Great article by Susan McFarland, and it points out many of the reasons why I won’t live in a HOA controlled community:
KELLER – Some residents in the Hidden Lakes subdivision in Keller say that the homeowners association board “fired” most of its volunteers without warning and is barring residents from board meetings.
Those residents also complain that the developer is using HOA money to pay for landscaping services from a developer-owned company instead of seeking bids and also using association money to make repairs that are the developer’s responsibility.
After numerous attempts to reach the two developer-appointed board members, Elby Beal and James Gresset, and the management company, Premier Communities, a response was sent via email calling all the allegations “completely false.”
“We conduct the business of the HOA in accordance with Texas law and our bylaws, rules and procedures reflect the latest changes implemented in the last legislative session,” the email states.
“The residents elected a homeowner to the board in March of this year and some of the committees were eliminated. The homeowner representative on the board is very active, competent and engaged with our community. The majority of our residents tell us they are very pleased with the changes that were implemented and the amount of communication and input they receive on a monthly basis.”
Multiple attempts to get a response from the homeowner elected to the board, Todd Almand, were unsuccessful.
Disputes between HOAs and residents prompted the Texas Legislature last year to try to rein in the power of some groups. New rules that took effect this year include measures to ensure voting rights for all members and require open meetings and open records. Among the requirements, HOAs must provide 72-hour notice of a board meeting and open their meetings to homeowners.
There is some question, however, about whether the law applies to developer-controlled boards because of a section written into the law that states the law doesn’t apply to meetings of a board during “development periods.” That is apparently intended to give developers freedom to make construction decisions while working out in the field, without having to stop and call a board meeting.
Noting that the master-planned community of about 1,800 lots is almost fully developed, Mike Thomas, chair of the HOA’s safety committee, said, “It is high time the developer turns control of the board to the homeowners.”
But he said it appears the exact opposite has happened.
“They eliminated oversight and communications,” Thomas said. “We are only getting their spin. That’s their story and they are sticking to it.”
Hidden Lakes resident Steve Hillanbrand says issues with the board began when some residents began to challenge the board’s decisions last year. At that point, the developer, who had never appeared at a meeting before November, took over, he contends.
Without notice, he said, the board in mid-May eliminated five committees including the committees responsible for reviewing contracts and overseeing financial decisions.
Thomas said 15 to 20 volunteers were eliminated without notice. “I really have heartburn when you take people who have volunteered for as long as they have and say, ‘We don’t need you any more,’ ” he said.
“I just don’t think morally they are doing the right thing,” Thomas said. “It may be legal, but is it moral or ethical? I’m not sure … To just get rid of all those volunteers? Why would they do that?
Hillanbrand also said that the board meetings are now being held privately.
“We wanted to go to a meeting and were denied,” he said. “It was not posted, they would not tell us where it was going to be held. They refused to.”
Hillandbrand, who has started a website, www.homeownercontrol.com, to inform residents about recent changes in the way the board is operating, said he and others raising questions simply want to be in the loop on how the association’s money is being spent.
That’s also a concern to Cory Langley, chairman of the long-range planning committee.
He said that during the May 15 “firing of the volunteers” meeting, the board sprung on the group a large landscape project.
“They hired a landscape company, and in the presentation they talked about how the project was going to be handled by my committee, yet no one had even briefed me about anything,” Langley said. “Just the lack of communication and being kept in the dark is concerning …That is our concern. There is no oversight.”
Beanie Adolph, HOA reform project director of the Texas Housing Justice League, said the industry blocks openness and is “extremely shrewd.”
“This is one of the main things that we have begged for, open records and open meeting access. All the other organizations that are subject to it do fine,” Adolph said. “The question is why does this industry fight it?” People want to see the books.”

Doug, Thanks for Posting this. I am one of those that has begun to “fight” the battle and win Homeowner control. Eveything that is said in the article is factual although the Developer board says every thing is “completely false”. We have begun to hear from Attorneys and Legislative groups that are watching this with great interest.
