COWETA COUNTY, Ga. — Some Georgians are frustrated with their homeowners associations and are trying to fight back against the obstacles they've encountered.
Jessica Navas said the battle to reform HOA laws has been difficult.
“It’s a very powerful organization. Here I have seen that the people are afraid,” she explained.
Navas lives in Belmont Park in Coweta County, but stories like hers are being told across the state. She has spent the past seven months encouraging people to speak up about their fear and frustration.
Families like Enrique Inostroza have joined the fight. Inostroza can’t recall what started the financial landslide, but despite years of garnished wages and a bankruptcy court settlement, he’s yet to pay off his debt.
11Alive reviewed his statements and none of the math made sense.
“Normal people tend to look at it, they go 'the heck with it.' They throw it away, whatever you say. But they're banking on us to do that,” said Inostroza.
The HOA board hired a property management company to help with accounting and enforce the community's rules. 11Alive tried to reach Homeowners Management LLC in Stockbridge to ask about Inostroza's account but the website was shut down and the phone number went to another company, Sentry Management.
Sentry told Inostroza by email that because his account was in collections, it could not answer any of his questions, only the attorney handling the claim.
Simply put, dues in Belmont Park right now are $200 a year. So at that rate for 10 years, he would owe $2,000. It appears he’s had nine violations, mainly for yard maintenance. That adds up to another $1,200 -- or $3,200 in total.
Here's how much has he paid. 11Alive calculated about $12,000 and the HOA wants $8,000 more. This is all the while more late fees and interest keep getting added on each month.
“When there's no regulation people take advantage of it. Take advantage of normal people,” Inostroza said. “We are not people to them, we (are) just numbers. That's all. This thing is numbers.”
There actually are regulations in Georgia and they allow what’s happening to Inostroza. In fact, with that kind of debt, the HOA could take away his house - simply auction it off on the courthouse steps. The board in Belmont Park has chosen not to take that kind of action, but 11Alive has reported on other homeowners in metro Atlanta who have lost their homes that way.
"Everything is about the money. So somebody is making a lot of money off of allowing these HOAs to be out of control,” said Georgia Senator Donzella James.
Lawmakers in at least five states don’t allow HOAs to use fines, attorney fees, or community violations to foreclose on a house.
“I would like to have an ombudsman office,” said James. “It needs to be a third person to look at this and decide, you know. And right now [in these] HOAs, we're paying the lawyers and everyone. But the resident does not have access to that lawyer for themselves. They need to have somebody they can go talk to. “
In certain situations, an ombudsman can either educate or offer some kind of mediation service. At least five states do have an ombudsman’s office. South Carolina also adds another layer of transparency for would-be homebuyers, by posting information about complaints online.
James has been trying for several years to pass these types of HOA reforms, but none of the bills have ever made it out of committee. The challenge is James is a Democrat under a Republican gold dome and to get reforms passed she needs bi-partisan support.
This year she did get approval to study the issue, none of the people who serve on her committee are Republican. She’s hoping political support for reforms in other conservative states will help create more support in Georgia. For example, Republicans in North Carolina are part of a bi-partisan bill nearing the finish line this session and Florida’s new law which caps fines and gives homeowners more power to fight them, went into effect this month.
“I don't want it to be that we just talking about it again. I want to make sure we do something to resolve the problems,” said James.
Roberto Cardenas said similar reforms are past due in Georgia. For years he received HOA fines for cars parked along the street.
“Everybody parking a car around my property, that ticket on my name. That’s very crazy. I don’t understand that,” said Cardenas while sitting at his kitchen table with a stack of citations.
Cardenas repeatedly explained he doesn’t have a car. Still, the tickets came.
“It’s not right!” he said over and over again in frustration.
But Cardenas said each time he paid it out of fear the HOA would foreclose on his house. At a board meeting in February, the property manager told residents a review of the HOAs covenants and bylaws determined those citations were not valid and those who wanted a refund could request one.
It took Cardenas eight months to get the HOA to agree to post a $700 credit to his account, but he is still appealing, arguing he is owed much more.
It’s just one more reason why Navas said Georgia needs laws that require clear communication and offer inexpensive or free mediation between the people sending the fines and the homeowners receiving them.
“There's no way to contact a management company because they don't have a contact phone call,” she explained. “There's no phone numbers. Just email.”
But Navas said a response by email can take months and if you don’t understand the answer or have another question, you start the process all over again. All the while, the fines continue adding up.
11Alive did speak with a former board member who defended the community and the board's actions. She requested not to be named but said anyone who came to the board for help, received it, as long as it was fair and legal.
The former board member cited years of apathy amongst residents with essentially poor participation at meetings. She also added there's a lack of understanding or willingness to follow the rules regarding some of the community's complaints.
It's clear if nothing else that residents need more education on what's expected when moving into a community governed by an HOA.
The Urban Affairs Senate committee will have one more meeting in November before putting together its recommendations. The House is also working on proposed legislation as well.
James said in the meantime, it’s important homeowners start speaking up. Navas agreed.
“If we are united and if we speak up and if we report what is happening, it's not that we are just saving families, children. They are also helping other communities and be part of a change. That's what I want,” Navas said.
As for the upcoming Urban Affairs Committee meeting, it will be held Thursday, Nov. 9 at 1 p.m., in Room 307 of the Coverdell Legislative Office Building. People can show up to speak or contact James’ office for more information.