were never returned so they assumed we got them. They stated we should have let them know we didn't live there and the tenant/buyer should have given us the statements. Long story short $205 dues have turned into $706 dollars with late charges and legal fees. And we have a small claims on our record. Does the Management company have any obligation to try to contact us before filing a claim? If they would have just done a The Official WhitePages - Find People for Free search they could have located us.
Another questions the Chief Operator stated they never wave any fees, late fees or anything (which is a lie) but can a Management Company for a HOA wave additional fees?

THANKS FOR YOUR TIME!

 

[HomeGuru]

What is the name of your state (only U.S. law)? OHIO

We own a home in community that the builder is still building in, they have turned over the HOA to a Management Company and started charging HOA dues as of Feb. 2011. We have owned the home since 2003 but currently are selling it on land contract. So we haven't lived in the house since 2009. We were unaware that Rockford had turned over the HOA to a Management company. The company Omni has filed a smalls claims lawsuit against us already for unpayment of 2011 HOA dues. They state they have sent all the statements to the property address by First Class mail and they were never returned so they assumed we got them. They stated we should have let them know we didn't live there and the tenant/buyer should have given us the statements. Long story short $205 dues have turned into $706 dollars with late charges and legal fees. And we have a small claims on our record. Does the Management company have any obligation to try to contact us before filing a claim? If they would have just done a The Official WhitePages - Find People for Free search they could have located us.
Another questions the Chief Operator stated they never wave any fees, late fees or anything (which is a lie) but can a Management Company for a HOA wave additional fees?

THANKS FOR YOUR TIME!

**A: I fail to see what the problem is; pay the money as agreed to in your HOA documents.

 

[CLJM]

What is the name of your state (only U.S. law)? OHIO

We own a home in community that the builder is still building in, they have turned over the HOA to a Management Company and started charging HOA dues as of Feb. 2011. We have owned the home since 2003 but currently are selling it on land contract. So we haven't lived in the house since 2009. We were unaware that Rockford had turned over the HOA to a Management company. The company Omni has filed a smalls claims lawsuit against us already for unpayment of 2011 HOA dues. They state they have sent all the statements to the property address by First Class mail and they were never returned so they assumed we got them. They stated we should have let them know we didn't live there and the tenant/buyer should have given us the statements. Long story short $205 dues have turned into $706 dollars with late charges and legal fees. And we have a small claims on our record. Does the Management company have any obligation to try to contact us before filing a claim? If they would have just done a The Official WhitePages - Find People for Free search they could have located us.
Another questions the Chief Operator stated they never wave any fees, late fees or anything (which is a lie) but can a Management Company for a HOA wave additional fees?

THANKS FOR YOUR TIME!

troydog32,
It would certainly be your responsibility as the homeowner within the confines of a HOA community to make sure the association has updated information on how to contact you. It is also your responsibility to keep yourself updated on any changes within your HOA.

The Management Compay DID contact you---with the last known available contact information you had given them.

Certainly a HOA can waive fees according to their powers of authority and policies, however, once sent to an attorney for compliance and collection, regardless if the HOA waives their fees, the attorney's fees would still need to be paid.

Afterall, I am sure you will agree, it costs money to run an association for the betterment of all the homeowners---they have bills to pay as well. It also costs money to retain an attorney to collect from those that don't pay.

 

[HomeGuru]

troydog32,
It would certainly be your responsibility as the homeowner within the confines of a HOA community to make sure the association has updated information on how to contact you. It is also your responsibility to keep yourself updated on any changes within your HOA.

The Management Compay DID contact you---with the last known available contact information you had given them.

Certainly a HOA can waive fees according to their powers of authority and policies, however, once sent to an attorney for compliance and collection, regardless if the HOA waives their fees, the attorney's fees would still need to be paid.

Afterall, I am sure you will agree, it costs money to run an association for the betterment of all the homeowners---they have bills to pay as well. It also costs money to retain an attorney to collect from those that don't pay.

**A: that's what I was going to say first but changed my mind.

 

[CLJM]

**A: that's what I was going to say first but changed my mind.

Beat you to it this time.

 

[troydog32]

HOA Procedures

I completely understand that the HOA dues need to be paid. I think you have missed the question though, they don't have to make an effort to contact you before filing a claim?

We were unaware that the HOA changed hands and were under the assumption that Rockford had to have 98% of the lots sold before things would change hands. Rockford had our information and forwarding address.

I have paid the dues and fines but seem to think it is unfair for them to file a claim before making an effort to notify us. Omni the management company stated to me "they have to many customers to track people down!" That just doesn't seem right to me.

 

[CLJM]

I completely understand that the HOA dues need to be paid. I think you have missed the question though, they don't have to make an effort to contact you before filing a claim?

