South Philly Review

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Questionable practices fuel call to open up books

Benny Kass
Inman News

DEAR BENNY: I live in a 35-unit condominium complex. The homeowners association is incorporated and is led by a board of directors elected by the homeowners. I am concerned about the way the board of directors conducts the overall operation of the association. Many practices are in opposition to the bylaws, and some of the needs of the community are being neglected.

For example, we have not been given copies of the budget for the last three years, copies of the minutes of the last three quarterly meetings of the board of directors, a list of the names of the officers of the board who were elected last fall, and a list of the current owners/residents. Other information, which, according to the bylaws, should be available, has not been communicated to us.

I have written a letter listing my concerns and requesting information, and have given it to each board member who was elected in 2009. I have received none of the requested information nor have I received a response stating that my letter was received.

As a resident with a vested interest in my house and my community as a whole, what can I do to get the information and services from the board of directors? Is there an agency or board I can contact to communicate my concerns and thereby receive help in this matter? --Barbara

DEAR BARBARA: Unfortunately, this is a common problem throughout the country. While most members of boards of directors are honest, competent and concerned, the few who are not cast a negative image on all associations.

First, and not by way of embarrassing you, let's set the record straight. You live in a condominium association and not a homeowners association. There is a major difference between these two legal entities, and you should not refer to your association as an HOA.

Second, I don't know where you live. Many states (and some local jurisdictions) have created agencies to deal with such problems. For example, in Montgomery County, Md., unhappy owners can complain to the Commission on Common Ownership Communities; in Virginia, they recently established an ombudsman's office to handle issues such as yours. I welcome readers to tell me if there are other such organizations throughout the country.

You certainly can complain to your state's attorney general.

You also have the right to file suit against your association. Most state laws require that all books and records be made available to unit owners; this would include the names of the board members, as well as any minutes of their meetings.

Some states have limited this access by requiring that the person seeking such information show that he/she has an interest in those documents. However, I firmly believe that any unit owner has such an interest.

Litigation is, of course, expensive and time consuming. However, if you can round up a group of owners with similar concerns, the legal fee could be shared and you would not have to go it alone.

And there is one more thing you can do. In your bylaws, there is a provision on how you can "throw the rascals" out of office. Read the requirements carefully, and muster sufficient support among your fellow owners.

However, I always advise my association clients that if they are unhappy, they have three choices: (1) Get yourself elected to the board; (2) put up with the situation; or (3) move out.

DEAR BENNY: In 2006, the assessed value of my house had climbed to $750,000 and then dropped down to $714,000. After much investigation, I filed an abatement based on the information I obtained from our local government. Their information was wrong and I successfully got the assessment down to $530,000. However, around the same time, I refinanced based on a bank appraisal of $670,000. Currently, the county's assessment is under $450,000.

I think by filing for a tax abatement I shot myself in the foot. I really believe the house is currently worth more than $500,000, but know that potential buyers look at the assessed value.

I want to sell my house. Can I realistically list it at the price I believe it is worth, and expect a real estate agent to explain the situation to potential buyers, or am I stuck with an asking price closer to the current assessed value? --Karen