Property Owners Association Burns A Quarter Mil on Lawsuits
The Apple Valley Property Owners Association, the group that our firm bested in court late last year has finally, and reluctantly, detailed their legal spending. Turns out that they dropped just under $250,000 in 2006 between their funds and the funds spent by their insurance company. In 2005, they spent just $35,000 for legal fees.
Already this year, they have budgeted $135,000.00 for legal fees. Of that, most likely $35,000 will be used for their normal legal expenses and the $100,000 will be used to finance their long-shot appeal.
Despite the fact that member after member of the association has protested these fees, the complaints just fall on deaf ears. At the same time, the board of directors continues to make ill advised decisions that could spawn even more lawsuits. Its unfortunate that all of this could have been avoided by the board, but they would rather continue to pay their $450 per hour lawyers than negotiate in good faith.
Scott A. Pullins, Esq.
Publisher,
The Pullins Report
Already this year, they have budgeted $135,000.00 for legal fees. Of that, most likely $35,000 will be used for their normal legal expenses and the $100,000 will be used to finance their long-shot appeal.
Despite the fact that member after member of the association has protested these fees, the complaints just fall on deaf ears. At the same time, the board of directors continues to make ill advised decisions that could spawn even more lawsuits. Its unfortunate that all of this could have been avoided by the board, but they would rather continue to pay their $450 per hour lawyers than negotiate in good faith.
Scott A. Pullins, Esq.
Publisher,
The Pullins Report
I recommend that no one buy a condominium in Ohio or a home with a "Homeowners Association" required membership.
I am convinced the only solution is to sell, leave the State and never buy anything that is part of a HOA or Condominium Association.
Ohio needs a Unit Owners "Bill of Rights" that is enforceable. We have a condominium association who changes by-laws, with open end proxies, and neglects to ask 51% of first mortgage holders to vote as required in the By-Laws. The State files the amendments based on the Board's certification, not with proof of signatures. When a unit owner asks for verification of the vote, it is refused.
Ohio will not enforce their own laws; instead the unit owner must hire an attorney. The attorney says the unit owner must wait for a lien to be filed upon their property to show damages. The lien ruins credit ratings, and may force the unit owner into foreclosure or bankruptcy before anything is addressed by the court.
Our condominium association has forced two unit owners into foreclosure with five assessments totaling $5,880.00 per unit in the last 6 years; one a very elderly man who is a stroke victim.
A large portion of these assessments have been diverted to other expenses. We have been assessed for specific things only to find the money was spent elsewhere. When a unit owner asks for disclosure; they are ignored, ridiculed or harassed.
Our Board has even announced, "We can do anything we want" which includes breaking Federal and State laws as well as our own by-laws.
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