Suing a HOA? anyone tried?..

[HipChick]

I'm sure my HOA is run by RW' arseholes....During the election, I was asked several times to take down my Obama/Biden signs down...I made a point to note that people with McCain/Palin signs were not being asked to take down..regs regarding signs should apply to both...we went back and forth, and they eventually let it drop...I've recently been out of the country for over a month, they recently issued new parking decals, which I did not receive because I was out of the country..When I got back from overseas yesterday, my car was gone...they got it towed because the car did not have the new parking decals..and how the fuck I'm suppose to attach it if I'm out of the country I don't know...I can prove to judge that I was out of the country, is it worth it to file a small claims fee to recoup the cost of what I had to pay the towing company to get my car back?...I'm livid to say the least..
I've attended quite a few HOA meetings so I can see what is going on, but at this point, I think I'm being targeted by at least one zealous member on the board...

[JanMichael]

1. No but look up the concept of 501c3 "Fiduciary Responsibilities"...

...for most HOA's (I believe most are technically nonprofits).

The fiduciary responsibilities are legal responsibilities that include the 3 duties for all board members.

Duty of Care
Duty of Loyalty
Duty of Obediance

Get a copy of the bylaws and see if they've been followed. Also look up what are called self dealing transactions and arm's length transactions and see if you can snag them there.

By violating these duties the IRS can strip the nonprofit status as well and punish lousy board members financially.

[HipChick]

2. I've questioned them on giving contracts to 'buddies'..

with no comparative bids...

the 'extreme towing' thing is new...it's a money maker for the towing company who were hired on contract..the towing company manager is the SIL to someone who sits on the board..

[david13]

3. Yes. And the IRS will start on this case after they finish the other

18 zillion cases they have of non payment of taxes.
In other words don't hold your breath til the IRS does something.
There is no 'technically' 501c3. You either is, or you isn't. Just like pregnancy.
dc

[JanMichael]

5. Actually HOA's are one of the biggest undercover industries in the US.

And it appears that if you really bear down you can nail them for breaching the bylaws and fiduciary responsibilities which are typically state law (I only say "typically" as I'm in NC and I know it is state law here but I don't know about all states). I also don't know if every HOA is a nonprofit, they are around where I live but I can't say for certain all are.

The IRS has also been hitting 501c3's up for "Excessive Compensation" for paying too much salary to ED's or for other services. That can go back 5 years now at 20% (or it was 10% going to 25%? I forget) of the excess per year for board members. This is all part of what is known as "Intermediate Sanctions" which came into being in 1996 with regs starting to be applied in 2002 or 2004.

Really all I'm saying is that one can put the heat on "bad" nonprofits if one really is determined to fuck with them.

[david13]

4. I have seen it done. But I have not done it. One problem is, that

it puts you further into the hole with these people, the same hole that you are already in, which is somewhere along the lines of persona non grata, from the wrong side of the fence/tracks, whatever.
In terms of giving the contracts to buddies, why do you think they want onto the board in the first place?
Cause they are saints?
If there is a reasonable, fair minded person in the complex or subd. they may be able to negotiate a settlement with the board with regard to the tow away charges.
If you can't get that, you can do the small claims, but remember, it may further put you behind their distaste.
Good luck.
dc

[Kaleva]

6. Her pimp threatened my life so I dropped the lawsuit.

[Amerigo Vespucci]

7. HOAs are like asshole MAGNETS.

Seriously.

Realize that if they even think you are coming at them from a "lawsuit" perspective, they will immediately begin hatching 50 different plans to destroy you.

They also know that they have attorneys on retainer and you don't. Unless you do. If you do, you're not most people. But even if you do, they know you'll break the bank coming after them.