We were unaware that the HOA changed hands and were under the assumption that Rockford had to have 98% of the lots sold before things would change hands. Rockford had our information and forwarding address.

I have paid the dues and fines but seem to think it is unfair for them to file a claim before making an effort to notify us. Omni the management company stated to me "they have to many customers to track people down!" That just doesn't seem right to me.

I believe I did answer your question about making an effort to contact you.
They DID MAKE THE EFFORT To CONTACT YOU----at the available contact information they had on record. They didn't have to "track" you down---they contacted you via your property adddress.
They would have only filed their "claim" after your billing statements remained delinquent and after you remained unresponsive to their requests.
Why do you think this is "unfair" ?

It is YOUR RESPONSIBILITY to keep yourself updated on any HOA changes that affects your property.

If you never received any statements or notifications (presumably because your tenants withheld them from you, or you didn't check your mail at your property adddress), how is it you were notified of the small claims lawsuit ?

 

[festival]

I completely understand that the HOA dues need to be paid. I think you have missed the question though, they don't have to make an effort to contact you before filing a claim?

We were unaware that the HOA changed hands and were under the assumption that Rockford had to have 98% of the lots sold before things would change hands. Rockford had our information and forwarding address.

I have paid the dues and fines but seem to think it is unfair for them to file a claim before making an effort to notify us. Omni the management company stated to me "they have to many customers to track people down!" That just doesn't seem right to me.

What do you mean that Rockford (the builder) had your forwarding address? You mean your real address? How and when did you give them your address? Do they acknowledge that they had your address?

Do you already have a small claims decision against you?

The HOA is usually under the control of the builder until it is turned over to the owners. The management company is hired by and works for the HOA. When you say "changed hands" do you mean that the builder/HOA hired a management company? If yes, then the builder is still in control of the decisions. One of the duties of the HOA is to have contact information on the owners, so if you gave your real address to the builder, then the HOA should have contacted you at your real address.

You need to carefully check your governing documents of your HOA to see about the transition to owners. Maybe you can find something. Is the builder still in charge? I think you will find a requirement that the HOA must keep records including the address of owners.

 

[troydog32]

We recently (sometime in 2010) had a window warranty issue that we had to deal with through Rockford the builder. We weren't living there at the time and had to give them our updated address. I have not checked with Rockford yet because I wanted to get more information to see if I really had an issue first and to see who would be responsible. I understand my responsiblities but at the same time I would think they would have to take some steps before taking legal action. I pay my bills on time and as stated have already paid this bill.

Yes the builder hired "Omni" to manage the HOA.

I believe CLJM is right that the tenants probably got the statements and notices, however, I asked "Omni" to send all of the statements and notices and info to my current address so I could have a copy and they refused/said he couldn't do that they don't keep copies. He stated he could send me a ledger if I e-mailed him the next day. That doesn't seem right to me, I would think they would have to keep a copy to proof they sent it.

Omni states the HOA dues were sent out Feb. 2011 they filed a small claims suit in Oct. 2011 and the court date was Dec. 2011 and states Undisposed on the online document. I found it online because I am currently looking for a new Auto insurance company and wanted to see when my wife's speeding ticket was. At that time I saw an Open CVI case.

Thanks for your time....

 

[CLJM]

We recently (sometime in 2010) had a window warranty issue that we had to deal with through Rockford the builder. We weren't living there at the time and had to give them our updated address. I have not checked with Rockford yet because I wanted to get more information to see if I really had an issue first and to see who would be responsible. I understand my responsiblities but at the same time I would think they would have to take some steps before taking legal action. I pay my bills on time and as stated have already paid this bill.

Yes the builder hired "Omni" to manage the HOA.

I believe CLJM is right that the tenants probably got the statements and notices, however, I asked "Omni" to send all of the statements and notices and info to my current address so I could have a copy and they refused/said he couldn't do that they don't keep copies. He stated he could send me a ledger if I e-mailed him the next day. That doesn't seem right to me, I would think they would have to keep a copy to proof they sent it.

Omni states the HOA dues were sent out Feb. 2011 they filed a small claims suit in Oct. 2011 and the court date was Dec. 2011 and states Undisposed on the online document. I found it online because I am currently looking for a new Auto insurance company and wanted to see when my wife's speeding ticket was. At that time I saw an Open CVI case.

Thanks for your time....

Troydog32,

Perhaps the focus has been on the "mailing" issue more than it should have been. The delinquency of your dues and the ensuing costs are understandable. (dues owed and the tacked on late charges and legal fees) But, now with your last post---something just doesn't seem "right" to me.

Wish you had posted about the "undisposed" small claims suit status in the beginning. That could mean.. "unsettled", "resolved", or "removed". Check with the court on exactly what the case status is. Was a judgement ordered for the case and was a lien placed on your property ?

