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Feldsott Lee Pagano & Canfield
Orange County Homeowners Association Law Firm

Homeowners' association members question use of funds

Those living in housing communities here in Laguna Hills may enjoy numerous amenities and beautifully landscaped common areas. More than likely, this is due to the existence of an HOA. As homeowners' association members, those who live in these communities should be afforded the right to know where their dues go.

Residents of one community in another state that pay dues to an HOA are currently asking these questions. The board is accused of mismanaging more than a quarter of a million dollars in fees. As for the board, it says that the allegations against it are politically motivated due to upcoming elections and have no basis in fact.

The residents enjoy numerous amenities in their Arizona community, including a community garden, a gym and a clubhouse. Their dues also provide them with access to horse stables that offer rides, tennis and basketball courts and two lakes. The problem is that after some calculations, it appears that the cost of the rides given to members in the last year was $371 per ride, which does not seem to be covered by the $250 per month boarding fee charged to the four residents who stable their horses on the property.

This is just one of the charges being questioned. There are also other concerns, including a lawsuit filed by a former employee of the association. In the midst of all of the controversy, established board members want to raise the dues.

Unfortunately, the potential for mismanagement of funds could occur in HOAs here in Laguna Hills as well. Homeowners' association members who suspect wrongdoing on the part of the board may benefit from having their concerns reviewed by an attorney. It may be necessary to involve the courts in order to get to the bottom of the situation.

Source: uniondemocrat.com, "Political drama unfolds over Crystal Falls HOA's finances, legal troubles", Alex Maclean, Nov. 30, 2017

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