ATLANTA — It’s almost impossible to buy new home construction these days and not be in a home homeowner’s association.
According to data from the Foundation for Community Association Research, in 2021, 2.3 million people in Georgia lived in a community governed by an HOA and paid more than $3.2 billion in annual fees. The report also states that 89 percent say their experience has been positive or neutral, those who have had problems say there is little recourse for those on the other side of that statistic.
For months, 11Alive Investigates has tracked one community getting creative to regain control.
In March, investigative reporter Rebecca Lindstrom was there when a fight broke out between the president of the Peyton Place Condo Association and a homeowner, Michael Shepherd.
By July, that feud had turned into a plea agreement in which the president, Clare Cherry, agreed to do 20 hours of community service and take an anger management class.
However, several condo owners say the ruling did nothing to solve the actual problems at Peyton Place, a community in southwest Atlanta just off MLK Jr. Drive.
“I feel like I’m on a game show; what’s behind door No. 1?” mused Shepherd as he pulled back a board covering a hole in the brick wall of one of the units. “Yeah, look at that. A raccoon can get in there.”
11Alive Investigates went to court three times as the community tried to use Atlanta municipal code violations to get the HOA to fix years of neglect. Each was a baby step that helped get things like roof shingles and eaves fixed. After revisiting the community in July, the gutters were cleaned, and there was less trash.
Yet moss grew on roof tiles; there were leaks, broken gutters and busted walls. The HOA’s covenants say it is responsible for fixing these things.
Homeowners say there are safety issues as well. In June, there were two shootings. One incident led to a man’s death. He was found inside one of the units owned by Cherry.
“I feel the social media push and the coverage through 11Alive has put additional eyes and pressure on the situation,” said Shepherd. “But obviously, it’s a super slow process.”
He says the Atlanta municipal court process has not been able to tackle the bigger picture problem: how to get the HOA to come into compliance with its own rules.
In court, Cherry’s attorney pushed back against expectations and said the HOA could only do what it could afford.
“There are 47 units. Ms. Cherry is the HOA president. Her responsibility is largely tied, and her ability to even address code violations is largely tied to those 47 individual units and homeowners paying their dues,” attorney Chuck Douglas told the judge.
Shepherd doesn’t dispute that fact. But county property tax records show Cherry owns at least a dozen of those units and homeowners that have spoken with 11Alive say they have yet to see proof that she is even paying dues. Shepherd also showed Lindstrom checks for his dues that had been returned in the mail.
Shepherd believes the HOA is receiving most of its money when homes sell. He shared his closing documents which appear to show the seller had to pay $10,000 to the HOA to settle his debt. It’s a big chunk of money without any bank statements, budget, or receipts to show how the sum was calculated or where the money is now.
That’s why several homeowners, including Anthony Herring who walked 11Alive around the complex, have gone a step further, filing a lawsuit demanding the current board step down.
“I believe our legal bill is $20,000. I’ve footed the bill for most of that right now, and that’s not easy,” said Shepherd.
11Alive Investigates has tried to track down other board members. None live in the community. So far, no luck. An email was also sent to Cherry’s attorney asking for proof to refute the claims or provide additional context. To date, 11Alive has not received a response.
A new state legislative study committee will kick off this fall. When Lindstrom has reached out to lawmakers to find out why they aren’t tackling the issue, the reaction is usually surprise.
Lawmakers insist they aren’t aware this is even a problem. So, as much as residents have heard it, it’s worth repeating. Let lawmakers – local and state – know what you're experiencing.
City of South Fulton Councilmember Linda Pritchett says she’s already heard enough.
“I hope to expose a lot of real abuses that I feel are almost to the extent of being criminal,” Pritchett said.
She’s hoping to create her own study committee to gather recommendations for lawmakers but also determine what local government can do to help. She believes education is key and that each community can provide a resource to help homeowners understand what an HOA can and cannot do.
“Many of the board members for HOAs don’t realize that you have to have quarterly meetings; follow Robert’s Rule of Order,” she explained.
She said many homeowners don’t read their covenants to see if the HOA or property management company is fining them correctly or for even an issue that is a listed violation.
She said that only the state can add accountability to boards, property management groups, or attorneys that participate in neglect, or the other end of the spectrum, fines for the sake of fines.
“My next-door neighbor had built a pond with exotic fish and did not get permission from the board to do so. So within a year, they had $14,000 worth of fines,” said Pritchett. “And it didn’t even make sense because they had removed the pond within two months of putting it up!”
Shepherd said he’s hopeful this time lawmakers will take action. He’s finding ways to fight back but says it’s a burden that homeowners shouldn’t have to bear.
“There is no resource in the state of Georgia when you have an out of control, and in my opinion, criminal HOA,” said Shepherd.
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