Missing Money Could Lead to HOA Court Case
Homeowners in an Alabama community claim they've been paying hundreds of dollars every year but have no idea where the money is going because there are no meetings, no detailed budgets, and no communication from their association. They are blaming the developer.
The head executive of the developer and his daughter sit on the board of directors, which comports with laws governing associations in that area; however, homeowners haven’t spoken with him in a decade. Meanwhile, the board collects about $60,000 in dues annually.
While the developer, who spoke with news outlets after a complaint was filed, claims that he isn’t required to disclose to homeowners where their money is going, state laws say otherwise. While associations formed after 2016 have to meet new state guidelines giving homeowners more of a say in running the organization, older associations must follow basic rules that allow homeowners to inspect certain records. Homeowners here say a court case is likely.