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Neighbor sueing HOA board over electricity

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H

HOAdistressinTx

Guest
What is the name of your state? Texas

I have a somewhat complex problem:

I live in a 30 unit condominium project that was founded in 1976.
They units are actually townhomes on condominium papers. There are four buildings in two rows, with carport on the backside of each set and a central driveway that forms a cul-de-sac.

It is in Houston, Tx.

The problem is that in the original declaration filed with the Harris County clerk's office there is a clause that states specifically that all electricity is to be paid by association dues. It says, "There are no individual electric or water meters on the premesis and it is agreed that all electricity and water reasonably required for the comfort of..... shall be furnished as a common expense to all...."
Sometime in the early '80s the maintainence fees had gone so high (nearly $400 including special assesments, according to what homeowners who were here at that time said) that there was a vote to change to individual meters and they were installed. :eek:

However, at some time in the past the voting proxies and all records from that time were either lost or destroyed due to an incompetent manager so there is no record of the vote at all. And no records from that time have been kept.

Since 1983, everybody in the complex has paid for their own electricity. The problem is that no ammendment to the declaration was made or filed with the clerk. (Our bylaws say that a 60% majority is required for an ammendment to the declaration.) And the Texas condominium code and business code requires that amendments must be filed to be valid. It also requires the board to keep records of voting proxies and meeting minutes.

I have lived in my home for the past eleven years. I received a copy of the declaration as it was originally filed in 1976 when I purchased my home. (It is also the same copy all current homeowners have been furnished when they bought their homes on this property.) I had no idea what was in the declaration (having never bothered to really read the declaration from end to end).

Now, I have a neighbor(Chris) who has lived here for 5 years. She asked about the bylaw amendment when she first moved in and was told there indeed is an amendment but was never furnished with said amendmennt upon request.

She is now challenging the HOA on the lack of ammendment in court. She is demading that we pay her electricity as the bylaws say we are supposed to due as a common expense.

I did some legwork on my own and I went to the Harris County clerk's office and I pulled all microfilms that were filed in 1982 and 1983 (Reliant says my meter was installed 2/17/83 on my power bill)and could not find an ammendment to the declaration or bylaws from that time. I did however find a re-filing of the original declaration and bylaws with a 'rules of conduct' ammendment that was filed DEC 1999.

Chris, who has legal experience as a Paralegal for 18ys with contract law and litigation, and is currently working as an insurance adjuster, seems to think that because the declaration was refiled without amendment it strengthens her case.

She is sueing our board for breech of contract, fraud(since it was represented that there was an amendment but none was furnished),and deceptive trade practice act violations which allow for triple damaged if she wins, and breech of feduciary duty.

(THere are other damages she is alleging too, including harassment by the board(which is patently groundless, it was a property manager who did the harassment) and a fair housing act violation(for which fair housing is investigating). The fair housing violation is alleged because we have no place for our children to play ball. Be have a cul-de-sac driveway that is the playarea of choice but the HOA restrict it's use for this. We have a large grassy area behind the pool which is supposed to be the designated play area but it not really safe. The area borders a flood control bayou and there are snakes sometimes that find their way of there. Then there is a problem with the fence. It was 4ft tall when I moved into the complex and at somepoint someone added an additional 4ft section to make it ~8ft tall.
The problem is they didn't removed the old fence which had the pointed side up. Where once the bar along the top of the fence protected you if you were to fall against it now the points are leaning toward the complex and Chris seems to think it's a huge hazzard and would not let her daugher play there. When she first move here one of the neighbors called the police repetedly for children playing in the driveway cul-de-sac. At one point the person accused Chris' daughter of breaking a hedge and attempted to take the the (then 9yr old) girl to juvenile hall. Chris wouldn't let the officer take her daughter away and instisted on a supervisor who agreed there was no basis for any charge and it was a civil matter. The person called the police on the children playing ball no less than 12 times. And at that time he was on our HOA board. He has since moved away.)

Our board is not taking any of this seriously however. They are a bunch of idiots by being so blase about it. I went to a recent board meeting with attempt to make them understand the problem and their response was that "it would be too costly to pay for everyone's electricity."
And with respect to the fence they have just put up some plants to line the fence. Bogenvilias which contain thorns. The managment seems to think we do not have to have a playground.

I'm trying to figure out where I stand in all this. Is any of this going to fly in court? If she wins she seems to think the the Directors and Officers insurance policy will pay for the expense. She has an ax-to-grind against the board and she is purposfully looking to send us into receivership.

Is there anything that can be done other than pray the judge tosses this whole mess?
 


HomeGuru

Senior Member
HOAdistressinTx said:
What is the name of your state? Texas

I have a somewhat complex problem:

I live in a 30 unit condominium project that was founded in 1976.
They units are actually townhomes on condominium papers. There are four buildings in two rows, with carport on the backside of each set and a central driveway that forms a cul-de-sac.

It is in Houston, Tx.

