Representing Texas Homeowners Associations & those aggrieved by them

Attorney Trey Wilson handles lawsuits and pre-litigation disputes involving enforcement of restrictive covenants/deed restrictions, Homeowner Association member voting/ballot/proxy issues, HOA Board elections, collection of assessments/dues, placement and removal of liens, CCR/Declaration disputes, developer HOA control/turnover, ACC approval, HOA Board governance, Abuses by Homeowners Associations and drafting/amendment of HOA documents including By-laws.



Showing posts with label Attorney Trey Wilson. Show all posts
Showing posts with label Attorney Trey Wilson. Show all posts

5.29.2013

Resident and HOA Flagpole Dispute

San Antonio HOA Lawyer Trey Wilson wrote:


As reported by Cindy George of The Houston Advocate,  HOA's and residents of the communities they manage can be disagreeable and destructive.  Ms. George reported that The Forrest Lake Townhouse Association sued homeowner, Billy B. Martin, over a flagpole on a cantilever on his porch.  Houston police had to intervene to resolve the conflict.

Mr. Martin claimed he was targeted by the HOA because of a recent complaint he made about a tattered flag at the clubhouse.  He said that after that incident and after it was replaced, he was told he must remove his flag  or risk a $200 per day fine for attorney and civil damages, because it was "infringing on the common area."  Mr. Martin disagreed with the HOA's assessment and refused to remove the display.  The HOA sought a permanent injunction in December.  At that point, Mr. Martin began displaying his flag upside down in protest.

The lawsuit claims that the pole is "a violation of the general scheme and plan for the development and building in the subdivision," and that his "actions are intentional and/or negligent invasions" into the property owned by the HOA & its members.  The petition also claims that  the display "substantially interferes with their use and enjoyment of the land and it is unreasonable under the circumstances."

5.22.2013

HOA Accountability Bill Stirs Debate at Capitol - From the texas Tribune

San Antonio HOA Lawyer Trey Wilson wrote:  Here's another insightful article from the Texas Tribune.  This article originally appeared in The Texas Tribune at http://www.texastribune.org/2013/04/09/hoa-accountability-bill-stirs-debate-capitol/.




A bill aimed at making nonprofit homeowners associations more financially accountable and transparent pitted homeowner activists against people representing for-profit HOA contractors on Tuesday.

House Bill 3803, by state Rep. Ruth Jones McClendon, D-San Antonio, would require homeowners associations, which have government-like powers to levy assessments and foreclose on homes, to better safeguard the money they collect for the common good of the neighborhood.

And it would for the first time introduce state oversight of HOAs — an elusive goal of Texas homeowner activist groups. The legislation would allow the attorney general to investigate breaches of fiduciary responsibility by board members and levy penalties of up to $20,000 per violation. That would go up to $250,000 if the violation was intended to harm an elderly Texan.

“All we’re trying to do is to get them to pay attention to what they’re doing with other people’s money,” McClendon said.

Homeowner Xina Togba said the association in her Lakeville subdivision in Katy could use a little state oversight. Under current law, homeowners who have beef with their HOA have little legal recourse other than filing a lawsuit, which can be expensive and daunting. Togba told the committee that her board has towed hundreds of vehicles without proper notice, saying many of the cars were removed from public streets and even homeowners’ driveways. She also complained that the board has been secretive about its meetings and has been dragging its feet on providing basic financial information.

She said the management company that runs the Lakeville Community Association, SCS Management, has refused to even provide a copy of its contract with Lakeville.

“We have no strategy other than to be loud and speak up,” she said.
A voicemail left for SCS Management was not immediately returned; a message left on Lakeville's website was not immediately returned, either.

McClendon’s bill ran into fierce opposition from the HOA lobby, including the industry's main advocacy group in the state, the Texas Community Association Advocates, or TCAA. The industry critics say the legislation is unworkable and punitive to the voluntary board members who run them. TCAA represents HOA boards and members and the interests of for-profit contractors, such as HOA management companies and foreclosure lawyers, at the Texas Capitol.

