Homeowner groups want lawmakers to cap HOA fees
News 4 San Antonio
by Jaie Avila
28 December 2016

SAN ANTONIO — It's a fee that you have to pay or else you could lose your home. We're not talking about your mortgage, or your property taxes. It's your homeowner's association fee.

Sometimes homeowners have no control over how high it goes up. Now there's a push to cap fee increases.

HOA fee nearly doubled

One local group of homeowners contacted us after their HOA fee nearly doubled, from $275 a year in 2014, up to $360 last year, then up to $540 this year. They've had no way to stop it because the people running the homeowner's association weren't homeowners.

Rosemary Hendrix is retired and cares for her disabled husband on a fixed income. She says the big hikes to their HOA fee have caused a lot of stress.
“It's been very hard because we live on a fixed budget, so any increase such as this—we do feel it in other areas," Hendrix says.

Hendrix bought her home in the Sedona subdivision in 2009. It had low HOA fees, and Hendrix says she was told they would go toward landscaping and some modest amenities. But year's passed and the developer decided to build a more up-scale development right next door. The Sedona sign came down and was replaced by one reading Crossvine, the name of the new subdivision. More expensive homes were built, along with a resort style pool, pavilion and hiking trails.

Hendrix and her neighbors in the Sedona section can cross over and use those improvements, but their HOA fees skyrocketed to help pay for it all.

“We never knew about this. This was something that was done without our knowledge, and yet we were put into a contract that we're supposed to pay for that maintenance of all that development," says Hendrix.

Why didn't Hendrix and other Sedona residents pressure their HOA board members to reject the deal? There were no Sedona homeowners on the board. Developer Christopher Price maintained control of the Sedona board along with some other board members who don't live in the subdivision. The contract to share the cost of the amenities was signed by the developer and homeowner's had no vote.

“It's like we fell under a dictatorship with this homeowner's association," said Sedona homeowner Scott Morton.

Developer Christopher Price, who's company is called "Schertz 1518" sent us a statement:
"We, as the developer, are committed to creating a harmonious master-planned community that is inclusive of both of our Schertz neighborhoods. We have worked together with Sedona for many years to integrate their established community with a vision for a larger, connected neighborhood. In the summer of 2016, the Sedona board brought on a new HOA management company and established a Sedona resident board member to more fully represent resident priorities."

The developer says the financial crisis extended the time it took to develop the property, so he kept control of the HOA longer.

caps increases that HOA's can make to assessments at 10% per year

There is no state agency that regulates HOA's, so the Sedona residents hired a lawyer to negotiate, and possibly, sue the developer. An advocacy group in Austin wants a change in the law during the upcoming legislative session.
“The Texas Family Council would support legislation that caps the increase that HOA's can make to assessments at ten percent per year, similar to what we have with property taxes, unless a supermajority of the residents votes to override that," says Nathan Walker of the Texas Family Council.

The group is still looking for someone to sponsor the bill. Meanwhile Rosemary Hendrix says she might have to sell her retirement house, but buyers are put off by the high HOA fees.

“It's very hard to accept because it's our investment that we are losing."

The developer, Christopher Price, declined our invitation for an interview. However, he provided the following complete statement:
As the developer, Schertz 1518, Ltd, we are committed to creating a harmonious master planned community that is inclusive of both of our Schertz neighborhoods. As such, we have worked together with Sedona for many years to integrate their established community with a vision for a larger, connected neighborhood in conjunction with The Crossvine neighborhood.

To provide some background: Due to the 2008 financial crisis, construction at the partially-completed Sedona development stalled. In 2011, Schertz 1518, Ltd became the new developer and worked to re-envision aspects of Sedona and to respond to the needs of the post-recession market. This has, in part, led to an extended period of development within the neighborhood and a developer-maintained HOA.

Since then, many desired amenities have been brought to the community, and the HOA dues have risen commensurate with these expanded facilities. We feel a majority of Sedona homeowners enjoy the pool, pavilion, hiking trails, and parks that have been provided.

In response to recent resident concerns, the Sedona board brought on a new HOA management company and tasked them with creating greater transparency for the residents. The Sedona board also established a Sedona resident member on the HOA board earlier than required by Texas law and the Sedona governing documents to more fully represent the residents’ priorities. Earlier this year the board put out a formal call for nominations to add two Sedona resident members to the board. The board only received one nomination, and that resident was appointed to and now serves on the Sedona HOA board. The call for the election of two Sedona residents to the board was distributed via registered emails and in a letter to all Sedona residents.

In regards to some of the claims being made, the board and the developer want to note that all meetings have been legally noticed to the Sedona homeowners, and Sedona residents have been present at all meetings. Only one meeting has been held outside of Schertz, at the previous HOA management company’s office in San Antonio, where they presented the annual budget.

At all times, the board has acted in compliance with Texas law and the Sedona governing documents. The board and the developer vehemently deny any insinuation that Sedona HOA funds have been willfully mishandled or misappropriated.

Both the developer and the board’s goal and priority right now is to bring about a positive resolution to this issue, so that we can all move forward in our effort to build a welcoming and open environment for all residents.


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