The problem is that in the original declaration filed with the Harris County clerk's office there is a clause that states specifically that all electricity is to be paid by association dues. It says, "There are no individual electric or water meters on the premesis and it is agreed that all electricity and water reasonably required for the comfort of..... shall be furnished as a common expense to all...."
Sometime in the early '80s the maintainence fees had gone so high (nearly $400 including special assesments, according to what homeowners who were here at that time said) that there was a vote to change to individual meters and they were installed. :eek:

However, at some time in the past the voting proxies and all records from that time were either lost or destroyed due to an incompetent manager so there is no record of the vote at all. And no records from that time have been kept.

Since 1983, everybody in the complex has paid for their own electricity. The problem is that no ammendment to the declaration was made or filed with the clerk. (Our bylaws say that a 60% majority is required for an ammendment to the declaration.) And the Texas condominium code and business code requires that amendments must be filed to be valid. It also requires the board to keep records of voting proxies and meeting minutes.

I have lived in my home for the past eleven years. I received a copy of the declaration as it was originally filed in 1976 when I purchased my home. (It is also the same copy all current homeowners have been furnished when they bought their homes on this property.) I had no idea what was in the declaration (having never bothered to really read the declaration from end to end).

Now, I have a neighbor(Chris) who has lived here for 5 years. She asked about the bylaw amendment when she first moved in and was told there indeed is an amendment but was never furnished with said amendmennt upon request.

She is now challenging the HOA on the lack of ammendment in court. She is demading that we pay her electricity as the bylaws say we are supposed to due as a common expense.

I did some legwork on my own and I went to the Harris County clerk's office and I pulled all microfilms that were filed in 1982 and 1983 (Reliant says my meter was installed 2/17/83 on my power bill)and could not find an ammendment to the declaration or bylaws from that time. I did however find a re-filing of the original declaration and bylaws with a 'rules of conduct' ammendment that was filed DEC 1999.

Chris, who has legal experience as a Paralegal for 18ys with contract law and litigation, and is currently working as an insurance adjuster, seems to think that because the declaration was refiled without amendment it strengthens her case.

She is sueing our board for breech of contract, fraud(since it was represented that there was an amendment but none was furnished),and deceptive trade practice act violations which allow for triple damaged if she wins, and breech of feduciary duty.

(THere are other damages she is alleging too, including harassment by the board(which is patently groundless, it was a property manager who did the harassment) and a fair housing act violation(for which fair housing is investigating). The fair housing violation is alleged because we have no place for our children to play ball. Be have a cul-de-sac driveway that is the playarea of choice but the HOA restrict it's use for this. We have a large grassy area behind the pool which is supposed to be the designated play area but it not really safe. The area borders a flood control bayou and there are snakes sometimes that find their way of there. Then there is a problem with the fence. It was 4ft tall when I moved into the complex and at somepoint someone added an additional 4ft section to make it ~8ft tall.
The problem is they didn't removed the old fence which had the pointed side up. Where once the bar along the top of the fence protected you if you were to fall against it now the points are leaning toward the complex and Chris seems to think it's a huge hazzard and would not let her daugher play there. When she first move here one of the neighbors called the police repetedly for children playing in the driveway cul-de-sac. At one point the person accused Chris' daughter of breaking a hedge and attempted to take the the (then 9yr old) girl to juvenile hall. Chris wouldn't let the officer take her daughter away and instisted on a supervisor who agreed there was no basis for any charge and it was a civil matter. The person called the police on the children playing ball no less than 12 times. And at that time he was on our HOA board. He has since moved away.)

Our board is not taking any of this seriously however. They are a bunch of idiots by being so blase about it. I went to a recent board meeting with attempt to make them understand the problem and their response was that "it would be too costly to pay for everyone's electricity."
And with respect to the fence they have just put up some plants to line the fence. Bogenvilias which contain thorns. The managment seems to think we do not have to have a playground.

I'm trying to figure out where I stand in all this. Is any of this going to fly in court? If she wins she seems to think the the Directors and Officers insurance policy will pay for the expense. She has an ax-to-grind against the board and she is purposfully looking to send us into receivership.

Is there anything that can be done other than pray the judge tosses this whole mess?
**A: I am not going to read your long post filled with non relevant rantings.
 
H

HOAdistressinTx

Guest
:confused:
I was not ranting!
:confused:

I am simply stating as much information as is possible.

You know it is very rude to say someone is ranting! :mad:

This situation is extremely important in that this person is going to attempt to ruin our association! The insurance policy she thinks will cover the lawsuit is only a $1000000 policy. Anything else would be required by the rest of the association to pay. Is this right?! Should we be held responsible for an error of ommision from 21 yrs ago?
If there is not enough money to pay any damages she's seeking I would lose my home! Is this ranting? Maybe but I'm trying to find out what the hell I should do!

AND if you don't want to help then **** OFF!!! :mad: :mad: :mad:
 

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