Dallas HOA attorney Judd Austin, a TCAA board member, said the legislation would have a “chilling effect on the volunteer spirit of the communities,’’ telling the House Business and Industry Committee that the board could handle its own financial affairs without additional state regulations.
Besides the AG oversight, the bill would require board members to have surety bonds and get insurance providing coverage for the risk of fraud and dishonest acts.

Embezzlement and fraud cases have left some homeowners associations in dire financial shape. Prosecutors say that in the Houston area last year, for example, one property manager hired to run several associations in Fort Bend County stole more than $2 million, according to a report on KTRK-TV, Channel 13. And in Nevada, federal prosecutors have charged dozens of people in a far-reaching conspiracy to take over homeowners associations and direct millions in contracting dollars to themselves in a massive corruption scheme.

Andrew Fortin, vice president for governmental affairs at the giant HOA management company Associa of Dallas, said the goals of McClendon’s bill are laudable. But he expressed opposition to it and said he is working with her office to to improve it.

“We think that there are things that can be done on this,” Fortin said. “We don’t think that the current bill captures the experience that other state have had in addressing issues of protecting financial assets of the community and ensuring our boards are accountable.”

Homeowner activist Harvella Jones, president of the National Homeowners Advocate Group, said the fiercest opposition is coming from companies that are profiting from HOA dues money.
“It’s created a money making industry for a lot of the special interest groups,” Jones said. “These are our homes. … We need something to protect the money.”

4.09.2013

HOA Embezzlement Prevention Bill (HB 3803) To Be Heard Today

San Antonio HOA Lawyer Trey Wilson wrote:


State Representative Ruth Jones-McClendon's HB 3803 is set for public hearing today before the House Committee on Business and Industry. 

As I previously wrote, the Bill (filed on 3/8/13) seeks to prevent Board-member fraud and embezzlement of HOA funds through a series of money management procedures and local government regulation. Pundits have predicted substantial testimony concerning the Bill.

It should be an interesting day, as sentiments on both sides of the Bill are strong. Among the most important concerns regarding the Bill are its financial implications upon the Texas Attorney General, cities and counties who would be granted regulatory authority over HOAs. According to the Fiscal Note prepared by the Legislative Budget Board, local governments, including the City of Houston, are uncertain about the financial impact of this new-found authority. 
  

3.26.2013

New Bill Proposes Local Government Control and Attorney General Oversight of HOAs

San Antonio HOA Lawsuit Lawyer Trey Wilson wrote:

State Rep. Ruth Jones McClendon of San Antonio has filed legislation that would cede control over Texas Homeowners Associations/Property Owners Associations to cities and counties, with oversight and monitoring to be conducted by the Texas Attorney General's office.

The initiative -- HB 3803 --  is captioned as "Relating to the municipal and county regulation of and the oversight by the attorney general of property owners ’ associations and unit owners ’ associations; providing penalties."

This bill would authorize Texas cities (in city limits and ETJ) and counties (in unincorporated areas) to regulate HOAs on a variety of matters of "municipal concern," and to require registration with the applicable unit of local government. Other portions of the bill affect the way HOA funds are deposited and maintained (in trust accounts) and contain new bonding and insurance requirements for HOAs and their directors. 

Sections 3 and 4 of the bill are particularly dangerous to Texas HOAs because they would require the Texas AG's office to monitor HOAs and investigate complaints about them.  These provisions expressly provide for notification to the AG in the event of embezzlement of HOA funds.   A particularly interesting, if unclear, section of the bill directs the AG to monitor the banking institution where HOAs maintain the newly-required trust accounts. 

The bill was filed on March 8, and was referred to the House Committee on Business & Industry on March 21.


If enacted, this legislation would modify the Texas Local Government Code and Chapter 82 of the Texas Property Code.