Hutto homeowner slammed with fees
4/15/2008 6:24 PM
By: Veronica Castelo Channel 8 News
When money got tight, paying a homeowners' association fee was not on Keith Means' priority list.
Like most people, when money gets tight, Keith Means of Hutto prioritizes his bills.
"You definitely have to have a roof over your head. You definitely
have to have water, lights and trash," Means said.
Paying his $360 fee to the HuttoParke Homeowners Association (HOA) was not on his priority list. He fell behind. He struck a deal with the association but still couldn't afford the payment.
"My wife had lost her job and all the bills were on me," Means said.
Eventually the HOA turned Means into their Houston-based law firm Bartley and Spears.
Before Means knew it, he owed more than $2,000.
"These are just assessments, dues and court costs," Means said. "This has nothing to do with the $360."
Means says he now owes more than $6,000.
Means worked out a monthly payment plan but he soon realized he couldn't afford the now-$367 monthly payment. He fell behind again. A few fines and lawyers fees later, Means now owes more than $6,000.
Under state property codes, HOAs are allowed to seek out lawyers and collection agencies for help in collecting their fines. State laws said HOAs can also collect reimbursement of reasonable attorney's fees.
The consequences are even costlier according to the Home Builders Association Executive Vice President, Harry Savio.
"Under state law, they actually have the authority to foreclose your home if you are bad enough," Savio said.
Beanie Adolph of Texas for HOA Reform said she sees lots of cases like this.
"The industry wrote the laws and it's all in their favor," Adolph said. "This is a business and their only goal is to make money."
The Hutto Parke HOA is run by Planned Community Management Company.
Spokesperson Sabrina Washburn said they have to collect the HOA fees in a timely manner to ensure the landscape is maintained, utilities are paid and the pool is kept.
"But foreclosure would be the last option," Washburn said.
Savio said homeowners need to know what they are getting into when they buy a new home.
"You need to budget and include HOA and take a look at your discretionary spending in other areas because those HOA dues are part of the cost of owning that home that need to be paid," Savio said.
Adolph said Texas for HOA Reform is trying to work with legislators to change laws in favor of homeowners.
She has this advice now: "Pay fast because every time the attorney talks to the board or to you, the price jumps up."
It's advice Means said he wish he heard earlier.