Also too, that the management company OMNI refuses to send you copies of the documents---something doesn't sound "right" there. Of course they are required to keep copies and should provide them to you.

If I were you, I would do further search on the issue----read your governing documents and request any updates from the management company regarding the dues and due process procedures. Also... be aware and check into the Ohio Laws for HOA's. (condos are governed by a different law) New laws went into effect governing all HOA's Sept 2010.

Hope you do look into this further---from a Board Director's viewpoint, something is just not right.

 

[troydog32]

Troydog32,

Perhaps the focus has been on the "mailing" issue more than it should have been. The delinquency of your dues and the ensuing costs are understandable. (dues owed and the tacked on late charges and legal fees) But, now with your last post---something just doesn't seem "right" to me.

Wish you had posted about the "undisposed" small claims suit status in the beginning. That could mean.. "unsettled", "resolved", or "removed". Check with the court on exactly what the case status is. Was a judgement ordered for the case and was a lien placed on your property ?

Also too, that the management company OMNI refuses to send you copies of the documents---something doesn't sound "right" there. Of course they are required to keep copies and should provide them to you.

If I were you, I would do further search on the issue----read your governing documents and request any updates from the management company regarding the dues and due process procedures. Also... be aware and check into the Ohio Laws for HOA's. (condos are governed by a different law) New laws went into effect governing all HOA's Sept 2010.

Hope you do look into this further---from a Board Director's viewpoint, something is just not right.

Thanks for the advice I will do that. I did check some of the laws online but couldn't find anything directly related to the situation.
Franklin County website I couldn't find any info so I called the judge's office and the sec. stated nothing had been done it just was basically undeliverable. I even called the attorney for Omni and haven't heard back from him.
One more question with the mail issue, if Rockford has our address would it have been their responsibility to pass that ago? Thanks!

 

[festival]

So the HOA/builder (basically the same thing when under declarant control) had your address in 2010 from the window warranty, but they gave you notice of the new assessments at the wrong address, and then proceeded to add late charges, legal fees, and go to small claims court without checking your address. The HOA has to legally keep records of the name and address of owners, and the HOA must provide proper notice of assessments.

Anyone have a legal opinion as to whether the OP owes the extra costs?

Writing as a condo manager, not a lawyer, this is the fault of the HOA and the incompetent management company. You and your tenant could have prevented it, but the HOA had your address, so they screwed up.

And have a talk with your tenant, who has a legal obligation to forward or return mail. The HOA did not check your address in part because the mail was not returned.

 

[troydog32]

So the HOA/builder (basically the same thing when under declarant control) had your address in 2010 from the window warranty, but they gave you notice of the new assessments at the wrong address, and then proceeded to add late charges, legal fees, and go to small claims court without checking your address. The HOA has to legally keep records of the name and address of owners, and the HOA must provide proper notice of assessments.

Anyone have a legal opinion as to whether the OP owes the extra costs?

Writing as a condo manager, not a lawyer, this is the fault of the HOA and the incompetent management company. You and your tenant could have prevented it, but the HOA had your address, so they screwed up.

And have a talk with your tenant, who has a legal obligation to forward or return mail. The HOA did not check your address in part because the mail was not returned.

Yes, Rockford had our address because we had to do a ton of paperwork to get the windows covered by the warranty. Omni couldn't tell me the exact transition date when they started managing the HOA, he just stated it was at the end of 2010.
I understand that with the mail not being returned, it just seems like outside of everything with a little effort they could have found us. Also, with them not being able to provide the documents seems "shady."

Thanks for your thoughts!

 

[HomeGuru]

Yes, Rockford had our address because we had to do a ton of paperwork to get the windows covered by the warranty. Omni couldn't tell me the exact transition date when they started managing the HOA, he just stated it was at the end of 2010.
I understand that with the mail not being returned, it just seems like outside of everything with a little effort they could have found us. Also, with them not being able to provide the documents seems "shady."

Thanks for your thoughts!

**A: you can contact them and prove your point.

 

[festival]

Yes, Rockford had our address because we had to do a ton of paperwork to get the windows covered by the warranty. Omni couldn't tell me the exact transition date when they started managing the HOA, he just stated it was at the end of 2010.
I understand that with the mail not being returned, it just seems like outside of everything with a little effort they could have found us. Also, with them not being able to provide the documents seems "shady."

Thanks for your thoughts!

As I understand it, these are facts:

Rockford was the builder who created the HOA.
The HOA was administered by and under the control of Rockford. (legally "declarant control")
Rockford failed to maintain HOA records with your new address, as required by law.
(Or equivalently, the HOA had your address, but failed to maintain its records.)
The HOA sent notices to the wrong address.

Based on this, the HOA screwed up, so you should not have to pay any extra late charges or legal fees.