And yes, this my first and LAST HOA.
Lets not put all HOA’s under a single blanket. People who live in them chose to live in them for one reason or another. The secret is people still have to talk to their neighbors, get unvolved and stay involved.
I have lived in several HOA’s and always been involved and just by talking to those in the community can work out most issues
Marcus,I hear what you’re saying,however, in this case it is an issue with a Developer Board which does not want to give control over to the Homeowners. I agree if an HOA is run by Homeowners, most issues can be resolved. The Hidden Lakes HOA has been promised for over 5 years that the Developers were going to turn over control to the Homeowners. It hasn’t happened and the developer will not provide an answer as to why not. The developer lives in another state and does not really have the “vested interest” living in the that a Homeowner living in the community does.
The developer has eliminated all the volunteers that used to over see financial events and provide feedback on bids for large projects etc. The Homeowners in reality have only 1 single rep (just elected) to oversee what 10 people used to do and were familiar with.
Mike,
I reached out to Stephen, but haven’t heard back. If you talk to him, tell him to give me a shout.
I am not up to date on the rules, but I thought for HOAs the control had to be passed to residents when some threshhold was passed (like the number of lots/houses sold). Am I wrong?
Greetings from Shanghai!!
Frank I agree with you I thought once a certain % threshold was passed it did convert to the homeowners. If this is not the case here it should be corrected and make it happen. The city and council was very helpful in getting this development pushed thru so hopefully the right thing can be done here for the homeowners.
Our new State Rep Elect has offered to sit down with the representitives of the homeowners to see what he can do.
Doug, thank you for your interest in our situation. I look forward to meeting with you.
This is NOT my first HOA experience. In fact, I have been an elected president of an association and was involved in the transfer from Developer to Home Owners in South Carolina so I know how it’s suppose to work. This Developer Controlled BOD situation we find ourselves involved in should not exist in a community nearly fully developed after 13 years. It’s time for a change in Texas law requiring develpers to give up control of HOA after a specific percentage of homes are sold – say 75%? I’m pretty sure we are well over 95% and it’ sthat low due to new communities brought on board.
Steve
I submitted a list of questions during the recent Hidden Lake HOA Annual Meeting in March 2012 (see hlhoa.com). One of the questions I asked was what “properties” does the Developers, or Declarant (Hidden Lakes Partners), still own in Hidden Lakes. The HL HOA (Premier Communities) noted that only 3 properties out of the original 1700 + properties in Hidden Lakes are owned by Hidden Lakes Partners. They are as follows:
1. Hidden Woods Dr #B
Blk 10 Lot 1, Open Space
2. Crown Ct # B
Blk 11 Lot 37, Open Space
3. Hidden Woods Dr
Blk 12 Lot 1, Private Streets
Our current Master Declaration, allows Hidden Lake Partners (or Declarant) to maintain legal control over the HL HOA until their Class B Membership is terminated. The Declarant’s legal control can only be terminated by either 1) ceasing to own any portion of the HL Property; or 2) when they voluntarily elect to terminate their legal control (Class B Membership) in writing to the Hidden Lakes Board of Directors. As a result, the HL Developers are in control until they decide otherwise.
I am amazed that our City, County, and State Legisaltures allow developers to hold tax paying citizens hostage with HOAs and their Bylaws and Declarations. At the very least, a law should be passed to limit oversight by developers and require them to turn over control of an HOA to residents after building-out 75% of all properties in the association. Our recent legislative session in Austin is proof that money and political pressure from national builder/developer groups have influenced our lawmakers and created a major obstacle to establishing this type of law.
Hopefully, what we are having been dealing with in Hidden Lakes will raise more awareness of the problem we are having with developers controling our HOAs and force our legislature to begin acting on behalf of homeowners in the State of Texas.
This is why
http://www.wfaa.com/news/investigates/State-Senator-defends-HOA–122680849.html