When non-profit organizations like Texas Homeowners for HOA Reform, Inc. come onto the scene to help stop HOA abuse and help reform policies to keep homeowners from losing their homes, there is an obvious problem with the power of HOAs in Texas. Stories abound about foreclosed homes, power-hungry HOA board members, and out-of-control spending issues where the money going to the HOA is not being used for the neighborhood.
Recently a story surfaced about a military soldier, Michael Clauer, who was foreclosed on by his homeowner’s association while he was serving in Iraq. Heritage Lakes Homeowners Association said the soldier and his wife owed the association $977.55 and that several certified letters were sent to the homeowners before they were foreclosed on. The wife was said to be suffering from depression and that she had not opened any mail, including the certified letters, since her husband was deployed. The attorney representing the Clauers, Barbara Hale, stated that her clients are protected from foreclosure by the Servicemembers Civil Relief Act. Though that act should get the couple their home back, the homeowner’s association does not own the home anymore. It was auctioned off for $3,201 and then sold to another person after that. The case is still in litigation, and the couple may never get their home back.
In a story that recently aired on San Antonio’s KENS 5 TV, a woman in the Panther Creek Subdivision of Stone Oak recently filed an application to build a small gate at the entrance of her house to help protect her autistic son. She specifically stated that the gate was for the protection of her autistic son. The application stated if she heard nothing back from the HOA in 30 days she could proceed. Ms. Colquhoun, the owner, waited 60 days and then proceeded to build the life-saving gate to match existing railings on the home. After she had the gate professionally installed she was harassed by neighbors and was reported to the HOA. The HOA told Colquhoun to tear down the gate and pay a fine. She was told that her house could be foreclosed on if she did not remove the gate.
Though many HOAs are set in place with good intention to help better the neighborhood, retain/increase home values, and provide services and maintenance for pools, parks and community centers, many HOAs abuse the powers they have. Exercising the right to foreclose on a home for a few hundred does not seem like something that is possible, but many people have lost their homes to HOAs in this manner. To make sweeping changes, legislative reform may be the only way to set things straight.
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The shrinking values seem to be consistent with the recession-based conditions that have plagued most of the country. An increase in foreclosures and a slowing housing market seem to be the main causes for the decline.