'I realized the HOA rules they were constantly referring to did not exist… Suddenly the pres resigned' : Neighbor joins HOA board just to discover it's a fraud, exposes them

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  • 01
    Font - r/r/f KHOA . Posted by u/Timely_Cake_8304 7 days ago Fake HOA uncovered I didn't have a problem with HOA's and even joined the board but now am uncomfortable in my own neighborhood and feel like a pariah.
  • 02
    Font - Once I started researching HOA's and realized how little this group was doing and how poorly they were following basic HOA management. When I finally procured the bylaws, I realized the "HOA rules" they were constantly referring to did not exist.
  • 03
    Font - Suddenly the pres resigned, there was a new pres who I had never seen at a meeting in 10 years, they said to the board dues were "donations" (but didn't tell not to residents). Then at a meeting the old pres, who is still pretty much running things, says, "We aren't an HOA? What, who ever said that?"
  • 04
    Font - The meeting we were in was actually titled in the invite as "HOA Quarterly Meeting". There are a ton of examples of HOA fakery. Found out the common areas are actually city designated parks.
  • 05
    Font - I resigned and sent them a note that they should talk to an attorney., grateful to know I don't have to deal with them. The dues were super low, only 200 a year for 200 townhouses, but some of the board wanted to rewrite the mysterious by-laws include extra oversight of the houses exteriors.
  • 06
    Font - Now there is gossiping and weirdness and I suspect am the crazy trouble-maker. The rest of the board is just being completely silent. The main characters are pretending nothing was ever amiss, just flat out lying. The new Pres is gossiping about me. The residents don't know or don't care. Have a feeling gossip is spreading to make sure I don't start a revolt. Just wish there was no such thing as HOA's.
  • 07
    Font - UPDATE: I have some information and documents if I wanted to file a complaint and escalate. I do think the treasurer and president were lying to the board regarding the bank accounts but I don't think they were stealing just spending poorly. They have stopped saying they were an HOA and seem to understand dues should be voluntary as of the last convo before I quit.
  • 08
    Font - I will see if this holds. I would like a sense of vindication instead of feeling so gaslit but I don't know what else escalation will accomplish. I started a group to take care of some neighborhood maintenance. They refuse to contribute, of course.
  • 09
    Font - CdnSailorinMtl. 7 days ago Fraud. All of it. Did you cover your arse? Do you have any documents or communications? Was it ever registered with a government authority? Are there covenants on the deeds of you and your neighbours?
  • 10
    Font - Timely Cake_8304 OP 7 days ago. edited 7 days ago there are no covanants, not registered, and no ccand r's. it took awhile for me to find this all out because it is a very old neighborhood group. Docs are different now so it was possible certain things were just done differently. I thought they had been an HOA and let everything legal sort of fall apart over decades. No ideal they were not an HOA at all.
  • 11
    Font - Im covered if there are problems since I documented a lot of things and am the squeaky wheel. I don't think if I escalated to the AG or something that it would serve me well. I don't think anyone really cares. More it is the social bs and dealing with liars, avoiding neighbors who are hearing weird stories about me. So stupid. No sense of justice.
  • 12
    Font - Spector567 7 days ago The trick here is that you already did escalate things. You suggested legal ramifications by telling them they need a lawyer. Also you may not be covered. You are not a whistleblower in this scenario because you haven't blown the whistle.
  • 13
    Font - However, they are already acting as if you have whistleblown. Board members have resigned. New people have magically shown up. Things are suddenly "donations". They are in full gaslighting and butt covering mode.
  • 14
    Font - At this point it might be quicker just to follow through and at a minimum report the fake HOA to the whoever the immediate authority is. Depending on the laws the quickest thing might be the city or whoever is responsible for registration and let them take it from there.
  • 15
    Font - Is there anything that justifies a spend of $20K a year? Is someone laying out all that money for a block party? Or is it a potluck. Is this just some busybodies that meant well or is your community funding someone's vacations every year?
  • 16
    Font - And why do they want to expand there authority? To fine people? Do they fine people? Because that's entirely different can of worms. Overall, I wouldn't worry about the gossip. Over half the community doesn't pay. They already think the HOA is useless or fake. A certain percentage of those who do pay just do it just because it's not worth the trouble and the rest don't know. You'll hardly be the only hold out.
  • 17
    Font - femboy_validation Thissssss. To get whistleblower protections you need to be a whistleblower. I'd go to the AGs office with copies of everything you have. Go to the IRS with those same copies and lists of names and addresses. Also, make sure you keep a copy of your list at home too. ● 2 days ago
  • 18
    Font - Breakfast Beerz. 7 days ago To be fair, couldn't the current board just be flat out ignorant? If this "HOA" has existed for decades, would it be reasonable that they just didn't invest the time to dig into the details like you did and that they just were doing what they took over from someone else who took over from someone else who took over from somewhere else?
  • 19
    Font - My brother in law was in a very similar situation, he got on the board and discovered that the park they were collecting dues for was also a city park. They were an HOA, so that was legit, but the park wasn't theirs and they were paying for it when it was the city's responsibility. The HOA was established in the 60's and nobody on the board had any idea because nobody took the time to research.
  • 20
    Font - Apparently, the developer installed a playground, basketball court and tennis court on a chunk of his property, but he ended up deeding it over to the city. This city chose not to maintain the amenities there (or did so poorly) so the original board started doing it themselves.
  • 21
    Font - Timely_Cake_8304 OP 7 days ago . edited 7 days ago Except that they use their HOA status to harass residents about their paint colors, so not that benign. I do think they are mostly totally ignorant but the ringleaders knew and were lying about basic info to the whole board.The lying is where I have less sympathy. They have taken people to court and shown up and Buildings department hearings stating they are the HOA. This was before my time so I don't know the details.
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